Former Puma Biotech Employee Charged With Insider Trading Ahead Of Breast Cancer Drug Data Release

Puma Biotechnology IncPBYI is hit with scandal, as the SEC clamped down on one of its former executives, charging him of insider trading.

In a release dated September 29, 2016, the securities watchdog charged Robin Gadimian, who was a former senior director of regulatory affairs at the company, as having made illicit profits to the tune of $1.1 million by buying its stock and short-term call options using information privy to an insider.

The information pertains to positive developments in two clinical trials of its breast cancer drug candidate neratinib, which was used by Gadimian ahead of these being made public.

Related Link: Stifel Nicolaus Upgrades Puma Biotechnology To Buy

The perpetrator of the crime reportedly altered records of trades before submitting them to the company when it confronted him after learning of the misdeed. Subsequently, Gadimian was fired in October 2014.

We allege that Gadimian used valuable confidential information about his employer's drug trials to trade illegally and enrich himself," said Antonia Chion, associate director in the SEC's Division of Enforcement.

The release from the SEC also noted that the Attorney's Office for the District of Massachusetts brought out criminal charges against Gadimian Friday.

In the after-hours on Thursday, Puma's shares shed 4.63 percent to $63. At time of writing Friday, Puma was down 5.6 percent at $62.36.

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