SEC notches win in biopharma ‘shadow’ insider trading case

The SEC won its case against a for­mer Medi­va­tion ex­ec­u­tive who bought stocks in a com­pet­ing phar­ma com­pa­ny af­ter learn­ing the con­fi­den­tial news that Medi­va­tion would be bought by Pfiz­er. Al­though the for­mer ex­ec­u­tive, Matthew Panuwat, didn’t trade his own com­pa­ny’s stock, the so-called in­sid­er in­for­ma­tion “shad­ow trad­ing” of In­cyte stock was ruled sim­i­lar­ly il­le­gal and could have a broad­er prece­dent-set­ting ef­fect.

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