Frequency Therapeutics is a clinical-stage biotechnology company that is focused on harnessing the human body’s biology to repair or reverse damage caused by degenerative diseases. Its lead product candidate, FX-322, is a regenerative treatment designed to help sensorineural hearing loss. The company is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $723 million.
Successful drug study
In mid-May, Frequency Therapeutics announced top-line data from an exploratory clinical study designed to show whether drug levels of FX-322 in the ear can be directly measured. The study results showed measurable concentrations of FX-322 in every patient and also showed that anatomical factors did not prevent the active agents of FX-322 from reaching the cochlea. Furthermore, the levels of FX-322 in the cochlea were predicted to reach the therapeutically active range of the treatment. “When we consider these new findings, together with the hearing signal observed in our earlier Phase 1/2 study, we believe we have developed the first known evidence of a pharmacokinetic/pharmacodynamic effect of a potential hearing restoration therapeutic,” said the company. Since this announcement, the stock has risen nearly 30%.
Source: 2iQ Research
Insider buying: $1 million stock purchase
What looks interesting here is that Frequency Therapeutics board member Joel Marcus just bought a large number of FREQ shares through his real estate business’ venture arm. According to Form 4 SEC filings, the insider purchased 55,555 shares on 16 July, spending a total of $999,990 on stock. Marcus has extensive experience in the biopharmaceutical industry and currently sits on the board of a number of biopharmaceutical companies. This large purchase suggests that he is confident about the future. We see this insider buy as a bullish signal.