Biotech Values

[DewDiligence]

Re: 10b5-1 terminations when an acquisition (or other bullish event) is pending

How many mergers have there been and how many [10b5-1] terminations ahead of a merger? I know of only one (IGEN/Roche, a long time ago).

Given: i) the fairly high prevalence of 10b5-1 plans; and ii) that there have been few instances of 10b5-1 sales immediately prior to a merger announcement… I would submit that 10b5-1 terminations when a merger is pending must have occurred more often than you suggest.

Certainly the SEC has said that [10b5-1] terminations might cast doubt on previous sales under the Plan.

Until someone is actually penalized for terminating a 10b5-1 plan while sitting on bullish inside information, a mere warning from the SEC has no teeth.