Came across a note in Barron’s this weekend that Furiex Pharmaceuticals (FURX) CEO Fredric Eshelman upped his stake in the company by 17,359 shares to a total representing ~12.1% ~21.1% of the company. In case you don’t remember, Furiex was spun out around the time of our site’s launch and we noted some bullish followers of the stock. That turned out to be the right call as the stock performed quite nicely post-spin. It has encountered some recent bumps though including a failed trial for its drug PPD-10558. Brian Wilson notes that 2012 will be a big year for the company and highlights some of the company’s activities and drugs.
This insider purchase continues a buying trend by Mr. Eshelman and in the 13D filing he said that he believes the company is undervalued and that he intends to raise his stake up to 35%. Now that is what I call incentivized management. I kid, but definitely a positive sign that the CEO, the person who hopefully knows the business best, is so willing to proverbially ‘put his money where his mouth is’.
Disclosure: Author holds no position in any stock mentioned.
Fred Eshelman owns 21.1% of FURX not 12.1%
I guess even using ‘approximately’ doesn’t give one THAT much leeway đŸ™‚ My bad. Thanks for the correction.Â
I think the CEO buying so much stock always helps convince us that there might be something there worth buying but I remember MNKD.  The CEO bought like mad and went on tv bragging about his inhabitable insulin drug about to hit it big……it didn’t and the stock tanked.