Ariad Windfall
Ariad Pharmaceuticals [ariad.com, ticker: aria] may have accounted for one of the bigger potential windfalls of the tech/biotech stock run-up of the late 1990's. When other biotech / pharma stocks flourished ca. 1999, Ariad was embroiled in an intellectual property or similar legal dispute and the stock flat lined at ~ $.50 (50 cents! [on October 11, 1999) while other biotechs rose. ca. October/November of 1999 the legal impediment was addressed and similar to gunning a car engine with its brakes on and then removing the brakes, the car (stock) shoots forward (upward). Ariad stock rose in a short 4-5 month period from ~ 50 cents to ~ 50 dollars, a 100X or 10,000% increase [reaching a high of ~ $48.50 on March 3, 2000; the biotech and concomitant tech bubble burst was precipitated by a joint Clinton / Blair news conference wherein they implied that genomic data would be shared, the result of which [at that point] may have been an inability to patent facets of genomic research]. Ariad insiders (available via Edgar search) such as founding scientists, board members, etc. may have been privy to when and why the above mentioned matter would be settled, and could have passed on insider information to others [e.g. friends, family, coworkers, individuals whose services they'd covet (aka, to use a 1960s Mod Squad like term, a 'solid')]. Here's a list of some possible Ariad "insiders":
Samuel J. Danishefsky, a high profile researcher affiliated with mskcc.org and columbia.edu, Professor Danishefsky was either a scientific founder, board member or similar at Ariad.
Sarah E. Danishefsky, the spouse of Professor Danishefsky, a non clinician, "manager" at mskcc.org
John Deutch [http://en.wikipedia.org/wiki/John_M._Deutch] is a high profile Professor of Chemistry at MIT, who was tapped to be the DCI (Director, Central Intelligence, the head of the CIA) under President Clinton. He was admonished for removing confidential information from CIA headquarters (did he leave a lap top containing top secret material at a Starbucks, or similar?) and was pardoned by President Clinton in the waning moments of Clinton's presidency.
http://www.nytimes.com/2001/01/21/politics/21CLIN.html?pagewanted=all
http://www.nationalreview.com/article/422863/bill-clinton-pardon-classified-documents
Don Wiley, a Virologist at Harvard, disappeared while attending an SAB type function. His car was found unattended on a bridge over the Mississippi, and he was found ~ 10 days later. Don’s death was ruled an ‘accident’ (he just happened to fall off of a bridge). Don was pals with Greg Verdine, who has been affiliated with Ariad. Was Don in on Ariad’s 10,000% [100x] curiously swift and very large stock rise ca. 1999/2000 prior to the (bio and thence) tech stock bubble burst? If so were any (real and/or imagined) stock accruals legal, or could he have received curiously conveniently timed information relative to IP/Intellectual Property legal issues being settled amicably?
Professor Danishefsky’s brother ran a high profile boutiquey division at UBS (formerly at Merril). His daughter (who worked with that UBS team) had a most horrible and untimely demise
http://www.nypost.com/p/news/local/manhattan/victim_kin_slam_slay_injustice_7hzPALHXxTvrpXyf0g6bSM
Ariad ‘affiliates’ (and friends/family/coworkers, etc. …) … and possible insider ‘tipees’? may have benefited from insider information and had a financial windfall.
This is purely hypothetical, but would it not be interesting if any Clinton (Bill, Hill, Chelsea, etc) and/or affiliate, just happened to have purchased Ariad stock during an interestingly convenient and opportunistic time frame, even more so if in time to receive the windfall and prior to the above mentioned pardon? The Merrill/UBS/Danishefsky Group is likely strictly adherent to SEC rules and regs so it is unlikely that any curiously timed dissemination of ‘insider’ Ariad information would have occurred.
Ariad affiliates revealed by Edgar:
