A former Pfizer employee profited to the tune of $270,000 in an insider-trading scheme tied to Covid antiviral test results, a jury found Thursday.
The jury convicted Amit Dagar, 44, of one count of securities fraud and one count of conspiracy to commit securities fraud. The charges could lead to a sentence of five to 20 years in prison.
According to the U.S. Attorney's Office, Dagar learned that Pfizer's Paxlovid, an antiviral pill that treats Covid, succeeded in a key study in November 2021. Several hours later, Dagar bought short-term call options for Pfizer stock. He also tipped off a friend, Atul Bhiwapurkar, who followed Dagar's lead.
The next day, Pfizer stock surged more than 10% after the company said Paxlovid reduced the risk of hospitalization or death by 89% in non-hospitalized, high-risk adults with Covid.
In the following weeks, Dagar, a senior statistical program lead for the Paxlovid drug study, sold his options for profits of more than $270,000.
Bhiwapurkar was convicted of one count of securities fraud in October after he profited by $60,300 in the same Pfizer stock scheme, according to the Securities and Exchange Commission.
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