Biotech Values

[DewDiligence]

ENTA’s CEO, Jay Luly, sold 5,600 shares yesterday at around $38/sh under a 10b5-1 plan:

http://www.sec.gov/Archives/edgar/data/1177648/000090866214000067/xslF345X03/edgar.xml

Despite exercising options and holding $8M worth of stock on 1/10/14 (#msg-95887112), Luly never terminated his 10b5-1 plan that was initiated in mid 2013. Conducting an exercise-and-hold transaction while a 10b5-1 selling plan is in effect is completely legal (although perhaps it shouldn’t be).

To date, Luly’s $8M exercise-and-hold transaction—and the CSO’s similar transaction for $4M (#msg-95888322)—have worked out well insofar as share price has appreciated 21% since the two executives exercised, likely reducing the cumulative tax burden when these shares are eventually sold.