Monterey, CA Tales Of Greed in the Alzheimer"s Research Community: Bapineuzumab Drug Trials
Monterey, CA Tales Of Greed in the Alzheimer's Research Community: Bapineuzumab Drug Trials: View From A Private Duty Caregiver Serving Carmel, Carmel Valley, Gilroy, Gonzalez, Greenfield, Hollister, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, San Juan Bautista, Seaside And Soledad California
More details have emerged in the landmark insider trading case revolving around a promising new Alzheimer's drug, a case which I wrote about in November. It reaped one stock trader over a quarter of a billion dollars in illicit profits, one of the largest insider trading cases in history. There may be others involved in illegal trading as well. Dr. Sidney Gilman, a leading researcher in the fight against Alzheimer's disease, gave a presentation at a Convention in 2008 which shocked Wall Street analysts and others that attended the presentation. It highlighted the results of a study showing that a drug made by Elan and Wyeth called Bapineuzumab wasn't producing the results researchers had hoped for. Fund managers began selling the shares of Elan and Wyeth in droves; however, it became clear later that insiders had already bailed out of the stock after Dr. Gilman emailed a draft of the presentation to a trader at an affiliate of SAC Capital almost two weeks prior. They sold $700 mil. in stock after reading the bleak presentation and avoided losses of $276 million that they would have suffered if they had held onto their stock until the public results were announced. The 80-year old Dr. Gilman last month agreed to cooperate with prosecutors to avoid charges and the stock trader at SAC Capital has been arrested. Dr. Gilman himself only made $100K/year by providing tips to others so he may not have been aware of the gravity of the tips he was providing. The payments were just a fraction of the $258K he made working at the University of Michigan. Dr. Gilman helped turn the University of Michigan into a national center for research in dementia and was honored after the school's neurology lecture series was named after him. They have since severed all ties with him since the news broke about his illegal activities. It remains to be seen whether the founder of the hedge fund involved, the well known Steven A. Cohen, will be charged in this matter. This is a sad case of a researcher who may have been trying to get notoriety for himself after being huddled away in a research lab for years. According to published reports, Dr. Gilman may not have done the fraud for the money. Rather, he was impressed by the traders whisking him around in limousines, putting him up in 5 star hotels and treating him like a rock star. Billions in dollars will be won and lost as the search for an Alzheimer's cure goes on. Authorities must be diligent in tracking down these people trading on insider tips as the shares in drug company stocks can swing dramatically based on the trial results from just one drug.
http://www.merchantcircle.com/blogs/Home.Care.Monterey.CA.-.Family.In-Home.Caregiving..831-275-0103/2012/11/Salinas-CA-Greed-Hits-The-Alzheimers-Research-Community/978962
[http://www.nytimes.com/2012/12/16/business/sidney-gilmans-shift-led-to-insider-trading-case.html?nl=todaysheadlines&emc=edit_th_20121216&_r=0]
About Richard Kuehn & Family inHome Caregiving:
After more than a decade of caregiving, both in a professional environment and for a 97 year old family member I was dissatisfied with service from local caregiving agencies. I became convinced of the need for a service which provides very personal assistance to elderly and founded Family inHome Caregiving serving the Monterey Peninsula. Please visit my blog where I talk about important senior issues at:
http://www.familyinhomecaregiving.com/Blog
More details have emerged in the landmark insider trading case revolving around a promising new Alzheimer's drug, a case which I wrote about in November. It reaped one stock trader over a quarter of a billion dollars in illicit profits, one of the largest insider trading cases in history. There may be others involved in illegal trading as well. Dr. Sidney Gilman, a leading researcher in the fight against Alzheimer's disease, gave a presentation at a Convention in 2008 which shocked Wall Street analysts and others that attended the presentation. It highlighted the results of a study showing that a drug made by Elan and Wyeth called Bapineuzumab wasn't producing the results researchers had hoped for. Fund managers began selling the shares of Elan and Wyeth in droves; however, it became clear later that insiders had already bailed out of the stock after Dr. Gilman emailed a draft of the presentation to a trader at an affiliate of SAC Capital almost two weeks prior. They sold $700 mil. in stock after reading the bleak presentation and avoided losses of $276 million that they would have suffered if they had held onto their stock until the public results were announced. The 80-year old Dr. Gilman last month agreed to cooperate with prosecutors to avoid charges and the stock trader at SAC Capital has been arrested. Dr. Gilman himself only made $100K/year by providing tips to others so he may not have been aware of the gravity of the tips he was providing. The payments were just a fraction of the $258K he made working at the University of Michigan. Dr. Gilman helped turn the University of Michigan into a national center for research in dementia and was honored after the school's neurology lecture series was named after him. They have since severed all ties with him since the news broke about his illegal activities. It remains to be seen whether the founder of the hedge fund involved, the well known Steven A. Cohen, will be charged in this matter. This is a sad case of a researcher who may have been trying to get notoriety for himself after being huddled away in a research lab for years. According to published reports, Dr. Gilman may not have done the fraud for the money. Rather, he was impressed by the traders whisking him around in limousines, putting him up in 5 star hotels and treating him like a rock star. Billions in dollars will be won and lost as the search for an Alzheimer's cure goes on. Authorities must be diligent in tracking down these people trading on insider tips as the shares in drug company stocks can swing dramatically based on the trial results from just one drug.
http://www.merchantcircle.com/blogs/Home.Care.Monterey.CA.-.Family.In-Home.Caregiving..831-275-0103/2012/11/Salinas-CA-Greed-Hits-The-Alzheimers-Research-Community/978962
[http://www.nytimes.com/2012/12/16/business/sidney-gilmans-shift-led-to-insider-trading-case.html?nl=todaysheadlines&emc=edit_th_20121216&_r=0]
About Richard Kuehn & Family inHome Caregiving:
After more than a decade of caregiving, both in a professional environment and for a 97 year old family member I was dissatisfied with service from local caregiving agencies. I became convinced of the need for a service which provides very personal assistance to elderly and founded Family inHome Caregiving serving the Monterey Peninsula. Please visit my blog where I talk about important senior issues at:
http://www.familyinhomecaregiving.com/Blog