Drug researchers leak secrets to Wall St.

[realFedUp]

(I have a friend who is affected by this play by
hedge funders and find the whole thing criminal to
put it mildly.)

http://seattletimes.nwsource.com/html/businesstechnology/drugsecrets1.html

Drug researchers leak secrets to Wall St.
By Luke Timmerman and David Heath Seattle Times staff reporters

Doctors testing new drugs are sworn to keep their research secret until drug companies announce the final results. But elite Wall Street firms — looking to make quick profits — have found a way to harvest these secrets: They pay doctors to divulge the details early.

A Seattle Times investigation found at least 26 cases in which doctors have leaked confidential and critical details of their ongoing drug research to Wall Street firms. The practice involves doctors at top research universities from UCLA to the University of Pennsylvania, and powerful financial firms including Citigroup Smith Barney, UBS and Wachovia Securities.

In 24 of the 26 cases, the firms issued reports to select clients with detailed information obtained from doctors involved in confidential studies. The reports advised clients whether to buy or sell a drug stock.

snip

The practice of selling drug secrets, The Times found, is being driven by hedge funds, the largely unregulated investment pools that cater to the super-rich. Hedge funds can make money with aggressive strategies that exploit quick price swings in stocks, and the volatile biotech industry provides many such opportunities.

continued...a must read investigative story.

[realFedUp]

1. Did I say I despise hedge funders as a herd?

They can make or break a small company on the
edge of important research and sell it to the
highest bidder who may or may not have good
intentions.