Opinion on  Discovery Laboratories Inc. (DSCO)     Sector: Healthcare  >  Industry: Biotechnology & Drugs
Insider Buying + Surfaxin Approval Expected in 2008 = BUY

INSIDER TRANSACTIONS REPORTED - LAST TWO YEARS

Date Insider Shares Type Transaction Value* 1-Oct-08 KATZER CHARLES F Officer 10,000 Direct Purchase at $1.89 per share. $18,900 30-Sep-08 CAPETOLA ROBERT J Officer 75,000 Direct Purchase at $1.87 per share. $140,250 29-Sep-08 ROSENTHALE MARVIN E Director 15,000 Indirect Purchase at $0 - $1.87 per share. N/A 18-Aug-08 AMICK W THOMAS Director 10,000 Direct Purchase at $1.93 per share. $19,300 30-Jun-08 CAPETOLA ROBERT J Officer 1,175 Direct Acquisition (Non Open Market) at $1.65 per share. $1,938 4-Jun-08 AMICK W THOMAS Director 10,000 Direct Acquisition (Non Open Market) at $1.84 per share. $18,400 12-May-08 ROSENTHALE MARVIN E Director 10,000 Indirect Purchase at $0 - $1.8 per share. N/A

Insider buying (including a 75,000 share buy from the CEO at $1.87) demonstrates management's confidence in submitting complete response to FDA for Surfaxin approval within the next 2-3 weeks with a likely Class I review by the FDA. As long as DSCO submits the complete response by the end of October, a Class I review (60-day) would still allow for approval by the end of 2008. Stock was trading near $3 ahead of approvable FDA ruling back in May; so upside on approval should be at least above that level.