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Opko Health Inc. (OPK) CEO Phillip Frost Keeping Buying Up Shares

By Howard Kim

On September 23rd, Phillip Frost, Chairman & CEO of Opko Health Inc. (NYSE:OPK) purchased $420,799 worth of the company’s shares. This is one of the several transactions in recent times when the CEO has bought Opko’s stock. Only two days before this transaction, Frost purchased shares worth $270,542. Over the past month, Frost has performed 16 Buy transactions, totaling $8.85M. Typically, this kind of discretionary buying by its top executive is a positive sign for the company.

As per the latest earnings announced by the company on June 30th, Opko Health’s quarterly revenues stood at $42.43M with a GAAP loss of $42.77M. These revenues were significantly higher when compared to previous year’s $23.55M.

Earlier this month, Opko announced a global license agreement with The Scripps Research Institute (TSRI) for developing and commercializing novel lipoprotein signal peptidase (Lsp) inhibitors. Speaking about this agreement, Frost said, “We are pleased to continue our collaboration with Dr. Wolan and The Scripps Research Institute to develop the next generation of highly effective antibiotics.” He added, “Our plan is to continue to build on two promising leads already identified and others using the novel screening technology developed at Scripps.”

Last month, the company completed the acquisition of Bio-Reference Laboratories, one of the largest full-service diagnostic laboratories in the world. Talking about the acquisition, Dr. Frost said, “The acquisition of Bio-Reference is important for OPKO.” He added, “Bio-Reference’s national infrastructure, reach and extensive payer network will be invaluable to the adoption of OPKO’s 4Kscore® test by physicians and patients across the country.”

The 4Kscore® test is a blood test that delivers a personalized risk score to each patient for having high-grade prostate cancer. According to Opko, this is the only test that accurately identifies the risk for high-grade cancer.

Overall, it remains to be seen why Frost is buying Opko’s shares so aggressively. According to TipRanks, Phillip Frost is one of the most profitable Corporate Insiders with a 73% success rate buying and selling shares of his own companies and a +38.3% average return per transaction.