An2 therapeutics executive buys $1.56 million in company stock

In a recent move that signals confidence in the company, Braden Michael Leonard, a significant shareholder of AN2 Therapeutics, Inc. (NASDAQ:ANTX), has purchased $1.56 million worth of company stock. On August 14, 2024, Leonard acquired 1,500,000 shares at a price of $1.04 per share.

Leonard's acquisition has increased his direct holdings to 5,749,432 shares. This transaction was conducted indirectly through BML Investment Partners, L.P., where BML Capital Management, LLC serves as the general partner and Leonard is the managing member, exercising investment and voting control over the shares.

It's worth noting that while Leonard has a pecuniary interest in the shares owned by the Fund, he disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest therein. This disclaimer is a standard legal declaration to clarify the nature of his stake in the company.

Investors often look to the buying and selling activities of company insiders as an indicator of the company's financial health and future prospects. Leonard's purchase is a considerable investment and may be interpreted by the market as a positive sign for AN2 Therapeutics' outlook.

In other recent news, AN2 Therapeutics has ceased its EBO-301 study for treatment-resistant MAC lung disease, following the evaluation of Phase 2 trial results. Despite meeting its primary goal with a higher patient-reported outcome-based clinical response rate, the study did not demonstrate significant improvement in sputum culture conversion, a crucial secondary endpoint. The decision to stop the study was not linked to safety concerns, as the drug epetraborole was generally well-tolerated by participants. AN2 Therapeutics now plans to concentrate on its internal boron chemistry platform and continue developing its pipeline programs.

In the wake of these recent developments, Evercore ISI has revised the stock price target for AN2 Therapeutics down to $2 from the previous $7, while maintaining an 'In Line' rating. This adjustment is due to a newly projected timeline for Phase 2 data, expected in August. AN2 Therapeutics ended the quarter with $118 million in cash reserves, deemed sufficient for reaching the critical data readout phase.

Finally, the strategic restructuring following the discontinuation of the EBO-301 study is expected to extend the company's cash runway through 2027. AN2 Therapeutics will continue to pursue its pipeline programs, including initiating Phase 1 clinical development for chronic Chagas disease and a Phase 2 study for melioidosis.

InvestingPro Insights

Braden Michael Leonard's substantial acquisition of AN2 Therapeutics, Inc. (NASDAQ:ANTX) stock is a significant event that investors and market watchers are sure to analyze for insights into the company's valuation and future performance. Based on real-time data from InvestingPro, AN2 Therapeutics currently holds a market capitalization of $32.51 million, which provides a context for the scale of Leonard's investment relative to the company's total value.

InvestingPro data also reveals a P/E Ratio (Adjusted) of -0.47 for the last twelve months as of Q1 2024, indicating that the company is not currently profitable when considering normalized earnings. The PEG Ratio during the same period stands at 0.94, suggesting that the company's earnings are expected to grow, which could justify its current P/E ratio if that growth materializes.

Moreover, the Price / Book ratio as of the last twelve months leading up to Q1 2024 is at 0.28, which may imply that the stock is undervalued compared to the company's book value, a metric that could be a factor in Leonard's decision to increase his stake. However, it's important to note that AN2 Therapeutics has experienced a significant downturn in its price total return over various periods, with a one-year price total return as of the date in question at -87.85%, reflecting the challenges the company has faced.

InvestingPro Tips highlight that the company's next earnings date is set for November 7, 2024, which will be a pivotal moment for investors to assess the company's performance and future outlook. Additionally, InvestingPro's fair value estimate for AN2 Therapeutics stands at $1.58, above the price Leonard paid but below the analyst target fair value of $2.00. These insights, along with the 13 additional tips available on InvestingPro, can help investors make more informed decisions when considering AN2 Therapeutics as a potential investment.

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