Some biotech companies have seen their shares surge in 2023, and certain chief executives are taking advantage. The CEOs of Cibus,
OmniAb,
and
Liquidia
just spent millions of dollars to buy more of their stock.
All three companies are small, with sub-$1 billion market values, but their stock gains have crushed the 24% rise in the
S&P 500 index
in 2023, and rivaled the tech companies in the Magnificent Seven.
Cibus stock has rocketed 141% so far in 2023, on a pro forma basis. The question of pro forma gains comes up because
Calyxt,
a publicly listed predecessor company, reverse split its stock one-for-five on June 1 to close a merger with Cibus, and the combined public company took the latter’s name. The deal had been announced in January.
An agricultural-tech company that develops and licenses gene-edited traits to seed companies, Cibus earlier this month priced an offering of 2.1 million shares at $9 each, and offered prefunded warrants to buy up to 50,000 shares. Cibus expects gross proceeds of $20.3 million from the offering, before certain costs and exercise of the warrants. Cibus will use proceeds to fund further development of new and existing seed traits, research and development, and working capital and general corporate purposes.
Cibus co-founder, CEO and Chairman Rory Riggs paid $5.5 million on Dec. 12 for 517,107 shares in the offering, which amounts to $10.58 each—above the $9 offering price. He also paid $528,500 for all the prefunded warrants for 50,000 shares, at $10.57 each.
According to a form he filed with the Securities and Exchange Commission, Riggs now owns 1.6 million shares in a personal account, and another 1.1 million shares indirectly through joint ownership and other entities.
Riggs pointed out in an interview that he’s required by regulations to pay the market price for Cibus stock when the offering price is lower. He estimates that his stock and equivalents put his ownership stake at about 15%, making him and collective Fidelity accounts Cibus’ two largest shareholders.
“Everything we do makes farmers more productive,” said Riggs. “It’s an analog-to-digital moment.” What
Tesla
did to the auto industry is “very comparable” to what Cibus will do to agriculture, he said.
He last purchased Cibus stock on June 1, paying $31,500 for 1,000 shares, an average price of $31.50 each.
OmniAb provides genetically modified animals to generate antibodies with human sequences to develop human therapeutic candidates. Shares of OmniAb, which spun off from
Ligand Pharmaceuticals
a little more than a year ago, have surged 61% so far in 2023.
CEO Matt Foehr paid $1 million on Dec. 12 for 200,000 OmniAb shares, an average price of $5.05 each. He now owns 2.6 million shares. He also owns restricted stock units and stock options.
Foehr said in an interview, “It’s really easy for me to see not only the company we are right now, but the company we can become.” The stock purchase reflects the “confidence that I have in our team and technology,” he said.
His last OminAb stock buy was in November, when he paid $405,500 for 95,000 shares, an average price of $4.27 each.
Liquidia stock has surged 85% so far this year. The company, which is focused on developing products to treat pulmonary hypertension, priced a public offering of 3.5 million shares at $7.16 each on Dec. 12. Liquidia expects proceeds of $25 million before costs, and will use them for development and clinical trials of treatments, and general corporate purposes.
Liquidia CEO Roger Jeffs paid $1 million to buy 139,665 shares in the offering. He now owns 640,805 shares in a personal account, and owns another 46,595 shares through a trust, and another 1.5 million shares through a limited liability company.
Liquidia didn’t respond to a request to make Jeffs available for comment.
Jeffs last purchased Liquidia stock in September 2022 when he paid $244,000 for 43,820 shares, an average price of $5.57.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
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