12-month performance: +51% Insider activity: Bullish Insider buying pattern: Large purchase from board member Recent news: Entered into an agreement with IGAN Biosciences
Insiders sell company stock for many reasons. However, they only buy stock for one reason – they expect it to go up.
With that in mind, today we are going to flag some substantial insider buying at Selecta Biosciences Inc (SELB:US). Selecta Biosciences is a clinical-stage biopharmaceutical company that is committed to overcoming immunogenicity. It is listed on the NASDAQ Global Market and currently has a market capitalization of $222 million.
Selecta Biosciences: insider buying
What looks interesting here is a series of purchases from board member Timothy Springer this month. Our records show that between 6 October and 8 October, the insider – who has served as a board member since 2016 and as a scientific advisor to the company since 2008 – purchased approximately 3.19 million SELB shares. In total, he spent around $5.5 million on Selecta Biosciences stock.
Source: 2iQ Research
This insider transaction activity is worth highlighting for a few reasons. Firstly, Springer has significant experience in the biopharmaceutical industry. The founder of LeukoSite, a biotechnology company acquired by Millennium Pharmaceuticals in 1999, he is known for his pioneering immune system work.
Secondly, Stringer’s purchases are large, both in nominal and relative terms. This buying activity has increased the size of his holding by nearly 60%. Our Insider Model rates this insider transaction activity as very bullish.
Agreement with IGAN Biosciences
Shares in Selecta Biosciences recently jumped after the company announced that it had entered into a research license and option agreement with IGAN Biosciences Inc. The agreement will enable the study of Selecta's ImmTOR immune tolerance platform in combination with IGAN’s immunoglobulin A (IgA) protease for the treatment of IgA Nephropathy (IgAN). In combination, these products offer the prospect of realizing the potential value of IgA proteases to remove kidney IgA deposits, thus reducing progression of renal injury to renal failure.
“We are excited to combine an immunogenic enzyme with our ImmTOR platform to develop a product candidate for IgA nephropathy,” said Carsten Brunn, Ph.D., President and CEO of Selecta Biosciences. “IGAN’s IgA protease has shown tremendous promise in preclinical studies and combining it with ImmTOR to prevent ADAs could lead to a transformational product for patients with this debilitating disease,” he added.
In light of this development, we see this insider buying as a bullish signal. It suggests that Springer is confident about the future.
Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.
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