Billionaire Mori Arkin filed a 13D on Aclaris Therapeutics (ACRS), a development stage microcap biotech company with a promising treatment for common warts. Arkin bought the shares through his personal partnership, “The 1999 Company.” In the activist filing he disclosed the following trades:
| Purchase/Sale | Shares | Price | Date | Running Total | Stake |
| Purchase | 603,009 | 0.977 | 9/6/19 | 603,009 | |
| Purchase | 78,044 | 0.996 | 9/9/19 | 681,053 | |
| Purchase | 77,780 | 1.029 | 9/13/19 | 758,833 | |
| Sale | -146,151 | 1.99 | 9/17/19 | 612,682 | |
| Purchase | 370,344 | 1.03 | 10/2/19 | 983,026 | |
| Purchase | 1,117,748 | 1.032 | 10/3/19 | 2,100,774 | |
| Purchase | 19,547 | 1.076 | 10/4/19 | 2,120,321 | |
| Purchase | 758,600 | 1.149 | 10/7/19 | 2,878,921 | Crosses 5% stake |
| Purchase | 18,436 | 1.15 | 10/8/19 | 2,897,357 | |
| Purchase | 58,954 | 1.15 | 10/9/19 | 2,956,311 | |
| Purchase | 208,353 | 1.157 | 10/10/19 | 3,164,664 | |
| Purchase | 155,086 | 1.447 | 10/15/19 | 3,319,750 | 8.02% stake |
Investors with activist intentions who acquire 5% or more of a public company must file a 13D with the SEC within 10 calendar days of crossing the threshold. Arkin crossed 5% on October 7, and the activist filed the 13D on Oct. 15.
Aclaris’ topical solution to treat common warts showed positive phase 3 results
On Sept. 17, Aclaris announced positive results from a phase 3 clinical trial of A-101 45% topical solution, an investigational new drug for the treatment of common warts. The study, THWART-2, met primary and secondary endpoints, with the topical solution achieving clinically and statistically significant clearance of common warts as early as day 29, according to a press release.
Neal Walker, President and CEO of Aclaris had this to say:
“There are no FDA approved prescription treatments for common warts and we are excited by these data and look forward to the results of the second pivotal Phase 3 trial, THWART-1 (WART-301). “This treatment is self-administered twice a week for 8 weeks (a total of 16 applications) and we believe these results will be of interest to partners seeking to commercialize A-101 45% Topical Solution.”
In response to the news, ACRS popped from $1 to over $2. Arkin began buying the stock before the trial results were announced. When the stock ripped after the announcement, he sold 146,151 shares at $1.99 for a quick profit on part of his position. However, when ACRS drifted back toward a buck a couple weeks later, the investor began buying again. The average cost of his 2,707,068 share position disclosed in the 13D was $1.27.
Mori Arkin is a veteran of the pharmaceutical industry and controls Sol-Gel, a publicly-traded dermatology company.
In 1961, Arkin’s father founded Agis Industries, an Israeli pharmaceutical importer. Agis grew into a generic pharmaceutical manufacturer, and in 2005, Mori Arkin sold Agis to Perrigo for $818 million in cash and stock. Arkin is also the founder and chairman of Arkin Holdings, a pharmaceutical company. He is the co-founder and chairman of the Accelmed Fund. He owns over 65% of Sol-Gel Technologies (SLGL), a dermatology company.
Before Arkin filed a 13D on Aclaris, the investor’s most recent initial filing was a May 24, 2018 13G disclosing a 6.2% position in Invuity Inc (IVTY). Arkin bought 1.49 million shares at $3.00. He sold the entire stake on Sept. 13, 2018 at $7.35 — a 145% gain in less than four months. Arkin’s complete 13D/G trading history can be studied within 13D/G Search at WhaleWisdom.com.
Disclaimer:
Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this blog is meant for educational and informational purposes only. Do your own research before investing and don’t risk more than you can afford to lose. This article expresses my own opinions, and I am not receiving compensation for it (other than from WhaleWisdom). If you buy a book after clicking on one of the above links, I may received an affiliate fee. I do not have a business relationship with any company whose stock is mentioned in this article. I or my associates may hold positions in the stocks discussed.
