Boston, MA 02/10/2013 (wallstreetpr) – The shares of Opko Health Inc. (NYSE:OPK) plunged Friday after it issued a statement to handle concerns regarding the sale of stocks by one of its executives Adam Logal, recently sold 50,000 of shares held by him to make up for “pressing” needs due to “family circumstances”. Logal, Opko’s chief accounting officer & treasurer, is serving as the vice president of the company.
According to the statement no other employees or insiders exercised share options in the last year and none such insider plans to dispose of his holding in the coming year, the statement reads.
The statement also revealed that Phillip Frost, CEO Opko Health Inc. (NYSE:OPK) purchased 11.2 million and 383,500 million common shares during 2012 and year 2013 (so far) respectively. Frost and several other officers invested in the $175 million public issue of convertible securities.
The biopharmaceutical company has made a series of acquisitions recently. A large number of its medicines are in the final phase of development, which makes it all set for a “pullback”, in the view of analysts. Frost’s purchases which were made at the lower end of the price range triggered a buying trend in the open market.
Considering the company’s potential for revenue generation, the stock is definitely overvalued at the moment. However many analysts are also wary of the insider trading and bulky share issues by the company. The value of the company’s shares has surged over 60% during the three months ending February 28.
The shares of Opko Health Inc. (NYSE:OPK) were down 4.7% to close at $6.49.
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