Ex-Puma Biotech exec gets prison term

June 21, 2018

Former Puma Biotechnology executive, Robert Gadimian, was sentenced to prison for illegally trading on inside information about a breast cancer drug.

Gadimian, who was Puma’s senior director of regulatory affairs, twice secretly traded Puma stock and options from 2013 to 2014, based on information he learned about positive developments in neratinib’s clinical trials. Neratinib was approved by the U.S. FDA in July 2017, under the name Nerlynx.

Prosecutors said the trades earned the exec around $1.1 million. Gadimian was sentenced to 2-1/4 years in prison and ordered to pay a $25,000 fine, on top of the $1.16 million he previously agreed to forfeit to the government. According to Reuters, the exec apologized in court for his conduct and promised not to break the law again.

Read the Reuters coverage