SAN DIEGO—Teresa McCarthy, Chief Human Resources Officer at Avidity Biosciences, Inc. (NASDAQ:RNA), recently sold a significant portion of her holdings in the company. According to a filing with the Securities and Exchange Commission, McCarthy sold 25,000 shares of common stock on October 16 at an average price of $48.52 per share, totaling approximately $1.21 million.
The transaction was part of a planned sale under a Rule 10b5-1 trading plan, which McCarthy had previously adopted on June 12, 2024. This sale follows an option exercise where McCarthy acquired 25,000 shares at $14.22 each. Post-transaction, McCarthy retains ownership of 94,018 shares in the company.
Avidity Biosciences, headquartered in San Diego, focuses on developing therapies for rare muscle diseases. The company continues to advance its pipeline, leveraging its proprietary technology to address unmet medical needs.
In other recent news, Avidity Biosciences has seen significant progress in its clinical trials and drug development. The U.S. Food and Drug Administration (FDA) has lifted the partial clinical hold on Avidity's drug candidate, del-desiran, designed for the treatment of myotonic dystrophy type 1 (DM1). This development allows the company to move forward with the Phase 3 HARBOR trial without previous constraints.
In addition, Avidity Biosciences 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. Preliminary results from a Phase 1/2 clinical trial for delpacibart zotadirsen showed significant increases in dystrophin production and exon 44 skipping.
Goldman Sachs reiterated its Buy rating on Avidity Biosciences, emphasizing the potential of its drugs del-brax and del-desiran, with projected peak sales of $2.7 billion and $4.0 billion, respectively. Similarly, TD Cowen maintained a Buy rating on the company's stock, with a price target set at $56.00. BofA Securities and Wells Fargo also maintained positive ratings on Avidity's stock, reflecting interest in these developments. These are recent developments in Avidity Biosciences' journey.
InvestingPro Insights
Following Teresa McCarthy's significant stock sale, it's worth examining Avidity Biosciences' (NASDAQ:RNA) current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $5.66 billion, reflecting its substantial presence in the biotech sector.
Avidity has shown remarkable market performance, with a staggering 708.93% price total return over the past year. This impressive growth is further emphasized by the stock trading at 97.38% of its 52-week high, indicating strong investor confidence in the company's prospects.
However, it's important to note that Avidity is not yet profitable. An InvestingPro Tip reveals that analysts do not anticipate the company will be profitable this year. This is not uncommon for biotech companies in the development stage, as they often prioritize research and development over immediate profitability.
Despite the lack of current profitability, Avidity maintains a strong financial position. Another InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, providing financial flexibility to continue its research and development efforts.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Avidity Biosciences, providing deeper insights into the company's financial health and market position.
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