Replies to post #133727 on Biotech Values

[rkrw]

All this debate over 13c * 3,000 shares. :)

[biomaven0]

Yes - this is a valid point I hadn't considered.

Peter

[rkrw]

There have been cases albeit years ago of the IRS going after execs for gaming their options, being awarded large options just before very good news.

[DewDiligence]

Thanks for the additional analysis of this practice from the issuing company’s perspective. No matter how you slice it, I think option exercising while an insider is in possession of material nonpublic information is ethically wrong and the loophole that allows it ought to be closed. I doubt that it will be, however.

[mouton29]

It is likely that Momenta has an insider trading policy. I did not see it in their website. A random Google search produced a polic y for another company, Overseas Shipping Group, that I know nothing about except that it is traded on the NYSE under the symbol OSG. This policy specifically addresses a variety of issues including option exercises and provides that the policy does not apply to exercises::

Transactions Under Company Plans
Stock Option Exercises. The Company's insider trading policy does not apply to the exercise of an employee stock option. The policy does apply, however, to any sale of stock as part of a broker-assisted cashless exercise of an option, or any other market sale for the purpose of generating the cash needed to pay the exercise price of an option.

http://phx.corporate-ir.net/External.File0item=UGFyZW50SUQ9ODA5MTV8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1