It's impossible to time the market, you will only know it's the bottom until after it passes so it's best to just cost average in. Granted, I'm deeply in the red on FREQ as I started accumulating shares around $8 so I was clearly too early. I remind myself of the quote from Christian Bale when he plays Michael Burry in The Big Short "Just because I'm early, doesn't mean I'm wrong." as Burry was deeply in the red leading up to the housing market collapse when he bet against housing, but he finally made out like a bandit when it did collapse.
It's entirely possible that the stock can go back to $50 to $60 from its current levels, biotech is the sector where that most often happens. Look at the 5 year charts on biotechs like NVAX, SAVA, MRTX or AXSM. Here is an article talking about the ingredients required for biotech to perform as such.
These 3 No-Brainer Tricks Will Help You Pick Millionaire-Maker Biotech Stocks Like BioNTech
I think FREQ matches this description to a T. FREQ has been the victim of bad science in that they botched their last trial and made the statement "it showed no benefit over placebo". Yet when you dig into the data, almost 50% of both the treatment group and placebo group responded AND the placebo group was only 1/3 the size of the treatment group so management's explanation for why that may have been is completely plausible. The company is trading below cash value right now and the Astellas deal payouts alone are worth 4x their current market cap.
Full disclosure again, I'm a large shareholder deeply in the red right now but I'm still buying as the underlying fundamentals haven't changed and I believe it will go back to $50 a share someday.
As for Lucchino, he didn't actually buy those shares; he received restricted stock units which were most likely part of his compensation package. You can tell because the acquisition price on the SEC filing is for $0 a share. Also, don't forget that Lucchino has experience making it through clinical trials to commercialization when he was CEO of Semprus Biosciences so this isn't his first rodeo. For him to make statements like "These factors support our belief that we have a very promising candidate to be the first approved therapeutic for hearing restoration." That's pretty confidence inspiring in my opinion.