Form 4: Neurocrine Biosciences Director Kevin Gorman Executes Stock Option and Sells Shares Under 10b5-1 Plan

Director Kevin Gorman exercised stock options and sold shares of Neurocrine Biosciences (NBIX) under a pre-arranged 10b5-1 trading plan.

Summary

• Kevin Gorman, a director at Neurocrine Biosciences, executed stock options to acquire 5,141 shares of common stock on January 31, 2025.
• On the same day, Gorman sold 2,707 shares of common stock at a weighted average price of $152.9246 per share, with prices ranging from $151.85 to $154.03.
• The sale was conducted under a Rule 10b5-1 trading plan adopted on September 1, 2022.
• Following these transactions, Gorman directly owns 517,030 shares and indirectly owns 514,596 shares through the Gorman and Blais Family Trust.
• Gorman also holds 5,142 Restricted Stock Units (RSUs), each representing a contingent right to receive one share of Neurocrine Biosciences common stock.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the transactions appear to be part of a pre-planned trading strategy and do not necessarily indicate a change in the director's outlook on the company.

Risks

• The reliance on Rule 10b5-1 trading plans may limit flexibility in responding to unforeseen market conditions or company-specific events.
• Sales by insiders, even under pre-arranged plans, can sometimes be perceived negatively by the market.

Future Outlook

The director holds additional RSUs that will vest in the future, indicating continued involvement with the company's equity.

Industry Context

Insider transactions are common in publicly traded companies and are closely monitored by regulators and investors for insights into management's perspective on the company's prospects.

Comparison to Industry Standards

• Rule 10b5-1 trading plans are a standard practice among corporate insiders to avoid accusations of trading on non-public information.
• The volume of shares sold is relatively small compared to the director's total holdings, suggesting a routine diversification or liquidity event rather than a major shift in sentiment.

Stakeholder Impact

• The transactions are unlikely to have a significant impact on stakeholders, as they are part of a pre-arranged trading plan and involve a relatively small portion of the director's holdings.

Key Dates