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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (1153)	5/31/2000 4:43:00 PM
From: david james	Read Replies (1) \| Respond to of 52153

That is an interesting bit of information, but there is one difficulty with the interpretation of "insider" in this case. A Phase III product is typically a test on a large number of patients (over 2000 patients is common but it depends on the drug). Many of those taking part in the trial will not be employed by the company directly - but are working in hospitals as doctors and nurses. So the "insiders" in this case may involve doctors, nurses and the patients as well - and of course all the friends of the patients. I certainly suspect that it is likely that after a few patients respond favorably to the treatment, a lot of discussion is generated regarding the drugs success - well before the company officially releases news. I remember a friend that was on a weight loss drug trial that worked remarkably well. I certainly considered buying the stock of the company - and sure wish I did once the findings were released. I never thought that such an action would be "insider trading" since it was based on the response of just one friend - but technically it would have been. Dave