ethics and investing

[ThreadkillerMD]

Is it wrong (i.e. unethical/conflict of interest) for physicians to invest in biotech and/or pharmaceutical stocks? What do you guys think and why?

I had never thought about it before, mostly b/c I never had money to invest. It seems like investments in drugs/treatments that I may be potentially prescribing could have some ethical implications. Comments?

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[mshheaddoc]

I disagree. There are good products and bad products. If a physician KNOWS that this is a good product and wants to invest in it that is a personal decision. Just like, if a person knows coca-cola is a good product if they are in the beverage industry and they want to invest in it. Or an electrician knows of a new technology that is going to revolutionize home electronics and invests in that company.

Its always good to diversify but its nice to have investments where you understand the product and the company because that makes a sounder investment then not understand the company or product at all. As well as if you have mutual funds, you can't control who is invested in those funds and often the healthcare industry will be represented.

This is my opinion though. If a doctor is strictly prescribing because he owns the stock and not what is best for the patient, THAT is unethical but I would hope most doctors know how to keep personal life out of private life. I see your point, but there are many other professions who have the same "dilemma" and its not really struck completely to doctors. In that case, then there would be no one left to invest in these companies!

 

[MJB]

Well put.

 

[IceMan0824]

Is it wrong (i.e. unethical/conflict of interest) for physicians to invest in biotech and/or pharmaceutical stocks? What do you guys think and why?

I had never thought about it before, mostly b/c I never had money to invest. It seems like investments in drugs/treatments that I may be potentially prescribing could have some ethical implications. Comments?

Is it unethical that public company executives receive their company stock...I mean they work for the company... See how analogies clarify everything?
I would invest in something I am famaliar with. The only unethical (illegal really) is if you were to act on insider information, but you probably will not be privy to that as a MD.

 

[southerndoc]

Is it unethical the public company executives receive their company stock...I mean they work for the company... See how analogies clarify everything?
I would invest in something I am famaliar with. The only unethical (illegal really) is if you were to act on insider information, but you probably will not be privy to that as a MD.

If you personally own stock in a pharmaceutical company, you must report this in a disclosure for any research you present in written, oral, or poster form.

If you own ETF's or mutual funds that invest in the pharmaceutical company, then most organizations do not require you to disclose this.

 

[IceMan0824]

If you personally own stock in a pharmaceutical company, you must report this in a disclosure for any research you present in written, oral, or poster form.

If you own ETF's or mutual funds that invest in the pharmaceutical company, then most organizations do not require you to disclose this.

Executives (Section 16 Officers) do this too. Or you trying to show the exception, or are you agreeing with me?

 

[southerndoc]

Executives (Section 16 Officers) do this too. Or you trying to show the exception, or are you agreeing with me?

I'm talking about regular stockholders and not executives. So if you own ten shares of Pfizer stock, then every research project you are a part of must have a disclosure agreement saying so.

 

[IceMan0824]

I'm talking about regular stockholders and not executives. So if you own ten shares of Pfizer stock, then every research project you are a part of must have a disclosure agreement saying so.

Then why quote my post about company execs?

 

[southerndoc]

Then why quote my post about company execs?

Because you said "The only unethical (illegal really) is if you were to act on insider information, but you probably will not be privy to that as a MD."

It's also unethical for an MD to own stock and not disclose that when giving lectures, research projects, etc.

 

[IceMan0824]

Because you said "The only unethical (illegal really) is if you were to act on insider information, but you probably will not be privy to that as a MD."

It's also unethical for an MD to own stock and not disclose that when giving lectures, research projects, etc.

Point noted. I was talking about being unethical when pruchasing stock but I see your point. I'll make sure to remember this.