Comments on: SEC Files Insider Trading Suit Against Drug Exec

By: Condor

Condor — Wed, 13 Jan 2010 04:29:25 +0000

Just for the record — this one is VERY far beyond the pale. Almost Carrie-Cox like, in fact!

Almost ALL public companies have written policies that flatly-PROHIBIT officers of the company from shorting the company’s securities at ANY time — something this knucklehead apparently did, right after learning material adverse information(!).

There is scienter slathered all over this guy’s trades. He gave a speech to his reports about not engaging in insider trading — then traded for his own account — selling short, in fact.

The SEC would have had to be blind to miss these footprints in the snow. . . .

By: Matthew Holford

Matthew Holford — Tue, 12 Jan 2010 21:42:01 +0000

I’ve often wondered whether hedge funds that focus on biotech and/or pharmaceuticals in their investment strategies engage in this sort of thing (thinks “of course they do - catching them’s the tricky thing”)? What with their massive portfolios, this sort of information would be worth, well, a mint.

Matt

By: FDAer

FDAer — Tue, 12 Jan 2010 19:05:30 +0000

This is common.

Knowledgable FDAers are often see movement in stock prices immediately after significant communications with companies, or announcements by CEOs of their intentions to purchase stock shortly after internal review progress meetings.

Under the FDA Amendment Act of 2007 we are now required to begin communications with sponsors at set points during the review cycle to inform them so they can work on any deficiencies.

Clearly a lack of any major deficiencies can tip people off.