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In this article, I will feature one biotech stock 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%.

Achillion Pharmaceuticals (NASDAQ:ACHN) discovers, develops, and commercializes anti-infective drug therapies in the United States and internationally.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
RA Capital Management10% OwnerOct 31-Nov 204,091,00723,366,007 shares+21.2%
Dennis LiottaDirectorNov 2210,000100,000 shares+11.1%
Jason FishermanDirectorNov 18-1915,00040,000 shares+60%

There have been 4,116,007 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
November 20132,930,0000
October 20136,003,9460
September 20132,800,0002,754,900
August 2013112,2820
July 20133,397,7185,000
June 201340,0005,000
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 15,283,946 shares purchased and there have been 2,764,900 shares sold by insiders this year. The month of October has seen the most insider buying.

Financials

Achillion reported the third-quarter financial results on November 12 with the following highlights:

Revenue$0
Net loss$13.9 million
Cash$173.1 million
Debt$0.4 million

Outlook

Achillion believes that its current cash balance of approximately $173 million will be more than sufficient to reach several value creating milestones and fund its operations for at least two years.

Pipeline and upcoming milestones

Achillion's discovery, clinical development, and commercial teams have advanced multiple novel product candidates with proven mechanisms of action into studies and toward the market. Achillion is focused on solutions for the most challenging problems in infectious disease including hepatitis C virus (HCV) and resistant bacterial infections.

(click to enlarge)

(Source: Achillion)

Achillion has the following upcoming milestones:

CompoundStudyTimeline
ACH-342228-day animal tox studiesOngoing
ACH-3422Phase 1 healthy subject study1H/2014
ACH-3422Phase 1 HCV proof-of-concept trial1H/2014
ACH-3422Phase 2 HCV all-oral combination trial2H/2014
ACH-2684Drug-drug interaction study to begin1Q/2014
ACH-2684Combo trial expected to begin1H/2014

(click to enlarge)

(Source: November 13 presentation)

Competition

Achillion's competitors include Gilead Sciences (NASDAQ:GILD), AbbVie (NYSE:ABBV), Bristol-Myers Squibb (NYSE:BMY), Vertex Pharmaceuticals (NASDAQ:VRTX), Johnson & Johnson (NYSE:JNJ), Merck (NYSE:MRK), and Idenix Pharmaceuticals (NASDAQ:IDIX).

(click to enlarge)

(Source: November 13 presentation)

Here is a table of these competitors' insider-trading activities this year.

CompanyInsider buying / sharesInsider selling / shares
GILD10,0005,553,222
ABBV4,500209,395
BMY02,607,814
VRTX01,447,775
JNJ0113,709
MRK0431,484
IDIX00

Only Achillion has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Achillion and there have not been any insiders selling Achillion during the last 30 days. All three of these insiders increased their holdings by more than 10%.

There are two analyst buy ratings, 10 neutral ratings, and one sell rating with an average price target of $5.31. The stock plunged on September 30 after Achillion announced that the FDA concluded that the removal of the sovaprevir clinical hold is not warranted. The insiders started buying the shares after this news. I believe the stock could be a good pick from the current price level based on the intensive insider buying.

Source: Achillion Pharmaceuticals: 3 Different Insiders Have Purchased Shares This Month