Healthy Skepticism Library item: 7253

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Linnane C.
Bristol-Myers reaches deal with DoJ; cuts 2006 outlook
Market Watch.com 2006 Dec 21
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7bC468B990-FA2D-4FD7-89CD-E9AAC34D14C4%7d&siteid=yhoo&dist=yhoo

Abstract:

Bristol-Myers Squibb Co. said it’s reached an intial agreement with the U.S. Department of Justice and the Office of the U.S. Attorney for the District of Mass. to settle several probes of its drug pricing, sales and marketing practices. In a statement, the drug company said it will pay $499 million and enter a corporate integrity agreement with the Department of Health and Human Services. The deal is not yet final and must be approved by the U.S. Department of Justice. Bristol-Myers said it’s raising the reserves set aside to cover the cost of the probes by $353 million, to be recorded in the fourth quarter. The company said it expects to take a $220 million pre-tax charge in the fourth quarter. The company now expects 2006 earnings to range from 72 to 77 cents, down from a prior outlook of 97 cents to $1.02. Excluding special items, it’s still expecting earnings of $1.02 to $1.07, however. Shares closed Wednesday down 0.5% at $25.77.