Form 4: Zymeworks Chief Scientific Officer Reports Stock Transactions Following RSU Vesting

Zymeworks' Chief Scientific Officer, Paul Andrew Moore, executed stock transactions on January 6, 2025, involving the vesting of restricted stock units and subsequent sales to cover tax obligations.

Summary

• Paul Andrew Moore, Chief Scientific Officer of Zymeworks Inc., reported transactions on January 6, 2025, related to the vesting of restricted stock units (RSUs).
• A total of 17,166 shares were acquired upon the vesting of one-third of RSUs granted on January 5, 2023.
• An additional 20,000 shares were acquired upon the vesting of one-third of RSUs granted on January 5, 2024.
• To cover tax withholding obligations, 9,792 shares were sold at an average price of $14.9241, with prices ranging from $14.44 to $15.14.
• Another 11,408 shares were sold at the same average price of $14.9241 for tax purposes.
• The transactions resulted in a net decrease of 11,408 shares held by the reporting person.

Sentiment

Score: 6

Explanation: The document reflects routine transactions related to executive compensation. While there are sales, they are for tax purposes and do not indicate negative sentiment. The sentiment is neutral to slightly positive due to the vesting of RSUs.

Positives

• The vesting of RSUs indicates that performance milestones were likely met, triggering the vesting schedule.
• The transactions are a normal part of executive compensation and do not indicate any negative sentiment from the reporting person.

Negatives

• The sale of shares, while for tax purposes, does reduce the reporting person's direct holdings in the company.

Risks

• While the sales were for tax purposes, large volumes of sales by insiders can sometimes be perceived negatively by the market.
• The price range of the sales indicates some volatility in the stock price.

Management Comments

• The Reporting Person did not sell or otherwise dispose of any of the shares reported on this Form 4 for any reason other than to cover required taxes and fees.

Industry Context

This type of transaction is common for executives who receive stock-based compensation. The vesting of RSUs and subsequent sales to cover taxes are standard practices in the biotech industry.

Comparison to Industry Standards

• The vesting schedule of one-third annually is a common practice for RSU grants in the biotech industry.
• The 'sell to cover' mechanism for tax obligations is also a standard practice among publicly traded companies.
• Comparable companies such as Seagen and BioMarin also use similar RSU vesting and tax withholding practices for their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they involve a small number of shares relative to the total outstanding shares.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Zymeworks, RSU, stock, vesting, insider trading, Form 4, executive compensation, tax withholding, Paul Andrew Moore