Two current and one former Neoprobe (NYSE Amex:NEOP) executive plan to begin unloading shares of the cancer diagnostics company after the U.S. Food and Drug Administration accepts an application associated with its radiopharmaceutical Lymphoseek.
CFO Brent Larson could sell up to 12 percent of his equity in the company, while Roger Brown, vice president of regulatory affairs, may sell up to 14 percent of his Neoprobe holdings. Former CEO David Bupp has the right to sell up to 6 percent of his holdings, according to a document filed with the U.S. Securities and Exchange Commission.
The stock sales would occur gradually over the period of up to one year and are expected to begin within the next month or so.
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In August, Neoprobe submitted to the FDA a new drug application (NDA) for Lymphoseek, a targeting agent used by surgeons to identify lymph nodes in patients with breast cancer or melanoma and to indicate whether cancer has spread to a particular lymph node.
Neoprobe has said it expects the FDA to accept the NDA for review within the next month. After the FDA’s customary review period of approximately 10 months, Lymphoseek could be approved for U.S. sales sometime around the middle of next year.
“We want to avoid the perception that this in any way could be perceived negatively,” Larson said. “This is, if anything, a vote of confidence in where the company is going. We believe the NDA will be accepted and the stock will go up.”
Larson described the sales as a “diversification strategy” for the executives.
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The sales would occur under what’s known as Rule10b5-1, which allows insiders of public companies to set up trading plans to sell a predetermined number of shares at a predetermined time. Insiders often use the plans as a means of avoiding accusations of insider trading because the plans must be established when executives have no knowledge of any material nonpublic information.
