Fear and Loathing at the FDA: Doc Given Security After Hedge Fund Threat

A doctor who voted against approval of Arena (ARNA)'s Lorqess anti-obesity drug in an FDA advisory committee was threatened by a disgruntled hedge fund investor after the vote, according to The Healthcare Channel. The incident underlines the fact that while pharmaceutical investing is often arcane, academic and dry to the point of being boring, tensions run high under the surface. A company's entire fate can rest on a single vote at the FDA. Indeed, Arena's stock was more than halved by the FDA vote.

Violence is a regular threat for some pharmaceutical executives. A home owned by Novartis (NVS) CEO Daniel Vasella was burned to the ground last year; other executives are targeted with noisy, late-night demonstrations. (In a much more minor example, I became the target of non-violent threats and insults simply for criticizing Sequenom, a company that is under investigation by the feds.)

Here's what happened at the FDA meeting, which was held in a hotel conference room, per HCC TV:

The doctor, who wishes to remain anonymous, was approached in the hallway of the hotel where the AdCom was held by a Caucasian man, approximately 5'10", mid-40's, balding, dressed in an "expensive suit", when the man began to use obscenities. He said, "You are a pompous asshole -- you are wrong--you better get the hell out of here fast." He repeated the comments. The doctor then called security.

The circumstances and description of the man indicate that he might have been a disgruntled hedge fund investor.

The FDA provided the doctor with security for another panel the following day. HCC TV said:

This crazed man might have lost his job or his hedge fund on one bad bet.

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