The former employer of New York City’s ex-Covid czar, Dr. Jay Varma, is under investigation for potential violations of federal securities laws after Varma was caught on hidden camera admitting to spinning facts to the media about the monkeypox drug manufactured by the company, SIGA Technologies. Two New York City-based law firms launched probes into the company on behalf of its investors after Varma’s comments were made public during a conservative podcaster’s series. Varma had previously served as a senior health adviser to former Mayor Bill de Blasio and reportedly used the media to spin stories to preserve SIGA’s stock price and salvage the company’s monkeypox drug TPOXX.
Following a clinical trial that revealed the drug failed to achieve its primary endpoint on Aug. 15, the company began a campaign to convince investors not to dump their stock, leading to a drop in stock price by more than 15%. Varma was fired from SIGA on Sept. 19 after being caught on camera publicly bragging about inappropriate behavior during the pandemic, including hosting sex parties and attending an underground rave party. The company released a statement denouncing Varma’s behavior and stating that his recent comments do not reflect the company’s values or way of doing business.
The edited clips of Varma were filmed secretly between July 27 and Aug. 14 in New York City. In the videos, Varma discussed the FDA approval process for SIGA Technologies’ TPOXX drug, explaining how spinning the story in the media could help with gaining approval for the drug. TPOXX is not currently approved by the FDA for the treatment of monkeypox in the US, but can be used in clinical trials. Varma expressed frustration in the videos about the lack of confidence in the drug due to weak data and the challenges of conducting further studies.
Varma referenced specific interviews and interactions with reporters and discussed his strategy for how he wanted the media to report on TPOXX and monkeypox. He also made controversial comments about the spread of monkeypox among gay men, attributing it to sexual networks and risky behaviors. The nature of Varma’s relationship with the unidentified woman he was speaking to in the videos was unclear. The company’s website states that a clinical trial known as STOMP is being conducted to evaluate the efficacy of TPOXX for the treatment of monkeypox.
The law firms investigating SIGA on behalf of investors noted that Varma’s comments had led to a drop in the company’s stock price and were concerned about potential violations of federal securities laws. SIGA released a statement calling Varma’s comments inaccurate and misleading and stated that he was no longer affiliated with the company in any capacity. The investigation into the company’s actions and the potential impact on investors is ongoing as more information comes to light about the situation involving Dr. Varma and SIGA Technologies.
