ALMS

Alumis ($ALMS) Insiders Buy $2 Million in Shares Despite 73% Stock Plunge - A Strong Vote of Confidence from Management

05/07/2025 02:06

Alumis Inc ($ALMS) is witnessing significant insider buying activity even as its stock continues to trade substantially below its IPO price, drawing attention from investors looking for potential value opportunities. Currently trading at around $4.35, Alumis shares have plummeted approximately 73% from their IPO price of $16 in June 2024. The decline has been particularly steep in early 2025, with shares falling below $5 in February and reaching as low as $3.57 in March before briefly rebounding to over $10 in late March and early April, only to retreat again to current levels. Amid this significant price decline, company insiders have been actively purchasing shares, signaling potential confidence in the company's prospects. Between May 2 and May 6, 2025, major institutional investors such as Foresite Labs, Foresite Capital, and directors including James Tananbaum and Srinivas Akkaraju collectively purchased shares worth approximately $1,922,058. Notably, Director Srinivas Akkaraju acquired a total of 320,290 shares worth about $1,517,458 through Samsara BioCapital on May 2 and May 5. As the founder and Managing Partner of Samsara BioCapital, Akkaraju previously made a substantial investment of $25,000,000 in July 2024. His continued purchasing activity demonstrates strong conviction in the company's value proposition. James Tananbaum, another director and founder of Foresite Capital, is a physician from Baylor College of Medicine and a successful healthcare technology investor. Through Foresite funds, he purchased 25,000 shares ($115,500) on May 2 and another 20,000 shares ($86,800) on May 6. Tananbaum was also a major investor during the July 2024 IPO, committing $40,000,000 at that time. Other insiders have also shown confidence in the company. President and CEO Martin Babler purchased 15,650 shares ($100,732) on April 1, while Director Alan Colowick acquired a total of 18,404 shares ($129,544) across April 1 and 2. These purchases by executive leadership reflect internal confidence in the company's technology and outlook. Alumis is a clinical-stage biopharmaceutical company focused on developing therapies for autoimmune disorders. The company's lead product is ESK-001, an allosteric TYK2 inhibitor targeting plaque psoriasis and systemic lupus erythematosus. Additionally, Alumis is developing A-005, a central nervous system-penetrant TYK2 inhibitor targeting neuroinflammatory and neurodegenerative diseases. The company recently secured a licensing deal with Japanese pharmaceutical firm Kaken Pharmaceutical on March 25 for the development and commercialization of ESK-001. This agreement provides Alumis with an upfront payment of $40 million and potential milestone payments of up to $140 million. The announcement triggered a 15.5% increase in the company's stock price on that day. Simultaneously, Alumis is in the process of merging with Acelyrin. On April 21, the company announced an amended merger agreement under which Acelyrin stockholders will receive 0.4814 shares of Alumis per share, giving Alumis and Acelyrin stockholders approximately 52% and 48% ownership of the combined company, respectively. The merger is expected to be completed in the second quarter of 2025. Financially, Alumis holds approximately $288 million in cash, which the company projects will fund operations into 2027. As a clinical-stage company without revenue, Alumis reported a per-share net loss of $10.38 in its most recent reporting period. Analysts covering the stock have set an average price target of $21.50, suggesting significant upside potential from current levels. However, investors should note that as a clinical-stage biopharmaceutical company, Alumis's stock price could experience substantial volatility based on clinical trial results and regulatory developments. The recent cluster of insider purchases following the significant share price decline can be interpreted as a strong vote of confidence in Alumis's technology and business model. The licensing agreement for ESK-001 and the progressing merger with Acelyrin are positive developments that could enhance the company's value proposition. With its substantial cash reserves, Alumis appears well-positioned to continue its development activities for the foreseeable future.

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