For Biotech Investors, ASCO's Now an Open Book

ASCO's new abstract distribution policy will be put in place in time for the 2008 annual meeting, which runs May 30 to June 3 in Chicago. About two weeks prior to the start of the meeting, ASCO will mail research abstract books to its members, as it's always done.

But at the same time, the research abstracts will be posted on the ASCO Web site, fully accessible and searchable by everyone.

"Everyone will see the information at the same time. Members will still get their books in the mail but will also be able to search online. Their needs will be taken care of," says Lichter.

"At the same time," he adds, "investors will no longer have to worry that certain people are trading on information that isn't publicly available."

Cowen & Co. biotech analyst Eric Schmidt welcomes the change in ASCO policy.

"It's about time and makes logical sense," he says. "From a stock perspective, I still expect that we'll see some interesting trading, but as long as the abstracts are freely accessible to everyone, there will be no worries about trading on non-public information."

University of Chicago oncologist and ASCO member Dr. Mark Ratain says investors weren't the only ones who were fearful of running afoul of Securities and Exchange Commission rules. Ratain says that last year he refused to open his ASCO abstract book in advance of the meeting, because he didn't want to risk divulging information that could have been construed as insider information.