What: This Seattle Times story is a great piece of investigative journalism. The story was written in 2005 and is probably relevant today. The fact that Hedge Funds have paid doctors to discuss their work is something anyone contemplating this type of investment should consider. According to the story, which is very credible, hedge funds have paid doctors to discuss the results of the drug they are working on. These exclusive investors got info, before the company, before the regulatory agencies and before retail investors. As noted, these small biotech usually have 1 drug in the clinic, so information on that drug can significantly move the stock price up or down. These types of exchanges are totally slimy, typically violate NDAs and put individual investors at a severe disadvantage.

Writer: LucretiaGermanica

LCC: H

Where:

Date: May 22 2010 1:44 AM