The Securities and Exchange Commission announced insider trading charges against Viatris' chief information officer, in a scheme that netted close to $8 million.
The SEC compliant alleges that from September 2017 through July 2019, Ramkumar Rayapureddy shared nonpublic information about Viatris' (then Mylan) unannounced FDA approval, financial results, and impending Pfizer merger with a former colleague and friend.
According to the SEC, the friend, Dayakar Mallu — Mylan's former chief of global IT operations — generated gains totaling nearly $8 million and avoided losses by trading Mylan securities based upon Rayapureddy’s tips. Mallu allegedly shared a portion of his profits with Rayapureddy through cash payments in India.
Mallu was charged with insider trading last year, pleading guilty to conspiracy to commit securities fraud and aiding in the preparation of a false tax return. He is awaiting sentencing.
Rayapureddy plead not guilty in Pittsburgh federal court on Thursday, posting a bond of $500,000. A Viatris spokeswoman told the WSJ that Rayapureddy is currently on a leave of absence from the company.
