On Monday, shares of Pfizer climbed 16% following a bullish statement on the company’s investigational COVID-19 vaccine that showed 90% effectiveness in preliminary results.
Then on Tuesday, according to a Securities and Exchange Commission filing, Pfizer CEO Albert Bourla sold 62% of its shares.
The Form 4 filing with the SEC showed that Bourla had sold 132,508 shares at an average price of $ 41.94 per share, or $ 5.6 million – almost the high of the 52-week record.
The sale of Bourla was made under rule 10b5-1, established by the SEC, allowing the insider of the company to sell a predetermined number of shares at a predetermined time. A Pfizer spokesperson told Axios that the CEO’s predetermined business plan was drawn up in August.
While the sale is perfectly legal under the 10b5-1 rule to avoid insider trading charges, the outlook is not ideal for Bourla, who still managed to break the 52-week record for the news day sale. Arguably, he could not have known the results of the vaccine trial months in advance. And while all of this comes out just days after a critical US election, it’s unclear if this was a trigger.
Other pharmaceutical companies such as Moderna, which also produce a COVID-19 vaccine, have seen similar insider sales over the summer around vaccine news – where insiders have dumped tens of millions of dollars. stock dollars.
Under the guise of the 10b5-1 rule, some drug company insiders are already showing up for exits by dumping their stocks, of course, it’s easier to commit to planning stock sales when you know you can pump the price just issue a press release.
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