Genenta CEO Hits 10% Ownership in Bold Bet on Gene Therapy Future

MILAN and NEW YORK – December 19, 2025

Pierluigi Paracchi, the co-founder and CEO of Genenta Science, has solidified his commitment to the clinical-stage gene-therapy company, increasing his ownership stake to approximately 10% of the firm’s outstanding share capital. The company disclosed that Paracchi's entire holding was accumulated through a series of open-market purchases, with a notable absence of any reported sales, signaling deep-seated confidence from the executive's chair.

A Bullish Signal Amid Market Skepticism

The announcement that Mr. Paracchi now holds 2,326,129 American Depositary Shares (ADSs) and ordinary shares comes at a pivotal moment for Genenta Science (Nasdaq: GNTA). While significant insider buying is often interpreted as a bullish indicator, it stands in stark contrast to the prevailing market sentiment surrounding the company. In recent months, Genenta's stock has faced headwinds, trading well below its 200-day moving average and reflecting a broader downtrend.

Compounding the pressure, analyst coverage has been sparse and largely negative, with the consensus rating from recent reports leaning towards "Sell." Furthermore, short interest in the company’s stock has seen a substantial increase of nearly 49%, indicating that a segment of the market is betting against the firm's success. Even a modest 6.47% gain in the stock price on the day preceding the announcement occurred on light trading volume, suggesting it was not driven by broad market enthusiasm.

Against this backdrop, a CEO's decision to deploy personal capital to acquire shares—specifically 30,000 ADSs in recent open-market transactions—is a powerful counter-narrative. Unlike stock options granted as part of compensation, open-market purchases represent a direct, voluntary investment. For a founder-CEO to consistently buy and never sell sends an unambiguous message: leadership believes the market is undervaluing the company's long-term prospects and underlying scientific assets.

Aligning the C-Suite with Shareholder Interests

Mr. Paracchi's 10% stake does more than just signal confidence; it fundamentally aligns his financial interests with those of the company's shareholders. In the high-stakes, capital-intensive world of biotechnology, this alignment is a cornerstone of strong corporate governance. With a significant portion of his personal wealth tied to the company's performance, the CEO is directly incentivized to steer the company toward sustainable, long-term value creation rather than focusing on short-term metrics.

This level of "skin in the game" is particularly crucial for a clinical-stage company like Genenta, which is not expected to generate revenue for several years. The company's latest financial projections forecast it will reach break-even status in 2027. Until then, every decision regarding capital allocation, clinical trial design, and strategic partnerships carries immense weight. A CEO who is also a major shareholder is more likely to exercise fiscal discipline and prioritize research and development pathways with the highest probability of success and return on investment.

Paracchi’s ownership constitutes a major part of the total insider holdings, which stand at a robust 28.99%. This high level of collective insider ownership suggests that the company's leadership and key personnel are deeply invested in its future, fostering a culture of accountability and shared purpose that can be a critical advantage during the arduous journey from clinical trials to potential commercialization.

The Science Driving the Investment

The CEO's increased investment is not occurring in a vacuum. It follows a series of promising clinical and strategic developments that provide a tangible basis for his optimism. The company's lead product candidate, Temferon™, is a first-in-class immunotherapy designed to reprogram the tumor microenvironment to fight solid tumors. Recent data from its clinical trials have been encouraging.

In late November 2025, Genenta reported updated long-term survival trends from its Phase 1 trial of Temferon in patients with Glioblastoma Multiforme (GBM), one of the most aggressive forms of brain cancer. The results showed that 44% of patients treated with Temferon achieved 18-month survival, an improvement from the 38% reported earlier in the year. The two-year survival rate held steady at 29%, and one patient has now surpassed the three-year survival mark—a significant milestone in a disease with a grim prognosis. These results, coupled with an Orphan Drug Designation from regulators, bolster the potential of the Temferon platform.

Beyond GBM, Genenta is actively expanding its pipeline. The company has initiated a Phase 1/2a study for metastatic Renal Cell Carcinoma (RCC), which will also explore the potential of using Temferon in combination with existing immune checkpoint inhibitors. This strategy could significantly broaden the therapy's market potential by enhancing the efficacy of already-approved treatments. Furthermore, a strategic partnership announced in October 2025 with Anemocyte to advance the production of Lentiviral Vectors—a critical component for gene therapies—addresses a key manufacturing challenge. The market reacted decisively to this news, with Genenta's stock surging over 280% in a single day, underscoring the strategic importance of securing the therapy's supply chain.

Interpreting the Biotech Playbook for Investors

For investors attempting to navigate the volatile biotech sector, insider transactions are a critical piece of the puzzle. A founder-CEO's consistent open-market buying is widely regarded as one of the strongest positive signals available. It suggests that the individual with the most intimate knowledge of the company's science, clinical data, and regulatory pathway believes its shares are undervalued.

This move by Paracchi offers a compelling data point for those weighing the risks and rewards of investing in Genenta. The company currently has approximately $30 million in cash and short-term investments following a $15 million offering in October, providing a runway to fund its ongoing clinical trials. However, the path to profitability is long, and future funding rounds may be necessary.

In this context, the CEO's investment can be seen as a long-term bet on the eventual success of Temferon. It reassures the market that leadership is not only managing the company's day-to-day operations but is also personally invested in weathering the inevitable challenges of clinical development. While market sentiment and analyst ratings tell one story, a 10% ownership stake, built solely through buying, tells another—one of profound conviction in the transformative potential of the company's science.