By Jonathan Stempel and Chris Prentice
(Reuters) – A former data expertise government at Mylan pleaded responsible on Friday to insider buying and selling for utilizing ideas from the drugmaker’s chief data officer to commerce in its inventory, producing $4.27 million of unlawful revenue, authorities mentioned.
Dayakar Mallu, 51, admitted to conspiring to commit securities fraud, and to an unrelated cost of serving to put together a false tax return, earlier than U.S. District Decide W. Scott Hardy in Pittsburgh.
Mylan is now generally known as Viatris Inc after merging final November with Pfizer Inc’s Upjohn off-patent drug enterprise, which Pfizer spun off. The mixed firm’s headquarters stay in Canonsburg, Pennsylvania, a Pittsburgh suburb.
Authorities mentioned that between October 2017 and July 2019, Mallu traded Mylan inventory based mostly on materials nonpublic details about the corporate’s outcomes, U.S. Meals and Drug Administration drug approvals, and the Upjohn merger.
Mallu, now a resident of Orlando, Florida, was beforehand vp of world operations data expertise at Mylan, and had been a pal and colleague of the chief data officer, court docket data present.
The tax return cost associated to a pc programming firm based mostly in Farmington Hills, Michigan, that Mallu owned, prosecutors mentioned.
Mallu might face 57 to 71 months in jail underneath advisable federal tips at his Jan. 24, 2022, sentencing, in line with a plea settlement with the U.S. Division of Justice.
He additionally agreed to forfeit $4.27 million and make restitution to the Inner Income Service, court docket data present. The U.S. Securities and Change Fee filed associated civil fees.
Aitan Goelman, a lawyer for Mallu, declined to remark.
Ramkumar Rayapureddy, who was Mylan’s CIO on the time of Mallu’s buying and selling, now holds the identical job at Viatris, in line with Viatris’ web site and his LinkedIn Web page.
The SEC mentioned Mallu shared some income with the supply of his inside data, who directed him to make money funds in individual, in India, to keep away from detection.
Rayapureddy didn’t instantly reply to a request for remark.
In a press release, Viatris mentioned: “The corporate is dedicated to the very best requirements of integrity and compliance with the regulation. The corporate has been absolutely cooperating with the authorities. We’re not ready to remark additional.”
(Reporting by Jonathan Stempel in New York and Chris Prentice in Washington; enhancing by Jonathan Oatis)
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