Biotech Values

[DewDiligence]

10b5-1 plans are automated trading vehicles for corporate insiders. These plans contain pre-specified rules dictating when shares are sold* in order to circumvent the SEC prohibition of insider trading while insiders are privy to material non-public information.

The ITMN insiders who canceled their 10b5-1 plans are now barred from buying or selling shares except during windows when they are not privy to material non-public information. My guess is that some of these insiders will establish new 10b5-1 plans with new selling rules based on the much higher share price.

*In rare cases, 10b5-1 plans dictate when shares are bought.