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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 increased their holdings by more than 10%.

Galectin Therapeutics (NASDAQ:GALT) engages in the development of therapies for cancer and fibrotic disease.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedRule 10b5-1 PlanCurrent OwnershipIncrease In Shares
Jack CallicuttCFONov 19260No260 sharesfrom 0 to 260
Arthur GreenbergDirectorNov 192,000No95,667 shares+2.1%
Peter TraberCEONov 18-192,000No95,333 shares+2.1%
Kevin FreemanDirectorNov 181,000No2,917 shares+52.2%
Harold ShlevinCOONov 18500No53,914 shares+0.9%
James CzirrChairmanNov 151,000No844,450 shares+0.1%
John MauldinDirectorNov 1478Yes21,794 shares+2.2%

There have been 7,238 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
November 20137,2380
October 2013501112,000
September 20136760
August 20138400
July 20131,1760
June 20131,1760
May 20131,0000
April 201300
March 201300
February 201300
January 201300

There have been 12,607 shares purchased and there have been 112,000 shares sold by insiders this year. The month of November has seen the most insider buying.

Financials

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

Revenue$0
Net loss$3.7 million
Cash$9.7 million

Subsequent to quarter end, Galectin Therapeutics received $1.6 million from the exercise of warrants and options, with $1.5 million coming from warrant exercises by 10X Fund L.P. Additionally since September 30, 2013, the company received $0.5 million in net proceeds from the issuance of 50,643 shares through its at market stock issuance program at an average price per share of $10.82.

Outlook

Galectin Therapeutics believes that the cash on hand at quarter end and already received is sufficient to fund operations and planned research and development into the third quarter of 2014.

Pipeline and upcoming milestones

Galectin Therapeutics is developing carbohydrate-based therapies for the treatment of fibrotic liver disease and cancer based on the company's unique understanding of galectin proteins, key mediators of biologic function.

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(Source: Galectin Therapeutics)

Galectin Therapeutics has the following upcoming data readouts for its fibrosis drug candidate GR-MD-02 currently in Phase 1 trial.

Cohort 1Data to be reported Feb-Mar 2014
Cohort 2Data to be reported Jun-Jul 2014
Cohort 3Data to be reported Sept-Oct 2014

Competition

Galectin Therapeutics' competitors in NASH include Raptor Pharmaceuticals (NASDAQ:RPTP), and Intercept Pharmaceuticals (NASDAQ:ICPT). Raptor expects data from its NAFLD Phase 2 trial in the second half of 2014. Intercept expects final results from its Phase 2b NASH trial in late 2014. Here is a table comparing these companies.

CompanyGALTRPTPICPT
Market Cap:158.02M847.65M1.01B
Employees:54125
Qtrly Rev Growth (yoy):N/AN/A-0.23
Revenue:N/AN/A1.62M
Gross Margin:N/AN/A1.00
EBITDA:-11.14MN/A-32.18M
Operating Margin:N/AN/A-19.91
Net Income:-12.15MN/A-86.24M
EPS:-0.76-0.84-5.08
P/S:N/AN/A619.53

Galectin Therapeutics doesn't have any revenues yet.

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

CompanyInsider buying / sharesInsider selling / shares
RPTP0225,151
ICPT01,980,235

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

Conclusion

There have been seven different insiders buying Galectin Therapeutics and there have not been any insiders selling Galectin Therapeutics during the last 30 days. Two of these seven insiders increased their holdings by more than 10%. Galectin Therapeutics has an insider ownership of 6.60%.

(click to enlarge)

(Source: November presentation)

There are two analyst buy ratings, zero neutral ratings, and zero sell ratings with an average price target of $11.50. The next catalysts for the stock will be the NASH data readouts starting in February 2014. The insiders purchased most of their shares in November around $6, which could be a good entry point for the stock.

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(Source: November presentation)

Source: Galectin Therapeutics: 7 Different Insiders Have Purchased Shares This Month