Wyeth Pharma has pleaded guilty to a criminal misbranding violation and agreed to pay a criminal fine and forfeiture of $491 million
The US Justice Department has said that Wyeth Pharmaceuticals pleaded guilty and agreed to pay $490.9 million for misbranding a drug that prevents the rejection of organ transplants.
The $490.9 million will resolve Wyeth’s criminal and civil liability stemming from the unlawful marketing of the prescription drug Rapamune for uses not approved as safe and effective by the US Food and Drug Administration (USFDA).
Wyeth was accused of training its Rapamune sales force in the US to promote the use of the drug in non-renal organ transplants and encouraged them to offer financial incentives to target all types of transplant patients to boost sales.
In 1999, Wyeth received approval from the FDA for Rapamune use in renal, or kidney, transplant patients. The immunosuppressive drug prevents the body’s immune system from rejecting a transplanted organ. The FDA had not authorised the so-called 'off-label' uses of the drug.
In 2009, US drug maker Pfizer acquired Wyeth.
A close above 5,805 on the Nifty tomorrow may be the first sign that the current downtrend is temporarily over
The FBI arrested Sandeep Aggarwal, who received funding from Helion Venture Partners and Nexus Ventures for ShopClues.com, on charges of insider trading in his earlier role as a Wall Street analyst
The Federal Bureau of Investigation (FBI) has arrested Sandeep Aggarwal, founder and chief executive of ShopClues.com on insider trading charges. Private funds, Helion Venture Partners, Nexus Ventures funded Aggarwal in his latest e-commerce venture.
According to FBI, New York, Aggarwal, while working as a Wall Street analyst, allegedly provided tip about a partnership deal between Microsoft and Yahoo to SAC Capital's then portfolio manager Richard Lee.
Confirming the arrest, the FBI through Twitter said, "Sandeep Aggarwal arrested yesterday by FBI agents in San Jose, CA on insider trading charges. Aggarwal tipped Richard Lee, portfolio manager at #SAC Capital, about pending deal between @Microsoft & @Yahoo."
Recently Aggarwal's ShopClues.com, an e-commerce company, raised $10 million from Helion Venture Partners, Nexus Ventures and Netprice.com chief executive Teruhide Sato, reports Iamwire.
According to Securities and Exchange Commission (SEC), Lee's illegal trading based on non-public information (tip given by Aggarwal) helped his hedge fund generate more than $1.5 million in profits. The trading took place before both Microsoft and Yahoo announced their deal and also the acquisition of 3Com Corp by Hewlett Packard (HP), the SEC said in a statement.
The statement says, "Lee thanked the analyst for the 'very specific information' and promptly purchased hundreds of thousands of shares of Yahoo stock in a portfolio that he managed on behalf of S.A.C. Capital. Lee also purchased shares of Yahoo stock in his personal trading account."
As per the release from the US Attorney's office, on 9 July 2009, Aggarwal learned from a friend, who was an employee of Microsoft about the partnership discussions between Microsoft and Yahoo. Next day, Aggarwal provided this information to two different hedge fund, including Lee. Following this, Lee's hedge fund purchased several hundred thousand shares of Yahoo. Lee himself bought 25,000 shares in Yahoo, the release said.
Last week, Lee pleaded guilty to insider trading charges.