Physicians who participate in clinical research and serve on scientific advisory boards are necessarily privy to nonpublic information regarding scientific advancements. In a recent article published in JAMA Internal Medicine, the authors call for robust education, strictly enforced contractual provisions, and selective prohibitions against high-risk conduct by those physicians with access to valuable inside information as a result of their participation in clinical research.
Recent insider trading cases implicating high profile medical researchers should give pause to physicians participating as investigators in clinical trials. While insider trading liability clearly arises by knowingly and deliberately disclosing information for illegal gain, there are serious risks associated with inadvertent disclosure of information by “insider” physicians. The immense commercial value that physicians can provide to businesses creates an environment where physicians may be vulnerable to investors seeking an edge. It’s important for physicians to understand their legal obligations of confidentiality in this context in order to properly engage in an exchange of information, which is necessary to advance scientific knowledge, while avoiding potential legal pitfalls.
Physician relationships and the exchange of information in the context of clinical research and physician consulting raise a host of legal issues. Frier Levitt regularly counsels physicians on these complex issues. If you are a physician considering engaging in a relationship with a healthcare company, contact Frier Levitt today to find out your rights and obligations.
