SAN DIEGO—Avidity Biosciences, Inc. (NASDAQ:RNA) Chief Financial Officer Michael F. MacLean has sold a significant portion of his holdings in the company, according to a recent SEC filing. On November 6, MacLean sold a total of 106,319 shares of common stock, generating approximately $4.84 million. The shares were sold at prices ranging from $45.33 to $46.22 per share.
The transactions were executed under a pre-established Rule 10b5-1 trading plan, which MacLean adopted on July 8, 2024. This plan allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own, adhering to insider trading laws.
In addition to the sales, MacLean exercised stock options to acquire 79,057 shares at prices between $6.57 and $8.82, totaling approximately $666,063. Following these transactions, MacLean now holds 94,093 shares of Avidity Biosciences.
Avidity Biosciences, headquartered in San Diego, is engaged in the development of therapies for rare muscle diseases. The company continues to focus on advancing its clinical programs and expanding its pipeline.
In other recent news, Avidity Biosciences has reported third-quarter 2024 revenues of $175.4 million, exceeding the FactSet consensus. The company has increased its full-year revenue guidance for fiscal year 2024 to a range of $665-685 million. Goldman Sachs (NYSE:GS) has maintained a Buy rating on Avidity Biosciences with a price target of $59.00, focusing on the commercial potential of its major depressive disorder (MDD) treatment, Caplyta.
The company has expanded its sales force and set a sales target of over $5 billion for Caplyta over the next decade. Avidity Biosciences has also initiated a biomarker cohort for its Phase 1/2 FORTITUDE trial, evaluating delpacibart braxlosiran in individuals with facioscapulohumeral muscular dystrophy. Furthermore, the FDA has lifted the partial clinical hold on the company's drug candidate, del-desiran, allowing the continuation of the Phase 3 HARBOR trial.
These developments come as Avidity Biosciences also announced a $250 million public offering of common stock, managed by Leerink Partners and TD Cowen, to support its clinical programs and advance its research and development. Analysts from Goldman Sachs and TD Cowen have reiterated their Buy rating on Avidity's stock, emphasizing the potential of its drugs del-brax and del-desiran, with projected peak sales of $2.7 billion and $4.0 billion, respectively.
InvestingPro Insights
Avidity Biosciences' recent stock performance and financial position offer additional context to CFO Michael F. MacLean's recent stock transactions. According to InvestingPro data, the company has experienced a remarkable 776.57% price total return over the past year, with a significant 82.31% gain in the last six months alone. This strong performance aligns with the timing of MacLean's stock sales, which were executed at prices near the stock's 52-week high.
Despite the impressive stock performance, InvestingPro Tips highlight that Avidity Biosciences is not currently profitable and analysts do not anticipate profitability this year. The company's revenue for the last twelve months as of Q3 2024 stands at $10.12 million, with a concerning gross profit margin of -1787.6%. This financial backdrop may explain why the company does not pay a dividend to shareholders, as noted in another InvestingPro Tip.
On a positive note, Avidity Biosciences holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This strong liquidity position could provide the company with financial flexibility as it continues to develop therapies for rare muscle diseases.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Avidity Biosciences, providing a deeper understanding of the company's financial health and market position.
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