Biogen Stock Rallies After Admitting Feds Probing "Sales & Promotional Practices"

Tyler Durden's picture

Just when the whole congressional pricing debacle has been ignored and the bubble is back on in Biotechs as an "M&A frenzy" is unleashed, Bloomberg reports that Biogen Idec has admitted in its 10-Q that:

  • *BIOGEN SAYS IT RECEIVED FED SUBPOENA ON TIES TO CERTAIN Pharmacy Benefit Managers
  • *BIOGEN SAYS STATE, FEDERAL AUTHORITIES PROBING SALES PRACTICES

Buried quietly on page 27 of the 10-Q, they explain that state and federal governmental authorities are investigating sales and promotional practices... Of course, the small dip in the stock price was a great opportunity to reload and it is now trading higher on the news.

From page 27 of the 10-Q,

Government Matters

 

We have learned that state and federal governmental authorities are investigating our sales and promotional practices and have received related subpoenas.

 

We have also received a subpoena from the federal government for documents relating to our relationship with certain pharmacy benefit managers.

 

We are cooperating with the government in these matters.

And the market reaction...