Employee of French Drugmaker Ipsen to Plead Guilty to Insider Trading in the US, Reports Reuters

By Nate Raymond

BOSTON – A member of the French pharmaceutical company Ipsen is set to plead guilty to unlawfully profiting over $262,000 by trading on insider information regarding the company’s acquisition of cancer drug developer Epizyme in 2022.

Dishant Gupta, who serves as Ipsen’s director of data strategy and operations, is expected to plead guilty to securities fraud and is working to settle related allegations with the U.S. Securities and Exchange Commission, as indicated in court documents filed in Boston on Tuesday.

A hearing for the plea is scheduled for October 8. Jeffrey Lichtman, an attorney representing the 40-year-old New Jersey resident, stated via email that his client is actively trying to resolve the case.

Ipsen has refrained from commenting on legal issues concerning current or former employees, emphasizing its commitment to compliance with relevant laws.

According to prosecutors, during a meeting in Cambridge, Massachusetts, in March 2022, an Ipsen executive requested Gupta’s assistance in preparing materials connected to a potential acquisition involving a cancer drug and assets from an undisclosed drug company.

Shortly thereafter, Gupta participated in discussions with Ipsen executives about prospective acquisitions in the oncology sector. By April 7, 2022, he was aware that the cancer drug and assets in question were related to Epizyme, the producer of the cancer treatment Tazverik.

On that same day, Gupta began acquiring shares of Epizyme through his wife’s brokerage account. He continued purchasing additional shares in the subsequent days as discussions about a complete acquisition of Epizyme progressed.

Gupta’s internet activity reportedly indicated his knowledge of the impending acquisition, as he frequently searched terms such as "Epizyme buyout" and "Epizyme takeover," according to federal prosecutors and SEC officials.

Ipsen officially announced its $247 million purchase of Epizyme on June 27, 2022. Following the announcement, Gupta sold all his shares in Epizyme, resulting in a profit exceeding $262,000, as outlined by prosecutors.