Form 4: Catalyst Pharmaceuticals Director Sells Shares to Cover Tax Obligations

David S. Tierney, a director at Catalyst Pharmaceuticals, sold 25,000 shares of common stock on April 8, 2024, to cover a personal tax liability.

Summary

• On April 8, 2024, David S. Tierney, a director of Catalyst Pharmaceuticals, sold 25,000 shares of the company's common stock.
• The sale was executed on the open market at a weighted average price of $15.68 per share, with individual sales ranging from $15.55 to $15.77.
• The purpose of the sale was to fund the payment of a personal tax liability.
• Tierney also exercised options to purchase 25,000 shares at $4.01 per share.
• Following these transactions, Tierney directly owns 348,874 shares of Catalyst Pharmaceuticals common stock and options to purchase 203,931 shares.
• The options vested in three annual tranches beginning on January 2, 2019, and expire on January 2, 2025.

Sentiment

Score: 6

Explanation: Neutral sentiment. The filing simply reports a stock sale to cover tax obligations, with no indication of positive or negative outlook for the company.

Management Comments

• The shares were sold on the open market to fund payment of a personal tax liability and not as a result of any disagreement with the Company.

Industry Context

Form 4 filings are standard disclosures required by the SEC when company insiders (officers, directors, or those holding more than 10% of the company's shares) buy or sell the company's securities. This provides transparency to the market regarding insider transactions.

Stakeholder Impact

• The sale of shares by a director could have a minor negative impact on shareholder sentiment, although the stated reason (tax liability) mitigates this.

Key Dates