SEC Charges Clinical Drug Trial Investigator with Insider Trading

The Securities and Exchange Commission today announced charges against Daniel V.T. Catenacci for insider trading in the securities of biotechnology company Five Prime Therapeutics, Inc. in advance of the company’s November 10, 2020 announcement that it had achieved positive drug trial results for its flagship cancer drug Bemarituzumab. The SEC’s complaint alleges that Catenacci, a Chicago, Illinois based medical school professor, entered into a consulting agreement with Five Prime to serve as a lead clinical investigator for the company’s Bemarituzumab drug trial. Through this role, Catenacci allegedly learned material nonpublic information about the positive drug trial results for Bemarituzumab. According to the SEC, shortly after he allegedly learned of the positive results, Catenacci purchased 8,743 shares of Five Prime. After it publicly announced the positive drug trial results, Five Prime’s share price increased over 300%.