In keeping with the spirit of corporate honesty, Bristol-Myers ( BMY) disclosed an inquiry into its inventory practices in its latest quarterly filing.

The drugmaker, which certified its financial results Wednesday, said it is being investigated by the Securities and Exchange Commission for overstocking wholesaler inventory in 2000 and 2001.

"We anticipate that it may become a more formal investigation," Bristol Myers said in the filing.

In April, Bristol-Myers said wholesaler levels in December 2001 significantly exceeded desirable levels. The buildup was a result of sales incentives from wholesalers in 2000 and 2001, the company said. According to the filing, the SEC inquiry could lead to a restatement of results to reflect the buildup.

On the news, shares of Bristol-Myers were trading down $1.30, or 5.6%, at $22.29 on Thursday.

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