Adam Feuerstein Is Exactly Right: EASL Offers Easily-Abused Selective Liver Study Disclosure To Hedge Funds, Etc.
March 20, 2012


This has, quite-frankly, long troubled me. I am excited to see someone — anyone — making a larger issue of it. It has impacted, and will, in the future, certainly continue to impact the stock prices of the participants in the next-gen Hep C wars. And more than occasionally, it will do so in non-transparent ways — conferring significant trading (and thus financial) benefits upon Wall Street’s high-powered-elite: the hedge funds and largest portfolio managers.

Writing for The Street, Adam hits the nail on the head, here:

. . . .But if you want an advance look at potentially market-moving hepatitis C drug data, you’ll have to be an EASL member or a registered attendee of the EASL meeting — a group which includes hedge fund and mutual fund portfolio managers and sell-side analysts, all of whom can pay for early access.

EASL plans to selectively distribute hepatitis C drug research abstracts to these folks on Thursday. The same documents will not be made available to the public. That means a select group of investors will have access to potentially stock-moving clinical data while a majority of investors will be kept in the dark. . . .

Exactly right. The EASL conference selective disclosure/embargo system needs to be reworked — there is scant legitimate reason to suggest that EASL members need advance access.

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