Onyx Shares Soar On FDA Backing Of New Drug, Officials Still Selling Stock
Shares of Onyx Pharmaceuticals Inc. (NASDAQ:ONXX) jumped 42 percent on Thursday after the U.S. Food and Drug Administration gave approval of a drug the company says will be used to treat a deadly form of blood cancer that affects more than 50,000 Americans. However, despite this huge win for the company, executives are still cashing out.
According to Bloomberg, the surge in stocks was the largest the company has seen in five years. Before Thursday, the highest the stock had risen in the last 12 months was 29 percent. An FDA panel voted unanimously to approve the medicine for the next round of trials. If it is approved completely, sales could hit $523 million by 2016.
“This is an unmet need in a group that has really run out of options,” said Wyndham Wilson, the FDA panel chairman. “There is a pretty convincing signal here that is likely, I believe, to be confirmed in confirmatory trials.”
However, on June 8, executive vice president Suzanne Shema exercised her market option for 40,000 valued at $31.62 each, then sold those shares for $44.53 each, according to insider trading reports.
Why do you think Shema cashed out only weeks before such an important milestone for the company?
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