Bristol Myers is being investigated for possible violations of the Revenue Recognition principle.

John Skule, senior vice president of corporate affairs at Bristol-Myers, said Wednesday that the subject of the grand jury probe ``probably is the inventory,'' a reference to aggressive sales incentives through which the company created a massive glut of inventory of its prescription drugs.

Bristol-Myers already has revealed that the U.S. Securities and Exchange Commission, the Justice Department and the U.S. Attorney's Office in New Jersey are investigating a program that offered wholesalers huge discounts to buy more prescription medicines than they could sell.