Insider Selling

Healthcare Sector Insiders are filing Form 144s amidst a rise in demand

Stocks have been a hard hit this year thanks to the combined effects of the Russia-Ukraine War, Inflation, and recession looming around the corner. Multiple sectors have been struck, but certain companies have managed to perform better than their fellow competitors. 

The healthcare sector seems to be a generally stable market in 2022, particularly in America. Partially thanks to the pandemic, new medical researches have become inevitable without government support and in a chain reaction, this means that plenty health and pharma stocks could survive as well as thrive this year. Ironically, Analysts at 2iQ have unearthed several public healthcare companies where Insiders have instead filed Form 144s, regardless of the stock’s ongoing performance. Starting with the best performing stocks and ending with worst performing ones, here is a list of nine healthcare companies where insiders plan to sell shares:

Biomea Fusion Inc

The first stock on this list which rose by 30.19% YTD, Biomea Fusion Inc (BMEA: US), is a biopharma stock that focuses on developing treatments for genetically-defined cancers and other diseases. Based in California, Biomea went public in April’21 and has a current M Cap of $333.4 million. 

Twice in the month of July, A2A Pharmaceuticals Inc, which is a Legal Entity on Biomea’s board filed three Form 144s. Twice on July 20 and once on July 21, A2A made plans to sell a total of 34,658 shares worth almost $386,997. All forms were filed through the broker UBS Financial Services and A2A later sold all the aforementioned 34,658 shares for a total worth of $388,516, calculated at a rate of $11.21 per share.

In an unexpected turn of events, Biomea’s earnings results for Q1 2022 displayed less than favorable results. The company’s cash at hand was 5.79% lower year-on-year while net losses was almost 179.7% higher year-on-year. Ironically, the day following the earnings results, BMEA’s stock price surged by almost 34.54%. A list also named it as one of the best performing small-cap stocks this year. 

UniQure NV

Based in the Netherlands, UniQure NV (QURE: US) is a gene-therapy company that exclusively works on treatments for genetic diseases. With a history dating back to 1998, the company went public in 2014 and has a current Market Cap of $1.21 billion. The stock price of QURE has surged by 16.28% year-to-date.

The only insider at the company who filed Form 144s was UniQure’s Executive Vice President, Alexander Edward Kuta III, who filed up to four forms in July alone. He also sold significant chunks of stock in between the dates he filed forms, all via broker, Georgeson Securities Corporation. All in all, the Vice President planned to sell 44,000 shares of QURE worth roughly $1.10 million. 

On May 2, the company disclosed its earnings for the first quarter of 2022. Total revenues rose by a whopping 294.7% year-on-year, while net losses only had a small increase of 12.33% year-on-year. While the second quarter results have yet to arrive, QURE stock is actually on an uptrend; it’s stockprice rose by 55.93% in the past three months beginning from May 2.  

United Therapeutics Corp

Joining the other biotechnology companies on this list is United Therapeutics Corp (UTHR: US). Founded in 1996, United deals in aiding patients with chronic diseases as well as rare diseases. The company is noticebly the first in the public pharma group to also be a public-benefit corporation while UTHR’s stockprice is up by 5.09%.

The company had Insiders filing Form 144s nearly every month this year. Insiders who filed Form 144s in July all did so via the broker Morgan Stanley Smith Barney LLC:

  • Independent Director, Dwek Raymond, filed his only Form for the month for 2,160 share valued at $522,266 from $241.79 per share price.
  • Paul A. Mahon - General Counsel & Secretary - filed two forms this month each at different share prices. In total, he filed forms for 12,000 shares valued at total $2.8 million.

Earlier this year, United Therapeutics disclosed its earnings for Q1 2022 which listed revenues for the quarter as 21.84% higher year-on-year. Net product sales had also risen by 40%. 

Alibireo Pharma Inc

Focused on developing acid modulators to treat liver diseases and other related disorders, Albireo Pharma Inc (ALBO:US) was founded in Sweden and went public in 2018. The company has a Market Cap of $416.8 million while its stock price decreased by 3.04% year-to-date.

A member of the company’s general counsel, Jason G. Duncan was the only Insider at Albireo who filed Form 144s in July. He frequently traded stock throughout the year alongside a handful of other insiders and did so via the broker, Morgan Stanley Smith Barney LLC . His July collection of two forms was for 458 shares worth almost $10,836 at rates of $23.34 and $23.96 respectively. He also sold ALBO shares on July 25, the same day as he filed his most recent form. 

While the market is still awaiting Albireo’s Q2 2022 earnings - scheduled to be released on August 15 - the first quarter earnings showed a 247.5% rise in total revenues and a slight decrease of 2.97% in net losses, both values year-on-year. Another article painted ALBO stock in a positive light, even noting that it had generally outperformed the health sector this year. 

Agilon Health Inc

Agilon Health Inc (AGL: US) is a healthcare service provider, based in Texas, USA. The company concentrates its services on provide primary care, especially to seniors and improve bonds between patients and their doctors. The company has a current M Cap of $10.18 billion while the stock price of AGL has declined by 8.04% year-to-date.

Throughout 2022, two insiders frequently traded stock. Listed below are three Form 144s filed by the two insiders. 

