Doctor And Mathew Martoma Had A 'You Scratch My Back, I'll Give You Confidential Information About Drug Trial Results' Type Relationship

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Dr. Ross said that after their initial meeting, during which he confirmed the confidential side effect, he began regularly sharing trial results with Mr. Martoma about the patients he was giving the drug to, in breach of his confidentiality agreement with Elan. Dr. Ross said that in addition to the consultation fees, he was motivated by tapping Mr. Martoma's contacts in the pharmaceutical and financial-services industry to help his new clinical-testing business, Iberica USA. In May 2008, Dr. Ross emailed Mr. Martoma asking for connections. "I have now opened the [testing center] as you know, and need to contact as many small biotech companies as possible," Dr. Ross wrote in an email that was shown to jurors Tuesday. "I appreciate your help, and will be happy to return the courtesy in other ways." Those "other ways" were sharing confidential trial results, as he had done before, according to Dr. Ross Mr. Martoma responded in another email shown to the jury that the courtesies weren't needed, and he was happy to help a "friend." But Dr. Ross said Tuesday the two weren't friends. "It was more of a professional relationship on a contractual basis," he said. [WSJ]

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Preet Bharara: University Of Michigan Doctor Financially Compensated For Leaking Confidential Drug Trial Data To Former SAC Trader Just An Innocent Pawn In Big Bad Hedge Fund's Game

As you may have heard, earlier today, Mathew Martoma, a former portfolio manager in SAC Capital's CR Intrinsic unit, was charged with allegedly running “the most lucrative insider trading scheme ever," netting $276 million for the fund. He did so based on information that was given to him by Sid Gilman, a University of Michigan neurologist and chair of a "safety-monitoring committee that oversaw a clinical trial by Wyeth LLC and Elan Corp.  into whether the drug bapineuzumab, or bapi, was safe for patients with mild-to-moderate Alzheimer’s disease." Over an 18-month period, Gilman and Martoma met 42 times, in addition to emailing and chatting over the phone. For example: