Long­time Kad­mon con­sul­tant slapped with in­sid­er trad­ing charges re­lat­ed to $1.9B Sanofi buy­out

Months af­ter Sanofi snapped up Kad­mon for $1.9 bil­lion, a long­time Kad­mon con­sul­tant has been ac­cused of us­ing in­sid­er knowl­edge of the buy­out to make more than $400,000 in il­le­gal prof­its.

The SEC filed a com­plaint against Frank Glass­ner in a Man­hat­tan fed­er­al court on Tues­day, charg­ing him with in­sid­er trad­ing. The 68-year-old was al­so slapped with two se­cu­ri­ties fraud charges from the De­part­ment of Jus­tice, which car­ry max­i­mum prison sen­tences of 20 and 25 years, re­spec­tive­ly.

Glass­ner was ar­rest­ed on Tues­day morn­ing in No­va­to, CA, where he lives and runs a con­sult­ing firm.

In a com­plaint filed that day, the SEC ac­cused Glass­ner of re­ac­ti­vat­ing a dor­mant bro­ker­age ac­count with­in 30 min­utes of learn­ing con­fi­den­tial in­for­ma­tion about the Sanofi buy­out back in late Ju­ly. The very next day, he al­leged­ly be­gan pur­chas­ing Kad­mon stock — all while work­ing on ac­qui­si­tion-re­lat­ed ex­ec­u­tive com­pen­sa­tion analy­ses for Kad­mon.

By the time Kad­mon and Sanofi an­nounced the buy­out deal on Sept. 8, Glass­ner held 28,445 shares and 910 call op­tion con­tracts. That day, his stock val­ue surged 71%, reap­ing $405,000 in il­lic­it prof­its, the SEC claimed.

“This type of il­lic­it ac­tion makes mar­kets un­fair and cre­ates an at­mos­phere of dis­trust. Our work in­ves­ti­gat­ing in­sid­er trad­ing hope­ful­ly re­stores faith for in­vestors who need to be­lieve in the process,” FBI as­sis­tant di­rec­tor-in-charge Michael Driscoll said in a news re­lease from the DOJ.

Sanofi closed its buy­out in No­vem­ber, pick­ing up Kad­mon’s new­ly ap­proved Rezurock for chron­ic graft-ver­sus-host dis­ease. Months lat­er, CEO Paul Hud­son re­vealed plans to shut­ter Kad­mon’s New York plant and lay off 25 em­ploy­ees.

Glass­ner’s case is the lat­est in a slew of re­cent in­sid­er trad­ing suits, in­clud­ing last Sep­tem­ber when a for­mer My­lan IT ex­ec­u­tive plead­ed guilty to an in­sid­er trad­ing scheme ahead of pub­lic an­nounce­ments re­gard­ing FDA ap­provals, rev­enue re­ports and its merg­er with the Pfiz­er gener­ics sub­sidiary Up­john.

The ac­tions land­ed Dayakar Mal­lu more than $8 mil­lion in un­re­al­ized prof­its and loss­es avoid­ed, re­sult­ing in net prof­its and loss­es avoid­ed of more than $4.2 mil­lion, the DOJ re­port­ed.

That same month, the SEC ac­cused ex-Gold­man Sachs an­a­lyst Jose Luis Casero Sanchez of mak­ing at least 45 il­lic­it trades re­lat­ed to the merg­ers of AM­AG Phar­ma­ceu­ti­cals, Viela Bio, Roivant Sci­ences and oth­ers.

Back in Au­gust, the SEC charged for­mer Medi­va­tion ex­ec Matthew Panuwat with in­sid­er trad­ing be­fore Pfiz­er’s buy­out deal went pub­lic. With­in min­utes of learn­ing the con­fi­den­tial news, Panuwat al­leged­ly bought stock op­tions in an­oth­er mid-cap can­cer drug de­vel­op­er, In­cyte, whose val­ue he thought would ex­plode once the Medi­va­tion ac­qui­si­tion went pub­lic.

Sure enough, Panuwat’s In­cyte stock op­tions rough­ly dou­bled, earn­ing him more than $100,000 in prof­its, ac­cord­ing to the SEC’s com­plaint.

More re­cent­ly, for­mer Im­munomedics CFO Us­ama Ma­lik was in­dict­ed on three counts of in­sid­er trad­ing, se­cu­ri­ties fraud and se­cu­ri­ties fraud con­spir­a­cy, af­ter al­leged­ly shar­ing in­sid­er in­for­ma­tion about a Phase III study for Trodelvy with his then-girl­friend and a num­ber of rel­a­tives.

And just last month, a Five Prime tri­al in­ves­ti­ga­tor al­so plead­ed guilty to se­cu­ri­ties fraud, af­ter he was ac­cused of buy­ing more than 8,700 shares just a few hours be­fore the com­pa­ny re­leased pos­i­tive Phase II tri­al re­sults.

Scoop: Boehringer qui­et­ly shut­ters a PhII for one of its top drugs — now un­der re­view

Boehringer Ingelheim has quietly shut down a small Phase II study for one of its lead drugs.

The private pharma player confirmed to Endpoints News that it had shuttered a study testing spesolimab as a therapy for Crohn’s patients suffering from bowel obstructions.

A spokesperson for the company tells Endpoints:

Taking into consideration the current therapeutic landscape and ongoing clinical development programs, Boehringer Ingelheim decided to discontinue our program in Crohn’s disease. It is important to note that this decision is not based on any safety findings in the clinical trials.

