Biogen executive quits after Tysabri recall
Wouldn't you think that all these executives who get powerful jobs and make a ton of money know that insider trading is illegal? May be they don't but they probably still noticed that Martha Stewart went to jail for insider trading. Our hypothesis is that these folks knowingly commit illegal acts with the hope that they will never be caught. Does it also mean that every single day thousands of senior executives in American corporations are committing illegal acts like insider trading and getting away with it because they never get caught?
May be that is exactly what our dear friend Thomas Bucknum, Executive Vice President and General Counsel at Biogen was thinking. The day Tysabri recall was being announced, the guy was busy selling Biogen stock. Don't you wonder what was he thinking? In an announcement, the company gave no reason for the departure. Actually, there is no mention of insider trading by him at all, and interestingly enough, neither is one of those "I want to spend more time with my family" reasons that we all know how hollow they are.
It may be noted that Tysabri is a drug for multiple sclerosis and the drug received approval using the infamous fast-track process at the FDA. Many other drugs that received fast track approvals, for instance Vioxx, are all mired in controversy due to the use of a faulty process that is exploited by the drug industry. After problems were reported with the drug, Biogen decided to recall Tysabri though there is speculation that the drug may return later.
So what is the outcome? The poor shareholders get hurt and it develops a sense of distrust in the minds of the investors. The more such things happen the more suspicious we are of statements made by American corporations. No surprise then that investors have no choice but to file class action lawsuits against Biogen.
May be that is exactly what our dear friend Thomas Bucknum, Executive Vice President and General Counsel at Biogen was thinking. The day Tysabri recall was being announced, the guy was busy selling Biogen stock. Don't you wonder what was he thinking? In an announcement, the company gave no reason for the departure. Actually, there is no mention of insider trading by him at all, and interestingly enough, neither is one of those "I want to spend more time with my family" reasons that we all know how hollow they are.
It may be noted that Tysabri is a drug for multiple sclerosis and the drug received approval using the infamous fast-track process at the FDA. Many other drugs that received fast track approvals, for instance Vioxx, are all mired in controversy due to the use of a faulty process that is exploited by the drug industry. After problems were reported with the drug, Biogen decided to recall Tysabri though there is speculation that the drug may return later.
So what is the outcome? The poor shareholders get hurt and it develops a sense of distrust in the minds of the investors. The more such things happen the more suspicious we are of statements made by American corporations. No surprise then that investors have no choice but to file class action lawsuits against Biogen.
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