imclone systems

ImClone Systems Incorporated is a biopharmaceutical company dedicated to developing biologic medicines in the area of oncology. It was founded in 1984 and is headquartered in New York City. It is traded on the NASDAQ stock exchange under the symbol IMCL. Daniel S. Lynch is currently serving as Chief Executive Officer.

Insider trading scandal

ImClone's stock price dropped sharply at the end of 2001 when its drug Erbitux failed to get the expected Food and Drug Administration (FDA) approval. It was later revealed by the Securities and Exchange Commission that numerous executives sold their stock before the announcement of the decision after the close of trading on December 28. Its founder, Samuel D. Waksal, was arrested in 2002 on insider trading charges for informing friends and family to sell their stock, and attempting to sell his own. His daughter, Aliza Waksal, sold $2.5 million in shares on December 27. His father, Jack Waksal, sold $8.1 million in shares over the 27th and 28th. There has been speculation that Martha Stewart, whom Waksal had dated (after first going out with her daughter) sold her stock based on this nonpublic information but this allegation has not been substantiated. She sold about $230,000 in shares on December 27. John B. Landes, the general counsel, sold $2.5 million in shares on December 6. Ronald A. Martell, the vice president for marketing and sales, sold $2.1 million in shares on December 11. Four other executives also sold shares in the following weeks. Erbitux was ultimately approved by the FDA in February 2004.