Vertex Spikes On Phase II Data, Then The CFO Sells His Shares
"My jaw dropped when I saw their latest Form 4 filings for their insider transactions. The numbers are so large it's hard to believe that they are real, but that is what is currently being reported. On April 19th, Executive Vice President and Chief Financial Officer Ian F. Smith exercised 739,643 options at $28.84 and promptly sold 745,685 shares at $81.50. According to the documents he has 24,168 shares left. Considering the 740K option exercise and immediate sale, he made $52.66 per share or nearly $39 MILLION."
apparently it was a triggered sale based on price target. He's a CFO - obviously set up a target so no emotional decision to be made. That being said surprising that its almost his entire allotment of shares
Because everyone knows and understands that the probability of actually passing phase III trials and having a marketed drug at this stage is still below 50%, probably more like 25% in my opinion, and that as revenues decline in other areas, and expenses go up to run the lengthy phase III trials, it could very easily be 2 more years or even 4 years before net profit is realized, and that given the history of markets, the very high share prices, it would not only be prudent, but wise to cash in, especially if you intend to retire in less than 5 years.
This is a signal that most likely there will be a pull back in the coming weeks, months that would put the shares somewhere around the centre of where it was trading last week, and today, hence the normal move by the CFO.
Maybe wait and see, and get back in if VRTX shares can cool to the 60's.