Form 4: Vaxcyte SVP Mikhail Eydelman Executes Option and Sells Shares Under 10b5-1 Plan

Mikhail Eydelman, SVP, General Counsel & Corporate Secretary of Vaxcyte, Inc., exercised stock options and sold shares of common stock under a pre-arranged 10b5-1 trading plan.

Summary

• On October 7, 2024, Mikhail Eydelman, SVP, General Counsel & Corporate Secretary of Vaxcyte, Inc. (PCVX), exercised options to acquire 5,000 shares of common stock at a price of $21.41 per share.
• Concurrently, Eydelman sold a total of 5,000 shares of Vaxcyte common stock in multiple transactions at weighted-average prices ranging from $107.51 to $111.68.
• These sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on June 11, 2024.
• Following these transactions, Eydelman directly owns 28,623 shares of Vaxcyte common stock and holds options for 169,497 shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing simply reports transactions under a pre-existing plan, which is a normal course of business. There is no indication of positive or negative sentiment towards the company's prospects.

Positives

• The transactions were executed under a pre-arranged 10b5-1 trading plan, which can mitigate concerns about insider trading.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, although the 10b5-1 plan mitigates this concern.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's future performance.

Industry Context

Executive stock transactions are common in publicly traded companies, and the use of 10b5-1 plans is a standard practice to allow insiders to sell shares while avoiding accusations of trading on non-public information. This filing provides transparency into the transactions of a key executive at Vaxcyte.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a common practice among executives at publicly traded companies, including pharmaceutical and biotechnology firms like Amgen, Gilead Sciences, and Moderna, to manage their stock sales in compliance with insider trading regulations.
• The vesting schedule of the options (1/4 vesting on April 1, 2023, and 1/48 monthly thereafter) is a typical vesting arrangement for employee stock options in the tech and biotech industries, similar to those offered by companies like BioNTech and Novavax.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders, but the existence of the 10b5-1 plan should reassure investors that the sales are not based on insider information.

Key Dates