It is for the open market, as well for negotiated private transactions, that is related to 10b5-1.
For years VRTX sucked money out of SH, increasing shares count (also by dilution from options/awards). Cumulative they still did not capture capital investment,... they are still negative,....they still have $5B in accumulated deficit, so current EXCESS cash is (in majority) from STOCK offering AND OTHER DILUTIVE FINANCING, not EARNING FROM BUSINESS.
Everyone need bit of luck in this business, when they have nothing left they turned toward CF...and they have game changing candidates. Great, for years management and boards have financial benefits, now SH can benefit from appreciated SP. But, if the want to award anyone, cash should be distributed to SH as one time dividend or something similar. And, if BofD want to thanks SH for long standing support by controlling and reducing dilution, ...well they can ask management to rip 1.2M shares from their options awards.
PS: This is not related only to VRTX, to many bios, old and new. |
