ATOS

Atossa Therapeutics ($ATOS) Insiders Step Up: CEO and Director Make Sequential Purchases Amid 43% Stock Decline

05/22/2025 22:31

Executives at Atossa Therapeutics ($ATOS) have recently opened their wallets in a significant show of confidence. On May 21, 2025, President Steven Quay purchased 11,239 shares at $0.88 per share, investing approximately $9,887. This purchase comes at a notable time, with the company's stock down about 43% over the past twelve months. Quay's purchase, executed through Ensisheim Partners, LLC (which he co-owns with Dr. Shu-Chih Chen), occurred just as the stock had rebounded to $1.03 on May 14 before retreating again. This marks the second insider buy in two months, following Director Remmel H. Lawrence's acquisition of 10,000 shares at $0.70 on March 26. These insider purchases have transpired during a challenging period for Atossa's stock, which declined from around $1.30 in mid-2024 to below $0.70 in early 2025, bottoming near $0.60 in early April. However, the stock staged a nearly 50% recovery from late April through mid-May before settling at its current price of $0.87. The Seattle-based clinical-stage biotechnology company, with a market capitalization of approximately $80 million, focuses on developing innovative medicines for oncology, particularly breast cancer and women's health conditions. Atossa's lead drug candidate, oral (Z)-endoxifen, is currently in Phase II clinical trials targeting breast cancer treatment and prevention. In August 2024, Atossa announced the dosing of the first patient in the I-SPY 2 trial combining (Z)-Endoxifen with Abemaciclib (Verzenio®) for ER+/HER2- breast cancer, with data anticipated in 2026. In June 2024, the company updated its protocol for the Evangeline clinical trial, increasing the (Z)-Endoxifen dose to 80 mg. Financially, Atossa maintains a strong cash position despite having no revenue, typical of clinical-stage biotech firms. According to the most recent quarterly results, the company holds approximately $65.12 million in cash with no debt, providing sufficient runway to support its clinical programs at current operating levels for a substantial period. Examining Atossa's performance over the past four quarters reveals consistent quarterly losses of approximately 5-6 cents per share, reflecting investment in clinical programs. In the most recent quarter (Q1 2025), the company reported a loss of 5 cents per share, slightly better than the analyst estimate of 6 cents. The insider purchases occurred against a broader market backdrop where U.S. equities generally trended upward from late April through May 2025, buoyed by easing U.S.-China trade tensions and potential Federal Reserve rate cuts. However, the biotech sector, particularly small-caps, continues to experience significant volatility and cautious investor sentiment. Analysts maintain an average rating of 'buy' for Atossa, with a median 12-month price target of $7.00, substantially higher than the current price. This optimistic outlook is predicated on the potential of the company's clinical pipeline and its strong cash position. Examining the insider buying pattern more closely reveals that Lawrence's March purchase occurred near recent price lows. The stock subsequently began climbing in late April, with the CEO's purchase coming as the price retreated from its mid-May peak. Both insiders appear to have viewed the depressed share price as a buying opportunity. Biotech investment specialists note that insider purchases at clinical-stage companies are particularly noteworthy. In these enterprises, where everything hinges on clinical trial outcomes, management's decision to buy shares can indirectly suggest confidence in internal progress. Investors should recognize the inherent risks associated with investing in clinical-stage biotech firms like Atossa. Clinical trial failures, regulatory hurdles, and the potential need for additional financing remain significant risk factors. However, insider buying suggests that those with the most intimate knowledge of the company's operations maintain a positive view of its long-term prospects. With small biotech stocks highly reactive to clinical news and market sentiment, investors should closely monitor Atossa's clinical trial progress and results. The fact that insiders have chosen to invest their own money in the company at this critical juncture represents a signal worth noting.

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