Thursday said an arbitration panel ruled it must make a $68 million dollar payment to
over the termination of a contract.
Barr said it will "review all opportunities for challenging the award," which will result in a 40-cents-a-share charge to earnings for the quarter ending June 30. In a release, Barr said the panel's chairman disagreed with the majority's opinion.
The case involves Barr's subsidiary Duramed Pharmaceuticals, which the panel concluded improperly terminated its contract with Solvay, regarding the joint promotion of its Cenestin tablets and Solvay's Prometrium capsules.
The Barr unit made the decision to terminate the deal in March 2002. Solvay disputed the company's right to terminate and claimed it was entitled to damages. The arbitration panel was formed and proceedings began in January 2004.
Barr must pay the damages over the next 16 months.
Barr shares closed at $37.27 Wednesday, just above their 52-week low of $36.16.