Senator urges drug-stock trading inquiry

''The serious nature of the reported findings and allegations, coupled with the grave implications if these allegations are meritorious, compel me . . . to refer these matters to the Department of Justice and to the Securities Exchange Commission for consideration," wrote Senator Charles Grassley, a Republican from Iowa.

''Selling drug secrets violates a trust that is fundamental to the integrity of both scientific research and our financial markets," Grassley wrote.

The letter was addressed to Attorney General Alberto Gonzales and SEC chairman Christopher Cox. He asked them to also advise him on whether Congress needs to strengthen any laws in light of the reports.

The Times said elite investors pay up to $1 million a year to firms known as matchmakers, which pair Wall Street firms with doctors involved in ongoing drug research. Gerson Lehrman Group, the largest matchmaker, claims to have 60,000 doctors available to speak to Wall Street, double the number from three years earlier.

Those who know in advance whether a drug is going to succeed or fail can buy stock low or sell it high to those who don't know, making quick fortunes by taking advantage of unwitting investors.

There is a broader cost to society: Leaking details about ongoing research can introduce bias into drug trials and possibly halt development of potentially life-saving drugs, biotech executives said.