Form 4: Moderna Director Noubar Afeyan Sells Shares Under 10b5-1 Trading Plan

Noubar Afeyan, a director at Moderna, sold shares of the company's common stock on March 20, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On March 20, 2024, Noubar Afeyan, a director of Moderna, sold shares of the company's common stock.
• The sales were executed under a Rule 10b5-1 trading plan adopted on February 27, 2023, and amended on November 7, 2023.
• A total of 2,113 shares were sold at a weighted average price of $101.048, with individual prices ranging from $100.58 to $101.57.
• An additional 7,109 shares were sold at a weighted average price of $102.1464, with individual prices ranging from $101.71 to $102.67.
• Furthermore, 5,778 shares were sold at a weighted average price of $103.1753, with individual prices ranging from $102.75 to $103.59.
• Following these transactions, Afeyan directly owns 2,129,818 shares of Moderna common stock.
• Afeyan also has indirect beneficial ownership of 9,662,114 shares through Flagship Ventures Fund IV, L.P. and Flagship Ventures Fund IV-Rx, L.P., and 3,924 shares through Flagship Pioneering, Inc.
• Afeyan disclaims beneficial ownership of shares held by Flagship Ventures Fund IV, L.P., Flagship Ventures Fund IV-Rx, L.P., and Flagship Pioneering, Inc. except to the extent of his pecuniary interest therein.

Sentiment

Score: 5

Explanation: The document itself is neutral, simply reporting transactions. The impact on sentiment depends on investor perception of insider sales, even under a 10b5-1 plan.

Positives

• The sales were conducted under a pre-existing Rule 10b5-1 trading plan, which can mitigate concerns about insider trading.

Risks

• While the sales are under a 10b5-1 plan, large sales by insiders can sometimes create negative market sentiment.

Industry Context

Insider sales are a common occurrence, and the use of a 10b5-1 plan is a standard practice to avoid accusations of trading on non-public information. The market reaction to this news will depend on overall investor sentiment towards Moderna and the biotech industry.

Comparison to Industry Standards

• It's common for executives and directors of publicly traded companies, including those in the biotechnology sector like Pfizer, BioNTech, and Novavax, to utilize 10b5-1 trading plans for selling shares.
• The volume of shares sold and the timing of these sales are often compared to historical insider trading activity within the company and among its peers to assess potential market impact.

Stakeholder Impact

• The stock sale could potentially impact shareholder value, depending on market reaction.
• The impact on other stakeholders is likely minimal.

Key Dates