is being investigated by the
Securities and Exchange Commission
on whether it disclosed confidential information about its coming earnings to a group of handpicked investors, a report says.
The SEC has contacted several investment banks whose analysts cover Mylan the generic drugmaker, asking about a meeting the company hosted last September with those analysts and a group of investors, the
Wall Street Journal
reports, citing people familiar with the matter. A day after the meeting, Mylan shares rose 7% on three times the previous month's average daily volume, the
A Mylan spokesman told the
it was "confident the communications made during the conference were entirely appropriate."
A spokesman from the SEC declined to comment.
reports a UBS analyst who attended the September meeting said in a report to clients the next day that Mylan's "management sounded excited about the upcoming 3Q," adding that "although not saying it, management basically implied once again that it was confirming 2010 EPS guidance."
When Mylan released third-quarter earnings on Oct. 29, it beat consensus estimates and its shares rose 5%. Another UBS note published the day of the earnings release said "given management's comments at the analyst meeting a month ago, expectations were high going into the quarter and Mylan even exceeded those expectations," the
-- Written by Joseph Woelfel in New York.
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