- Few Southeast students face suspension, expulsion for sexual assaults, campus paper finds (4/25/17)6
- Perryville family organizing bone-marrow drive Friday for ailing 6-year-old boy (4/26/17)
- Woman battered after smashing boyfriend's meth pipe against wall, police say (4/25/17)1
- Pilot House goes smoke-free (4/23/17)10
- Temptations bassist dies after Cape Girardeau show (4/26/17)2
- Event includes the first public tour of 200-year-old Elmwood Manor (4/23/17)3
- BBB warns Jackson man's online business might not be legit (4/24/17)
- Cape couple turns their home into cozy, comfortable music venue (4/24/17)
- State Supreme Court rules against congressman's mother in dog-kennel defamation case (4/27/17)1
- Sikeston man charged in shooting death of Cape man (4/23/17)
Merck reported $12.4 billion in revenue it never collected
NEW YORK -- Merck & Co. recorded $12.4 billion in revenue from its pharmacy benefits unit over the past three years even though the subsidiary never collected the money. The news sent company stock falling Monday.
Merck, the world's third-largest drug maker, said it had followed generally accepted accounting practices and the practice didn't affect earnings since the revenue was offset in financial reports as an expense.
But its stock fell amid heightened investor suspicion about corporate accounting following debacles at Enron, WorldCom and elsewhere. On the New York Stock Exchange, Merck stock fell $1.05 a share to close at $47.81.
The revenue in question came from co-payments paid by consumers using prescription drug cards under insurance plans. The pharmacy keeps the co-payment, which covers only part of a drug's cost.
Merck counted patients' co-payments to druggists as revenue generated by its Medco unit, which handles prescriptions for 65 million Americans through retail pharmacies, a mail-order program and its Internet pharmacy.