Biotech Cos. Face Pressure To Disclose

Law360, New York (May 9, 2016, 3:50 PM EDT) -- When reacting to regulatory and clinical developments, management of a publicly-traded, clinical-stage biotechnology company, frequently may face a tension between a “duty to disclose” and the “pressure to disclose.” The “duty to disclose” material information is defined by legal principles. In contrast, the “pressure to disclose” is fueled by business and market realities. While every situation will be different, when deciding when and what to disclose, there are several practical steps that can be taken by management to facilitate and support that decision.

A biotechnology company with a product candidate in clinical trials faces many challenges. In addition to day-to-day operational...

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