3 Healthcare Companies Seeing Insider Buying In Last 3 Days

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 |  Includes: CYTR, GNMK, MSTX, PMTI
by: Markus Aarnio

When insiders buy shares on the open market, their companies are usually undervalued. Corporate insiders often have the inside track on their companies' prospects. An insider probably wouldn't risk investing too much of his or her own money into his or her own company unless the insider thought the stock might rise.

I screened for companies where at least one insider made an insider buy in the last 3 days. Here are 3 healthcare stocks that I found:

1. GenMark Diagnostics (NASDAQ:GNMK) is a leading provider of automated, multiplex molecular diagnostic testing systems that detect and measure DNA and RNA targets to diagnose disease and optimize patient treatment. Utilizing GenMark's proprietary eSensor detection technology, GenMark's eSensor XT-8 system is designed to support a broad range of molecular diagnostic tests with a compact, easy-to-use workstation and self-contained, disposable test cartridges. GenMark currently markets three tests that are FDA cleared for IVD use: Cystic Fibrosis Genotyping Test, Warfarin Sensitivity Test, and Thrombophilia Risk Test. A Respiratory Viral Panel has been submitted to the FDA for 510(k) clearance. A number of other tests, including HCV Genotyping and 2C19, versions of which are available for research use only, are in development for IVD use.

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Insider buys

  • Kevin O'Boyle purchased 11,905 shares on June 26th and currently holds 24,545 shares. Mr. O'Boyle has served on the board of directors of GenMark Diagnostics since March 2010.
  • Jon Kayyem purchased 50,000 shares on June 26th and currently controls 426,505 shares. Dr. Kayyem was appointed Chief Scientific Officer of GenMark Diagnostics in August 2010.
  • Jorge Garces purchased 5,000 shares on June 26th. Dr. Garces was appointed Senior Vice President, Research and Development of GenMark Diagnostics in February 2012.
  • Richard Slansky purchased 25,000 shares on June 26th and currently holds 55,395 shares. Mr. Slansky was appointed Chief Financial Officer of GenMark Diagnostics in April 2012.
  • Hany Massarany purchased 25,000 shares on June 26th and currently holds 427,456 shares. Mr. Massarany was appointed President and Chief Executive Officer and Director of GenMark Diagnostics in May 2011.
  • Daryl Faulkner purchased 5,000 shares on June 26th and currently holds 31,778 shares. Mr. Faulkner has served on the board of directors of GenMark Diagnostics since March 2010.
  • James Fox purchased 23,810 shares on June 26th through Fox Superannuation Fund and currently controls 122,151 shares. Mr. Fox was appointed to the board of directors of GenMark Diagnostics in September 2010.
  • Christopher Gleeson purchased 60,000 shares on June 26th and currently controls 1,794,979 shares. Mr. Gleeson has served as Chairman of the Board of GenMark Diagnostics since March 2010.

2. Palomar Medical Technologies (NASDAQ:PMTI) is a leading researcher and developer of proprietary light-based systems for cosmetic treatments. Palomar is a pioneer in its industry. In the late 1990's, Palomar was the first company to obtain 510(k) clearances from the FDA for high powered, professional laser systems for hair removal and permanent hair reduction. In December 2006, Palomar also became the first company to receive a 510(k) over-the-counter (OTC) clearance from the FDA for a new, patented, home-use, light-based hair removal device. OTC clearance allows products to be marketed and sold directly to consumers without prescriptions. Then in June 2009, Palomar became the first company to receive a 510(k) OTC clearance from the FDA for a new, patented, home-use, laser device for the treatment of periorbital wrinkles.

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Insider buys

  • Broadwood Partners LP purchased 82,100 shares during June 26-28th and currently holds 2,858,723 shares of Palomar. Palomar has 18.9 million shares outstanding which makes Broadwood Partners a 15% owner of Palomar.

3. CytRx Corporation (NASDAQ:CYTR) is a biopharmaceutical research and development company specializing in oncology. The CytRx oncology pipeline includes three programs in clinical development for cancer indications: INNO-206, tamibarotene and bafetinib. With its tumor-targeted doxorubicin conjugate INNO-206, CytRx has initiated an international Phase 2b clinical trial as a treatment for soft tissue sarcomas, recently announced favorable results from its Phase 1b/2 clinical trial for primarily the same indication, and has initiated a Phase 2 trial for advanced pancreatic ductual adenocarcinomas. CytRx's pipeline also includes tamibarotene, which it is testing in a double-blind, placebo-controlled, international Phase 2b clinical trial in patients with non-small-cell lung cancer, and which is in a clinical trial as a treatment for acute promyelocytic leukemia. The company is evaluating bafetinib in the ENABLE Phase 2 clinical trial in high-risk B-cell chronic lymphocytic leukemia (B-CLL), and plans to seek a partner for further development of bafetinib. In 2011, CytRx completed its strategy of monetizing its non-core assets through the sale of its molecular chaperone technology to Denmark-based Orphazyme ApS in a transaction valued up to $120 million, the sale of its 19% interest in SynthRx to ADVENTRX Pharmaceuticals (ANX), and the disposition of its remaining shares of RXi Pharmaceuticals in a series of transactions that provided CytRx with approximately $17 million in non-dilutive financing.

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Insider buys

  • Scott Patterson purchased 44,824 shares on June 26th and currently holds 3,098,662 shares of the company. Mr Patterson has purchased 815,165 shares during month of June 2012.

Conclusion

GenMark Diagnostics' and Palomar Medical Technologies' shares are currently flat for the year. CytRx Corporation's shares have seen a 150% surge already this year.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GNMK, PMTI over the next 72 hours.