Amplia Therapeutics share price up 16% in 2 days as former Macquarie CEO takes substantial stake

The Amplia Therapetics Ltd (ASX: ATX) share price has risen16% since Tuesday following an announcement that a former Macquarie CEO has been snapping up shares.

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The Amplia Therapeutics Ltd (ASX: ATX) share price is up 16.67% since Tuesday's open to 14 cents per share, as former Macquarie Group Ltd (ASX: MQG) CEO Allan Moss announced that he had become a substantial holder.

What was in the announcement?

According to the announcement, former Macquarie CEO Allan Moss now owns 8.69% of Amplia Therapeutics through an investment company he controls called Blueflag Holdings. The company purchased 7,500,000 shares for $750,000, paying 10 cents per share. 

Allan Moss was one of the founders of Macquarie Group and is known for his skill in choosing investments.

Who else is buying Amplia Therapeutics shares?

Also announced on Tuesday was that fund manager Platinum Asset Management had increased the size of its substantial holding in Amplia Therapeutics. This followed an institutional entitlement offer by the company. Platinum Asset Management increased its holding from 8.60% to 19.89%. The fund manager bought 11,454,000 shares for $1,145,400. The purchase price was 10 cents per share. 

Amplia Therapeutics director, Dr Warwick Tong, also  participated in the institutional entitlement offer, purchasing 200,000 shares at $0.10 per share.

About the Amplia Therapeutics share price

Amplia Therapeutics is a biotechnology company with a pipeline of treatments for cancer and fibrosis. Its treatments work by inhibiting the spread of  affected cells throughout the body. The company is focused on ovarian and pancreatic cancer.

Earlier in July, Amplia Therapeutics announced that it planned to raise $4 million at a price of 10 cents per share. The company also raised $930,000 in January.

The company is raising capital to move toward a phase 1 trial of its AMP945 treatment. This is the company's leading FAK inhibitor, which works by stopping cells from spreading when they are affected by cancer or fibrosis. According to the company, it is on the cusp of transforming into a clinical-stage company. The company plans to move towards a stage 2 trial in 2021. 

For the year to the end of March 2020, Amplia Therapeutics had a loss after tax of $2,219,474. Its research and development expenses were $1,071,677, and general and administration expenses were $858,886.

The Amplia Therapeutics share price is up 211% from its 52-week low of 4.5 cents per share. It has returned 141% since the beginning of the year. The Amplia Therapeutics share price is up 61% since this time last year.

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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