Sometimes a biotech stock needs more than science to turn things around—it needs someone willing to write a big check and roll up their sleeves. That's exactly what happened with Indaptus Therapeutics Inc. (INDP), which rocketed 64.65% to $3.26 in after-hours trading on Tuesday after announcing a significant insider investment and leadership restructuring.
According to an 8-K filing, investor David E. Lazar purchased 300,000 shares of Series AA Preferred Stock and 700,000 shares of Series AAA Preferred Stock at $6.00 per share on Monday. That's $6 million in aggregate gross proceeds flowing into a company desperately in need of capital and direction.
Here's where it gets interesting: those preferred shares are convertible into a whopping 111 million shares of common stock, though that conversion needs stockholder approval first. According to Form 3 filings dated Tuesday, Lazar's derivative securities break down to 6 million common shares from the Series AA Preferred Stock and 105 million shares from the Series AAA Preferred Stock.
New Leadership Takes the Wheel
The Board didn't just take Lazar's money and call it a day. They appointed him as Co-Chief Executive Officer, bringing in someone with serious credentials in the biotech space. Lazar currently serves as CEO and Chairman of Kala Bio Inc. (KALA) and previously led Novabay Pharmaceuticals, Inc. (NBY) as Chief Executive Officer.
The company also added Avraham Ben-Tzvi as a new director. His Form 3 filing shows ownership of 100 common shares held in a Roth Individual Retirement Account, a modest stake compared to Lazar's massive position.
Meanwhile, Indaptus modified employment agreements with several key executives—Jeffrey Meckler, Michael J. Newman, Nir Sassi, and Walt A. Linscott. The restructuring provided equity settlements totaling 350,000 common shares and $4.4 million in cash in exchange for 10-day notice periods and waived severance benefits. That's the kind of move you make when you're trying to clean house efficiently.
What Comes Next
A special stockholder meeting is scheduled to occur by March 31, 2026. On the agenda: approving the preferred stock conversion, authorizing a share increase, electing three Lazar designees to the board, permitting written consent actions, and authorizing a reverse stock split. That's a lot of corporate machinery in motion.
The Reality Check
Let's be clear about where Indaptus stands. This New York-based clinical-stage biotechnology company has a market capitalization of just $3.47 million. The stock has crashed 92.04% over the past year, with a 52-week range of $1.66 to $47.60. That's not a typo—the company has lost more than 90% of its value.
The stock closed Tuesday at $1.98, down 2.46%, before surging in after-hours trading. It's currently sitting just 0.7% above its 52-week low, suggesting the stock has been having trouble gaining any real traction. The Relative Strength Index sits at 36.65, indicating the stock remains under pressure.
For investors, the question is whether Lazar's investment and leadership represent a genuine turnaround opportunity or simply a temporary spike in a stock that's been in freefall. The $6 million injection provides some breathing room, but the company's tiny market cap and brutal performance history suggest caution is warranted. Short-term gains don't necessarily signal a lasting recovery, especially when you're starting from such a deep hole.
The after-hours surge shows the market likes what it sees so far. But with a special meeting more than a year away and massive dilution potentially on the horizon through those convertible preferred shares, there's plenty of uncertainty ahead. This is a story worth watching, but probably not one to bet the farm on just yet.