  • Veeral Desai, Chief Strategy and Development Officer, filed two forms in July - one on 7th and the other on the 21st. Filed via broker UBS Financial Services Inc, the forms were for a total of 398,839 shares worth almost $10.5 million
  • On July 18, Benjamin Kornitzer, Agilon’s Chief Medical Officer, filed his only form 144 for the year. This was for 105,222 shares worth almost $2.96 million and via the broker, Goldman Sachs & Co LLC

Agilon disclosed that it would divulging its second quarter results for 2022 on August 4, 2022. Previously, the company’s first quarter results showed that the company had fetched revenues that were 58% higher year-on-year while the quarter’s net income losses declined by 92.38%. 

Vir Biotechnology Inc

Vir Biotechnology Inc (VIR:US) is another California biotech candidate on this list. The company was incorporated in 2016 and is currently researching Hepatitis B, having published new results from the program in Jun’22. The company has a current Market Cap of $3.84 billion, while its stock price declined by 25.76% year-to-date.

Most top level insiders at the biotech company filed Form 144s in 2022. Two insiders planned to sell stock in July:

  • George A. Scangos - the company CEO - filed seven forms in the past month, all through the broker E-Trade Financial Corp. In total he made plans to sell 87,500 shares at almost $2.62 million. So far, he has not sold any of the shares.
  • The company’s Chief Medical Officer, Phillip ‘Phil’ Pang, also filed Form 144s repeatedly throughout 2022. His only one in July was for 15,000 shares worth nearly $452,550 and via the broker, Morgan Stanley Smith Barney LLC.

In the news, Vir has been disclosing its data from ongoing research programs. The company is scheduled to display its Q2 earnings on August 4, but an article predicts that the results would be below satisfactory, but the same article states that the company has “beaten consensus EPS estimates four times”. 

Fate Therapeutics Inc 

Fate Therapeutics Inc (FATE:US) focuses on producing immunotherapies to patients suffering from cancer and other immune disorders. Founded in 2007 and based in California, Fate has a current Market Cap of $3.12 billion while FATE’s stock price plunged by 46.00% year-to-date.

In the month of July, two insiders filed Form 144s to sell FATE shares at varying prices. The broker for both Insiders’ forms was Morgan Stanley Smith Barney LLC:

  • John Scott Wolchko, President & CEO of Fate, sold company stock repeatedly throughout the year. On July 21, he filed a form for 80,000 shares worth a net value of $2.67 million. The CEO later sold a portion of the planned shares the same and following day.
  • The company’s Chief Level Officer filed his form for 25,000 shares, worth around $716,000. 

On August 3, Fate published its quarterly results for Q2 2022: the company’s collaboration revenue had risen to almost $18.5 million while net losses had increased significantly as well, nearly as much as 38.04%. The day prior, Victory Capital Management Inc. increased its stake in Fate according to an announcement on August 02. 

Zynerba Pharmaceuticals Inc

Zynerba Pharmaceuticals Inc (ZYNE: US) is a pharmaceutical company whose work centers on developing medicines for rare neuropsychiatric cases. Listed on NASDAQ, Zynerba has a current M Cap of nearly $49.7 million and ZYNE’s stock price has  declined by 60.93% since the beginning of 2022. 

The first Form 144s this year were filed by three A-level insiders at Zynerba on July 19, all via the same broker - Morgan Stanley Smith Barney LLC. All three insiders also sold their respective shares the same day, albeit for a smaller rate of $1.1 whereas the Form 144s were filed for $1.15:

  • Armando Anido - CEO & Chairman - made plans to sell 11,899 shares worth around $13,683 
  • CFO, James E. Fickenscher, filed his form for 6,013 shares worth almost $6,914
  • President Terri B. Sebree plans to sell 8,281 shares valued at $9,523

According to the results for Q1 2022, Zynerba had $69.7 million in cash or cash equivalents while the quarter’s net loss was $8.49 million; both values were significantly higher than the respective values for Q1 2021. Later on July 21, the company announced that it had entered into an Equity purchase agreement worth almost $20 million with Lincoln Park Capital.

Roivant Science Ltd

Based in the UK, Roivant Science Ltd (ROIV: US) is a biopharmaceutical company that focuses on researching and producing medicines for multiple conditions like blood and skin disorders. As of July 29, Roivant’s stock price is down by 61.76% YTD, and the company has a current M Cap of $2.79 billion.

In the month of July, three insiders in the company filed Form 144s all via the broker, E-Trade Financial Corporation. All the following forms were also followed by the Insiders selling a portion of their sales on July 25:

  • Company President/COO, Eric Venker, filed multiple forms this year. On July 21, he announced plans to sell 28,936 shares worth approximately $130,790
  • Matthew ‘Matt’ Gilne, CEO - a frequent trader at the company - filed his latest form on July 20 for 35,034 shares valued at almost $156,251.
  • Joining Gilne, Roivant’s Chief Accounting Officer, Rakhi Kumar, also made plans to sell ROIV stock on July 20. She filed a form for 3,101 shares valued at around $13,830. 

On June 28, Roivant disclosed its earnings for Q4 and Fiscal Year ending on March 31, 2022. Roivant’s net revenue for the fiscal quarter was $9.22 million; this was a decline of revenues by nearly 39.1% year-on-year. However, the net loss came to $291.3 million, which was significantly lower year-on-year.

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