Lost in the coverage of the Pfizer-Wyeth deal that day, but nonetheless disclosed in the company's simultaneous earnings release back on January 26thof this year, PFE revealed it had taken a $2.3 billion charge for a pending settlement over marketing.
So, at first, it seemed like big breaking news when word came this morning that the U.S. Department of Justice had struck a $2.3 billion deal with the world's biggest drug company. Interestingly (coincidence?), it happened on the same day Pfizer was featured prominently in a rare positive light on the front page of "The New York Times." It's a story about how much the company is spending on cancer drug research.
The DOJ called a news conference to announce the guilty plea by Pfizer and all of the money it would pay as punishment. It was a big show. But it got relatively little media play. For CNBC's investor audience, it turned out this was essentially old news.
I think the Feds were probably hoping for more.
President Obama has recently come under fire for allegedly getting too cozy with big pharma by striking an $80 billion backroom healthcare reform deal that may or may not hold up. The $2.3 billion deal might have been seen as a way to show that the administration still isn't afraid to go after the powerful drug companies.
The problem is, based on the timing of Pfizer's original disclosure - at the very least - the price tag of the settlement had been fixed and literally accounted for even before Obama took the oath of office.
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