Serono, Europe’s biggest biotechnology company, has set aside $725 million, suggesting that it is preparing to pay a large settlement in a government investigation.
The company has disclosed its compliance with government subpoenas for information on its marketing of the AIDS drug Serostim. But indictments this month in Boston revealed that the government was also investigating a kickback scheme.
Analysts say that the fact the company took the charge indicates that a settlement is expected soon.
The New York Times (subscription required) reported on these developments on April 23, 2005.