What Ever Happened to the Alzheimer’s Drug at Center of Huge Insider Trading Case?
In yet another case of insider trading to unnerve the pharmaceutical industry, federal prosecutors have cited a leading Alzheimer’s expert, who chaired the safety monitoring committee for the 2008 trial of the ‘bapi’ drug that was developed by Wyeth and Elan, as a tipster in what is being called the “most lucrative insider trading scheme ever charged.”
The feds say that University of Michigan neurology professor Sid Gilman, a prominent expert on various neurological disorders, provided inside information about the Phase II clinical trial of the Alzheimer’s drug to Mathew Martoma, a former trader at CR Intrinsic, which a division of SAC Capital, and who was charged with making about $276 million in combined profits and avoided losses.
As an epilogue, bapi later became part of the portfolio at Pfizer (PFE), which bought Wyeth in 2009, and Johnson & Johnson (JNJ), which struck a deal with Elan the same year. More recently, the drug crashed and burned and nearly all further research has been discontinued (see Pharma news).
To read the remainder of this article, go to Pharmalot.
Ed Silverman is the editor of Pharmalot and a contributor to YCharts, which includes the just-released YCharts Pro Platinum for professional investors.
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