CEO of vaccine maker sold $10 million in stock before company ruined Johnson & Johnson dosesThe stock price of government contractor Emergent BioSolutions has fallen sharply since the disclosure at the end of March that production problems at the firm’s plant in Baltimore had ruined 15 million doses of Johnson & Johnson’s coronavirus vaccine. Since then, AstraZeneca moved production of its own vaccine out of the facility, and Emergent temporarily halted work there altogether.
Those developments came after Emergent’s stock price had tumbled on Feb. 19, following the company’s published financial results. Emergent stock has fallen since mid-February to about $62 a share from $125 a share, or 51%.
But the decline has had less of an impact than it might have on the personal finances of Emergent’s chief executive, Robert Kramer, who sold more than $10 million worth of his stock in the company in January and early February, securities filings show. Based on the market price, the stocks that Kramer sold would now fetch about $5.5 million.
The transactions were Kramer’s first substantive sales of Emergent stock since April 2016, according to a review of securities filings by The Washington Post.
Those 2016 sales by Kramer, along with sales by other Emergent executives about the same time, were the subject of a lawsuit brought by investors who alleged that executives offloaded stocks after making misleading claims about the scale of an upcoming order from the government for an anthrax vaccine. When the order turned out to be smaller than analysts anticipated, the share price fell. Emergent denied the allegations, but the parties later agreed to a settlement in which Emergent paid the investors $6.5 million.
Kramer made his recent sales by exercising stock options that Emergent had awarded him as part of his compensation package in past years. Those options allowed him to buy the stocks for about $2.5 million; he then sold them at market price. Kramer’s remaining stake in Emergent is worth about $10.1 million, according to securities filings, and he has almost 60,000 stock options that he may begin exercising next year.
https://www.seattletimes.com/nation-world/ceo-of-vaccine-maker-sold-10-million-in-stock-before-company-ruined-johnson-johnson-doses/
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