Biotech Values

[DewDiligence]

Details of 10b5-1 plans (other than acknowledging their existence) are never publicly disclosed.

Selling shares under contract, while under a 10b5_1 plan to do so, should be legally binding until the expiration date of that plan. Not selling shares after acquiring bullish material information, as in this case, is certainly another form of illegal insider trading.

This is indeed a wide loophole, but it’s not the only wide loophole that pertains to insider trading. An even bigger loophole is that it’s legal for insiders to exercise stock options for the explicit purpose of benefiting from an upcoming development that has not been publicly disclosed.