Jay Inslee: Washington's 1st Congressional District
Issues
Health
Inslee calls for Hearings on the Selling of Confidential Drug Research
12 August 2005
U.S. Rep. Jay Inslee today asked a House Energy and Commerce Subcommittee to convene hearings on the recently reported practice of doctors selling confidential pharmaceutical drug clinical trial research information to investment firms. Inslee, a Member of the Subcommittee on Oversight and Investigations, sent a letter to the Committee stating that a hearing is needed in light of recent news reports that have identified instances of doctors disclosing secret information about their drug research trials to hedge fund managers and investment firms.
Said Inslee, "This alleged practice violates the ethical and legal walls that needs to exist between doctors with insider knowledge about clinical drug trials and Wall Street. The Committee needs to conduct oversight hearings into this objectionable practice and find out the true reach of the problem. We have a responsibility to protect the integrity of medical and scientific research."
The text of the letter is as follows:
August 12, 2005
Energy and Commerce Committee Chairman Joe Barton
Energy and Commerce Committee Ranking Member John Dingell
Oversight & Investigations Subcommittee Chairman Ed Whitfield
Oversight & Investigations Subcommittee Ranking Member Bart Stupak
Dear Chairmen and Ranking Members:
During this past week, the Seattle Times published a series of investigative articles uncovering the alleged practices of some Wall Street hedge fund managers soliciting from doctors confidential clinical drug trial results. The reports indicated at least 26 specific cases of potential malfeasance that show a strong need for Congressional oversight. The Seattle Times reporting further suggests that laws may have been broken by either hedge fund managers, doctors engaged in studies, or both. When such violations do occur, it is often regular investors not privy to inside information and the medical research industry who pay the price.
The serious nature of the reported findings and allegations, and their considerable implications, compel me as a Member of the Subcommittee Oversight and Investigations, to ask that the Subcommittee use its power to convene hearings to look into this matter.
I am hopeful that a thorough investigation by the Subcommittee will help us to better understand the effectiveness of current law, the capabilities of our regulatory agencies to monitor and prevent some of those practices, and whether or not Congress needs to amend current law to protect against further potential abuse. The potential violations of the law and scientific ethics challenge the fundamental integrity of how scientific research is performed and how we protect our financial markets from manipulation.
Please feel free to contact my staff with any questions or concerns, or you may contact me directly. Additionally, I have provided several of the articles from the Seattle Times as background. Thank you in advance for your consideration, and I look forward to hearing from you in this matter.
Sincerely,
Jay Inslee
Member of Congress