Insider Trading Probe Sought Over Drugs

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Insider Trading Probe Sought Over Drugs


Tuesday August 9, 2005 1:31 AM

By KEVIN FREKING

Associated Press Writer

WASHINGTON (AP) - The chairman of the Senate Finance Committee called Monday for a federal investigation into whether doctors are supplying investment firms with information about clinical drug trials before companies announce the results.

The Seattle Times reported Sunday that, despite confidentiality agreements, doctors are divulging details about ongoing research for a fee. The newspaper's investigation cited 26 cases in which doctors leaked confidential details of their research, including 24 in which firms issued reports to select clients that advised whether to buy or sell a drug stock.

``The serious nature of the reported findings and allegations, coupled with the grave implications if these allegations are meritorious, compel me ... to refer these matters to the Department of Justice and to the Securities Exchange Commission for consideration,'' wrote Sen. Charles Grassley, R-Iowa.

``Selling drug secrets violates a trust that is fundamental to the integrity of both scientific research and our financial markets,'' Grassley wrote.

http://www.guardian.co.uk/worldlatest/story/0,1280,-5198752,00.html