Replies to post #103329 on Biotech Values

[AlpineBV_Miller]

10b5 programs should have fixed action dates and/or stock prices. Too many of them include a holder's option. No idea why such things are to actionable, but I gave up a long time ago thinking the SEC actually does anything useful to control fraud.

[biomaven0]

it’s legal for insiders to exercise stock options for the explicit purpose of benefiting from an upcoming development

Unless the options are expiring I don't see that as a big deal. The only detriment to the company compared with a post-news exercise would be some reduction in tax benefit.

In your scenario, for the insider to benefit it would need to be an exercise and hold, which is a very rare transaction.

Peter