Jun 7, 2022

MedicalGold's Canadian Top 5 Insider Buy List: Q2 2022

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Insider buying/selling activity is something that we believe can offer a significant amount of 'signal' in the Canadian small/micro cap markets. Insiders are always long on their company's shares one way or another, so when they choose to trade their cash for more of their company's paper it is worth making note of. Every two to three weeks MedicalGold.ca will publish a Top 5 Insider Buy List highlighting the Canadian biotech/pharma stocks that experienced the largest insider buying in the previous period.

We will also be keeping tabs on the performance of the companies highlighted in these bi-weekly posts to see how they perform over longer time periods, and perhaps more importantly if a trend of insider activity begins to develop. Occasionally, we will also highlight unusually aggressive insider selling activity as heavy insider selling has a history of preceding large share price declines in micro-cap stocks.

As always, our aim will be to provide valuable signals and we will also overlay a fundamental context in addition to technical analysis of company charts.

May 7 - June 7, 2022

The micro-cap Canadian biotech sector remains in a bear market trend with little evidence that a bottom is approaching. Insider buying activity showed a steady uptick in May relative to April. However, only FSD Pharma (HUGE) has formed a legitimate chart pattern bottom. HUGE shares will need to decisively break-out above resistance at $1.40 in order to complete the pattern and target the next level of resistance near $1.75.

FSDPharma (HUGE)

FSD makes our list for the fifth time this year.

FSD Pharma (CSE:HUGE) is a biopharmaceutical company developing treatments for neuro and inflammatory disorders. The company’s focus is on developing and acquiring assets to augment the efforts to complete Phase 2 clinical trials and enter Phase 3 clinical trials for its three drug candidates.

  • FSD-PEA: an ultra-micro-PEA compound with the potential to address a range of inflammatory conditions. FSD-PEA has completed Phase 1 FDA approved trials with positive topline results, and indications for Phase 2 are currently being evaluated.
  • Lucid-PSYCH: a unique psychedelic molecule currently undergoing IND-enabling studies with a targeted treatment for neuropsychiatric disorders, such as Major Depressive Disorder.
  • Lucid-MS: a patented, proprietary neuroprotective new chemical entity (NCE) that has demonstrated in preclinical models the potential to reverse and prevent myelin degradation, an underlying cause of Multiple Sclerosis and other neurodegenerative orders.

The company has had two key developments that contributed to its increasing stock price:

  1. The company announced the acquisition of Lucid Psycheceuticals for $8.9M on September 21, 2021, adding Lucid-PSYCH and Lucid-MS to its drug development pipeline.
  2. The company announced the sale of Cobourg Facility (cannabis processing) for CAD$16,500,000.

Recent insider purchases

HUGE.CA (Daily)

Aeterna Zentaris (AEZS)

Aeterna Zentaris is a specialty biopharmaceutical company developing and commercializing a diversified portfolio of pharmaceutical and diagnostic products focused on areas of significant unmet medical need. The Company's lead product, macimorelin (Macrilen; Ghryvelin®), is the first and only U.S. FDA and European Commission approved oral test indicated for the diagnosis of adult growth hormone deficiency (AGHD). The Company is leveraging the clinical success and compelling safety profile of macimorelin to develop it for the diagnosis of childhood-onset growth hormone deficiency (CGHD), an area of significant unmet need, in collaboration with Novo Nordisk.

Aeterna Zentaris is dedicated to the development of therapeutic assets and has recently taken steps to establish a growing pre-clinical pipeline to potentially address unmet medical needs across a number of indications, including neuromyelitis optica spectrum disorder (NMOSD), Parkinson's disease (PD), hypoparathyroidism and amyotrophic lateral sclerosis (ALS; Lou Gehrig's disease). Additionally, the Company is developing an oral prophylactic bacterial vaccine against SARS-CoV-2 (COVID-19) and Chlamydia trachomatis.

For more information, please visit www.zentaris.com and connect with the Company on Twitter, LinkedIn and Facebook.

Recent insider purchases

AEZS (Daily)

Atnibe Therapeutics (ATE)

Antibe is a clinical stage biotechnology company leveraging its proprietary hydrogen sulfide platform to develop next-generation safer therapies that target inflammation arising from a wide range of medical conditions. The company’s current pipeline includes assets that seek to overcome the gastrointestinal (“GI”) ulcers and bleeding associated with nonsteroidal anti-inflammatory drugs (“NSAIDs”). Antibe’s lead drug, otenaproxesul, is in clinical development as a safer alternative to opioids and today’s NSAIDs for post-operative pain. Antibe’s second pipeline drug, ATB-352, is being developed for a specialized acute pain indication. The company’s anticipated next target is inflammatory bowel disease (“IBD”), a condition long in need of safer, more effective therapies.

Recent insider purchases

ATE (Daily)

Ortho Regenerative Technologies (ORTH)

Ortho is a clinical stage orthobiologics company dedicated to the development of novel therapeutic soft tissue repair technologies to dramatically improve the success rate of orthopedic and sports medicine surgeries. Our proprietary RESTORE technology platform is a proprietary muco-adhesive Chitosan-based biopolymer matrix, specifically designed to deliver biologics such as Platelet-Rich Plasma (PRP) or Bone Marrow Aspirate Concentrate (BMAC), to augment and guide the regeneration of new tissue in various musculoskeletal conditions. ORTHO-R, our lead Chitosan-PRP hybrid drug/biologic implant combination product, is formulated and designed to increase the healing rates of occupational and sports related injuries to tendons, meniscus and ligaments. Other formulations are being developed for cartilage repair, bone void filling and osteoarthritis treatment. The proprietary Chitosan-PRP combination ORTHO-R implant can be directly applied into the site of injury by a surgeon during a routine operative procedure without significantly extending the time of the surgery and without further intervention. Considering the significant potential of our technology platform, Ortho continues to assess new therapeutic target uses outside of the soft tissue repair field.

Recent insider purchases

ORTH (Daily)

Rakovina Therapeutics (RKV)

Rakovina Therapeutics Inc. is focused on the development of new cancer treatments based on novel DNA-damage response (DDR) technologies. The Company has established a pipeline of novel DNA-damage response inhibitors with the goal of advancing one or more drug candidates into human clinical trials and obtaining marketing approval for new cancer therapeutics from Health Canada, the United States Food and Drug Administration and similar international regulatory agencies.

Recent insider purchases

DISCLAIMER:

The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource and biotechnology companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.