12-month performance: 254% Insider activity: Bullish Insider buying pattern: Large purchases from CTO and parent company Recent news: Announced positive trial results
Top-level corporate insiders have deeper insight into their company’s operations than any outside analyst could ever hope to obtain. If these insiders are buying company stock, investors should take note – it’s a sign that they’re confident about the future and that they expect the stock to rise.
Here, we are going to highlight some interesting insider buying at Immunovant Inc (IMVT:US). Immunovant is a clinical-stage biopharmaceutical company that is focused on developing therapies for autoimmune diseases. It’s listed on the NASDAQ Global Select Market and currently has a market capitalization of $3.0 billion.
Immunovant: insider buying
An analysis of Form 4 filings reveals two interesting insider transactions at Immunovant this month. The first was an off-market purchase from parent company Roivant Sciences on 4 September. This purchase was for 380,000 IMVT shares at a price of $33 per share. The total cost of this purchase was $12.5 million.
The second purchase was from Chief Development and Technology Officer Julia G. Butchko on 11 September. This purchase was for 5,000 shares at a price of $38.17 per share. The total cost of this purchase was $190,850.
Source: 2iQ Research
High Insider Model score
This insider buying activity is worth highlighting for several reasons. Firstly, both Butchko and Roivant Sciences are likely to have an excellent understanding of Immunovant’s recent progress. It’s likely they have an information advantage over other investors. Their purchases are, therefore, a positive development. Secondly, our Insider Model rates this insider transaction activity as very bullish.
Positive trial results
Immunovant recently announced positive topline results from a multi-center, placebo-controlled Phase 2a trial of its lead product candidate IMVT-1401. IMVT-1401 is a novel, fully-human monoclonal antibody designed to address a variety of IgG-mediated autoimmune diseases including Myasthenia Gravis – a rare long-term condition that causes muscle weakness.
The results showed a 3.8 point mean improvement on the Myasthenia Gravis Activities of Daily Living (MG-ADL) scale and an 8.0 point mean improvement on Myasthenia Gravis Composite (MGC) scale. Consistent with previously reported Phase 1 results, IMVT-1401 was observed to be generally safe and well-tolerated with no serious adverse events.
“We are absolutely thrilled with the results of this trial,” said Pete Salzmann, M.D., CEO of Immunovant. “The clinical benefits we observed in this trial provide strong support that IMVT-1401 might ultimately become a best-in-class anti-FcRn agent for MG patients. We look forward to engaging with the FDA later this year on the design of our Phase 3 registrational program in MG.”
In light of this positive news, we see the insider buying here as a bullish signal. It suggests that insiders expect IMVT stock to continue rising.
Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.
Getting the most of Insider Trading Data - Free Book