SAN DIEGO—Mark J. Gergen, the Executive Chairman of Poseida Therapeutics, Inc. (NASDAQ:PSTX), recently sold 30,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a price of $9.27 each, totaling $278,100. This transaction was part of a pre-established Rule 10b5-1 trading plan adopted by Gergen in June 2024.
On the same day, Gergen also exercised options to acquire 30,000 shares at a price of $2.781 per share, resulting in a total cost of $83,430. Following these transactions, Gergen holds 651,291 shares of Poseida Therapeutics directly. The stock option exercised was fully vested and exercisable, as noted in the filing.
Poseida Therapeutics, based in San Diego, is a biotechnology company focused on developing gene therapies for cancer and other diseases.
In other recent news, Roche is set to acquire Poseida Therapeutics in a deal potentially worth up to $1.5 billion, following unanimous approval from both companies' boards of directors. The agreement involves a tender offer for all outstanding Poseida common stock, with shareholders receiving $9.00 per share in cash and potential milestone payments that could total up to $4.00 per share. In other developments, Poseida Therapeutics presented new preclinical data on its CAR+TCR-T cells at the Society for Immunotherapy of Cancer (SITC) Annual Meeting and the American Society of Hematology (ASH) Annual Meeting. H.C. Wainwright maintained a Buy rating for Poseida Therapeutics, reflecting the industry's growing interest in repurposing B-cell malignancy drug candidates for the treatment of autoimmune diseases. Additionally, Poseida Therapeutics has advanced with a new CAR-T therapy candidate, a development that has triggered a $15 million milestone payment as part of their collaboration with Roche.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Poseida Therapeutics' financial position and market performance. The company's market capitalization stands at $909.84 million, reflecting its current valuation in the biotech sector. Notably, Poseida has demonstrated impressive revenue growth, with a 667.19% increase in quarterly revenue as of Q3 2024. This substantial growth aligns with the company's focus on developing innovative gene therapies.
InvestingPro Tips highlight that Poseida holds more cash than debt on its balance sheet, indicating a strong liquidity position. This financial stability is crucial for a biotech company investing heavily in research and development. Additionally, the stock has shown significant momentum, with a 244.28% return over the last week and a 276.21% return over the last month.
However, investors should note that Poseida is not currently profitable, with a negative gross profit margin of -14.3% in the last twelve months. This is not uncommon for biotech companies in the development stage, but it underscores the importance of the company's cash position for sustaining operations.
The recent insider transaction by Mark J. Gergen, involving the sale of shares and exercise of options, occurs against the backdrop of the stock trading near its 52-week high, as another InvestingPro Tip points out. This could be seen as a signal of confidence in the company's near-term prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Poseida Therapeutics, providing a deeper understanding of the company's financial health and market position.
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