Last week, one of the major owners of Radius Health (RDUS), Rubric Capital Management LP, bought 1.68 million RDUS shares at $10.07 per share for a total value of over $16.95 million.
The hefty buying comes right after the company’s out-licensed drug Elacestrant received priority review status by the FDA for patients with ER+/HER2- advanced or metastatic breast cancer.
According to Form 4 recently filed by the major owner with more than 10% holding, Rubric Capital Management LP bought the shares on August 11 and 12th.
TipRanks’ Insider Trading Tool shows Insiders at Radius Health are clearly optimistic about the stock’s near-term prospects and have bought RDUS stock worth a whopping $19.6 million in the last three months.
The tool also shows that Insider Confidence Signal is currently Positive for Radius Health, with corporate insiders buying RDUS stock recently.
Interestingly, TipRanks also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
What Does Radius Health Company Do?
Headquartered in Boston, Massachusetts, Radius Health, Inc. is a commercial-stage biopharmaceutical company, that focuses on the development and commercialization of endocrine therapeutics in osteoporosis and oncology.
Now, let us delve deeper into the company’s recent events that could have further sparked insider interest in the stock.
Last week, the company announced that the Food and Drug Administration (FDA) in the U.S. granted Priority Review to the Italian pharmaceutical company, Menarini’s, new drug application (NDA) for Elacestrant. Elacestrant is meant for the treatment of patients with ER+/HER2- advanced or metastatic breast cancer.
Under the priority review, the FDA is expected to make a decision within the next six months by Feb. 17, 2023.
Notably, in July 2020, Radius gave global licensing rights to Menarini for elacestrant. Radius Health had conducted a Phase 3 trial known as Emerald in relation to the NDA for Elacestrant.
The study showed statistically significant efficacy versus current standard-of-care medications for both the overall study population and patients whose tumors have an ESR1 mutation.
What was the 52-week high for Radius Health stock?
Radius Health shares have been very volatile over the past year. The stock reached its 52-week high in October 2021 at $23 price levels. Even after making a recovery of 45% year-to-date, it is still far away from its 52-week high.
According to TipRanks’ analyst rating consensus, RDUS is a Hold based on five Hold ratings. The average Radius Health price target is $9.40, which implies 6.75% downside potential from current levels.
On the positive side, RDUS scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Markedly, earlier in June, Radius Health agreed to be acquired by Gurnet Point Capital and Patient Square Capital for $890 million. The value implies $10.00 that will be paid in cash as well as a contingent value right of $1.00 per share, based on a sales target for its osteoporosis drug TYMLOS (abaloparatide).
Therefore, Radius Health will cease to exist upon completion of the acquisition, expected to close in the third quarter of FY2022.
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