The business stories that matter, by Fortune's Colin Barr
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December 14, 2007, 11:28 am

Biogen insiders cashed out

A new wrinkle emerges in the up-and-down story of Biogen Idec (BIIB). The biotech took itself off the auction block Wednesday, two months to the day after the board - under pressure from activist investor Carl Icahn - said it would seek a buyer. The news sent Biogen shares plunging 24 percent in a day, wiping away more than $5 billion in shareholder value.

But the news isn’t all bad - at least not if you’re a Biogen executive. In the days following Biogen’s Oct. 12 announcement that it would seek a buyer, several fortunate execs happened to accelerate their pre-arranged stock selling plans to cash in on the stock’s huge rise, according to a report by Adam Feuerstein at TheStreet.com. Biogen shares reached as high as $84.75 in the days after the sale announcement, compared with $70 or so just beforehand and $59 now. The company says the changes were likely to have been triggered by the stock’s runup, but that doesn’t make Biogen investors who are still holding onto their shares any richer.

How Can This Be Legal ???

Can the rest of us stockholders get some of our money back from theses thieves???

Posted By Wilboor Rochester NY : December 18, 2007 9:25 pm

That has been the story of those boys since day one. No pension so lets get rich on the stock. Its time the board takes a long look and jim and friends. Either replace them with someone who has a future in mind for BIIB, or sell the company to someone who does.

Posted By Dennis, Nashville, TN : December 16, 2007 11:38 am

I sold at $84

Posted By bill smith, ada, ohio : December 15, 2007 12:16 pm

Good to know, Tans. Tell me, did this move reflect a fundamental shift in your take on Biogen or are you simply swing-trading?

Posted By kinsfitzy, new york : December 14, 2007 3:37 pm

I dumped BIIB in late October.

Posted By Tans Oitzman, New York, NY : December 14, 2007 2:38 pm
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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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