(Image Credit: IMAGN)
SAN DIEGO, CA – George Demos, 64, former vice president of San Diego-based Acadia Pharmaceuticals Inc., plead guilty on Friday to a federal securities fraud count for insider trading, according to the U.S. Attorney’s Office.
Demos admitted to selling over 60,000 shares of Acadia stock just before the company publicly announced a setback in its efforts to expand the label for its Parkinson’s disease psychosis treatment, Pimavanserin, sold under the brand name Nuplazid.
Prosecutors revealed that Acadia had sought FDA approval to broaden Nuplazid’s label to include the treatment of dementia-related psychosis. However, Demos, who was privy to confidential information, learned that discussions with the FDA had encountered significant obstacles.
Demos sold his shares for more than $2.8 million, effectively avoiding a $1.3 million loss. Less than two hours after his trades, Acadia Pharmaceuticals issued a press release disclosing the issues with its FDA application.
“Mr. Demos used his position of trust and access to insider information to illegally profit from the stock market,” stated a representative from the U.S. Attorney’s Office.
As part of his plea agreement, Demos has agreed to forfeit the $1.3 million in losses he avoided. He is scheduled to be sentenced in May.
