Clinical trial embargoes, often framed as quality control measures, are actually used as 'options' to manipulate statistical results when a drug's market value is at risk.
April 1, 2026
Original Paper
Disclosure Control as a Real Option: Contractual Governance in Clinical Trials
SSRN · 6485602
The Takeaway
The study shows that trials with publication embargoes are 60% more likely to report 'perfect' statistical significance (p < 0.0001). This suggests companies use these delays to selectively report outcomes that ensure FDA approval without needing further replication, rather than using the time for neutral scientific review.
From the abstract
Clinical trial publications are the primary channel through which drug-efficacy evidence reaches physicians, shaping prescribing decisions and patient outcomes. To bolster credibility, pharmaceutical firms outsource trials to independent investigators. Yet the majority of these trials still include embargo clauses granting sponsors manuscriptreview and publication-delay rights. We frame the embargo as a real option that grants firms disclosure discretion when results disappoint. Linking over 18,