Dublin and London-listed pharmaceutical company Open Orphan has confirmed its shares are at the centre of alleged insider trading under Garda investigation. However, the company has said the allegations relate to a private individual unconnected to the firm.
Open Orphan, which tests “infectious and respiratory disease products using human challenge clinical trials”, said it “noted the media reporting” relating to the “allegation of an incident of potential insider dealing in the company’s shares by an unconnected private individual” in 2020.
“The company confirms that it was made aware of this allegation by, and at their request, is helping the relevant Irish authorities in respect of this allegation,” it said in a statement.
“The board of Open Orphan is satisfied that there are no implications for the company in the resolution of this allegation and confirms that no employee, executive, director or anyone connected with the company had any involvement whatsoever in this matter nor are they suspected of any wrongdoing.”
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On Tuesday The Irish Times reported the Garda inquiry related to the alleged use of information to trade in shares. This information was effectively protected or privileged and, therefore, could not be used to make trades on the stock market for a specified period.
However, it is alleged when information was shared on this basis, it was then used to inform stock market transactions. Sources said a series of transactions, involving the sale and purchase of shares over a period of time, was under review.
The allegation at the centre of the inquiry is that protected information was used in an attempt to make financial gain, all based off the fluctuating price of shares of the company.
The Garda investigation is being carried out by Garda National Economic Crime Bureau (GNECB), whose detectives had arrested a man on Tuesday. Garda headquarters confirmed that the man had been arrested for the alleged offence of “insider trading” contrary to European Union (Market Abuse) Regulations 2016.
The suspect, aged in his 60s, was questioned at a Garda station in south Dublin and released without charge with a file to be sent to the Director of Public Prosecutions.
“This investigation is one of a number of ongoing investigations for Market Abuse at the Garda National Economic Crime Bureau,” Garda Headquarters, Phoenix Park, Dublin, said in a statement on Tuesday. “The extensive investigation carried out by GNECB has progressed with the assistance of personnel attached to the Central Bank of Ireland and their expertise and experience had been invaluable.”
