Biotech Values

[DewDiligence]

(ENTA)—The exercise-and-hold transaction—using cash rather than forfeited shares to pay the tax liability—is mathematically equivalent to an open-market purchase of the same number of shares.

However, the exercise-and-hold transaction is more bullish than an open-market purchase insofar as it can be executed even when the insider has material non-public information that would preclude an open-market purchase.