The options Jim O'Leary sold were granted on 11/7/2009 with a conversion price of $4.19. I recall IMGN execs granted themselves a large number of options right at the bottom after the refuse to file debacle. Addind insult to injury, O'Leary sells the options the day before the "shareholder meeting" with insider info (an assumption, but as CMO he must have known this). The SEC has been alerted, I hope others will also inform them of the facts and let them decide if this was illegal insider trading, or not. At best is was highly unethical, as was the timing of the grants back in 2009. Anyone else think Junius and Perry are looking for another good entry point right now for more free option grants after their recent debacle? At the very least, Junius, O'Leary and the Corp Council must go, IMO.
Dude, your killing yourself with being upset with this management team. I have certainly seen better I admit, but honestly they are doing what every other management team in almost any company these days are doing. Have they been unethical? Maybe, to the morality of you or me, but they have not done anything that is illegal. The ironic thing is they are actually their own worst enemies. This last investor briefing day they hosted was filled with all sorts of what I would consider rookie mistakes. They set up a feeding frenzy of questions around the 901 by telling the analysts they had observed dose related peripheral neuropathy issues, thus setting back the program. They should have then answered all anticipated questions in a proactive manner, yet they left the door open for interpretation and a lot of time for the analysts to stew about it. That was almost the sole focus of the Q&A.
The other thing that floored me was the CFO presentation. What he was presented represented 10s of millions of dollars in capital costs, new personnel, and multiple clinical trials. When you say you are going to build out your clinical manufacturing network it can mean a lot of things. What he focused on was additional people, facilities, and equipment. Either he is naive or stupid, as any appreciable sized clinical facility could cost upwards of $300 to $400 million. Then to staff it and run multiple fast tracked clinical trials? They have $200 million in the bank, not $200 billion. This had to make these analysts scratch their heads because the amount of spend he described this year is beyond their current scope, and it did not match the guidance they gave either. So I don't know what the CFO was even thinking with the hot mess of a presentation. The other thing regarding Kadcyla royalties, "We are aware we have the ability to monetize that royalty and have no plans to do so at the current time". What does that even mean? I could go on.
IMGN has such a strong discovery and preclinical development team, is it too much to ask that they have strong development leadership and strong management to max the value of their discoveries and platform? The industry is littered with failed biotech companies that had good products, or platform in the wrong hands.
Monetizing is what CRIS did where they sold off rights to the future income for money now (to avoid selling more stock, or a preferred). That's a terrible idea IMO as the cost/discount will be too high. To even bring this up was a huge mistake. I hate when biotech firms do these deals. The people on the other end of the transaction are always much smarter.
Yes, they keep referring to a $10MM investment in the next step for 901 manufacturing. I agree trying to become a fully integrated biotech firm will cost hundreds of millions and since they can't successfully manage a phase II trial on their own, they should go back to the prior business model and partner after phase I/II and avoid these costs, avoid dilution keep costs low. As I think the most astute Jeffries analyst mentioned, bios and pharma are making strong licensing deals, they could be getting cash and much stronger royalty % fees and avoiding these costs.
Like every biotech CEO and CFO, they want to be a big player, but the risk and cost is too high for this team and 901 is not the drug on which to make that bet. 853, 529, 289 all look much more promising.