REP. DAN GLICKMAN (D-KS)

On July 2, 1993, Rep. Glickman purchased between 1,000 and 15,000 dollars worth of stock in Boeing.

At this time, Boeing and General Electric were putting strong pressure on the Clinton administration to allow the export of 16 Boeing 737s to Iran as per a $900 million contract signed in September 1992.

The Los Angeles Times reported on July 2, 1993 (the same day as Rep. Glickman's stock purchase) that over 140 members of Congress protested against the Boeing sale to Iran on the grounds that the planes constitute "dual-use" technology. CIA director Mr. Woolsey agreed with the "dual-use" classification in response to a direct question from Rep. Lantos in a hearing on July 28, 1993. Rep. Lantos continued with the following assessment: "...and the argument as to why we should sell Boeings to Iran is that if we don't, Airbus will be sold to Iran...."

As of December 1994, Boeing is still trying to secure the sale.

COMMITTEE NOTES: Rep. Glickman is the Chairman of the House Intelligence Committee.

POLITICAL MONEY NOTES: Since 1991, Rep. Glickman has accepted $6,000 from Boeing's PAC, including a $1,000 contribution on June 15, 1993 (17 days before his stock purchase).

BOEING NOTES: Boeing has manufacturing operations in Wichita, KS (Glickman's district).

ELECTION 1994 NOTES: Rep. Glickman was defeated in the November 1994 elections by Mr. Todd Tiahrt. Mr. Tiahrt is a Boeing executive specializing in federal budgeting and government procurement.

CLINTON NOTES: Dan Glickman is now President Clinton's choice as the new Agriculture Secretary (to replace ethics-scandal-ridden Mike Espy).

OTHER NOTES: Rep. Glickman was a trial attorney for the Securities and Exchange Commission from 1969 - 1970.

On March 8, 1993, Rep. Glickman purchased between 1,000 and 15,000 dollars worth of stock in Alza Corp. He later sold this stock on June 9, 1993 for no reported capital gains. Based in Palo Alto, CA, Alza is a biological and pharmaceutical firm specializing in drug delivery systems (e.g., skin patches and controlled-release pills). The timing of this purchase is significant because it 1) appears to be motivated by insider-type information, and 2) is correlated with legislative activity that could affect Alza.

INSIDER-ASPECTS. One day (on March 9, 1993) after Rep. Glickman's purchase, Reuters reported that Alza will make a special corporate announcement in an analysts meeting in New York on March 11, 1993 (no details of the pending announcement were provided). From March 9 to March 11, Alza's stock rose 15 percent as the market waited in anticipation of the news.

On March 11, Alza announced that they would spin-off a new company (Therapeutic Discovery Corp.) to finance the development of new drugs. This move, hailed by financial analysts as "shrewd," would allow Alza to capture more revenue and earnings from proprietary drug formulation by becoming more independent from other pharmaceutical manufacturers who had financed their development costs. Alza also announced a special dividend to Alza shareholders in the form of units--each unit consists of one share of common stock in Therapeutic Discovery Corp. and one warrant to purchase one-eighth of one share of Alza common stock at $65.

What's really interesting about this Alza deal is Rep. Glickman has a brother (Norman Glickman) who is an attorney practicing in Palo Alto, California (home base of operations for Alza Corp.)!!! Norman Glickman's law firm (at least it was in 1992) is Fenwick and West--a firm specializing in high-tech and biotechnology. I wonder if Fenwick has ever represented Alza Corp., Therapeutic Discovery, or Merrill Lynch (who arranged the spin-off deal)? I don't know if this means anything, but I did find a Director of Alza (Mr. Robert J. Glaser) whose home residence is listed in the same town as the home residence of Norman Glickman(Menlo Park, CA).

LEGISLATIVE ASPECTS. One week (on March 1, 1993) before Rep. Glickman's Alza purchase, a bill was introduced in the House that would appear to affect Alza. The bill was H.R. 1158: PRESCRIPTION DRUG AFFORDABILITY ACT...To provide for the affordability of prescription drug prices by reducing certain nonresearch related tax credits to pharmaceutical manufacturers and to generate previously uncollected tax revenues for the Federal Government (referred to House Energy and Commerce; House Ways and Means; pending).

This bill would reduce the Section 936 tax credits (i.e., the Puerto Rico pharmaceutical employment-for-tax goodies) to the pharmaceutical industry. But since Alza has no manufacturing operations in Puerto Rico, passage of this bill could be construed as a benefit--it might give them a competitive advantage over other pharmaceutical manufacturers (from whom they have now gained financing-independence with the Therapeutic Discovery spin-off deal).

Rep. Glickman signed-on as a cosponsor to H.R. 1158 on May 3, 1993!!!

In the April 1993 issue of Chemical Business, Oppenheimer analyst Steven Gerber would only recommend Alza stock, versus other pharmaceutical manufacturers, in light of recent Congressional proposals regarding pharmaceutical drug pricing.

GLICKMAN FAMILY NOTES: Rep. Glickman's stock purchases were handled by American Discount Securities in Wichita, KS. On his 1991-1992 Individual Contributions Report, Rep. Glickman notes receiving $1,000 from William Glickman of American Discount Securities--Wichita, KS.

SPECIAL NOTES: On his 1993 Financial Disclosure Form, Rep. Glickman lists himself as a Director of the Institute for Clinical Research (Wichita, KS). According to a January 1991 article in the Wichita Commerce, the Wichita Institute for Clinical Research is a non-profit subsidiary of Galichia Medical Group that "...helps train practicing physicians to participate in clinical tests of new drugs and medical procedures."

CAPITAL GAINS NOTES: Rep. Glickman reports no capital gains from the sale of Alza stock.