Jerome B. Zeldis, a director at PTC Therapeutics, Inc. (NASDAQ:PTCT), recently sold a significant portion of his shares in the company. According to a recent SEC filing, Zeldis sold a total of 23,000 shares of common stock on December 2, 2024, generating proceeds of approximately $1.24 million. The sales were executed at prices ranging from $50.52 to $52.42 per share. The timing is notable as PTC (NASDAQ:PTC)'s stock has shown remarkable strength, posting an 80.91% gain year-to-date according to InvestingPro data.
In addition to the sales, Zeldis exercised stock options to acquire 24,000 shares at prices between $30.86 and $51.00, totaling an acquisition value of $982,320. Following these transactions, Zeldis holds 14,500 shares of PTC Therapeutics directly.
These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a trading plan for selling stocks they own, in accordance with insider trading laws.
In other recent news, PTC Therapeutics has seen significant developments, primarily driven by a partnership with Novartis (LON:0QLR) (SIX:NOVN). The collaboration focuses on the drug candidate PTC518, currently under evaluation for the treatment of Huntington's disease. The deal includes an upfront payment of $1.0 billion and potential for up to $1.9 billion in future milestone payments. Goldman Sachs (NYSE:GS), Baird, and Citi have all adjusted their price targets on PTC Therapeutics' stock in light of this deal, with Baird maintaining an Outperform rating.
The company reported robust third-quarter earnings, with total revenue reaching $197 million, mainly driven by the Duchenne muscular dystrophy franchise. PTC Therapeutics has also raised its 2024 revenue outlook to between $750 million and $800 million. The company is preparing for global product launches, including sepiapterin and vatiquinone, with potential revenue exceeding $1 billion in the U.S. alone.
These recent developments, including the Novartis deal and strong earnings, have driven significant financial adjustments and strategic partnerships for PTC Therapeutics. However, Goldman Sachs has pointed out ongoing risks, including the durability of Translarna sales in the EU and forthcoming regulatory decisions in the US for Translarna and vatiquinone. Despite these potential challenges, PTC Therapeutics continues to maintain strong liquidity with a current ratio of 2.1, providing financial flexibility for its development programs.
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