The company’s chief medical officer exercised options to buy 60,000 shares last week at $1.16 and sold them for $21.94. In December, he sold 30,000 shares at $20.63 that he had acquired by exercising options at 8 cents a share. Meanwhile, the company itself has filed a ‘shelf registration’ to sell up to a quarter billion dollars worth of its stock and/or bonds – not an insignificant sum for a company this size.

Neither of these pieces of information is ‘dispositive,’ as they say – ‘finally determinative.’ But taken with the IMS prescription data suggesting that only a few hundred prescriptions for BiDil may have been written thus far (while expenses of more than $100 million for the year have been budgeted), one imagines that the chief medical officer, and the company, may be on to a good thing.

(A shelf registration doesn’t require a company to issue new securities, but puts it in a position to do so without regulatory delay.)

The stock closed last night at $19.90, for an overall market valuation, with just over 30 million shares outstanding, of $600 million.

Anything’s possible, but . . . don’t sell your puts.


The author argues that it’s a serious situation, but hardly a crisis.


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