Form 4: Crinetics Pharmaceuticals CEO Richard Struthers Sells Shares to Cover Tax Obligations

Crinetics Pharmaceuticals' CEO, Richard Scott Struthers, sold shares of common stock on March 19, 2025, to cover tax withholding obligations related to vesting Restricted Stock Units.

Summary

• Richard Scott Struthers, the President and CEO of Crinetics Pharmaceuticals, sold shares of the company's common stock on March 19, 2025.
• The sales were executed to cover tax withholding obligations arising from the vesting of Restricted Stock Units (RSUs) granted on February 28, 2022, March 1, 2023, and March 4, 2024.
• A total of 16,463 shares were sold at a volume-weighted average price of $34.17 per share, with prices ranging from $33.78 to $34.77.
• An additional 875 shares were sold at a volume-weighted average price of $34.83 per share, with prices ranging from $34.78 to $35.00.
• The sales were conducted through a broker under a pre-arranged Rule 10b5-1 trading plan.
• Following the transactions, Struthers directly owns 329,147 shares of Crinetics Pharmaceuticals' common stock.
• Struthers also indirectly owns shares through family trusts and a spousal holding, totaling 881,000 shares.

Sentiment

Score: 5

Explanation: The document describes routine stock sales to cover tax obligations, which is neither particularly positive nor negative. The use of a 10b5-1 plan suggests pre-planned and compliant activity.

Industry Context

Insider sales, especially those executed under Rule 10b5-1 plans, are common and often pre-planned to avoid accusations of trading on non-public information. These sales can be perceived neutrally or negatively by the market depending on the size and frequency.

Comparison to Industry Standards

• Executive compensation packages often include stock options and restricted stock units (RSUs) that vest over time.
• Selling shares to cover tax obligations upon vesting is a standard practice among executives in publicly traded companies.
• Rule 10b5-1 trading plans are widely used by corporate insiders to schedule stock sales in advance, ensuring compliance with insider trading laws.
• Comparing the size and frequency of insider sales at Crinetics Pharmaceuticals to those of similar-sized biotech companies (e.g., Neurocrine Biosciences, Global Blood Therapeutics (acquired by Pfizer)) could provide additional context.

Key Dates

Keywords

Crinetics Pharmaceuticals, Richard Scott Struthers, insider trading, Form 4, stock sale, tax withholding, Restricted Stock Units, Rule 10b5-1, CRNX