Roche Allocates $808 Million for Ongoing Price Fixing Claims 27178

November 18, 2002

1 Min Read
Roche Allocates $808 Million for Ongoing Price Fixing Claims

Roche Allocates $808 Million for Ongoing Price Fixing Claims

BASEL, Switzerland--Roche Group AG released salesfigures for the first nine months of 2002, showing revenues of more than 21billion Swiss francs ($14 billion). Most divisions showed slight growth,including the Vitamins & Fine Chemicals segment, which the company said wasa positive given the "difficult economic climate."

It noted that it expects the DSM acquisition of the vitamindivision to close in the first quarter of 2003. Growth projections for thefuture were generally upbeat, emphasizing the division's "robust"sales growth in China and "innovative" products for functional foods.These include a concentrated polyunsaturated fatty acid formulation, lycopene,lutein and natural-source vitamin E.

As was reported when DSM agreed to purchase the vitamindivision, Roche maintains all liability associated with the vitamin price-fixingcases. It has concluded some out of court settlements with direct customers inthe United States; however, in light of legal developments and ongoingnegotiations with other customers, the company set aside 1.2 billion Swissfrancs ($808 million) to cover liabilities associated with the case.

"There is no question that the vitamin case is a difficultlegacy from the 1980s and 1990s," said Franz B. Humer, chairman of theboard and chief executive officer of Roche ("Following intensive negotiations, we are moving toward settling thelawsuits that are still outstanding in the United States. The fact that we havehad to record additional provisions of 1.2 billion Swiss francs is all the moreunfortunate, as it casts a shadow over Roche's major strategic and operationalachievements."

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