SAN DIEGO (CNS) — The former vice president of a San Diego-based pharmaceutical company pleaded guilty today to a federal securities fraud count for insider trading.
George Demos, 64, formerly of Acadia Pharmaceuticals Inc., admitted selling more than 60,000 company shares just before news broke regarding an issue with one of the company's products, according to the U.S. Attorney's Office.
Prosecutors say the company sought for its Parkinson's disease psychosis treatment Pimavanserin, which is sold under the brand name Nuplazid, to have its label expanded for treatment of dementia-related psychosis.
The company had applied for FDA approval for the expanded label, but when Demos learned those discussions hit a roadblock, he sold his shares for over $2.8 million and avoided a $1.3 million loss, the U.S. Attorney's Office.
Less than two hours later, the company issued a press release regarding the issues with its FDA application.
Demos is set to be sentenced in May and as part of his plea agreement, he's agreed to forfeit the more than $1.3 million that he originally avoided losing.
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