ASCO Data Springs More Biotech Leaks

ASCO is leaking again.

Important cancer research data that were supposed to remain confidential and under wraps until next month's annual meeting of the American Society of Clinical Oncology have, instead, been leaked to select investors this week.

The result is volatility in the trading of some biotech cancer stocks. ImClone Systems (IMCL) fell 6% Tuesday and dropped another $1.48, or 3.6%, to $39.85 on Wednesday because an ASCO research abstract that detailed results from a study of Erbitux in colon cancer made its way onto Wall Street trading desks.

I made two phone calls Wednesday morning and was able to obtain specific data contained in the Erbitux abstract, which comes from the so-called Crystal study and was not supposed to be made public until the ASCO meeting, which starts June 1.

ASCO rules forbid me from revealing the Erbitux data, but needless to say, the stock's reaction tells you the data are disappointing from an investor perspective.

Chatter about ASCO abstract data is also responsible for moving the stocks of Genentech(DNA), Regeneron Pharmaceuticals(REGN) and Onyx Pharmaceuticals (ONXX), from what I can tell.

	Do you think ASCO's policy of selective disclosure is fair? Answer Here

For longtime followers of the big ASCO cancer meeting, this story of selective disclosure of market-moving drug data -- and the volatility it causes in the trading of biotech cancer stocks -- is a sad refrain. It seems to happen every year, and the blame can largely be laid at the doorstep of ASCO.