On May 13, 2007, Merck and Mylan Inc., Canonsburg, PA (USA), entered into an agreement concerning the sale of the Generics business. The business was transferred to the acquirer with the closing on October 2, 2007.
In accordance with IFRS 5, the gain on the disposal pursuant to this agreement is combined with the result of this activity up until the closing date under profit/loss from discontinued operations.
Within the scope of the agreement, Mylan Inc. was granted an option to purchase the Generics business remaining with the Merck Group after the transfer. This option was already reflected in the purchase price. The remaining Generics business is immaterial for Merck and is reported in 2008 as part of the Merck Serono division.
The reported profit/loss from discontinued operations for 2007 comprises the following:
| XLS |
|
€ million |
2007 |
|
Total revenues |
1,394.5 |
|
Cost of sales |
–737.7 |
|
Marketing and selling expenses |
–271.9 |
|
Administration expenses |
–66.0 |
|
Other operating income and expenses |
–34.9 |
|
Research and development costs |
–95.3 |
|
Operating result |
188.7 |
|
|
|
|
Exceptional items |
3,561.5 |
|
Earnings before interest and tax (EBIT) |
3,750.2 |
|
|
|
|
Financial result |
10.1 |
|
Profit before tax |
3,760.3 |
|
|
|
|
Taxes on income |
–168.3 |
|
Profit after tax |
3,592.0 |
|
|
|
|
Reversal of depreciation in accordance with IFRS 5 |
16.0 |
|
Profit after tax in accordance with IFRS 5 |
3,608.0 |
|
|
|
|
thereof: |
|
|
Profit before tax of current business |
207.2 |
|
Taxes on income |
–70.1 |
|
Profit after tax of current business |
137.1 |
|
|
|
|
Gain on disposal before tax |
3,569.1 |
|
Taxes on income |
–98.2 |
|
Gain on disposal after tax |
3,470.9 |
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