Synta Pharmaceuticals has a bullish outlook for Q3-Q4; insider buying indicates the company will be releasing positive research results and see a gain in returns.
Jul. 24, 2013 - CHUO-KU, Japan -- Due to the huge increase in staff and board members buying stock in Synta Pharmaceuticals, and the successful trials of Synta Pharmaceuticals latest cancer drug Ganetespib, Pharmaceutical Analysts at Harver Group are now strongly recommending the stock as a buy to investors.
Stephen James, Director of Private Equity at Harver Group in Tokyo, commented "A huge indicator for me that a stock is about to take off is insider buying. We have seen quite a bit of this over the past few weeks at Synta Pharmaceuticals, Hedge Fund Manager, Bruce Kovner who has also been on the board of directors since 2002, has bought 3 million shares for just over $13 million. President and CEO Safi Bachall also bought 10,000 shares bring his total to almost 2 million."
Synta Pharmaceuticals (SNTA) is a biopharmaceutical corporation which creates, develops, and commercializes drugs that extend and increase the standard of living of patients with cancer and other chronic diseases. The Company has a unique library of propriety chemical compounds acquired over two decades from academic and industrial sources. These compounds are optimized through a variety of techniques to create new drug candidates.
Their most exciting new drug candidate is called Ganetespib and is used to treat lung, breast, colorectal, and hemolytic cancer. Ganetespib is a small molecular inhibitor of heat shock protein 90 (Hsp90) which is required for the maturation and activation of a number of proteins. Cancer cells thrive in the presence of Hsp90, inhibiting it can greatly reduce tumors proliferation. The drug has been tested on over 700 patients in 20 clinical trials. Although trials are not finished and the company has not released a full report, the drug has shown a lot of promise.
Nathan Marx, Head of Investment Analysis said, "Although their share price has dropped from its $10 a share high in April, I expect it to return to this price in the next three months and I am recommending my clients to buy." Peter Anderson, Senior Vice President of Mergers and Acquisitions at Harver Group said
"This is an exciting company, on the verge of a major breakthrough, displaying all the signs of a strong financial instrument for these coming quarters, so I'm confident our clients will see growth in this area".