Drug researchers leak secrets to Wall St.
There is an interesting series of articles in The Seattle Times from a few months ago about researchers leaking results of clinical trials to analysts and hedge funds on Wall St. This may not seem like a big deal at first, but these funds are making millions on getting confidential information before it is officially released. I was shocked at how prevalent this practice seems to be. I'm not sure if I'm more mad at the Wall St. types for doing this sort of underhanded thing, or at the doctors who should definitely know better. I finally decided that the doctors who are giving away information are really the ultimate bad guys in this whole thing. They have signed agreements that they won't release info. What do other people think?
Re: what are legal
Very interesting comments. I have a crazy idea, when those hedge fund people call, why don't the scientists just lie to them. If a drug is doing well, just tell them it's doing really poorly. Get them to short the stock, and when the FDA approve the drug, these shorters will be forced to cover the shorts and propel the stock even higher. A few of these will teach those greedy hedge funds to stop messing with people.
What are the legal
What are the legal ramifications of all of this? Is there insider trading? Are the doctors guilty for breaking confidentiality?