Foster City, Calif. - Gilead Inc., the leading maker of drugs that combat HIV, received a government subpoena seeking information about its marketing and medical education programs, the company said.

The Foster City company released the statement late Thursday and its share price fell 45 cents to $66.43 in early afternoon trading Friday on the Nasdaq Stock Market.

The company said it will give federal prosecutors the documents they demand connected to the drugs Truvada, Viread and Emtriva and it plans "to cooperate in any related government investigation."

A company spokeswoman declined further comment. A spokesman with the U.S. Attorney's office in San Francisco also declined comment.

The three drugs had combined sales of $1.4 billion for the first nine months of 2006 compared to $1 billion for the same period last year.

The Food and Drug Administration warned the company in 2003 that its sales force was exaggerating the benefits and downplaying the risks of the drug Viread.

Federal investigators have for several years been looking into pharmaceutical sales practices.

Pfizer Inc. paid a $430 million fine in 2004 for inappropriately touting an anti-seizure drug to treat other diseases. In October, Brisbane-based Intermune Inc. paid $36.9 million to settle similar government claims about its sales practices.

Several other drug companies have received similar government subpoenas over the last two years, including the Fremont-based Scios, a division of Johnson & Johnson, and South San Francisco-based Genentech Inc.

The Associated Press
Dec 8, 2006 11:02 AM

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