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Fed­er­al judge de­nies Bris­tol My­er­s' at­tempt to avoid Cel­gene share­hold­er law­suit

Some Celgene shareholders aren’t happy with how Bristol Myers Squibb’s takeover went down.

On Friday, a New York federal judge ruled that they have a case against the pharma giant, denying a request to dismiss allegations that it purposely slow-rolled Breyanzi’s approval to avoid paying out $6.4 billion in contingent value rights (CVR).

When Bristol Myers put down $74 billion to scoop up Celgene back in 2019, liso-cel — the CAR-T lymphoma treatment now marketed as Breyanzi — was supposedly one of the centerpieces of the deal. After going back and forth on negotiations for about six months, BMS put $6.4 billion into a CVR agreement that required an FDA approval for Zeposia, Breyanzi and Abecma, each by an established date.

Alex­ion puts €65M for­ward to strength­en its po­si­tion on the Emer­ald Isle

Ireland has been on a roll in 2022, with several large pharma companies announcing multimillion-euro projects. Now AstraZeneca’s rare disease outfit Alexion is looking to get in on the action.

Alexion on Friday announced a €65 million ($68.8 million) investment in new and enhanced capabilities across two sites in the country, including at College Park in the Dublin suburb of Blanchardstown and the Monksland Industrial Park in the central Irish town of Athlone, according to the Industrial Development Agency of Ireland.

State bat­tles over mifepri­s­tone ac­cess could tie the FDA to any post-Roe cross­roads

As more than a dozen states are now readying so-called “trigger” laws to kick into effect immediate abortion bans following the overturning of Roe v. Wade on Friday, these laws, in the works for more than a decade in some states, will likely kick off even more legal battles as states seek to restrict the use of prescription drug-based abortions.

Since Friday’s SCOTUS opinion to overturn Americans’ constitutional right to an abortion after almost 50 years, reproductive rights lawyers at Planned Parenthood and other organizations have already challenged these trigger laws in Utah and Louisiana. According to the Guttmacher Institute, other states with trigger laws that could take effect include Arkansas, Idaho, Kentucky, Mississippi, Missouri, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, and Wyoming.

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Am­gen takes next step with its Chi­na am­bi­tions, out-li­cens­ing drugs to Fo­s­un Phar­ma

In a bid to increase its market share in China, Amgen has agreed to a partnership with a Shanghai biotech — a collaboration and out-licensing agreement for two of its drugs.

Amgen and Fosun Pharma announced a deal Monday in a bid to increase Amgen’s presence in the country. The stated goal so far is to commercialize Amgen’s blockbuster psoriasis drug Otezla alongside Parsabiv, a drug for secondary hyperparathyroidism in adults with chronic kidney disease and on a specific type of dialysis.

As court case looms, Bris­tol My­ers touts la­bel ex­pan­sion for Breyanzi

As Bristol Myers Squibb braces for a court battle over a costly delay — at least for Celgene shareholders — for its CAR-T lymphoma treatment Breyanzi, the pharma giant is touting a label expansion in the second-line setting.

Breyanzi, also known as liso-cel, snagged a win on Friday in adults with large B-cell lymphoma (LBCL) who: don’t respond to chemotherapy, or relapse within 12 months; don’t respond or relapse after 12 months; or are not eligible for hematopoietic stem cell transplant after chemo due to their age or comorbidities.

Deborah Dunsire, Lundbeck CEO

Af­ter a 5-year re­peat PhI­II so­journ, Lund­beck and Ot­su­ka say they're fi­nal­ly ready to pur­sue OK to use Rex­ul­ti against Alzheimer's ag­i­ta­tion

Five years after Lundbeck and their longtime collaborators at Otsuka turned up a mixed set of Phase III data for Rexulti as a treatment for Alzheimer’s dementia-related agitation, they’ve come through with a new pivotal trial success they believe will finally put them on the road to an approval at the FDA. And if they’re right, some analysts believe they’re a short step away from adding more than $500 million in annual sales for the drug, already approved in depression and schizophrenia.

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AstraZeneca's new Evusheld direct to consumer campaign aims to reach more immunocompromised patients.

As­traZeneca de­buts first con­sumer cam­paign for its Covid-19 pro­phy­lac­tic Evusheld — and a first for EUA drugs

AstraZeneca’s first consumer ad for Evusheld is also a first for drugs that have been granted emergency use authorizations during the pandemic.

The first DTC ad for a medicine under emergency approval, the Evusheld campaign launching this week aims to raise awareness among immunocompromised patients — and spur more use.

Evusheld nabbed emergency authorization in December, however, despite millions of immunocompromised people looking for a solution and now more widespread availability of the drug.

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A Mer­ck part­ner is sucked in­to the fi­nan­cial quag­mire as key lender calls in a note

Another biotech standing on shaky financial legs has fallen victim to the bears.

Merck partner 4D Pharma has reported that a key lender, Oxford Finance, shoved the UK company into administration after calling in a $14 million loan they couldn’t immediately make good on. Trading in their stock was halted with a market cap that had fallen to a mere £30 million.

“Despite the very difficult prevailing market conditions,” 4D reported on Friday, the biotech had been making progress on finding some new financing and turned to Oxford with an alternative late on Thursday and then again Friday morning.