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Summary

  • 5 insiders purchased Transition Therapeutics stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • 4 of these 5 insiders increased their holdings by more than 10%.

Transition Therapeutics (NASDAQ:TTHI) develops therapeutics for Alzheimer's disease and type 2 diabetes.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Transition Therapeutics' insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedProspectusCurrent OwnershipIncrease In Shares
Paul BaehrDirectorJune 234,699Yes28,144
shares
+20.0%
Tony CruzCEOJune 2328,195Yes98,248
shares
+40.2%
Carl DamianiVPJune 239,398Yes71,364
shares
+15.2%
Gary PaceDirectorJune 233,759Yes73,599
shares
+5.4%
Nicole RusawCFOJune 231,880Yes1,880 sharesfrom 0 to 1,880

There have been 47,931 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a private placement.

Insider buying by calendar month

Here is a table of Transition Therapeutics' insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 201447,9310
May 201400
April 201400
March 201400
February 201400
January 201400
December 201300
November 201300
October 201300
September 201300
August 201371,6000
July 201300
June 201300
May 201300
April 201300
March 201316,1000
February 201300
January 201300

There have been 135,631 shares purchased and there have been zero shares sold by insiders since January 2013.

Financials

Transition Therapeutics reported the fiscal 2014 third-quarter, which ended March 31, financial results on May 13 with the following highlights:

Revenue$0
Net loss$4.7 million
Cash$48.9 million

The five insiders purchased their shares after these results. On June 23, Transition Therapeutics closed a $17 million private placement.

Outlook

Transition Therapeutics expects to have enough cash beyond the next 12 months.

Pipeline and upcoming milestones

Transition Therapeutics' two lead programs are ELND005 in Alzheimer's disease, and TT401 in type 2 diabetes.

(click to enlarge)

(Source: Investor presentation)

Transition Therapeutics' upcoming milestones include the AG201 (Alzheimer's disease) topline data in mid-2015.

(click to enlarge)

(Source: Investor presentation)

Competition

Transition Therapeutics' competitors in Alzheimer's disease agitation include Lundbeck (OTCPK:HLUYY) with Brexpiprazole, and Avanir (NASDAQ:AVNR) with AVP-923.

(click to enlarge)

(Source: Investor presentation)

Conclusion

There have been five different insiders buying Transition Therapeutics and there have not been any insiders selling Transition Therapeutics during the last 30 days. Four of these five insiders increased their holdings by more than 10%. Transition Therapeutics has an insider ownership of 5.09%.

The five insiders purchased their shares at $5.32. I believe Transition Therapeutics could be a good pick below $5.32 based on the intensive insider buying.

(Source: Investor presentation)

Source: Transition Therapeutics: 5 Different Insiders Have Purchased Shares This Month