Momenta Pharmaceuticals, Inc. (MNTA)

[pollyvonwog]

From CW himself

"On a final note, we've had questions and comments from investors related to the sales of stock by the company's officers and directors. I want to state emphatically that the overwhelming majority of these stock sales were made in connection with executive performance-based restricted stock grants that vested in connection with the product approval or that vested based on time in service.

Vesting of restricted stock creates an individual tax liability at the time of the vesting, regardless of whether the stock is sold. Our officers and directors therefore need to have plans in place. These are known as 10b5-1 plans, to sell a portion of the shares that vest to cover the individual's immediate tax liability and in these cases the proceeds from the sale go directly to the individual's tax withholding. So, I believe that some comments regarding our officers' and directors' confidence in the company are misplaced and do not reflect an understanding of the tax requirements driving most of these sales."

Also, some reading for yourself about the plans since you seem to be a little confused: http://www.mofo.com/files/Uploads/Documents/FAQ10b51.pdf


Jbog, you've consistently tried to justify MNTA's languishing share price with silly things like theorizing that MNTA's 45% profit share would be in the same ball park as the single digit royalty for instance. I know you're mad that you bought a little too early at $18, but be happy you get a chance to buy more in the 13s :)