Pfizer Becomes Victim of Pre-April Fool's Day Press Release Scam
April 1, 2016
By Mark Terry, BioSpace.com Breaking News Staff
In what seems to be an early April Fool’s Day joke, a fake website yesterday released a press release under Pfizer 's name.
The Washington Post then published a story based on the press release, which it has now removed and retracted. The press release addressed an apparent pullback on Pfizer’s policies regarding drug pricing. The release used the website pfizerinternational.com, which has been taken down. Apparently the website closely mimicked www.pfizer.com, the official company website.
The press release used the name of an actual Pfizer spokesman and provided a fake phone number. When a Washington Post reporter called the number, there was a message indicating that Pfizer would not be answering questions regarding the press release and asked that a message be left.
Washington Post spokeswoman Shani Geroge told Bloomberg, “The story was removed because it was based on a press release that Pfizer confirmed was false and not sent by the company.”
Pfizer released a statement yesterday afternoon, saying, “A false press release related to drug pricing and linking to a fake web site was anonymously issued earlier today. It was erroneously attributed to Pfizer and should be disregarded. Pfizer is investigating this matter and evaluating its legal options against the parties responsible. Pfizer is committed to engaging in an honest discussion and real dialogue about the issues that matter to patients.”
In part, the fake press release indicated the company would “cease routine price increases,” and slash some drug prices.
The actual purpose of the faux press release is unknown. It could have been an early April Fool’s Day prank, which is not unheard of for large companies, or it might be an attempt to manipulate the company’s stock price.
Last year, someone filed fake information on the U.S. Securities and Exchange Commission (SEC) website claiming that Warren Buffett’s Berkshire Hathaway (BRK.A) had invested in Kraft Heinz (KHC) and Phillips 66 (PSX). In those filings, supposedly these new investments were jointly owned by Berkshire and LMZ, an apparently made-up company. The filings indicated they were submitted by Loreto Zamora, with a Philippines address, and the Kraft Heinz filing listed Zamora as a director, which he is not.
A similar filing related to Avon Products (AVP) by a sham company, PTG Capital, occurred in May 2015. In that case, PTG claimed it had filed to buy the company. Avon’s shares jumped 15 percent before the scam was uncovered.
Of yesterday’s press release scam, investors didn’t really buy into it. The stock fell only about 2 percent and recovered, down only by 1.4 percent at close. At least one group of analysts, Connecticut-based Hammerstone Group, warned its clients at 2:46 p.m. that the announcement was fake, and Twitter was quick to respond and spread the news.
What might be of more concern to Pfizer investors is that the Federal Trade Commission (FTC) has requested more information about the pending merger between Pfizer and Allergan . Both companies have indicated that the request was “fully anticipated as part of the regulatory process.”
It seems likely that the $160 billion deal will go through, but during this particular election cycle, drug pricing and tax inversions—where U.S. companies buy companies in countries with lower corporate tax rates and shift their headquarters to those companies to pay lower taxes—have become hot-button issues, although hardly the only ones. The Pfizer-Allergan deal would be the largest inversion deal ever.