Tricida (NASDAQ: TCDA) is a pharmaceutical company that is focused on developing and commercializing its drug Veverimer for the treatment of metabolic acidosis in patients with CKD (chronic kidney disease).
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Tricida stock is in the spotlight due to the sudden spike in insider trades in June.
Trades in Detail
Per Tricida’s SEC filings and TipRanks’ Insider Trading Activity tool, Venrock Healthcare Capital Partners, which owns more than a 10% stake in the company, has been accumulating its stock. Venrock Healthcare acquired shares worth more than $13 million this month. What stands out is that these trades came in the form of an Informative Buy, which suggests investors’ greater confidence in the company’s prospects.
Net net, TCDA’s top insiders bought shares worth $13.1 million in the last three months. Meanwhile, the uptrend in its stock continues, with TCDA stock more than doubling in one year. Further, it has increased by about 13% in the last three months.
Now What?
It’s worth mentioning that in 2020, the FDA (Food and Drug Administration) didn’t approve TCDA’s Veverimer. However, TCDA plans to resubmit the NDA (New Drug Application) for Veverimer in the second quarter of 2023.
Moreover, the recent buying in TCDA stock indicates that Venrock Healthcare has faith that the company will receive FDA approval for Veverimer.
Notably, Needham analyst Serge Belanger also expects a “positive outcome” from TCDA’s resubmission of the NDA for Veverimer in mid-2023. Belanger is bullish on TCDA stock. Moreover, his price target of $18 represents 86.3% upside potential.
Overall, TCDA stock has received two Buy and one Hold recommendations on TipRanks. Moreover, the average Tricida price target of $14 indicates 44.9% upside potential.
Bottom Line
The re-filing of the NDA for Veverimer and a positive outcome could be a key event for TCDA and give a significant boost to its stock.
TipRanks’ data shows that hedge funds and retail investors are also accumulating TCDA stock. Overall, TCDA stock sports a maximum Smart Score of 10 out of 10 on TipRanks.
