Invus Public Equities Buys 1.53 Million GlycoMimetics Shares After The Stock Dips -50% On Phase 3 Trial News

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Highlights recent insider trades in the stock since the FDA Announced Intentions For An Interim Analysis

Last week on Friday after U.S. equity markets had closed for the week, a Form 4 filed for GlycoMimetics Inc (NASDAQ:GLYC) revealed that investment manager and institutional shareholder Invus Public Equities had bought more shares in the stock on market.

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GlycoMimetics Inc has been under the spotlight over the last few months as its share price skyrocketed more than +450% on news that the FDA agreed to an interim analysis of the firm's Uproleselan treatment candidate.

The party came to an abrupt ending last week when the FDA recommended that the company should continue with the Phase 3 trial as originally planned. The news caused shares to lose more than 50% of their value on the news.

Invus Public Equities is a New York and Hong Kong based investment manager that has over $10 billion of assets under management.

The fund first disclosed an initial 6.56 million share position as a company insider on the 13th of February in a Form 3 filing. On the same day, Invus disclosed that it bought 11,451 shares at $3.24 each on the 9th of February.

In the latest filing on Friday, Invus disclosed that it bought shares on the 15th-17th of February in the days following news that the Phase 3 trial would continue.

Invus bought a total of 1,515,266 shares over the week at prices ranging from $1.68 to $2.16 per share. The average price paid for the shares bought during the was $2.00 per share with a total value of $3.03 million.

While the newly disclosed insider buying of shares in the company is a net positive for investor sentiment, Fintel’s Insider Sentiment score of 31.82 remains bearish on the total insider activity in the company.

Even though 2 net insiders have bought stock in the last 90 days, -8.25% of the float has been sold during this time.

 

GlycoMimetics Chief Medical Officer Edwin Rock bought 110,000 shares in a transaction worth $248,000 on the 22nd of December.

The buying activity was more than offset by insider Scott Sandell selling 2.75 million shares in the company between the 30th of December and the 26th of January, capitalising on the significant share price rise.

Following news of the FDA’s recommendation, H.C. Wainwright & Co analyst Edward White dropped his ‘buy’ rating target price from $13 to $8.

White said to investors that the firm has not lowered the probability of success for Uproleselan but lowered the target as a result of dilution caused by the at-the-market share issue and delayed launch date expectation to 2025.

Fintel’s consensus target price of $8.16 for GLYC suggests the stock could rise 334% over 2023. The chart below from the forecast page, shows analyst future expectations of potential sales from the company from 2025.

GlycoMimetics

Article by Ben Ward, Fintel