Biotech Companies See Insider Purchases: CEO Phillip Frost Increases Stake in OPKO and Felix Baker Buys ACADIA

By Josh Wolonick  MAY 20, 2013 11:20 AM

Plus, there were purchases at Lionbridge Technologies and LivePerson.

 


Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Friday, May 17, 2013.

Purchases: Felix Baker, a Director of biopharmaceutical company ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), bought 1,993,000 shares of company stock for $24,912,500. Baker also serves as a Director of biotechnology company Seattle Genetics (NASDAQ:SGEN) and molecular diagnostics company Genomic Health (NASDAQ:GHDX), of which he has bought 535,796 shares of in 2013, worth almost $20 million. He also serves as Chairman of the clinical-stage biopharmaceutical company Synageva BioPharma (NASDAQ:GEVA). ACADIA focuses on small molecule drugs that are meant to address unmet needs, especially in neurological and central nervous system disorders. As of today, the company is becoming part of the NASDAQ Biotechnology Index (INDEXNASDAQ:NBI). On May 16, the company announced a public offering of 8 million shares of common stock for $12.50 per share; the offering is expected to close today, and the company is expecting proceeds of $100 million. The company's stock price has increased 185.38% year-to-date and 834.51% since this time last year.

The New York-based hedge fund Glenhill Advisors bought 342,350 shares of global software solutions company Lionbridge Technologies, Inc. (NASDAQ:LIOX) for $881,205. Lionbridge providers its clients with language, content, and testing solutions that allow them to manage and optimize their technology applications and content in global markets. On May 8, the company announced Q1 2013 earnings with a GAAP net loss of $0.05 per share on revenue of $113.7 million, compared to a loss per share of $0.13 on revenue of $112.1 million in Q1 2012. The company's stock price has decreased 30.6% YTD and has decreased 7% since this time last year.

Phillip Frost, the Chairman and CEO of multi-national pharmaceutical and diagnostics company OPKO Health (NYSE:OPK), bought 59,100 shares of company stock for $414,987. OPKO is developing an array of solutions for diagnosing, treating, and preventing various conditions, developing in particular molecular diagnostics tests, point-of-care tests, pharmaceuticals, and vaccines. Frost is a former professor of dermatology who got his start in big pharma when he took over Key Pharmaceuticals in 1972; he is also the Chairman of the Board of global pharmaceutical and drug company Teva Pharmaceutical Industries (NYSE:TEVA). On April 24, OPKO announced that it would be acquiring the Israeli biopharma company PROLOR Biotech (NYSEMKT:PBTH). Since then, Frost has been buying shares of both companies (he is the majority shareholder of both) to prop up the deal, which is valued at $480 million and is expected to close in the second half of 2013. OPKO's stock price is up 48.86% YTD and up 59.47% since this time last year.

Robert Locascio, the Chairman and CEO of online engagement solutions company LivePerson (NASDAQ:LPSN), bought 35,640 shares of company stock for $305,078. The company offers its clients a cloud-based platform that enables them to connect with consumers through chat, voice, and content delivery across websites, social media, and mobile devices. On May 8, the company reported Q1 2013 earnings per share of $0.06 on revenue of $38.9 million, missing consensus estimates of $0.07 per share and $42.54 million, respectively.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
DIR,BO
JB*
$24,912,500
2
BO
B
$881,205
3
CEO,CB,BO
B
$414,987
4
CEO,DIR
B
$305,078
5
PR,COO
B
$221,602
6
GC,VP,SEC
JB*
$210,000
7
DIR
B
$173,400
8
VP,PR
B
$146,700
9
PR,CEO,CB
B
$146,540
10
DIR
JB*
$144,000

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
DIR,BO
JS*
$375,783,744
2
DIR,BO
JS*
$40,580,912
3
VCB,DIR,BO
S
$25,065,000
4
BO
S
$17,317,500
5
DIR,BO
AS
$16,566,278
6
VCB,PR,BO
Z
S
$5,635,467
7
DIR
S
$4,541,852
8
DIR
S
$3,843,625
9
CB,DIR
AS
$3,831,609
10
DIR
JS*
$3,528,775

Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes

An important note from Jonathan Moreland, founder of Insider Insights:

In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders."

Please note, however, that the lists above are strictly factual; they are not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.

At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.

Jonathan Moreland is also the author of "Profit From Legal Insider Trading."

Follow me on Twitter: @JoshWolonick and @Minyanville
Position in OPK.