USA's SEC investigating insider-trading, including major pharma mergers, says WSJ

Although, to date, there has been no official announcement from the US Securities and Exchange Commission, according to the Wall Street Journal, drug behemoth Pfizer's $68 billion purchase of Wyeth and Merck & Co's $41.1 billion acquisition of Schering-Plough are two of at least nine transactions under investigation by the SEC for possible insider-trading violations. The newspaper quoted 'people familiar with the matter' as the source of its information.

The WSJ reported last week that the SEC recently sent about three dozen subpoenas to hedge funds and brokerages, looking at whether deal advisers and traders illegally shared confidential information, according to people with knowledge of the inquiries.

On Wednesday, said the WSJ, new details about the specific deals under investigation emerged. In addition to the Pfizer and Merck transactions, the SEC is asking about drug maker Abbott Laboratories' acquisition of medical-equipment-maker Advanced Medical Optics and drugmaker Eli Lilly buy of biotechnology company ImClone Systems. The inquiries also go beyond drug-company deals, it noted.

Leading brokerage house Goldman Sachs has played a dominant role in advising on health care deals, the WSJ noted, including for Schering-Plough, Pfizer and Advanced Medical Optics, according to filings, but the firm argued to the newspaper that it 'has robust policies and procedures in place to detect suspicious trading activity. If we detect suspicious activity of any kind, as required by law, we report it to the appropriate authorities."