US trader allegedly made a $9.3 million bonus on trades on doctors’ information
A US portfolio manager faces trial in New York wherein it is alleged he received secret information from two doctors who were conducting clinical trials for an Alzheimer’s drug which produced negative results.
Mathew Martoma (of SAC Capital Advisors) after learning of the negative trial results dumped the shares SAC held in Elan and Wyeth, the two companies developing the drug which helped the firm avoid losses and generated profits totalling $276 million.
The two doctors have been given non-prosecution agreements in exchange for their evidence. One of the doctors is Sid Gilman a former University of Michigan neurologist and the other Joel Ross a New Jersey geriatrician and clinical associate professor of medicine at Mt. Sinai School of Medicine.