Faber Report – Bristol Meyer To Pay $499M Settlement
Bristol Myers Squibb has had more than its fair share of problems over the past 5-7 years. This morning the company announced plans to settle several investigations involving it’s drug pricing, sales and marketing practices.
CNBC's David Faber revealed the details on today's "Squawk On The Street."
They are going to pay almost $500 million dollars. (It’s not finalized – but this is what they believe will happen.) This is the first time we’ve heard this number.
(The company had cash in reserve for a settlement but...) Reserves will go up by 353 million – that will hurt gap earnings. The company does, however, re-affirm its ’06 full year guidance.
They’re expecting none of this will be tax deductible – but David Faber says some of it might actually be – so the company could have a bit if bump in EPS if they can write off some of this .
Another important note - Nothing criminal will stem from the settlement.
The next big things for Bristol Myers Squibb comes early next year. January 22nd begins the trials for the generic version of Plavix – (depending on how that goes) we will find out if Bristol Meyer becomes an acquisition candidate.
Analysts believe if there is going to be a big deal next year in drugs - it could very well end up being Bristol Myer.