American Home Products Meets Expectations; Sets Huge Fen-Phen Charge
Drug maker American Home Products (AHP) reported fourth-quarter earnings Thursday that matched Wall Street's expectations.
The maker of pharmaceuticals, consumer health care and agricultural products reported earnings of $704.3 million, or 53 cents a share, compared with $602.7 million, or 46 cents a share, in the same quarter one year before. The results matched a consensus estimate of 19 Wall Street analysts polled by First Call/Thomson Financial.
However, the Madison, N.J.-based company also said it would take a higher-than-expected charge of $7.5 billion due to a lawsuit settlement for Fen-Phen, a popular slimming drug that has been linked with certain pulmonary and heart problems. The company originally estimated that the lawsuit would cost the company $4.75 billion.
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