Tuesday, 23 August 2016
Last updated 3 hours ago
Jan 13 2014 | 12:42pm ET
Drug trials are at the heart of the insider-trading case against a former SAC Capital Advisors trader—and have earned the hedge fund more than $200 million this year already.
SAC owned nearly 1 million shares of Intercept Pharmaceuticals at the end of September. The stock nearly tripled in value on Thursday after the company announced a positive result of a liver-disease drug.
It is unclear whether SAC still holds its Intercept shares; the firm has been returning outside capital after pleading guilty to insider-trading charges. SAC first bought Intercept shares in the second quarter, boosting its stake to more than 988,000 shares by the end of the third.
The potentially big gain would rival the amount SAC allegedly earned or saved trading on confidential tips about drug trials received by former portfolio manager Mathew Martoma. Martoma is currently on trial.