When insiders buy shares on the open market, their companies are usually undervalued. Corporate insiders often have the inside track on their companies' prospects. Insiders probably wouldn't risk investing too much of their own money into their own companies unless they thought the stock might rise.
I screened for companies where at least one insider made an insider buy during the week ending July 20th. Here are five healthcare stocks that I found:
1. AngioDynamics (ANGO) is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, surgery, peripheral vascular disease and oncology. AngioDynamics' diverse product lines include market-leading ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products.
|FY2012 (Pro Forma)||FY2013 (Non-GAAP estimate)|
|Operating Income||$22 million||$34-$36 million|
|EBITDA||$48 million||$60-$61 million|
- Joseph Devivo purchased 2,000 shares on July 17th and currently holds 38,000 shares of the company. President and Chief Executive Officer Joseph DeVivo joined AngioDynamics in September 2011. Previously, Mr. DeVivo was CEO and President of RITA Medical Systems where he transitioned it from an ablation company to the leader in medical device oncology. AngioDynamics acquired RITA in 2006.
- Vincent Bucci purchased 2,000 shares on April 12th and currently holds 33,846 shares of the company. Vincent Bucci joined the company's Board of Directors in January 2007 and was named Chairman in July 2007. From 1999 to 2007, Mr. Bucci served as Chairman of the Board of Directors of RITA Medical Systems.
- Kevin Gould purchased 2,700 shares on April 11th. Kevin Gould, former Chief Operating Officer of Tyco Healthcare, joined AngioDynamics' Board of Directors in October 2010. Mr. Gould has more than 30 years of healthcare industry experience.
- Matthew Kapusta purchased 1,000 shares on April 10th and currently holds 16,000 shares of the company. Senior Vice President of Business Development Matthew Kapusta joined AngioDynamics in November 2011 as a seasoned executive who has advised on more than 50 transactions valued at over $6 billion.
Shares of AngioDynamics are currently very close to its 52 -week low. The stock has a $9.5 price target from the Point&Figure chart which could be a good buying opportunity.
2. OPKO Health (OPK) is a publicly traded healthcare company involved in the discovery, development, and commercialization of pharmaceutical products, vaccines and diagnostic products.
- Phillip Frost purchased 142,500 shares during the last five trading days and currently controls 129,362,900 shares of the company. The company has 297,543,066 share outstanding which creates Mr. Frost an 43% owner of the company. Mr. Frost is the CEO and Chairman of the company. Philip Frost has been a buyer almost everyday this year. Mr. Frost's net worth is $2.3 billion as of March 2012.
The company reported the first quarter results on May 10th with the following highlights:
|Net loss per share||$0.03|
|Cash per share||$0.21|
- The company expects to begin marketing its test for Alzheimer's disease in 2013. The company believes that this test could initially be useful in stratifying patients for ongoing clinical trials of potential Alzheimer's drugs as well as to confirm the diagnosis in a clinical setting and to track the progression of the disease or effectiveness of a therapeutic in a clinical trial.
- The company has already obtained a CE Mark for its point-of-care diagnostic test for prostate specific antigen (PSA) using its system in Europe and the company intends to launch the PSA test in Europe in the second half of 2012.
- In December 2011, the company commenced a multi-center study in the U.S. for the PSA test which is designed for 510(k) clearance and potential waiver under The Clinical Laboratory Improvement Amendments of 1988. The company intends to submit its application to the Food and Drug Administration for clearance of the PSA test in 2012 and expects to begin marketing the test in the U.S. in 2013.
3. Galectin Therapeutics (GALT) is developing promising 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. The company is leveraging extensive scientific and development expertise as well as established relationships with external sources to achieve cost effective and efficient development. The company is pursuing a clear development pathway to clinical enhancement and commercialization for its lead compounds in liver fibrosis and cancer.
- Arthur Greenberg purchased 5,000 shares on July 18th and currently holds 94,667 shares of the company. Arthur Greenberg has served as a Director of the company since August 2009.
- Gilbert Amelio purchased 7,500 shares on June 20th and currently holds 92,084 shares of the company. Gilbert Amelio has served as a Director of the company since February 2009.
- Rod Martin purchased 5,000 shares on May 25th and currently holds 91,488 shares of the company. Rod Martin has served as a Vice Chairman of the Board since February 2010 and a Director since February 2009.
- Thomas McGauley purchased 10,000 shares on May 24th. Thomas McGauley has served as a Chief Financial Officer since March 2012.
- James Czirr purchased 10,000 shares on May 17th and currently holds 843,450 shares of the company. James Czirr has served as an Executive Chairman of the Board since February 2010, Chairman since February 2009 and Founder in 2000.
