Sometimes, during our weekly review of insider buys, we can’t help but notice pulsating trends. It’s like when you accidentally hurt yourself, you can feel the pain with each throb. You are not looking for it, but you can’t ignore it because it continues to announce itself. Hey I am here!
It’s so obvious, you can’t miss it. Without looking for it, we could not help but notice how many insiders at energy companies were snapping up their stocks. They were hitting the buy now button like they found an online coupon that actually works for their favorite store.
The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) buying $1.179 million and $240,600, respectively, of CenterPoint Energy, Inc. (CNP) is probably our favorite energy buy of the bunch. (1) Outside of energy, a few others gave us a little thump-thump too. The biggest thump belonging to a director’s nearly $2.1 million Activision Blizzard, Inc. (ATVI) acquisition. (2)
As much as they pounded the “hey, I am here” pain point, it was another insider’s history of buying and selling that was more intense than the rest. Cam Garner, director at Zogenix, Inc. (ZGNX) has a track record of buying and selling Zogenix that would make most hedge fund managers jealous.
In 2010, Garner bought the stock in 2010 at $4, bought some more at $1.21 in 2012 and some more in 2014 at $1.658. Four-years later, he started selling at $39.90 all the way to $50 at February and March of 2019. He started buying again in March 2020 at $21.83, some more at $20.13 and most recently 15,000 shares at $19.03 on May 10th for a total of $285,497. (3) The trio of recent purchases is reminiscent of his initial activities.
Zogenix is a global biopharmaceutical company committed to developing and commercializing therapies with the potential to transform the lives of patients and their families living with rare diseases. The company’s first rare disease therapy, FINTEPLA® (fenfluramine) oral solution, has been approved by the U.S. FDA and the European Medicines Agency and is in development in Japan for the treatment of seizures associated with Dravet syndrome, a rare, severe lifelong epilepsy.
The company has two additional late-stage development programs, one in a rare epilepsy called Lennox-Gastaut syndrome and one in a mitochondrial disease called TK2 deficiency. Zogenix plans to initiate a study of FINTEPLA in a genetic epilepsy called CDKL5 Deficiency Disorder (CDD) and is also collaborating with Tevard Biosciences to identify and develop potential next-generation gene therapies for Dravet syndrome and other genetic epilepsies.
Analysts are high on the biotech company’s shares with a one-year price target of $48.70. (4) That’s 154% higher than where ZGNX trades as we type: $19.12 as of the close on May 14, 2021. Despite the recent approval of FINTEPLA, Wall Street doesn’t expect the small-cap company to be profitable for the foreseeable future with a projected, consensus loss of $1.83 per share in 2022. However, revenue is forecasted to jump 157% to $222.59 million next year from $86.51 million in 2021. (5)
Along with zooming sales, shareholders might also benefit from news in the second half of 2021.
- Management anticipates submission of an NDA in Japan (J-NDA) to Japan’s Pharmaceutical and Medical Devices Agency in the second half of 2021 for FINTEPLA’s treatment of Dravet syndrome.
- The also plan on submitting a Marketing Authorization Application with European Medicines Agency in the fourth quarter of 2021 for FINTEPLA’s treatment of seizures associated with LGS.
- Zogenix also expects to initiate a Phase 3 study of FINTEPLA for the treatment of CDKL5 Deficiency Disorder during the second half of 2021. (6)
Overall: Zogenix, Inc. (ZGNX) appears to be headed for big news and major revenue growth during the next six to 18 months. Analysts believe shareholders could be in store for nice gains if the biotech company can deliver and hit the street’s one-year price target. Director Cam Garner’s record of buying and selling ZGNX shares hint that he agrees with Wall Street.
Zogenix could be appropriate for speculative investors looking for exposure to high growth/high risk biotechnology stocks.
1 – https://www.secform4.com/insider-trading/1130310.htm
2 – https://www.secform4.com/insider-trading/718877.htm
3 – https://www.secform4.com/insider-trading/1024007.htm
4 – https://finance.yahoo.com/quote/ZGNX?p=ZGNX
5 – https://finance.yahoo.com/quote/ZGNX/analysis?p=ZGNX
6 – https://zogenixinc.gcs-web.com/news-releases/news-release-details/zogenix-provides-corporate-update-and-reports-first-quarter-2021