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.
Canadian biotech insiders have pulled back on buying during the last couple months after reaching a peak at the end of July. In this month's update two stocks stand out above the rest: FSD Pharma and Medicenna.
FSD Pharma (CSE:HUGE) insiders continue their relentless accumulation of HUGE shares. Furthermore, HUGE has bucked the recent sector downtrend and managed to tread water since July. We are still looking for a decisive breakout above the $1.40 level to give final confirmation that a bottom is in place. However, the $1.00 level is a clear level of important support that can be used as a downside risk management reference point.
Despite a large decline since early August, Medicenna (Nasdaq:MDNA, TSX:MDNA) shares have not breached their June lows. With nearly 1/2 the company's current market cap sitting in cash in the company treasury one has to begin to wonder if the recent insider open market buys are a signal that MDNA shares have simply gotten too cheap. We had the opportunity to watch a recent conversation with MDNA management over the weekend and will be looking to opportunistically accumulate a position in MDNA shares over the coming weeks.
FSD makes our list for the sixth 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.
Rakovina makes our list for the second time this year.
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.
Medicenna Therapeutics Corp [TSX:MDNA] (OTCQB:MDNAF) is a Toronto-based clinical-stage immune-oncology company advancing novel, highly selective versions of IL-2, IL-4 and IL-13 Superkines™ and first in class Empowered Cytokines™. The company is developing a unique set of tunable Superkines™ that can be fused with pro-apoptotic proteins to precisely deliver potent cell-killing agents to cancer cells, the immunosuppressive tumor micro-environment, and cancer stem cells without harming healthy cells.
Imagin Medical is building a best-in-class Urologic Oncology company developing proprietary technologies to better visualize and treat urologic cancers, including bladder and prostate cancer through minimally invasive surgery that can be performed in the Urologist’s office. The Company believes its first product, the i/Blue Imaging System, with its advanced proprietary optics and light sensors, will greatly increase the efficiency and accuracy of detecting bladder cancer, helping to improve the surgical management of this disease. Imagin’s follow-on product, the enCAGE Coil Prostate Cancer Precision Ablation System, a focal therapy bipolar radio frequency-based probe enabling precise pre-set margins. The enCAGE coil addresses the limitations of other forms of prostate cancer treatment that lack the ability to precisely target only the cancer cells, risking damage to the remainder of the prostate and surrounding erectile nerves that can cause impaired urinary and sexual function. Imagin’s proprietary technologies are poised to expand patient access improve outcomes and quality of life.
Arch Biopartners Inc. is a clinical stage company focused on the development of innovative technologies that have the potential to make a significant medical or commercial impact. Arch Biopartners is developing a pipeline of new drug candidates that inhibit inflammation in the lungs, liver, and kidneys via the dipeptidase-1 (DPEP-1) pathway, relevant for multiple medical indications.
We first started overing Tryp Therapeutics in January 2022, intrigued by their strategy to treat neuropathic pain and eating disorders using proprietary, psychedelic-inspired pharmaceuticals. The company has released promising Phase 2 data and recently received PCT patent publication for their lead drug compound, TRP-8803, a psilocybin-inspired drug delivered intravenously.
Tryp Therapeutics has been relatively quiet in recent months, however, the company has been progressing with its phase 2a oral psilocybin for the treatment of binge eating trial at the University of Florida. The 5th patient in this phase 2a recently began dosing and an update is expected from TRYP over the coming weeks. Insiders have been regular buyers of TRYP shares on the open market in 2022 and the company founder/Chairman William Garner holds 38% of TRYP's outstanding shares.
Rakovina Therapeutics is developing DNA repair inhibitors that target cancerous cells' DNA repair systems. The company is developing three lead drug candidates, KT-2000, KT-3000, and KT-4000 for prostate, ovarian, and breast cancers.
Aurinia Pharmaceuticals is a fully integrated biopharmaceutical company focused on delivering therapies to treat targeted patient populations that are impacted by serious diseases with a high unmet medical need. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis (LN). The Company’s head office is in Victoria, British Columbia, its U.S. commercial hub is in Rockville, Maryland, and the Company focuses its development efforts globally.
Willow develops and produces high-purity ingredients for the personal care, food and beverage, and pharmaceutical markets. Willow's FutureGrownÔ biotechnology platform allows large-scale production with sustainability at its core. Willow's R&D team has a proven track record of developing and commercializing bio-based manufacturing processes and products to benefit our B2B partners and their customers.
Four different insiders have accumulated shares of Willow Biosciences in recent months. Willow is another example of a Canadian microcap BioPharma company that has been badly punished by the market in 2022. As of its latest financial statements (September 30, 2022) WIllow has C$18.4 million in cash in its treasury with liabilities of less than $1 million. At today's C$.12 share price on the TSX the company has a market cap of ~C$15 million.
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.SEDARplus.ca for important risk disclosures. It’s your money and your responsibility.