Biotech Values

[DewDiligence]

That’s another instance of a government reg that sounds tough but, on closer inspection, has no teeth. When executives (legally) cancel their 10b5-1 plans because something bullish is pending, they likely don’t have any interest in establishing subsequent 10b5-1 plans.

If the company in question is being acquired, the whole issue becomes irrelevant; if the non-public bullish information is something else such as a partnership, insiders can simply wait until the news is announced and then sell shares without a 10b5-1 plan.