BIO SPACE
A federal jury in Manhattan has brought back a guilty verdict against former Pfizer employee Amit Dagar for insider trading and conspiracy to commit insider trading related to the launch of the company’s COVID-19 antiviral Paxlovid.
On Thursday, the U.S. Attorney for the Southern District of New York announced that the jury found Dagar guilty of insider trading charges after a two-week trial. According to the indictment and the evidence presented at trial, Dagar in 2021 participated in an insider trading scheme and received “illicit profits” from options trading that came from inside information, specifically the results of clinical trials involving Paxlovid.
Dagar, who was employed by Pfizer and assisted in managing the data analysis for specific clinical trials, was accused of learning in 2021 that Paxlovid’s clinical trial had good results and using that insider information purchased “short-dated, out-of-the-money” Pfizer call options. He also reportedly tipped off a close friend who bought options.
Upon Pfizer posting the results of the Paxlovid trial on Nov. 5, 2021, Pfizer’s stock jumped up over 10% from the closing of the previous day. Dagar sold his options in the following weeks and made over $270,000 in profit.
“As the jury’s swift verdict shows, the proof at trial was overwhelming that Amit Dagar stole information about Paxlovid from his employer, Pfizer, and used that illegal edge to profit in the stock market. Combatting the corruption of our financial markets continues to be a top priority of this Office,” U.S. Attorney Damian Williams said in a statement.
