Pfizer CEO Albert Bourla sold shares in the pharmaceutical giant on the same day it announced significant progress in developing a vaccine for the coronavirus. The company announced that the sale of the shares was agreed in August.
On November 9, just in the afternoon of Polish time, the financial markets were flashed by Pfizer’s announcement that in cooperation with the German company BioNTech, it had developed a coronavirus vaccine with a 90% effectiveness. The reaction of stock exchanges around the world was immediate and unequivocally optimistic (see this article). Not only small and large investors from around the world, but also the president of the pharmaceutical company, made money on Pfizer’s information.
On Monday, Albert Bourla sold 132,508 shares of Pfizer at $ 41.94, according to published information. This means that the value of the transaction was USD 5.56 million, and 62 percent went to the market. shares held by the head of the management board.
The company’s CEO was “selling on the hill” as Pfizer closed the same day at $ 39.2 per share, and was traded at $ 36.5 per share in the session preceding the announcement. Selling the bundle at these prices would bring Bourli $ 5.19 million and $ 4.84 million respectively.
This is not the end of the insider deal – on the same day, for the same price, Sally Susman, vice president of Pfizer, also sold a block of 43,662 shares. According to the CNN station, which received the company’s position in this matter, the sale of shares by management board members was carried out in accordance with the previously agreed schedule. When asked whether the transaction could be canceled, Pfizer stated that it was carried out by an independent stock manager.
The case of the Pfizer management board is not the first time that the management board of a pharmaceutical company has sold shares following the publication of optimistic information about the vaccine. In May, Moderna announced the positive results of initial coronavirus vaccine tests, after which its chief financial officer and chief medical officer sold shares worth a total of $ 30 million.
“The sale of these shares took place under Dr. Bourli’s planned personal finance scheme, as part of a pre-agreed plan [10b5-1] which, under US Securities and Exchange Commission rules, allows major shareholders and insiders in listed corporations. on the stock exchange to trade a certain number of shares within a specified period of time, ”Pfizer informed PAP.
“Through the person responsible for administering such plans, Dr. Bourla approved the sale of these shares on August 19, 2020, assuming their value was at least a certain price,” the company said.