The SEC alleged that Mark Fisch and Edward Gregory, two district sales managers for the Madison, N.J.-based pharmaceuticals company (WYE: news, chart, profile), engaged in the illegal activity in July 2002.

The two men learned from a supervisor about a discontinued clinical trial, then traded in the company's stock before the news became public.

By trading in advance of the negative news announcement, Fisch avoided losses of $35,100, and Gregory avoided losses of $11,860, the SEC claimed.

Each man agreed to disgorge losses avoided plus interest, without admitting or denying the SEC's findings.

Fisch and Gregory will also pay $35,100 and $11,680, respectively, in civil monetary penalties.

The men were also enjoined from further violating securities laws.

An attorney for the men said they were still employed by Wyeth and that Gregory is "close to retirement."

A spokeswoman for Wyeth could not immediately be reached for comment.

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