Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) investors have a smile on their faces following the news that CEO Adrian Adams acquired an additional 500,000 shares of the Company’s common stock on March 15, 2017 in open-market purchases.
The shares were purchased at an average price of $2.46 per share, for an aggregate purchase price of approximately $1,230,000. Following this transaction, Mr. Adams owns 3,569,230 shares (including 1,541,562 restricted stock units subject to vesting) of the Company’s common stock, of which 1,500,000 were purchased by Mr. Adams on the open market and the remainder were granted to Mr. Adams under the Company’s equity incentive plan. In addition, Mr. Adams holds 105,251 options to acquire shares of Company common stock.
“The purchase of these shares is a reflection of my confidence in the long-term value of Aralez and also represents my continued belief in the Company’s evolving business model, products and growth prospects,” said Adrian Adams, Chief Executive Officer of Aralez. “Over the past week, I have listened closely to the concerns voiced by a number of our significant shareholders. Aralez is committed to swiftly addressing these concerns, including the development of a plan to improve our cost structure and balance sheet, maximizing and preserving our cash, and opportunistically evaluating M&A or other opportunities that provide accretion and an enhanced platform for creating value. We have an unwavering commitment to our shareholders and remain focused on building long-term value and intend to communicate our planned next steps and actions within the next few weeks.”
In addition to Mr. Adams, members of Aralez’s Board of Directors and executive management team recently acquired approximately 90,000 shares of the Company’s common stock in open market purchases.
On the ratings front, Chardan analyst Keay Nakae reiterated a Buy rating on ARLZ, with a price target of $5.50, in a report issued on March 15. The current price target implies an upside of 144% from current levels. According to TipRanks.com, Nakae has a yearly average loss of 24%, a 31% success rate, and is ranked #4469 out of 4560 analysts.
Aralez Pharmaceuticals Inc. operates as a pharmaceutical company. It focuses on the development, acquisition, and commercialization of cardiovascular, pain, and other product therapies.