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