February 4, 2026

How to Bring Biotech Insider Buying to the Attention of the Market

Insider buying is one of the few signals from public biotechs that cuts cleanly through the noise. When a CEO, CFO, other C-suite member or board member writes a personal check in the open market, it sends a message that is unambiguously positive.

Yet many biotechs handle insider buying passively – assuming “the market will see it” once the Form 4 hits EDGAR. In my experience, that’s overly optimistic.

A more effective approach is to bring the transaction(s) directly to the attention of your covering sell-side analysts, by sending a short, factual email containing links to the relevant SEC filing(s). Note: the email needs to be sent to all of your covering analysts, not selectively to the ones you favor or who might publish a note.

Such an email should not hype the trade(s), or editorialize on management confidence, or imply anything about the company’s future performance. It simply means ensuring that the right people are aware that insider buying has occurred.

Of course, there are “news” websites – typically tailored to retail investors – who already “publicize” insider buying, but they do so on a case-by-case basis (reacting to each filing). An IRO – or even CEO – will know when a biotech’s self-enforced trading window has ended and can thus inform analysts when a wave of insider buying has occurred and come to an end.

Keep it simple, factual, and filed

The email itself should be brief and unemotional. A few lines are sufficient:

• Note that a member of management or the board has made an open-market purchase.
• Specify the filer, date, and size of the transaction.
• Include a direct link to the Form 4.

Avoid adjectives, interpretations, or commentary

Remember, this is not a press release, and it is not guidance. You are pointing analysts to a public filing they may not have seen yet – particularly if they cover dozens of names and are not monitoring EDGAR in real time. Additionally, nothing new is being disclosed – you are simply helping analysts notice something that is already available to anyone who looks for it.

This does not set a precedent

One concern companies often raise is whether flagging insider buying creates an obligation to highlight all insider transactions going forward, including sales. It does not.

Insider buying and insider selling are not symmetrical. Buying is discretionary and voluntary. Selling is often driven by tax obligations, diversification, or pre-planned 10b5-1 programs. Analysts understand this distinction well.

Providing visibility on open-market purchases does not commit a company to narrating every future Form 4. Nor does it imply selective disclosure, as the underlying information is already public (with the filing already meeting the SEC’s minimum disclosure requirement).

Why analysts appreciate the heads-up

Sell-side analysts – particularly those who have rated a small- or mid-cap biotech a Buy – are “exposed,” meaning they have gone out on a limb with their institutional clients.

When I was an equity analyst, I welcomed any information that supported my Buy recommendation. And I was often stretched covering thirty or more companies, so occasionally meaningful but routine disclosures would slip through the cracks.

Importantly, when analysts learn about insider buying promptly, they are better equipped to contextualize it in client conversations, morning notes, or upcoming earnings previews. It strengthens their confidence without requiring them to stretch on fundamentals or timelines.

Quietly effective investor relations

Remember – factually drawing attention to insider buying is not about trying to “pump” the stock. It is about good housekeeping.

In biotech, credibility compounds slowly and erodes quickly. Handling insider buying with restraint, precision, and respect for the sell-side ecosystem is one of the small things that signals professionalism – and professionalism is noticed.