12 Biotechnology Law Report 569 (Number 5, September-October 1993)

{BLR 1560} Financial Instruments.

AMEX OPENS LONG-TERM OPTIONS TRADINGON ITS BIOTECHNOLOGY INDEX— Expirations as Long as 36 Months

NEW YORK 6/7/93 — The American Stock Exchange (Amex) has begun trading whatit calls Long-term Equity Anticipation Securities™ (LEAPS™) based on its BiotechnologyIndex (ticker symbol BTK). The BTK LEAPS have initial expirations of January 1995 (tickerVTK) and January 1996 (ticker LTK). They are designed to give investors an additional wayto act on their predictions of the long-term movements of the biotechnology industry as awhole. Susquehanna Investment Group is the specialist unit for the new product.

The 15 companies included in the LEAPS are Amgen, Biogen, Cambridge Biotech,Centocor, Chiron, Cytogen, Enzon, Gensia Pharmaceuticals, Genzyme, Greenwich, ImmuneResponse, Liposome, Scios Nova, Synergen, and Xoma. Five days before the introduction ofthe new LEAPS, the Amex had announced the replacement of Immunex Corporation withImmune Response Corporation in its Index. The change was made in part because of therecent acquisition of 60% of Immunex stock by the Lederle Oncology unit of AmericanCyanamid. Immunex also was removed from Standard & Poor's MidCap 400 in the wake ofthe merger.

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SCIENTIFIC MISCONDUCT

{BLR 1561} Definition-

Plagiarism-

Fraud.

DEFINING "MISCONDUCT," ORI STRUGGLES WITHHEARING MECHANISM, NSF BEGINS RANDOM AUDITS,

CRITICISM OF REDFIELD REPORT

Defining "Misconduct"

Saying, "[w]e must distinguish between the crooks and the jerks," Howard K.Schachman of the University of California

-Berkeley essays a useful definition of scientific

misconduct (Science 261:148-149; 183, 9 July 1993). He reports that the change from theterm "fraud" to "misconduct" in the government's definitions "was initiated and effected bylawyers and not by scientists" and that some of the language now in use is too broad to beappropriate.

"The inclusion of ambiguous terms [such as "other practices that seriously deviate fromthose that are commonly accepted within the scientific community"]... potentially breaches an

important principle of due process, the right to know in advance those activities that areproscribed," he writes.

Schacherman goes on to show that proscribing fraud, falsification, and plagiarism(defined as '"misappropriation of intellectual property'") is sufficient and does not open up the