Joseph S. McCracken, a director at Savara Inc. (NASDAQ:), has increased his stake in the company with a recent purchase of common stock. According to a recent SEC filing, McCracken acquired 20,000 shares on November 19, 2024, at a weighted average price of $2.9536 per share, resulting in a total transaction value of $59,071. Following this acquisition, McCracken now holds 210,837 shares directly. The purchase prices varied slightly, ranging from $2.9481 to $2.9678.
In other recent news, Savara Inc. reported earnings per share at ($0.12), slightly below the ($0.10) forecasted by Oppenheimer and consensus estimates. Despite this, analyst firms Piper Sandler, H.C. Wainwright, and Oppenheimer maintained their positive ratings on Savara. Additionally, Savara announced a $100 million stock offering of 26,246,720 shares managed by firms such as Jefferies, Piper Sandler, and Guggenheim Securities.
Evercore ISI recently downgraded Savara from Outperform to In Line and reduced the price target to $5.00, while H.C. Wainwright lowered its price target from $10.00 to $6.00 but maintained a Buy rating. These adjustments come amid concerns over Savara’s ability to meet its patient identification goals for Molbreevi ahead of its Biologics License Application (BLA) submission and potential market launch.
Savara is on track for potential approval by the end of 2025 for MOLBREEVI™s in autoimmune pulmonary alveolar proteinosis (aPAP), assuming the treatment receives priority review. The company also launched an Expanded Access Program for molgramostim, a potential treatment for aPAP, and appointed Braden Parker as the new Chief Commercial Officer, bringing over 25 years of experience in the healthcare and biotech industry.
The company’s current partner, GEMA, based in Buenos Aires, has not had a product approved by the FDA before. Savara plans to file with GEMA as the primary source drug substance manufacturer and intends to submit a Post-Approval Supplement that includes Fujifilm-Diosynth as a secondary manufacturer. These are some of the recent developments in the company.
InvestingPro Insights
Joseph S. McCracken’s recent purchase of Savara Inc. (NASDAQ:SVRA) shares comes at a time when the company’s stock is trading near its 52-week low, according to InvestingPro data. This insider buying activity could be seen as a vote of confidence in the company’s future prospects, despite recent market challenges.
InvestingPro Tips reveal that Savara holds more cash than debt on its balance sheet, which may provide some financial flexibility as the company navigates its current position. However, it’s worth noting that the company is quickly burning through cash, a factor that investors should monitor closely.
The stock’s recent performance has been challenging, with InvestingPro data showing a 21.81% decline over the past month and a 34.67% drop over the last three months. This context makes McCracken’s purchase particularly interesting, as it occurs amid a significant downturn in share price.
While Savara is not currently profitable, with a negative P/E ratio of -6.08 for the last twelve months as of Q3 2024, the company’s price-to-book ratio stands at 2.53, suggesting that the market still assigns some premium to the company’s assets.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Savara Inc., providing a deeper insight into the company’s financial health and market position.
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