Transition Therapeutics: 5 Different Insiders Have Purchased Shares This Month

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Paul Baehr Director June 23 4,699 Yes 28,144
shares
+20.0%
Tony Cruz CEO June 23 28,195 Yes 98,248
shares
+40.2%
Carl Damiani VP June 23 9,398 Yes 71,364
shares
+15.2%
Gary Pace Director June 23 3,759 Yes 73,599
shares
+5.4%
Nicole Rusaw CFO June 23 1,880 Yes 1,880 shares from 0 to 1,880
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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.

Month Insider buying / shares Insider selling / shares
June 2014 47,931 0
May 2014 0 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 71,600 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 16,100 0
February 2013 0 0
January 2013 0 0
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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
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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.

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(Source: Investor presentation)

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

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(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.

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(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.

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(Source: Investor presentation)

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in TTHI over the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.