Former Acadia Pharmaceuticals VP Pleads Guilty to Insider Trading

George Demos, a former vice president of Acadia Pharmaceuticals, pleaded guilty to insider trading after selling over 60,000 shares of the company just before negative news regarding a drug's FDA approval process became public. Demos acted on confidential information indicating that discussions to expand the label of Acadia's drug, Pimavanserin (Nuplazid), for treating dementia-related psychosis had stalled. By selling his shares for over $2.8 million, he avoided a potential loss of $1.3 million when the stock price subsequently dropped 45%. The U.S. Attorney's Office confirmed that Demos was aware of insider trading policies prohibiting such actions. He has agreed to forfeit the amount he avoided losing and is scheduled to be sentenced on May 30. Demos faces a maximum penalty of up to 20 years in prison for his actions.