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).
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Ed Silverman is the editor of Pharmalot and a contributor to YCharts, which includes the just-released YCharts Pro Platinum for professional investors.