Biotech Values

[Rocky3]

After the exercise and sale in the above link, Bischofberger still owned 119K shares with a market value of $9.8M.

Quite misleading. At time of the proxy (and based upon a price of $79/sh), he also had almost $100M of vested exerciseable options. It is misleading to look only at the shares owned outright by the insider.

No question the insider selling has produced huge dollars for the insiders, but they have much larger dollars in the company in the form of vested options, many of which are nearing expiration and therefore must be exercised. If I had a net worth of $100M+, almost all of which is in the stock of my employer, you can bet that I would try to diversify, even if I thought the stock was going to go up.

The major issue (faced at KO and in most companies) is that the executive comp is just too high. The fact that much of the comp is in the form of stock options is clearer in a case like GILD that has had out-sized gains in ten years. But the consultants have done their damage. Would love to hear Biomaven's take as one in the industry.