Weston physician gets 6 months for insider trading
A Weston cardiologist received a six-month prison sentence and will pay $500,000, after a jury found him guilty last year of trading stock in a life sciences company based on inside information he possessed.
Dr. Edward J. Kosinski sold 40,000 shares of Regado Biosciences stock after receiving an advance alert that patients were having allergic reactions to a drug candidate that was in clinical trials, according to the office of John Durham, U.S. Attorney for the District of Connecticut. Shares dropped nearly 30 percent when the news was made public, with Kosinski sidestepping a $160,000 loss on the value of his Regado stock.
Kosinski also netted a small gain in responding to the news that a patient died during clinical trials. Regado subsequently merged with another company to become Tobira Therapeutics which was acquired by Allergan.
Kosinski, 70, is free on $500,000 bond and will report to prison in early January. He faces a separate, civil lawsuit from the Securities & Exchange Commission.
Alex.Soule@scni.com; 203-842-2545; @casoulman