I simply must note this -- it is fascinating that Raul Kohan, now head of Merck's Animal Health unit (and one of the very few remaining legacy Schering-Plough senior executives), has exercised and sold some of his stock options, at least three years early, and (apparently) in each case, whenever the NYSE common stock price quoted for Merck hovers around $37, for more than a few days.
See his May 18, 2011 SEC filed Form 4; his December 31, 2010 Form 4 (at around $36); his February 26, 2010 Form 4 and his Form 4 when the reverse merger became effective on November 3, 2009.
The upshot? I think it fair to infer that he sees Merck as "fully-valued" at any price in the vicinity of $37. So do I (for going on two years now -- explanation of the graphic is under that link). That last transaction was within a day or two of when Merck heard that its Victrelis™ (boceprevir; a Hep C next-gen combo-treatment) had cleared FDA.
And still he was a net seller; pulling the trigger on his options around three years early (prior to expiration), in each case. Fascinating:
. . . .May 13, 2011 – Merck (known as MSD outside the United States and Canada) announced today that the U.S. Food and Drug Administration (FDA) has approved Victrelis™. . .
I'd take that to heart. Raul's always been a smart investing operator.
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