Biotech Values

[AlpineBV_Miller]

re: Titan Pharma

I would never own the stock of a dev-stage biotech company where the CFO and CEO collared their stock holdings so they profited when the stock dropped from $65 to $3. Despite their lawyer's claim that "all executives" do it I have personal experience in interview dozens of biotech executives who are shocked at the idea.

We ask the CEO of every company we examine whether they allow senior executives to hedge or collar their stocks or stock options. The most common response to the question?

"I don't know offhand if we prohibit it or not in our options plans, but I'd fire anyone who tried it."

Amen.