Martha Stewart dumped her ImClone stock with an advance tip on the FDA’s initial rejection. Ain’t fate a bitch?
WASHINGTON (AP) – Erbitux, the drug at the center of the Martha Stewart stock scandal, won government approval Thursday as a treatment for colorectal cancer patients who have run out of other options.
Manufacturer ImClone Systems initially sought FDA approval in 2001. But the agency in December of that year said the company’s studies were so poorly done that scientists couldn’t even evaluate whether Erbitux actually helped patients.
That rejection sent ImClone’s stock plummeting. Chief executive Sam Waksal is in prison after pleading guilty to securities fraud for dumping his stock just before the news became public. Now his friend, domestic diva [Martha] Stewart, is on trial, accused of lying and securities fraud in dumping her own holdings. She denies wrongdoing.Too bad Martha didn’t practice the buy and hold strategy.