A University of Chicago associate professor who worked as a clinical trial investigator for Five Prime Therapeutics was charged with insider trading in connection with study results for a key cancer drug.
In November 2020, Daniel Catenacci was a lead physician and investigator for a Phase 2 trial of a stomach cancer treatment when he learned of positive results from a Five Prime executive. The medicine, known as bemarituzumab, was widely tracked since stomach cancer is the third-leading cause of cancer deaths worldwide and prompted Amgen (AMGN) to buy the company for $1.9 billion a few months later.
After a confidential discussion with the executive the next day to review data, but before results were announced publicly, Catenacci bought 8,743 shares in the company at $5.49 each, according to court documents. The following day, Five Prime stock rose by more than 300% — ranging from $17 to $23.27 a share — and Catenacci then sold his holdings for a profit of more than $134,000.
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