Major holder adds to stake in blood testing company.
Insiders in the health, pharmaceutical, and biotech space continue to buy shares of their beaten-down companies near today’s prices.
The latest big buy? At shares of one of the smaller diagnostic plays, OncoCyte Corporation (OCX).
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Last week, Broadwood Partners LP, which already owns more than 10 percent of shares in the company, added 1 million shares to their stake. At a price of around $2, this represented a $2 million buy.
Founded in 2009, OncoCyte works on the development and commercialization of non-invasive, blood-based diagnostic tests for the early detection of cancer. The company is also working on tests for liquid biopsies for detecting breast cancer.
Year-to-date, the company has seen shares trade between $1 and $6, depending on favorable news. Share spiked in January and have been sliding since, making the decline to around $2 about a 66 percent decline from the recent peak.
Action to take: The medical diagnostic business can be as though to analyze as favorable pharmaceutical drug treatments. However, the large buy by an insider that now owns over 9 million share is a good sign that shares will at least move higher in the coming months. At $2, buying shares is like buying an option without an expiration date.