- John Mauldin purchased 4,947 shares on April 24th. John Mauldin has served as a Director of the company since May 2011.
- Paul Pressler purchased 5,000 shares on April 25th and currently holds 9,500 shares of the company. Paul Pressler has served as a Director of the company since May 2011.
The company reported the first quarter results on May 11th 2012 with the following highlights:
|Net loss per share||$0.17|
|Cash per share||$1.18|
GM-CT-01, the company's lead product candidate for cancer therapy, is a proprietary linear polysaccharide polymer comprised of mannose and galactose derived from a plant source that has a precisely defined chemical structure. GR-MD-02, the company's lead product for treatment of liver fibrosis and fatty liver disease with inflammation and fibrosis, is a proprietary complex polysaccharide polymer possessing both linear and globular structures, which is also derived from a plant source.
• 05/12: First patient infused Phase I/II melanoma trial
• 03/13: Stage 1 top line results (12 patients)
• 12/12: NASH FDA IND
• 02/13: Initiate Phase I NASH trial
• 10/13: Phase I NASH trial results
• 12/13: Initiate Phase II NASH trial
The stock is currently trading at 52 -week lows. There have been seven different insiders buying shares this year.
4. Puma Biotechnology (PBYI.OB) is a development stage biopharmaceutical company that acquires and develops innovative products for the treatment of various forms of cancer. The company focuses on in-licensing drug candidates that are undergoing or have already completed initial clinical testing for the treatment of cancer and then seeks to further develop those drug candidates for commercial use. The company is initially focused on the development of PB272 (oral neratinib), a potent irreversible tyrosine kinase inhibitor, for the treatment of patients with HER2 positive metastatic breast cancer.
Neratinib (PB272) is a potent irreversible tyrosine kinase inhibitor that blocks signal transduction through the epidermal growth factor receptors HER1, HER2 and HER4. The company believes neratinib has clinical application in the treatment of several cancers, including breast cancer and gastric cancer and other tumor types that overexpress HER2. The company's initial focus is on the development of neratinib as an oral treatment of patients with HER2 positive metastatic breast cancer.
The company expects to report additional data during 2012 from the Phase I/II trial of neratinib in combination with the anti-cancer drug temsirolimus, or Torisel, in patients with HER2 positive metastatic breast cancer who have failed multiple prior treatments.
The company reported first quarter results on May 15th 2012. Some highlights for first quarter ending March 31st 2012 include:
|Net loss per share||$0.59|
|Cash per share||$2.50|
- Adage Capital Partners purchased 153,000 shares on July 16th and currently holds 3,967,119 shares of the company. Adage Capital Partners is an 10% owner according to SEC filings.
- Thomas Malley purchased 20,000 shares on June 7th -11th and currently holds 146,551 shares of the company. Mr. Malley has been a director since October 4, 2011.
The stock has only 3 months of price history. My outlook for the stock is neutral currently.
5. Manhattan Scientifics (MHTX.OB), is a leading information age enterprise focused on the nanomedicine space. Located in New Mexico, New York and Montreal, Manhattan Scientifics' goal is to create profit for the company's shareholders through royalty-bearing licenses with Fortune 1000 companies by marketing products that rely on the company's patents, know-how and intellectual property. Manhattan Scientifics owns the exclusive, perpetual U.S. license to a family of patents which will enable the manufacture and marketing of super strong, ultra light-weight "nanostructured" metals that have been developed at the Los Alamos National Laboratory (LANL) and in the former Soviet Union.
The company's subsidiary, Scientific Nanomedicine holds patented technologies that can use biosafe nanoparticles and sensitive magnetic sensors to detect and measure cancer cells in biopsies or in the human body. The technology is highly specific - it measures the exact type of cancer and does not generate false positive results from benign growths, calcifications, or other spurious signals that complicate current detection methods. It is also very sensitive - it can measure tumors that are 1000-times smaller than is possible with currently available techniques. This combination of features has the potential to transform how cancer is detected and treated.
The company reported its first quarter results on May 15th 2012. Some highlights for first quarter ending March 31st 2012 include:
|Net loss||$0.6 million|
|Shares outstanding||443 million|
- Frank Georgiou purchased 217,600 shares on June 18th - July 17th and currently holds 21,917,706 shares of the company. Mr. Georgiou is a successful businessman with over 30 years of experience in the Restaurant and Hospitality sectors.
MD Anderson Cancer Center signed on for a preclinical trial of the company's magnetic nanoparticle technology in August 2011. The company has not specified any timeline when to expect results from this trial.
Shares of Manhattan Scientifics have been in a longish consolidation pattern since late 2009 and could be ready for upward continuation. If interested I recommend listening to the company's videos at Media Overview section.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OPK over the next 72 hours.