Biotech Values

[DewDiligence]

Newswires are reporting that the actual Depakote settlement will cost ABT $1.3B ($800M in civil penalties and $500M in criminal penalties).

ABT’s $1.5B reserve for this settlement is pre-tax, and it’s not clear whether any of the settlement payments will be tax deductible. If none or only a small amount is tax-deductible, the $1.5B reserve will be more than sufficient.