Amit Dagar, a former senior statistical program lead at Pfizer Inc PFE, has been found guilty of securities fraud by a federal jury in Manhattan.
In October, Pfizer slashed its full-year earnings and revenue guidance, citing decreasing demand for its COVID-19 products.
The conviction comes after Dagar was accused of engaging in insider trading by purchasing stock options just before Pfizer announced the clinical trial results for the COVID antiviral drug Paxlovid in November 2021.
Dagar was convicted on one count of securities fraud, with prosecutors asserting that he not only traded based on non-public information but also tipped off a friend on November 4, 2021, a day before the official announcement of Paxlovid’s positive trial outcome.
In a parallel civil case, the Securities and Exchange Commission revealed that Dagar’s friend and accomplice, Atul Bhiwapurkar, had previously pleaded guilty to securities fraud in October.
Both Dagar and Bhiwapurkar could face a maximum sentence of 20 years, Reuters noted, though the actual sentencing will likely consider various factors and be determined by the presiding judge.
In September, Pfizer’s CEO Albert Bourla provided an update on the status of the company’s oral antiviral COVID-19 treatment, Paxlovid, during his speech at the Cantor Fitzgerald Annual Healthcare Conference.
He noted that despite the increased weekly administration numbers, Bourla highlighted that Pfizer remains uncertain when Paxlovid will gain approval for commercial sale in the U.S. market.
The FDA approved the COVID-19 antiviral treatment under the emergency use authorization.
Also, according to a report, Pfizer was seeking to raise the price of Paxlovid to $1,390 for a five-day course, more than double what the U.S. government initially paid for it, at $529.
Price Action: PFE shares are down 0.07% at $28.07 during the premarket session on the last check Friday.
Image by Okan Caliskan from Pixabay
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