Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—D. Md.: Biopharma co. due diligence team member charged with insider trading, (Jul 10, 2026)
Organizations Mentioned:AstraZeneca PLC | AstraZeneca US
The employee traded before the public announcement of the transaction on which he had worked.
A former biopharmaceutical company employee consented to the entry of a final judgment settling SEC insider trading charges against him. The employee was a member of an AstraZeneca subsidiary's due diligence team and had traded on confidential information acquired through his position, realizing illicit profits of $10,006. The employee consented to a judgment including a permanent injunction and disgorgement and penalties (SEC v. Zhai, No. 8:26-cv-02694 (D. Md. July 8, 2026)).
Maryland resident Weiguo Zhai was a Senior Director of Research and Development at AstraZeneca Pharmaceuticals LP (a wholly owned subsidiary of AstraZeneca PLC) from July 2020 until May 2024. When he joined AstraZeneca, Zhai signed a confidentiality agreement and became subject to the company's policies and procedures and ethical codes prohibiting insider trading.
Icosavax. In August 2023, AstraZeneca signed a mutual nondisclosure agreement with Icosavax, a Delaware-based biopharmaceutical company, to discuss a possible acquisition. Negotiations took place and, on November 9, 2023, Icosavax accepted a non-binding offer to be acquired by AstraZeneca.
On November 13, 2023, the transaction was assigned to Zhai's due diligence team. Before receiving the confidential information, Zhai was required to confirm his understanding of AstraZeneca's confidentiality rules and guidelines. He did so and was made aware of the transaction and obtained confidential information about, among other items, an Icosavax vaccine candidate.
Trading on inside info. On November 27, 2023, and again on December 6, Zhai purchased a total of 2,000 shares of Icosavax stock based on the material nonpublic information at his disposal. The acquisition was announced on December 12, 2023, and Icosavax's share price increased by nearly 50 percent. Zhai then sold his shares, realizing a profit of $10,006.
The complaint alleged that Zhai violated the federal securities laws by trading on confidential information. He knew, or was reckless in not knowing, that this information was material and nonpublic and that he was in breach of his duty of trust and confidence to AstraZeneca.
Final judgment. Zhai consented to the entry of a final judgment that, if approved, will permanently enjoin him from violations of Exchange Act Sections 10(b) and 14(e) and Rules 10b-5 and 14e-3. He would also pay $10,006 in disgorgement plus $1,535 in prejudgment interest and a civil penalty of $10,006.
The case is No. 8:26-cv-02694.
Attorneys: Spencer Willig for the SEC.
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