Updated from 11:52 am EST.
Galena Biopharma (GALE) isn't the target of a federal criminal investigation that has already led to the arrests of two Alabama doctors, charged with allegedly running a fraudulent pill mill and taking kickbacks to prescribe painkillers.
A criminal probe into Galena was first disclosed in the company's 10-K annual report filed Thursday with the Securities and Exchange Commission. According to Galena, the investigation is focused on Abstral, a rapidly dissolving tablet containing the powerful narcotic painkiller fentanyl.
On Friday at 1:57 pm EST, Galena issued a statement correcting its 10-K. The company said the word "not" was omitted erroneously from its disclosure about the federal criminal investigation into painkiller sales.
The U.S. Food and Drug Administration and the U.S. Attorney's Office in New Jersey are, however investigating Galena for the way it marketed and promoted Abstral, the company said.
Galena began selling Abstral tablets in 2013, but divested the painkiller business in November.
Dr. John Patrick Couch and Dr. Xiulu Ruan, operators of a pain management practice in Mobile, Ala., were among the highest prescribers of Abstral, according to Galena.
In an indictment unsealed last May, federal prosecutors in Mobile allege the two pain doctors wrote 277,982 prescriptions for controlled narcotic painkillers between January 2011 and May 2015. Couch and Ruan also allegedly received kickbacks from medical firms in exchange for writing prescriptions, according to the indictment.
In November, Couch and Ruan pleaded not guilty to 19 criminal counts of drug and fraud charges. The trial in federal court is expected to start later this year.