Form 4: Neurocrine Biosciences Director Lyons Exercises Options and Sells Shares Under 10b5-1 Plan

Director Gary A. Lyons exercised stock options and sold 12,500 shares of Neurocrine Biosciences (NBIX) common stock at an average price of $135.6296, while also correcting a previously overstated beneficial ownership.

Summary

• On May 14, 2024, Gary A. Lyons, a director of Neurocrine Biosciences, exercised non-qualified stock options to acquire 12,500 shares of common stock at a price of $42.76 per share.
• Simultaneously, Lyons sold 12,500 shares of Neurocrine Biosciences common stock at a weighted average price of $135.6296 per share, with individual sales prices ranging from $134.78 to $137.12.
• These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 13, 2024.
• Following these transactions, Lyons directly owns 116,947 shares of Neurocrine Biosciences common stock.
• The filing also notes a correction to a previously reported beneficial ownership, decreasing the amount by 76,750 shares due to an administrative oversight; 110,964 of the reported shares are held by the Gary A. Lyons Revocable Living Trust U/A 6/8/12, of which the Reporting Person has voting and investment power.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are part of a pre-planned trading strategy, and the correction of the overstated beneficial ownership, while important, doesn't significantly impact the overall outlook.

Positives

• The director's transactions are being conducted under a pre-arranged 10b5-1 trading plan, which can reassure investors that the sales are not based on insider information.

Negatives

• The sale of shares by a director could be perceived negatively by some investors, although it is part of a pre-planned strategy.

Risks

• While the 10b5-1 plan mitigates some concerns, significant sales by insiders can sometimes create downward pressure on the stock price.

Industry Context

Insider transactions are common in publicly traded companies, and the use of 10b5-1 plans is a standard practice to allow insiders to sell shares without raising concerns about trading on non-public information. Investors often monitor these filings to gauge sentiment and potential future stock performance.

Comparison to Industry Standards

• Comparing the director's transactions to those of insiders at similar biotech companies like Biogen (BIIB) or Amgen (AMGN) shows that such sales are a routine part of executive compensation and portfolio management.
• The use of a 10b5-1 trading plan is consistent with industry best practices for insider trading compliance, similar to plans used by executives at Regeneron (REGN) and Gilead Sciences (GILD).

Stakeholder Impact

• The transactions could have a minor impact on shareholders due to the potential for short-term price fluctuations, but the pre-planned nature of the sales mitigates concerns.

Key Dates