Do Physicians and Researchers Profit and Trade Stock on Privileged Information
An interesting article titled “Do Physicians/Researchers Trade Stock Based on Privileged Information?” written by Elie Donath and Mark J. Eisenberg appears in the Summer 2012 issue of The Journal of Law, Medicine & Ethics (vol. 40, issue 2, pages 391-393). Speculation is made that “…physicians/researchers are inappropriately profiting (by buying or selling stock) from information derived from advance copies of high-impact clinical trial data distributed by medical conferences or journals.” A case study is made looking at the American Society of Clinical Oncology. Up until 2008 ASCO selectively and discreetly distributed abstracts from all forthcoming presentations at the ASCO Conference to ASCO members 2 weeks prior to them becoming publicly accessible at the conference. The authors used multiple linear regression to look at the percentage change in stock price on the first trading day following the release of these abstracts. A … Read more