This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Biotech Stock Mailbag: FDA Playbook

Remember that the data for FDA decisions are almost always known in advance, so pre-decision stock activity is more likely investors/traders playing the event, not a leak.

The release of clinical trial results isn't usually scheduled in advance, so big stock moves here can signal a leak. Or not. Don't forget that professional biotech investors spend a lot of time talking to management and/or other experts seeking a more refined timeline for when data may be released. They may use this information or insight, which is not illegal, to guess better than the average retail investor.

In other words, Wall Street is not a level playing field. Professionals have more tools at their disposal than amateurs. That might not be fair, but it's just the way it is.

The best way for an investor to protect himself from leaks is to be on the right side of the drug-approval decision or clinical trial-data release in the first place. That way, either the leak works in your favor, or if the leak is wrong, you still win when the truth comes out.

Leaks are bad. They're illegal. But leaks are also a part of Wall Street that will never go away, and I don't know what the SEC can do to change that. [Going after leakers once the deed is done would be a start, but I won't hold my breath.]

TJM writes, " BioElectronics(BIEL.PK) has a study that shows ActiPatch is a better pain reliever than Tylenol. Are you a fan of the stock now?"


The "study" is pretty much a joke, right? BioElectronics enrolled college athletes into three different groups -- one treated with ActiPatch used for two days, a second not treated at all and a third treated with Tylenol for 90 minutes.
4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CERS $5.66 -6.10%
CVM $0.52 4.20%
DNDN $0.06 -6.02%
DSCO $2.30 -5.30%
VVUS $0.99 8.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs