Cardiol Execs and Board Members Increase Equity, Signal Confidence

Members of the Cardiol Therapeutics Inc. (Nasdaq: CRDL) (TSX: CRDL) executive team and board of directors recently made significant purchases of company stock. Insider buying is generally viewed as a sign of confidence from those who know the company best, and increasing insider ownership can ensure that executive decisions align with the best interests of shareholders.

CEO David Elsley acquired 40,000 common Class A shares, increasing his total number of common shares held to 1,244,500. The purchase was the second this year, with Mr. Elsley acquiring 50,000 shares in June.

Meanwhile, CFO Chris Waddick purchased 25,900 common Class A shares, bringing his total to 135,900 common shares held. Chief Operating Officer Bernard Lim joined in on the buying, acquiring 10,000 shares at $1.95 a piece, for a total purchase price of $19,500. Also, Board director Peter Pekos increased his ownership in the company and acquired 38,750 shares, paying US$1.29 a share for a total purchase price of US$50,000.

Notably, Chairman of the Board Guillermo Torre-Amione bought 22,000 common Class A shares over the past week, increasing his total number of common shares held to 242,069. Details of the insider buying transactions can be found by searching SEDI filings for Cardiol Therapeutics.

Timing of the Purchases

These stock purchases come at an inflection point for Cardiol Therapeutics. The company’s share price has been declining after releasing positive news in October and November. Since announcing in November that its Orphan Drug Designated (ODD) drug candidate, CardiolRx™, was moving into a late-stage Phase III trial for recurrent pericarditis, the share price has declined about 28%. Despite the recent slide, Cardiol’s share price is up about 52% from the beginning of the year.

In Q4, the company presented the full results from its Phase II trial for recurrent pericarditis at the American Heart Association Scientific Sessions 2024 and announced the launch of a Phase III trial, designed to evaluate the impact of CardiolRx™ in recurrent pericarditis patients following cessation of interleukin-1 blocker therapy. This cost-effective study provides Cardiol with an opportunity to expand the market potential for CardiolRx™ and potentially provides a path for an accelerated regulatory approval timeline.

Additionally, the company is concluding the ARCHER Phase II trial for acute myocarditis, which completed full enrollment and topline results are expected early next year. Amidst these favorable developments, the share price fall appears out of sync with both the value of the ongoing ARCHER and MAVERIC trials and the vast potential of Cardiol's drug development initiatives. Cardiol has enough cash in the bank to fund everything well into 2026.

What to Watch For

These insider purchases indicate a high level of confidence from the people most familiar with the research, trial programs, and results generated by Cardiol Therapeutics at a time when the market appears to have a disconnect from evaluating the potential of the company. Cardiol Therapeutics anticipates several major developments in the coming year, including the conclusion of the ARCHER Phase II acute myocarditis trial and the filing of the new IND for heart failure. Additionally, CardiolRx™ could be ready for a final approval decision by the FDA on the accelerated orphan drug development timeline in the recurrent pericarditis program.

You can watch an informative recent interview with David Elsley here. Stay tuned for further developments.