Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

DOJ, SEC Charge Former Immunomedics Finance Chief With Insider Trading

12/02/2021 | 02:25pm EST

By Colin Kellaher

A former top executive of biotechnology company Immunomedics Inc. and another former employee with whom he was romantically involved have been arrested on insider-trading charges related to the company's key breast-cancer drug.

The U.S. Attorney's Office for the District of New Jersey and the Securities and Exchange Commission said they brought charges against Usama Malik, who served as chief financial officer of Immunomedics from 2018 through 2020, and Lauren Wood, the company's former head of corporate communications.

According to the complaints, Mr. Malik last year learned that the U.S. Food and Drug Administration had permitted the company to halt a clinical trial for the breast-cancer drug, later approved and marketed as Trodelvy, because the existing trial data provided compelling evidence that the drug was effective.

Mr. Malik allegedly shared the information with Ms. Wood, with whom he was living, and other family members, who then bought shares of Immunomedics ahead of the company's announcement of the FDA decision. Shares of Immunomedics nearly doubled on April 6, 2020, after the company issued a press release.

The Justice Department alleged that Ms. Wood realized a gross profit of more than $200,000 on her trades and gave $65,000 to Mr. Malik.

Trodelvy subsequently won FDA approval and was the prized drug in last year's $21 billion acquisition of Immunomedics by Gilead Sciences Inc.

The DOJ said it arrested Mr. Malik, 47 years old, and Ms. Wood, 33, both of Washington, D.C., and charged them with securities fraud, while the SEC said it filed civil charges alleging violations of securities laws. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine, the DOJ added.

Mr. Malik, who joined Immunomedics as chief business officer in 2017 after serving as global vice president of strategy and innovation at Pfizer Inc. for four years, earlier this year was named chief executive of privately held precision-oncology company Fore Biotherapeutics.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

12-02-21 1424ET

Latest news "Economy & Forex"
09:10aESRB EUROPEAN SYSTEMIC RISK BOARD : ASC publishes report on digitalisation and the future of banking
PU
09:08aTech tumble, lackluster GS earnings set to weigh on Wall Street
RE
09:08aNew York state factory activity slumps in January amid Omicron surge
RE
09:07aSerum institute of india’s ceo adar poonawalla says export restrictions need to addressed by governments to help with vaccine inequity
RE
09:07aAfrica cdc director john nkengasong says logistics main issue with regard to vaccination in africa not hesitancy
RE
09:07aSoil-free farming group Vertical Future valued at 100 mln stg after fundraising
RE
09:07aCanada Housing Starts Drop 22% in December
DJ
09:05aExclusive-Turkish bank employees compelled to boost lira-defence scheme -sources
RE
09:03aEMA : Review of real world evidence suggests benefits of receiving mrna covid-19 vaccines during pregnancy outweighs any possible risks for expectant mothers and unborn babies
RE
09:03aJAPAN PM : Abenomics did not create sustainable economy
RE
Latest news "Economy & Forex"