The Securities and Exchange Commission (SEC) has brought charges against Dishant Gupta, an employee of pharmaceutical company Ipsen, for insider trading related to Ipsen’s $247 million acquisition of the cancer drug developer, Epizyme. According to the SEC complaint, Gupta had access to non-public information about the acquisition due to his role at Ipsen and allegedly used this information to profit from stock transactions.
Gupta, who served as the Director of Data Strategy and Operations, played a significant role in marketing and strategic pricing of Ipsen’s products, allowing him access to sensitive market information. In early 2022, Ipsen began negotiations with Epizyme centered on acquiring Tazverik, an FDA-approved drug for treating follicular lymphoma. These negotiations eventually evolved into talks for a full buyout of Epizyme announced on June 27, 2022.
- The SEC’s findings indicate that Gupta conducted multiple internet searches with keywords such as “Epizyme buyout” and “Epizyme takeover” in the weeks leading up to the announcement.
- In the period from April to June 2022, Gupta made 27 separate purchases of Epizyme stock, including a significant investment of approximately $160,000 to acquire 200,000 shares just days before the official announcement.
Gupta sold all his Epizyme shares immediately following the acquisition announcement, resulting in a profit of $260,078.27. The SEC’s complaint, now filed in the U.S. District Court for the District of Massachusetts, asserts that Gupta has agreed to plead guilty to one count of securities fraud. The agreement includes forfeiture of his illegal gains and a civil penalty, along with a prohibition from serving as an executive or director in any publicly traded company, all contingent on court approval.
The case underscores Ipsen’s robust focus on oncology, which is a significant part of their growth strategy, contributing more than €2.3 billion to their 2023 sales of €3.1 billion. Alongside Tazverik, Ipsen has pursued several other strategic acquisitions and partnerships in the oncology sector, including the purchase of the FDA-approved Onivyde from Merrimack Pharmaceuticals and global rights to a Phase 1-ready antibody drug conjugate from Foreseen Biotechnology in July. These acquisitions come on the heels of an April agreement to acquire global rights to another ADC from Sutro Biopharma.
The SEC’s action against Gupta highlights the ongoing scrutiny of insider trading activities and the severe repercussions for those found exploiting non-public, material information for personal gain.
For more details on this case, visit the original report.