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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biotech Jim who wrote (3966)	6/2/2001 8:02:09 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 52153

>> They favor PRCS by a long shot. << In turn, what are the perceived weaknesses -- if any -- of abarelix? Others are working on GnRH receptor antagonists. Why? TIA for any commentary.

To: Biotech Jim who wrote (3966)	6/2/2001 10:10:11 PM
From: Mark Bong	Respond to of 52153

Abbott Laboratories DEC 2000 10-K Jim, this is from Abbott Labs 2000 10-K regarding the LUPRON investigation. It appears to me that the company takes these charges seriously, and it does appear that they are not denying the charges. Of course, we will not know of the ultimate disposition of this issue until the DOJ and Abbott finalize an agreement, if any. “management is of the opinion that their ultimate disposition should not have a material adverse effect on Abbott's financial position or ongoing cash flow and results of operations but that they could have a material adverse effect on Abbott's cash flow and results of operations for a particular period.” Peter, don’t these kind of statements from companies usually deny the accusation but indicate that the outcome from potential litigation is uncertain. I don’t see any denials here, but I do see a statement that the company could handle the potential financial costs without affecting the companies’ long-term finances. 2000 10-K excerpts on LUPRON issues with US Justice Department and Texas “Various state and federal agencies, including the United States Department of Justice and the California, Florida, Illinois, Nevada and Texas Attorneys General, are investigating the marketing and pricing practices of Abbott with respect to certain Medicare and Medicaid reimbursable products. These civil investigations seek to determine whether these practices violated any laws, including the Federal False Claims Act or constituted fraud in connection with the Medicare and/or Medicaid reimbursement paid to third parties. While it is not feasible to predict the outcome of such pending claims, proceedings, and investigations with certainty, management is of the opinion that their ultimate dispositions should not have a material adverse effect on Abbott's financial position, cash flows, or results of operations. In addition to the claims and legal proceedings involving Abbott described above, the United States Department of Justice is investigating the marketing and pricing practices of TAP Pharmaceutical Products Inc. for leuprolide acetate depot suspension (a drug TAP markets as Lupron Depot (r)). This investigation seeks to determine whether these practices resulted in any violations of civil and/or criminal laws, including the Federal False Claims Act, the Anti-Kickback Act, and the Prescription Drug Marketing Act, or fraud in connection with the Medicare and/or Medicaid reimbursement paid to third parties. The Texas Attorney General is also investigating some of these practices. Abbott owns 50 percent of TAP. While it is not feasible to predict the outcome of these proceedings with certainty, management is of the opinion that their ultimate disposition should not have a material adverse effect on Abbott's financial position or ongoing cash flow and results of operations *******but that they could have a material adverse effect on Abbott's cash flow and results of operations for a particular period.