The NASDAQ: EPZM at https://www.webull.com/quote/nasdaq-epzm has recently announced that it has got approval its drug Tazverik from Food and Drug Administration. It is a big win for the company. The company has been pitching the importance of this discovery from quite a while now. The drug can be used effectively on patients who have been previously treated with Lymphoma and facing a relapse. Such patients do not have an alternative at the moment. FDA has approved its usage for all patients, who cannot be eligible for surgery. After this breakthrough, the company has seeninsider buying, its biggest in the last 12 months. An independent chairman of the company spent about 994 USD on stock at16 USD per share.
The transaction and the perception
This purchase by Mr David Mott, the independent chairman of NASDAQ: EPZMwas one of the biggest purchases ever made by an insider for the company. Now the question arises what this purchase means to the market and the potential shareholders. While making this analysis, one has to keep in mind that purchase happened above the current price of the shares. The shares of the company are priced at 15.51 USD, while the chairman has bought at 16 USD. This transaction increases the total holding of the chairman inthe company to 49%, which is a good thing.
Now, moving on to perception, when the overall holding of the company increases, the experts see it as a positive thing going forward. If you combine the two events; the approval of the drug Tazverik and thetransaction, the company looks in good shape. It certainly has gas to offer to its potential shareholders.
The holding and intersecting interests
Traditionally, an increased holding of the insiders in the company perceived as a positive thing. It makes the management of the company more cautious and certainly more mindful of the interests of other shareholders. At the moment insiders in NASDAQ: EPZMown about 0.4% of the company, which is a sizable number. So, when interests intersect, it is a win-win situation for everyone. That is something that should give confidence to potential shareholders.
The long term outlooks
There should be no doubt about the fact that these developments are positive. And with Tazeverik coming into the picture, the news only gets better. The buyers of NASDAQ: EPZM should certainly take the confidence out of it.
The company not only offers the promise of growth but also stability. Yet, the buyers from penny stock trading should consider the risks before they make the final call. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.