Drug Stocks Fall Prey to Insiders as Industry Shrugs Off Change
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At a time when more than one in five U.S. insider-trading cases involve health-care stocks, the industry’s companies say their policies designed to prevent abuse are sufficient -- or they refuse to publicly discuss the issue at all.
Since 2007, 97 people charged or sued by U.S. regulators for insider trading gained their edge as a result of secret information about drugs, devices and the companies that make them, according to data compiled by Bloomberg. Yet most drugmakers among 30 surveyed wouldn’t discuss their policies, and those that did saw no reason for change.