Amid vaccine news, Pfizer’s stock has soared, selling $5.6 million in stock.
What We Know:
- CEO Albert Bourla filed to sell millions of dollars of Pfizer’s stock Monday, the day they received positive news of their vaccine’s efficacy.
- Bourla sold 132,508 shares for $41.94. The shares were sold as part of a predetermined plan authorized by Bourla in August. Bourla still owns 81,812 shares himself. A spokesperson said Bourla “holds approximately nine times his salary in Pfizer stock after the sale this week”.
- When asked if Pfizer and Bourla should cancel the sale because they’re banking on their good news, a spokeswoman responded, “these are predetermined plans managed through a third-party stock administrator”.
- Pfizer officer Sally Susman also sold shares Monday at the same price of $41.94. She sold 43,662 shares valuing at more than $1.8 million
- The stock is sold at predetermined intervals; this diversifies the executive’s portfolio. They can also delay the sales to avoid looking like they’re capitalizing off a one-off event.
- Shares of Pfizer surged 8% Monday but fell flat Tuesday and fell more than 1% Wednesday.
- A few months before, another biotech company working on the vaccine, Moderna, sold shares similarly after releasing their vaccine’s promising results. After this, Moderna was accused of overhyping the results. The company still raised $1.3 billion in stock despite the stock fizzling a week later.
Critics share their concerns about Bourla’s stock plan soon after the announcement of the vaccine efficacy. How profitable the vaccine will be is still unknown as well as Pfizer’s stock value.
