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In this article, I will feature one healthcare company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

Dynavax Technologies Corporation (DVAX), a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Dynavax' insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedPublic OfferingCurrent OwnershipIncrease In Shares
Daniel KisnerDirectorOct 3010,000Yes15,000 shares+200%
Arnold OronskyDirectorOct 30186,047Yes375,055 shares+98.4%
Peggy PhillipsDirectorOct 3093,023Yes138,023 shares+206.7%

There have been 289,070 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Dynavax' insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
October 2013289,0700
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 289,070 shares purchased and there have been zero shares sold by insiders this year. The month of October has seen all of the insider buying.

Financials

Dynavax reported the second-quarter financial results on July 29 with the following highlights:

Revenue$3.4 million
Net loss$17.2 million
Cash$89.2 million

On October 25, Dynavax announced the pricing of a $132.2 million public offering.

Pipeline and upcoming milestones

Dynavax' lead product candidate is Heplisav, a hepatitis B vaccine product candidate in Phase 3 development. In addition to Heplisav, Dynavax' pipeline contains clinical-stage product candidates, including an autoimmune program partnered with GlaxoSmithKline (GSK), an asthma program partnered with AstraZeneca AB (AZN) and a cancer immunotherapy program, as well as a preclinical development program utilizing nanoparticle adjuvant technology.

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In the United States, Dynavax intends to initiate a Phase 3 Heplisav study in the first quarter of 2014 and conclude subject visits by the end of 2015. Dynavax estimates the external costs of the study to be in the range of $50 million - $55 million.

In Europe, Dynavax' Marketing Authorization Application for Heplisav is currently under review by the European Medicines Agency. Dynavax is currently preparing its response to the 120-day questions and expects to submit the response before the end of 2014.

Competition

Heplisav, a two-dose hepatitis B vaccine, if approved and commercialized, will compete directly with conventional three-dose marketed vaccines produced by GSK and Merck (MRK), among others. There are also modified schedules of conventional hepatitis B vaccines for limited age ranges that are approved in the European Union and in the United States. In addition, Heplisav will compete against a number of multivalent vaccines that simultaneously protect against hepatitis B and other diseases.

Conclusion

There have been three different insiders buying Dynavax and there have not been any insiders selling Dynavax during the past 30 days. All three of these insiders increased their holdings by more than 10%. Dynavax has an insider ownership of 3.32%.

The next potential major catalyst for the stock is the possible Heplisav European approval anticipated in 2014. The insiders paid $1.08 for their shares and the stock is currently trading at $1.27. I believe the stock could be a good pick at $1.08 based on the intensive insider buying.

Source: Insiders Are Buying Dynavax