George Demos, the former vice president of Acadia Pharmaceuticals Inc., has admitted to insider trading in a federal court. The San Diego-based pharmaceutical executive pleaded guilty to illegally selling 60,000 company shares, which allowed him to avoid a $1.3 million loss. This action was based on nonpublic information regarding the labeling process for a prescription drug with the Food and Drug Administration (FDA).
Demos held the position of Vice President of Drug Safety and Pharmacovigilance at Acadia and was part of the drug label team. He acknowledged that he had access to confidential information about the company's drug approval and labeling processes with the FDA before it was made public.
Acadia's only fully FDA-approved product as of 2021 was Pimavanserin, marketed under the name Nuplazid for treating Parkinson’s disease psychosis. In 2020, Demos became aware that Acadia sought FDA approval to expand Nuplazid's label to include treatment for dementia-related psychosis, which could potentially increase revenue due to a broader patient base.
In March 2021, Demos learned that discussions with the FDA had stalled due to issues with the drug's label. Using this inside information, he sold over 60,000 shares for $2,833,856.15 just before Acadia publicly announced deficiencies in its FDA application. The announcement led to a significant drop in stock price from $46.61 per share to $25.02 per share by the next day.
As part of his plea agreement, Demos has agreed to forfeit $1,313,263—the amount he avoided losing through his actions. He is scheduled for sentencing on May 30, 2025, before U.S. District Judge Robert Huie.
Assistant U.S. Attorney Janaki G. Chopra is prosecuting this case against George Demos under case number 25cr00682.
The charge against Demos is securities fraud under 15 U.S.C. § 78j(b), 78ff; 17 CFR § 240.10b-5, which carries a maximum penalty of twenty years in prison and a fine of $5 million or twice the gross gain or loss.
The investigation into this matter was conducted by the Federal Bureau of Investigation.