Rawstory (let's keep the source in mind) is reporting that Heather Bresch, the CEO of Mylan and next Pharma Bro (Pharma Sis?) dumped more than 10 percent of her shares of the pharmaceutical company’s stock as analysts warned of potential publicity problems withe the EpiPen price hikes.
According to Rawstory, Heather Bresch sold off 100,200 shares of Mylan stock on Aug. 9, the same day the drugmaker released its most recent earnings report amid questions over the swiftly ballooning cost of EpiPens,
Terrible optics, but the story also indicates that the sales were made pursuant to a 10b5 plan, which is used by insiders to plan out the sale of their shares, in advance, to avoid exactly this - an allegation of insider trading.
We haven't seen the plan, but if properly handled, the sales were planned in advance. Of course, we don't know when she adopted the plan, if or when she amended that plan, and she certainly could have terminated it when she learned of the potential scandal - if she didn't realize the potential scandal when she raised the price of the drug.
We will follow this story and post additional news. Meanwhile, read 10B5-1Plans - Insider Trading Defense at SECLaw.com, and the original RawStory article - Heather Bresch dumped more than 100,000 shares of Mylan — just two weeks before EpiPen scandal