Trading on non-public data without an NDA

If they don’t get you to sign an NDA, is it legal? I was just accepted to another position at a different company (I have 3 research asssistant positions now at 2 companies) and recevied a 29 page document of company policies and a bunch of other crap with no NDA. Their focus is more on not revealing patient information (HIPPA). The information in this position could possibly be significant. No one is in the investing field in this divsion and I don’t think they know the market value of their information. To be specific, big pharma is funding clinical trials and i’m there to observe effectiveness of the drugs with patients to treat four major types of health issues : depression, alzheimers, cardio, oncology. These are four heavy hitters for big pharma and if we see a knockout in our clinical trials, would I legally be able to trade on this information? I understand market timing and knowing the release dates of big pharma would still be factors, but was quite intrigued by the whole process. Also, I am aware of how big … big pharma is … looking at each company … and one drug might not affect a major spike, but a major breakthrough in the field could and we would have the data to verify that something big is about to hit on the market. Still though, market timing would be challenging even if I had the correct information. There is the lag between when a drug is released and accepted by MDs and the public to the point of monetary success.

The beauty of it is we are getting funded by multiple pharmaceutical companies … gaining more exposure to different types of trials verus a single company throwing different chemical compounds at patients.

Realistically speaking though, if I was there for say … 1 yr … we might only have one heavy hitter at that. These drugs take hundreds of failures to gain one success. So I know the odds might be low, but was talking to my friend about it last night and my ability to trade on some of the data if something came along.

You are always getting involved in something ridiculous. I would imagine it would count as insider trading. Also highly unethical, but you dont really come off as someone particularly ethical. Could get you blackballed from the industry as well.

never happened

What igor said

uhhhh khakis?

You don’t need to sign an NDA to be guilty of trading on material non-public information. NDA is about disclosing it to others.

You don’t need to sign an NDA to be guilty of trading on material non-public information. NDA is about disclosing it to others.

hmm ok yeah I don’t want to do anything illegal

Yeah I mean I have to beat out 97% of applicants next year when I apply … I want to look ridiculously… good

^are a CFA?



no one cares about any of these designations in this industry the only relevant experience was that I had some stats background and we do a lot of stats for research to determine the significance of the results. but, for major grants there is usually a PhD in Stats who does the work … we just have to be able to interpret the results and stats who cares about CPAs anyway - they are just bean counters … right

So lets get this straight. When can I actually trade on the information? The pharm company might change the name but I will still see the chemistry or hybrid of the chemical compound that I saw in the clinical trials and can form the link. After they release to the public that drug X is coming out, can I trade on it knowing it is going to explode? Its obvious I haven’t studied the subject of material non-public information in years.


You can trade on it when the information is made public, say press release, or patent filings perhaps.

im not an expert in biotech but i think these usually pop aftre each succesfull trial. the doctors who have access to the results before they are released are not allowed to trade.

the biggest pop comes once the FDA approves the drug fully

Are you serious ACE? Did you even take level 1? This is like the most basic of insider trading, you arent even in a grey area. Aside from going to prison/hefty fine aspect, if you did something like this and got caught no one in the industry you are working so hard to get into would hire you. From that perspective I really dont think its worth it. If what you were doing was legal everyone would be doing it, there is no free lunch

hook me up with that info ACE. Hollar if you hear me.