George Demos, former vice president at San Diego-based Acadia Pharmaceuticals Inc., stood before the federal court and admitted his guilt in an insider trading case. Demos, linked to Acadia's drug safety and decision-making processes, sold 60,000 shares leveraging nonpublic information about the company's dealings with the FDA, a move that allowed him to avoid a substantial financial loss, according to a U.S. Department of Justice press release.
Specifically, Demos was privy to details about a snag in the label expansion discussions for Nuplazid, a drug aimed at treating dementia-related psychosis, beyond its initial Parkinson's disease psychosis application. His timely sale of stock, worth nearly $2.83 million and executed less than two hours before a negative press release, shielded him from a near 45% plunge in Acadia's stock price the following day. In doing so, he bypassed a $1.3 million loss, the Justice Department disclosed. The insider trading policy at Acadia that Demos flouted was meant to prevent such misuse of sensitive information.
As part of his plea, Demos conceded to forfeiting the $1,313,263, the financial loss he avoided through insider trading. He is now awaiting sentencing scheduled for May 30, 2025, in front of U.S. District Judge Robert Huie. Depending on the court's decision, he could receive a maximum penalty of twenty years in prison and a fine of $5 million or twice the gross gain or loss.
