Eagle Pharmaceuticals (EGRX, Financial) Director Richard Edlin bought 6,000 shares for $79.44 per share on March 22, according to the Securities and Exchange Commission.
Edlin now owns 29,400 shares.
Headquartered in Woodcliff Lake, New Jersey, Eagle is a pharmaceutical company engaged in the provision of injectable products. Its activities include development and commercialization of pharmaceutical products for the treatment of areas such as critical care, orphan diseases and oncology.
Eagle has a market cap of $1.25 billion, a price-earnings (P/E) ratio of 16.51, an enterprise value of $1.2 billion, a price-book (P/B) ratio of 8.29 and a price-sales (P/S) ratio of 8.29.
According to GuruFocus, Eagle has a 10 of 10 financial strength rating with no debt. The company has an equity-asset ratio of 0.71 and an Altman Z-Score of 13.99 indicating the company is in the safe zone and is not in danger of filing for bankruptcy within the next two years. Eagle Pharmaceuticals has a Beneish M-Score of 166.41 indicating that the company is a manipulator of its financial statements. The Piotroski F-Score of 5 indicates that Eagle Pharmaceuticals' business situation is typical for a stable company.
The company has a 4 of 10 profitability and growth rating. It has an operating margin of 28.16%, a net margin of 42.99%, a return on assets (ROA) of 53.33% and a return on capital (ROC) Joel Greenblatt (Trades, Portfolio) of 289.86%.
Over the previous year, Eagle's market price has soared by an estimated 113%.
Edlin’s purchase came one day after Eagle Pharmaceuticals announced that three additional patents have been issued related to Bendeka by the U.S. Patent and Trademark Office (USPTO). Patent numbers 9,579,397 and 9,579,398 and 9,579,399 will expire March 2033. The USPTO has now issued or allowed a total of 14 patents in the Bendeka family of patents expiring from 2026 to 2033.
"We continue to build the strength of our intellectual property portfolio protecting Bendeka. We see significant value in Bendeka well beyond 2020," stated Scott Tarriff, CEO of Eagle Pharmaceuticals.
Edlin may haved decided to buy the shares for the following reasons:
- The company has been building momentum with strong improvements in its financial metrics over the previous five years.
- Over the previous five years the company has averaged a 1,472.34% increase in revenue and has averaged a 39.77% increase in gross margin.
- Over the previous three years, Eagle has increased its gross profts from a reported $6.3 million in September 2013 to $134.2 million over the previous trailing 12 months. An increase of 177% over the previous three years.
- Over the previous year Eagle has improved its revenue by 186.25% going from $66.2 million in December 2015 to $189.5 million over the previous trailing 12 months.
- Eagle Pharmaceuticals has no debt.
Below is a Peter Lynch chart that shows Eagle Pharmaceuticals is trading below its intrinsic value.
Disclosure: Author does not own any shares of this company.
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