Former Pfizer Employee Charged With Covid Drug Insider Trading
The US Securities and Exchange Commission (SEC) has filed charges against a former Pfizer employee and his friend for engaging in insider trading based on confidential information about the success of Pfizer’s Paxlovid Covid antiviral drug trial.
The US Attorney’s Office of the Southern District of New York has also separately charged Amit Dagar, the former Pfizer employee, and his friend Atul Bhiwapurkar.
In response to the charges, Pfizer stated, “The charges in this case relate to the personal conduct of a former Pfizer employee in violation of the company’s policies. Pfizer is cooperating with the government’s investigation,” according to a statement provided to CNN.
According to the SEC, Dagar, who held the position of senior statistical program lead for the Paxlovid drug trial, allegedly purchased short-term Pfizer options in November shortly after being informed by his supervisor that “we got the outcome” of the trial, before the news was publicly disclosed. The SEC further alleges that Dagar then shared this information with Bhiwapurkar, who also purchased similar call options.
On the day Pfizer announced the results of the Paxlovid trial, November 5, 2021, the company’s shares surged by nearly 11%.
Dagar, Bhiwapurkar, and another individual who was tipped off by Bhiwapurkar later sold their options, generating profits exceeding $350,000, as stated in a press release by the US Attorney’s Office of the Southern District of New York.
Both Dagar and Bhiwapurkar were arrested on Thursday morning.
Dagar, aged 44 and residing in Hillsborough, New Jersey, faces four counts of securities fraud and one count of conspiracy to commit securities fraud, which carry maximum prison sentences of 20 and 5 years, respectively.
Bhiwapurkar, aged 45 and residing in Milpitas, California, has been charged with two counts of securities fraud and one count of conspiracy to commit securities fraud.
