- City suspends liquor license for downtown Cape bar; owners say they want to fix problems (3/26/17)5
- Mall aboard: Future requires evolution at West Park Mall (3/24/17)24
- Legal discrimination complaint, ethics complaint filed in Scott City government (3/22/17)13
- Business notebook: Cape native goes from farm to mobile-food operation (3/20/17)1
- Former Southeast softball coach sues Board of Regents; seeks damages and her job back (3/23/17)15
- Former Scott City administrator: 'I was forced to resign' (3/21/17)6
- Triplett manslaughter case set for July 2018 (3/21/17)2
- Two people found dead in Advance house fire (3/21/17)
- Two Cape men charged with second-degree murder of Grandi (3/21/17)2
- Two local lawmakers back charter school bill; Perryville lawmaker objects to measure (3/19/17)24
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.