SEC Ends Chiron Probe

No enforcement action was recommended against the company.

Author:: Robert Steyer
Publish date:: Feb 7, 2006 10:42 AM EST

Chiron

said Tuesday that the staff of the

Securities and Exchange Commission

has closed an investigation into the company's failure to produce flu vaccine in the U.S. market during the 2004-2005 flu season.

The

SEC staff began an informal inquiry in October 2004, soon after the Emeryville, Calif., company said it wouldn't sell the vaccine due to manufacturing problems at its U.K. plant. Chiron had been expected to produce 48 million to 50 million doses of vaccine. The company

sold about 13 million doses for the U.S. market during the current flu season.

The SEC staff was trying to determine if Chiron violated any federal securities laws based on the temporary suspension of the U.K. plant's license and the company's restatement of its financial results for the second and third quarters of 2004.

"Chiron has been informed that no enforcement action has been recommended against the company in connection with these matters," the company said Tuesday.

In early trading Tuesday, Chiron's stock was up 5 cents to $45.65.