Unusual insider buying alert 🚨
We identified a private investor who does not stop buying the biotech company that holds cash amounting to more than half of its market cap. 💵 $PRTA 🔎
A few days ago, we identified that William Scully, a private investor with more than 10% of the company's shares, made insider purchases on October 22 and 23 of 150,000 shares at an average price of about $8.15, about $1,222,000 of his personal money.
The purchases were made in the open market at the market price.
And this is not a one-time event, look at the sequence we recorded: 🗺
Since May, he has bought Prothena shares for about $12 million, and in October alone for about $4.8 million.
Now stop for a moment and think about this:
According to the company, at the end of 2026 there will be about $259 million in cash. The market cap is about $431 million.
Meaning, about 60% of the value is cash.
Beyond cash, three drugs developed by Prothena are currently in the hands of pharma giants Roche, Novo Nordisk, and Bristol Myers Squibb.
Two of them are already in Phase 3 trials, the final stage before requesting approval. 🟢
You are probably asking what is next? By the end of the year, Bristol Myers Squibb is expected to decide whether to proceed with another Prothena drug.
A positive decision will earn the company a payment of $55 million, which is not included in the cash guidance. 🛡
Novo Nordisk is running the Phase 3 trial of coramitug in amyloid cardiomyopathy, and Prothena recorded a milestone payment of $50 million from it in the first quarter.
Roche's trial in Parkinson's and Novo's trial are expected to end in 2029
And pay attention to another detail:
The board of directors approved a buyback of up to $100 million, valid until December 31, 2026.
The company itself purchased 2,243,888 shares for $22.3 million in the first half of 2026, out of a program of up to $100 million. It lowered its year-end cash guidance to $259 million mainly because of these purchases.
The company bought its shares in the first half of the year at an average price of about $9.94. Scully is buying now at about 18% less...
We are tracking. 🔎