Novax (Nasdaq stock code: NVAX) Stumbled on Monday and the stock price fell 4.4%. The main reason for the decline in coronavirus vaccine developers appears to be a series of company stock sales targeting top insiders earlier in the day.
Reuters, citing regulatory documents, reported that since the beginning of 2020, the biotech company’s CEO Stanley Erck and his unnamed “three lieutenants” have sold for approximately 46 million. Novavax shares in US dollars.
In 2020, Eck sold shares worth $8.7 million. According to Reuters, this is more than 20% of the shares he already owns in the company. This is also nearly four times the $2.2 million he unloaded in the previous five years.
Novavax is actively developing the coronavirus vaccine-NVX-CoV2373-still in clinical testing. Major regulatory agencies have approved the use of several competing vaccines.
Reuters quoted a biotech spokesperson who asked not to be named as saying that these sales were not disappointing. She said the company’s leaders “continued to have a significant personal and professional interest in Novavax’s success and finances.”
How to do
Company insiders have been selling stocks to increase liquidity. In addition, even with the recent correction, Novavax’s stock price has risen by nearly 2,900% in the past year, so their prices are much higher than before. However, when the candidate vaccine has not yet been put on the market, this is not a good look for the company.