Genetic engineering…

May 23, 2007

images-12.jpegTwo weeks ago, ever since the NY Times reported on how some doctors were a bit too free with anemia drugs produced by Amgen (AMGN) and Johnson & Johnson (JNJ), the two stocks have fallen, although Amgen’s fall has been steeper.

Now, it turns out that the story has led to a subpoena, a shareholder lawsuit and an enquiry from Sen. Charles Grassley, who heads the Senate Committee on Finance. All three were disclosed in this 8K filed late yesterday. It’s not clear why Amgen waited nearly two weeks to disclose the subpoena they received on May 10. Or why it took nearly a week for Amgen to disclose the Grassley query, given that the Senator put out his own press release last Wednesday. But what seems more than coincidental is that while this stuff was going on unbeknownst to investors, Amgen insiders were busy selling shares, judging by a quick skim of the seven Form 4s filed last Tuesday.

There was one other interesting thing about yesterday’s filing: the company decided to update its risk factors, providing 25 pages, up from the 17 pages of risk factors that were part of the 10-K filed on Feb. 28. Among the changes is a disclosure about the company expanding some of its clinical trials into China and Central America where the company says it has “limited experience.”

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