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"Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information on it."-Samuel Johnson

As I peruse the weekly copy of Barron's and go through the top insider buys for the week, two fast growing biotechs seem to have found some love among their insiders. Growth investors looking to allocate more money into the sector should review them for consideration.

Santarus (NASDAQ:SNTS) is a specialty biopharmaceutical company that develops and commercializes proprietary products that address the needs of patients treated by physician specialists. It has a strong type 2 diabetes franchise.

4 reasons SNTS is a good growth play at just over $10 a share:

  1. A director made a $2mm purchase two weeks ago. It was the first insider buy since the first quarter.
  2. Earnings are rising impressively. The company earned just 7 cents a share in FY2011, but it is on track to triple EPS in FY2012. Analysts expect the company to more than triple earnings again in FY2013 with a consensus earnings estimate north of 75 cents a share currently.
  3. The company has a solid balance sheet with more than 10% of its market capitalization in net cash. SNTS sells for just over 14x forward earnings, a discount to its five year average (24.4).
  4. After growing more than 75% in FY2012, analysts expect a better than 40% sales gain in FY2013.

Note: For a deeper dive into the company's products and prospects, click here.

United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company that develops and commercializes therapeutic products for patients with chronic and life-threatening diseases in the United States and internationally. It offers Remodulin, Tyvaso, and Adcirca for the treatment of pulmonary arterial hypertension.

4 reasons UTHR is a solid growth play at $52 a share:

  1. An insider bought over 30,000 shares in December. They were the first purchases since June.
  2. After increasing revenues by better than 20% in FY2012, analysts expect almost 10% sales growth in FY2013. The stock has five year projected PEG of 1 (.42).
  3. The company has easily beat earnings estimates each of the last three quarters and consensus earnings estimates for both FY2012 and FY2013 have both rose nicely in the last two months.
  4. The stock is cheap at 9.5x forward earnings, a deep discount to its five year average (25.1). The company has a solid balance sheet with over $200mm in net cash on the books.
Source: 2 Fast Growing Biotech Stocks With Recent Insider Buying