TCRX

Major Shareholder of TScan Therapeutics ($TCRX) Bets Big with $3.1M Purchase as Stock Trades Below Cash Value

05/21/2025 22:50

Major shareholder steps in with a massive purchase of TScan Therapeutics shares as the stock trades near 52-week lows, potentially signaling a vote of confidence in the clinical-stage biotech company. According to SEC filings dated May 21, major shareholder Weston Nichols acquired over 2.58 million shares over two consecutive days. Specifically, Nichols purchased 1,388,794 shares at $1.20 per share for approximately $1.67 million on May 19, followed by an additional 1.2 million shares at the same price for $1.44 million on May 20. The total investment amounts to $3.1 million. This substantial purchase comes as $TCRX has declined more than 87% from its 52-week high of $9.67. Notably, this isn't Nichols' first investment in the company. SEC filings show that Lynx1 Capital Management LP, with which Nichols is associated, also purchased shares in November and December of last year. On December 12-13, they acquired 131,800 shares at average prices between $2.90 and $3.01. TScan Therapeutics, a clinical-stage biotech developing T cell receptor (TCR)-based immunotherapies, currently has a market capitalization of approximately $75 million, placing it in the small-cap category. However, the company's financial position is relatively robust for a clinical-stage biotech. According to its Q1 2025 results released in early May, TScan holds $251.69 million in cash, providing runway into Q1 2027 at current burn rates. First-quarter revenue came in at $2.17 million, representing a 266.7% increase year-over-year, although the company still posted an operating loss of $36.25 million. Research and development expenses increased by 19.7% compared to the previous year, reaching $29.8 million as the company advances its clinical trials. The company's pipeline consists of several TCR-T cell therapy candidates targeting both hematologic malignancies and solid tumors. Lead candidates TSC-100 and TSC-101 are currently in Phase I trials for acute myeloid leukemia (AML), myelodysplastic syndrome (MDS), and acute lymphoblastic leukemia (ALL) in patients undergoing allogeneic hematopoietic cell transplantation. Additional candidates TSC-200 through TSC-204 are progressing through Phase I trials for solid tumors under the PLEXI-T™ program. Biotech analysts suggest that this insider buying represents a strong signal of deep conviction in the company's value. Particularly noteworthy is that the stock is trading below cash value, with an enterprise value of negative $86.18 million, effectively meaning the market is assigning a negative value to the clinical pipeline. It's worth noting that this isn't the first instance of insider buying. Board member Barbara Klencke purchased 5,000 shares on three separate occasions in August and September of last year. Cluster buying by insiders is often interpreted as a signal that shares may be undervalued. However, not all insider transactions have been purchases. On August 23 last year, officer Zoran Zdraveski sold 164,686 shares at $5.78 for approximately $952,000. The stock has continued to decline since that transaction. The biotech sector broadly experienced challenging conditions from 2024 through early 2025, with small clinical-stage companies seeing particularly severe devaluations. Nevertheless, easing trade tensions between the U.S. and China and potential Federal Reserve interest rate cuts are expected to positively impact the market. The current trading pattern for TScan shows the stock hovering rather than immediately rebounding after insider purchases. From May 16 to May 20, it moved slightly down from $1.24 to $1.21, though this was before the large insider purchase became public knowledge. Investors should watch whether this insider buying signals a potential bottom for the stock. With substantial cash reserves and multiple clinical programs advancing, this vote of confidence from company insiders may represent a positive sign for long-term investors. However, as with any clinical-stage biotech, volatility can be expected, particularly surrounding future clinical results. Key upcoming catalysts that could significantly impact the stock include the initiation of a registrational trial for TSC-101 in the second half of 2025, an IND submission for TSC-102-A0301, and safety and efficacy data from the PLEXI-T™ trial expected by year-end. The company's cash position provides a solid foundation to advance these clinical programs without immediate financing concerns.

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