On August 7, Opko Health Inc. (NYSE:OPK) CEO Phillip Frost purchased more than one million shares of OPK in five separate transactions valued at over $5.8 million. This transaction was filed with the SEC yesterday, August 10.
Frost was purchasing shares that he bought for exercise prices ranging from $2.36 to $8.37. When he made the transactions on August 7, Opko was trading at approximately $13.50. This type of discretionary buy from a Corporate Insider often indicates a sign of confidence in the company. Furthermore, Frost has a favorable history buying and selling shares of his own company.
Phillip Frost is the top-ranked Corporate Insider on TipRanks. When measured over one-year and no benchmark, Frost has an 81% success rate buying and selling shares of his own companies and a +51.5% average return per transaction. If you had followed Frost’s transactions on Opko specifically since 2009 and held every position for one year, 82% of your transactions would have been profitable with an average return of 51%.
It seems that Opko has a lot in the works according to the company’s second quarter earnings report, which was released on August 5. Opko posted quarterly revenue of $17.7 million drawn from the company’s collaboration with Pfizer, which closed in the quarter. Opko and Pfizer have a global agreement to develop Opko’s hGH-CTP; Opko’s Phase 3 pipeline drug aimed at treating growth hormone deficient adults. On August 5, Opko announced additional data from Phase 2 trials of hGH-CTP. The data will be presented at the 54th Annual Meeting of the European Society for Pediatric Endocrinology to take place in Spain in October.
Furthermore, Opko’s New Drug Application for Rayaldee, a treatment for secondary hyperparathyroidism, was accepted by the FDA in late July and should be reviewed by March, 2016. The application focuses on using the drug in patients with stage 3 or 4 chronic kidney disease and vitamin D insufficiency.
As big players in the biopharmaceutical industry continue to merge in order to combat rising costs of research and development, Opko is not standing on the sidelines. In its second quarter report, Opko announced the acquisition of Bio-Reference Laboratories, the third largest full-service clinical laboratory in the U.S. In addition, Opko acquired EirGen Pharma, a growing pharmaceutical company with ten product applications filed with the FDA.
On the whole, Opko shares have increased nearly 50% in the past year, going from $9.18 in August 2014 to its previous close of $13.76. Along the way, shares hit a 52-week high of $19.20 in early June after Opko and Bio-Reference Laboratories announced the early termination of the waiting period for its acquisition. According to TipRanks, only one analyst has rated the stock in the past quarter, giving it a neutral rating.