Warburg Pincus (WP) and some Zentiva management sold part of their holdings in the company yesterday. The total number of sharers sold was 3m, out of which WP sold 2.4m. The shares were sold at CZK 800 and the offering was reportedly doubly oversubscribed. The management used part of the proceeds to repay a loan to purchase Zentiva’s shares as a part of the employee share program prior to Zentiva’s IPO. WP and the management now have a 4-month lock-up period starting yesterday during which they cannot sell their shares. We believe that the stock’s upside may now be limited due to a risk of further selling after the lock-up period expires.