Insider Selling

Form 144s filed by BeiGene Insiders while Pharmaceutical stock soars

BeiGene Ltd is an American dual-listed company that focuses on the development of drugs for cancer treatments. With a current M Cap of $16.8 billion, the company was incorporated in 2010 and currently stands as one of the most recognizable companies in China’s pharmaceutical sector. 

Listed on NASDAQ, BeiGene’s stock price rose by 16.61% since the previous month. However, the price dipped by around 30.76% when looking at the previous 6 months' history. Additionally, BeiGene disclosed the results of their research on developing innovative and affordable medicines. 

Despite the price surge, it is eye-popping that insiders at the company recently filed Form 144s.

Insiders pull out Form 144s

Throughout June’22, five insiders at BeiGene made plans to sell ADRs. All the insiders filed their forms via Morgan Stanley Smith Barney LLC for stocks worth as much as $7.2 million:

  • Huang Jane Edna, Chief Level Officer, filed four Form 144s for 1,170 shares. These shares were valued at $174,845.
  • Chen Yung Cheng (Timothy), an Independent Director at the company, filed his form for $5.37 million worth of shares, numbered at 31,356.
  • The Head of Division, Wang Lai, filed three forms for a total of 1,626 shares. These were valued at roughly $248K. 
  • Wu Xiaobin, Divisional President also filed four times in June. In total, his forms were for 1,588 shares valued at nearly $230,572.
  • The company CFO, Wang Aijun (Julia) filed three forms: these were for 161 shares worth nearly $21,274 in value.

The timing of these insiders in choosing to make selling plans is rather ironic; the stock price soared to almost 16.42% from June 01 to June 30 this year. 

Positive Headlines

On June 13, 2022, BeiGene made an announcement that its drug Brukinsa had received a green flag in 50 markets worldwide in the treatment for Mantle Cell Lymphoma (MCL). The drug has been recently approved by multiple ministries in the Middle Eastern countries, after having already received approval by authorities in the USA, China, Canada, and South Korea among others.

Another Inhibitor produced by BeiGene had its Supplemental Biologics License Application accepted in China, as stated on June 21. The same inhibitor, Tislelizumab, is due for a final decision by the FDA in July, along with other big names among Biotech stocks. 

On July 29, the pharmaceutical stock closed at $162.29. This is almost a 29.35% decline compared to the stock’s closing price at the start of the year. Most pharmaceutical companies do not fare well due to the vast research and investing that is required to keep them afloat. But thanks to ongoing research and positive developments, BeiGene is headed towards a bullish future. Alas, the insiders’ intention to sell is sending a completely different signal.  

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