Merck's $12.4bln in fake revenues ok with regulators

pms laflame at aaahawk.com
Sun Jul 7 22:28:17 PDT 2002


Merck records $12.4bln sales it never collected-report (MRK) By Allen Wan Merck & Co. (MRK) recorded $12.4 billion in revenue from its pharmacy-benefits unit Medco over the past three years that the subsidiary never collected, the Wall Street Journal reported in its online edition Monday, citing the drug giant's latest SEC filing. Medco included as part of its revenue the co-payments collected by pharmacies from patients, even though it doesn't receive those funds. Between 1999 and 2001, the co-payments represented nearly 10 percent of Merck's overall revenue, the report said. Merck said that its revenue-recognition policy conforms to GAAP principles. There aren't any indications that regulators have any problems with Merck's or Medco's accounting, the report said. Shares of Merck ended at $48.86 on Friday.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=yhoo&dateid=3 7445.033275463-800182411&



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