Category Archives: Manson v. Schering-Plough Corporation Securities Fraud

What did Carrie Cox say, on the day BEFORE she began selling?

I am having a nice back-and-forth with the ever-sharp Salmon, in the comments, here — about what might have caused the run-up in Schering stock prices from January 1, 2007 to May 1, 2007. . . . do read that, but here is what the Complaint alleges was said by Carrie Cox one day before she began the series of $29 million (gross — about $11 million, net) liquidations of her options positions — about Vyotrin’s benefits (see pages 28 to 29 of the full complaint — in 237 page PDF format):

. . . .During Schering’s First Quarter 2007 Earnings Call on April 19, 2007, Hassan stated: “We continue to grow VYTORIN and ZETIA despite the new wave of generics that has recently entered the market. As we have said before, physicians and their patients are following the evolving medical science; evolving medical science that is indicating that lower LDL cholesterol is better. And now we will be extending the core of our cholesterol business into Japan.”

During the call, Defendant Cox added: “At last month’s American College of Cardiology meeting, lowering LDL was again validated as the primary target of lipid therapy and with lower clearly better, we believe this plays right into the strength of our cholesterol franchise. Only VYTORIN provides more than a 50% LDL reduction at the usual starting dose and across the dosing range. More than Lipitor and more than Crestor.”. . .

According to Schering’s press release, in that First Quarter 2007, Vytorin/Zetia sales grew at an explosive 48 percent (over the comparable First Quarter of 2006); and Equity Income (or profit) from those sales was up a full 21 percent. Wow. That’s some mo-jo, right there.

So — what did she really know? And when did she — and CEO Fred Hassan — know it?

That is a very significant part of what this litigation is all about.