what happened
Novavax (NASDAQ: NVAX) stumbled on Monday, with the share falling 4.4%. The main reason for the decline in the vaccine for the coronavirus vaccine appears to be a set of sales stocks reported by top insiders earlier in the day.
Approximately
Reuters reports that the biotech’s CEO, Stanley Erck, and ‘three lieutenants’ he does not name have sold about $ 46 million in shares of Novavax since the beginning of 2020.
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In 2020, Erck sold $ 8.7 million worth of shares. According to Reuters, it was more than 20% of its fixed stake in the company. The amount was also almost four times the $ 2.2 million he had deposited in the previous five years.
While Novavax is actively developing a coronavirus vaccine – NVX-CoV2373 – this is still being done in clinical trials. Several competing vaccines have already been approved for use by major regulators.
Reuters quoted an unnamed biotechnology spokesman as saying these sales were not bad. She said that the leaders of the company “still have a great personal and professional interest in both Novavax and a financial interest.”
Now what
Corporate insiders consistently sell stocks to boost their liquidity. Even with recent withdrawals, Novavax’s shares have risen by almost 2,900% in the past year, making them more expensive than they used to be. However, it is not really a good outlook for the company if the candidate for the vaccine has not yet come on the market.