The directors of the research group Abcam (LON:ABC) are backing the company for success after a rather lacklustre start to 2014.
In the last week directors have acquired more than £1mln-worth of stock in the company, which sells research-grade antibodies.
That buying was led by chief executive Jonathan Milner, who on Thursday followed a £67,000 purchase at 373p per share with one for £989,000 at 381.95p a share.
His holding stands at 13.9%, worth £106mln.
Tory peer and former Marks & Spencer non-exec, Lady Louise Patten, announced her elevation to the Abcam board by splashing out just £50,000 for a modest stake in the Cambridge-based group.
The share purchases have come after more than a quarter has been wiped from the value of the business.
This followed a trading update in January in which it gave a less than enthusiastic assessment of prospects for the US market.
However, the tide may be turning. Earlier this week, City broker Canaccord upgraded its recommendation.
Analyst Julie Simmonds said: “We believe the long-term opportunity for Abcam remains significant, as the research use of antibodies will continue to grow (we estimate a growth rate of 8-10% annually) and Abcam remains a leader in this market.”
These high-value materials are crucial in research tackling diseases such as cancer and neurological disorders and the group plays a central role in sourcing and producing them.
Consistency supply is key, so researchers who trust Abcam’s brand will often make repeat orders over the lifetime of a project, keeping a steady stream of cash flows rolling in.
Canaccord’s Simmonds said: “The historic competitive advantage driven by its sophisticated website and antibody data sheets has declined in recent years as competitors have also developed an on-line presence.
“However, Abcam-branded antibodies are now well integrated into the scientific community, as illustrated by the continuing increase in citations…This gives Abcam a long-term repeat revenue opportunity which underpins its sales expansion.”