Avid Bioservices Inc (CDMO)

[Big On Tarvy]

Insider Buying.

My understanding is that SEC rules prohibit insiders from buying when they are in possession of “material information” that has not yet been publicly disclosed. Material information is defined as info that could cause a reasonable man to buy or sell the stock.

I can think of two areas where management could be sued for buying this month. One area, of course, is Letvin’s primate data. The rumor I heard may in fact be true. It may indeed be the case that the CHAVI monkey data, if known, would cause a reasonable person to buy or sell the stock.

The other area is the R&R report. All I’ve heard is that R&R analysts are in the process of doing due diligence. But if management in fact knows already that R&R’s due diligence will almost certainly lead in the coming weeks to not just a report but a strong buy recommendation as well, that would qualify as “material information” that would preclude management from profiting on their inside information.

Early Cotara results might be a third area where management has "material information" that precludes them from buying until the data is publicly disclosed.