The headline: Leaks Of Cancer Data Shake Up Biotech Shares Ahead Of June Conference
First some background: Dylan Ratigan explains that The American Society of Clinical Oncology (ASCO) releases an abstract before their big conference in June. These abstracts provide profiles of new drugs coming to market and how they’re doing in clinical trials.
With these abstracts comes a disclaimer that says it’s illegal to use this info to trade. Nonetheless, the info leaks out and it sparks some trading.
David Miller, the CEO of Biotech Stock Research joins the guys for this conversation.
How reliable is the abstract released by doctors?
Miller says they’re put together in December for a meeting in June. But for the most part they’re pretty good.
Which names have the most momentum going into this conference?
Imclone (IMCL) is the headliner for this, says Miller. They're trying to move their flagship drug called ERBITUXwhich treats colon and rectal cancer. According to speculation, the data on this drug is not quite as strong as Wall Street expected and the stock is dropping as a result, he says.
Also, Onyx Pharmaceutical (ONXX) is locked in tight battle with Pfizer (PFE) over two similar drugs for liver cancer, explains Miller. The stock is up nearly 15% because speculation exists that Pfizer’s drug may not have a competitive advantage.
Finally Miller says Medarex (MEDEX) has a drug for melanoma and the stock started moving after the ASCO abstract.
Eric Bolling is incensed by what he calls insider trading. What’s going on is an egregious act!
Tim Strazzini adds it’s been going on for years. And there are no controls around it.
Guy Adami says anyone who trades on this info should go to jail.
Miller adds these abstracts only go out to ASCO members. He feels the solution is to release the abstracts to everyone at the same time.
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Trader disclosure: On May 17, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
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