Washington (July 12, 2002) -- The Securities and Exchange Commission is investigating pharmaceutical concern Bristol-Myers Squibb Co. for allegedly inflating its revenue.
A company representative confirmed that the regulator was conducting an investigation but declined to elaborate. However, a report by the Financial Times stated that Bristol-Myers allegedly inflated sales by roughly $1 billion in an effort to meet earnings targets. Regulators are examining whether Bristol-Myers had given its wholesalers incentives to purchase over-allotments of the company’s prescription drugs.
In April, Peter R. Dolan, chairman of Bristol-Myers, said the company’s wholesalers were holding "excessive" inventories of its products and that those inventories would lead to reduced demand and lower sales.
The FT report however, said there currently was no evidence or suggestion that the company had deliberately inflated its sales figures.
-- Electronic Accountant Newswire staff
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