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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (1961)	11/6/2000 11:18:59 AM
From: Biomaven	Read Replies (1) \| Respond to of 52153

Here's the first Rule 10b5-1 transaction I've seen in biotechs: Headline: Enzon's CEO Announces Plan to Exercise Expiring Options ================================================================ PISCATAWAY, N.J.--(BUSINESS WIRE)--Nov. 6, 2000--Enzon, Inc. (NASDAQ:ENZN) announced today that Peter Tombros, (58), President and Chief Executive Officer, intends to exercise options to acquire 300,000 shares of Enzon common stock and is irrevocably instructing his investment advisor to sell over time a portion of those shares. These options will begin to expire in September 2002 and represent approximately 20% of the options to purchase Enzon common stock held by Mr. Tombros. To date, Mr. Tombros, who has been President and Chief Executive Officer of Enzon since 1994, has never sold any shares of the Company's common stock. The proposed sales are focused on those options that are due to expire in the near future. Mr. Tombros has instructed his investment advisor to retain a portion of the underlying shares of common stock for long-term appreciation. Other than this limitation, Mr. Tombros' investment advisor will exercise sole discretion with respect to the sales of these shares of common stock and will not consult with Mr. Tombros prior to effecting any such sales. Mr. Tombros will not exercise any subsequent influence over such sales. "This action does not in any way reflect on my confidence in the future growth of Enzon," said Mr. Tombros. "I believe that granting my investment advisor discretionary power over these shares will allow a portion of my expiring options to be disposed of in an orderly manner and is designed to minimize the impact on the stock price." This rule allows insiders to sell even though they have inside information (or the trading window is closed by the company) provided they set it up ahead of time, at a time when they have no insider information. It's basically a good idea, but from our perspective it means you can no longer make the inference that all is well at a reputable company when you see an insider sale (or that all is rotten at a sleazy company <g>). Peter

To: Biomaven who wrote (1961)	11/6/2000 11:20:16 AM
From: BulbaMan	Respond to of 52153

Peter: Totally agree you need patience with these cross-holdings plays. I remember well how long it took for the Cell Genesys' Abgenix holdings to make a difference in the CEGE price. Along with PPGx, AXPH has a bunch of other potentially valuable holdings, with one (DPII) being public. So, although I believe AXPH is very undervalued, I realize it may take some time before the market recognizes this fact.