Former Vice President of Pharmaceutical Company Admits to Insider Trading

SAN DIEGO – George Demos, then-vice president at San Diego-based Acadia Pharmaceuticals Inc., pleaded guilty in federal court today to illegally selling 60,000 company shares, thus avoiding a $1.3 million loss by acting on insider knowledge about the labeling process for a prescription drug with the Food and Drug Administration (FDA).

Demos, a medical doctor who was the Vice President of Drug Safety and Pharmacovigilance and member of the drug label team at publicly-traded Acadia, admitted that he was able to avoid the loss by dumping his shares just two hours before negative news about the labeling process became public.

Through his positions, Demos had access to material information belonging to Acadia, including the drug approval and labeling process with the FDA, before the information was released to the investing public. As an employee of Acadia, Demos was subject to an insider trading policy that prohibited trading in company stock on the basis of material nonpublic information.

As of 2021, Acadia’s only fully FDA-approved pharmaceutical product was Pimavanserin, sold under the brand name Nuplazid, for the treatment of Parkinson’s disease psychosis. Demos admitted that in 2020, he learned inside information that Acadia had applied for FDA approval for the expansion of the label for Nuplazid to treat dementia-related psychosis. Expanding the label was expected to generate significant revenue for Acadia because it would allow the drug to treat a larger patient population.

Demos also admitted, however, that in March 2021, he learned additional inside information that discussions with the FDA had stalled, indicating a problem with the label. Acting on that inside information, Demos sold more than 60,000 shares of Acadia for $2,833,856.15 - less than two hours before Acadia issued a press release announcing deficiencies in its drug application with the FDA, preventing labeling discussions. Demos admitted that based on the inside information, he sold his Acadia stock for $46.61 per share, avoiding the 45 percent drop in stock price, to $25.02, that occurred the next day after the press release was issued to the public. Through this illegal trading, Demos avoided a loss of $1,313,263.

As part of his plea, Demos agreed to forfeit $1,313,263 – the loss he avoided through his insider trading.

Demos is scheduled to be sentenced on May 30, 2025, at 9 a.m. before U.S. District Judge Robert Huie.

This case is being prosecuted by Assistant U.S. Attorney Janaki G. Chopra.

DEFENDANT                                               Case Number 25cr00682                 

George Demos                                                Age: 64                                   San Diego, CA

SUMMARY OF CHARGES

Securities Fraud – 15 U.S.C. § 78j(b), 78ff; 17 CFR § 240.10b-5

Maximum penalty – Twenty years in prison and fine of $5 million or twice the gross gain or loss

INVESTIGATING AGENCY

Federal Bureau of Investigation