A former Pfizer statistician, Amit Dagar, has been convicted of insider trading and conspiracy to commit insider trading after trying to cash in on the then-confidential results of the Paxlovid clinical trial in November 2021.
U.S. attorneys from the Southern District of New York showed that Dagar, a 44-year-old resident of Hillsborough, N.J., had taken advantage of his position within the company to learn nonpublic information about the success of the landmark trial. He received a chat message from a supervisor that there would be “a lot of work lined up” following the imminent announcement of the outcomes, after which Dagar acquired short-dated, out-of-the-money Pfizer call options before the results of the trial could be announced. He had also tipped off a close friend, who followed suit.
Pfizer’s stock price surged November 5, 2021, rising more than 10% higher than the previous day's closing price, after the Paxlovid results were publicly disclosed. Dagar ultimately pocketed profits exceeding $270,000 from the sale of his Pfizer call options.
“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,” U.S. Attorney Damian Williams said in a statement. “Combatting the corruption of our financial markets continues to be a top priority of this Office. Would-be insider traders tempted by the prospect of easy money should know that the Southern District of New York is watching, we’ll catch you, and we’ll make sure you pay the price for violating the law.”
Securities fraud carries a maximum sentence of 20 years in prison, while the conspiracy charge has a maximum penalty of five years. The final sentencing will be determined by U.S. District Judge Andrew L. Carter. The SEC has filed a parallel civil action against Dagar.
Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.