Poor Biogen. Just after they were named in a whistleblower suit claiming marketing breaches, their former general counsel now has agreed to pay $3 million to settle an investigation into allegations leveled by the Securities and Exchange Commission concerning insider stock trading.
Thomas Bucknum is also barred from serving as an officer or director of a public company for five years.
According to a Thursday report on the Wall Street Journal's Web site, Bucknum does not admit or deny wrongdoing. "I believe it was prudent to end this episode now and put it behind me," he said in a prepared statement.
Bucknum exercised options on 90,000 Biogen Idec shares (Nasdaq: BIIB) last February for a $1.9 million gain, with the SEC saying he did so after learning two patients taking its multiple sclerosis drug Tysabri had developed a rare brain disease.
Ten days later, the company shelved Tysabri after a patient died, and the company's stock fell 40 percent.
Bucknum resigned last March.
Bucknum agreed to repay his stock gain and $1 million more in penalties and interest. Bucknum became general counsel of Biogen in 1999. Before joining the company in 1996, he worked for DuPont.
Tysabri was initially approved for sale in November 2004. On Tuesday, Biogen Idec told analysts the company expects word from the Food and Drug Administration in March on whether the company can resume Tysabri sales.
Insiders' view: It's a strange state of affairs where Tommy Boy can admit no wrongdoing but agree to pay a million bucks as a "penalty". Go figure.
Boston Business Journal
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