As a Generate Biomedicines employee, you're quickly approaching an August 2026 lockup expiration. The IPO was a dramatic entry to the public stock market, narrowly avoiding derailment resulting from macroeconomic issues that have no connection to your company whatsoever, but impact public markets nonetheless. The lockup period isn't a waiting room. It's the planning period. The decisions you make before the trading window opens determine the quality of the decisions you make when it does. Without a plan, you risk costly mistakes that could have been avoided.

What should Generate Biomedicines employees do before the August 2026 lockup expiration?

Your Lockup Is Almost Over: Are You Ready?

The lockup expiration date is set in stone: August 2026. Unlike many high-stakes decisions that come with ambiguous timing, this one is clear. Six months, and it's half over. You have a finite window to prepare, and that certainty is both a blessing and a responsibility. Waiting until the last minute isn't just risky—it's a missed opportunity. The months leading up to the lockup expiration are your chance to strategize without the pressure of a live market overshadowing the decisions you make. Use this time wisely.

Why the Lockup Period is Crucial for Planning

The lockup period is more than just a pause button. It's a unique opportunity to plan without the noise of market fluctuations. Once the lockup expires, the stock price will be in motion, and other insiders will be selling too. This creates a psychological pressure that can cloud judgment, and it manifests itself in emotionally driven decision-making which may be out of character in hindsight. That’s’ why the planning you do now, when the stock price is irrelevant to your immediate decisions, is what will hold up under pressure. It's about setting the stage for informed, rational decisions when the trading window opens, and ever successive quarter that follows.

Avoiding Common Post-Lockup Mistakes

Without a clear plan, the post-lockup period can be a minefield. Selling at the wrong time, facing unexpected tax bills, or realizing ordinary income when long-term capital gains were possible—these are just a few pitfalls. Imagine selling at a depressed price, assuming further decline, only to watch the stock suddenly rebound. Or holding out for more gains, only to see the price collapse if a clinical trial doesn’t go as planned. The absence of a plan can lead to a cascade of non-economic decisions made under duress, especially in cases where an unexpected tax bill arrives and there isn’t enough cash to cover it. Avoid these traps by preparing now.

The Plan You Build Now Is the One That Holds

A well-thought-out plan is your best defense against costly mistakes. This isn't just about having a strategy—it's about having the right strategy. Working with an advisor who specializes in post-IPO equity can make all the difference. They can help you work through the specifics of your equity situation, ensuring that your decisions are informed and aligned with how you intend to use this money now, and in the future.

Pro-Tip: Pull a complete inventory of your stock positions including details on each grant type, acquisition date, cost basis, and current market value. The order in which you sell at lockup expiration matters as much as the decision to sell. That inventory is the starting point for every other decision. For a deeper look at how to use the full lockup period, see our guide: What to Do With Your Shares During the 180-Day IPO Lockup.

If you'd like to explore whether ongoing financial planning and investment management make sense for your situation, you can schedule an intro call here:

Common Questions

How do I decide what to do with my Generate Biomedicines shares when the lockup expires?

This is a very personal decision that involves finding balance between seeking upside potential and achieving a lasting financial result that isn't contingent on an eventual binary outcome (i.e. FDA approval). Clinical-stage biotechs don't manufacture drugs and produce revenues — they create intellectual property, which is specifically why outcomes are binary. That's why speaking with an advisor who specializes in post-IPO equity planning can be helpful, and following what coworkers may be doing may be incompatible with your personal plans.

What happens to my Generate Biomedicines stock if the price drops after the lockup expires?

It's important to understand the magnitude of a change in price, as well as whether the reason it happened is transient or long-lasting. In cases where the long-term outlook remains bright, this may shift the balance of attention towards exercising options and away from selling shares. However, keep in mind that exercising stock options on their own, with no sale following, may result in a tax bill. If you find yourself saying "I've started taking actions with my stock, and I'm not completely sure of the consequences of those actions (good, or bad)", this is a common and important moment when professional advice is needed. Speaking with an advisor who specializes in this exact situation is what will eliminate the possibility of finding out next April that you have a six-figure tax bill you didn't expect and may not be able to cover with cash on hand.

How do I know if my Generate Biomedicines shares qualify for long-term capital gains treatment?

Whether your shares qualify depends on the grant type and how long you've held them. With Incentive Stock Options (ISOs), this means selling a year and a day after the date of exercise — though exercise alone can result in an AMT tax bill. ISOs are the most common type of stock received prior to IPO among employees at venture-backed companies, while grants received following IPO are more typically RSUs. RSUs are taxed as ordinary income when they vest and are delivered to you. Each grant, tax lot, and type of stock needs to be considered individually.

This blog was written by Jeremy Bohne, Principal & Founder of Paceline Wealth Management. Paceline is a fee-only investment advisor serving clients in the Boston area, and on a remote basis throughout the country. Paceline specializes in helping tech and biotech executives, business owners, physicians, and those seeking financial planning services.