Rubius Therapeutics (RUBY: US)
12-month performance: -62%
Insider activity: Bullish
Buying pattern: Purchases from multiple insiders including CEO
Recent news: Announced business shift
Rubius Therapeutics is a biotechnology firm that develops cellular therapies. The group has developed technology that generates red blood cells and genetically engineers them into a new class of cellular medicine. The company is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $487 million.
In mid-March, Rubius announced a plan to de-prioritise its blood disorder drug and focus on the development of its oncology and autoimmunity pipeline. It believes these are the areas that its technology may offer the greatest potential to benefit patients. “Over the past two years, we have generated exciting oncology preclinical data, demonstrating the ability of our Red Cell Therapeutics to both broadly activate the immune system, and induce tumor-specific responses by activating and expanding antigen-specific T cells with our artificial antigen-presenting cells. By focusing on the development of our oncology and autoimmune pipeline, we believe we will have the greatest opportunity to bring life-saving therapies to patients, enhance shareholder value and extend our cash runway into 2022,” said Pablo J. Cagnoni, M.D., President and CEO of Rubius Therapeutics.
Investors didn’t like this news. Immediately after the announcement, the stock fell from around $6.50 to $3.60, hitting a record low. However, what we think is interesting is that since the announcement three insiders have purchased RUBY shares including Cagnoli, Chairman David Epstein – who was previously CEO of Novartis Pharmaceuticals – and Chief Medical Officer Christina Coughlin. In our view, this is a bullish signal, as these three insiders are likely to have an excellent understanding of the group’s future prospects. Given this insider buying activity, we think this small-cap biotechnology stock has the potential to rebound.