DA eyes BMS wholesaler rebates

Drug Store News, Oct 21, 2002

PRINCETON, N.J. -- Bristol-Myers Squibb Co. reported Oct. 9 that the U.S. Attorney's Office for the District of New Jersey has begun an investigation into the company's wholesaler inventory situation.

The investigation is aimed at determining whether rebates that Bristol-Myers Squibb Co. offered wholesalers last year were an improper attempt to inflate earnings.

In a statement, BMS reiterated that it intends to cooperate with all reviews of this matter and will provide information the company has already shared with the Securities and Exchange Commission for a separate investigation.

The company said its plan to work wholesaler inventory down to more desirable levels "continues to progress well," and, as previously announced, it expects about 90 percent of the "inventory workdown process" to be completed by year's end.

Shares of Bristol-Myers Squibb fell nearly 15 percent to a five-year low in April after the company said its inventory levels were too high after it offered rebates to wholesalers.