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This excerpt taken from the MDCO 10-Q filed May 10, 2006. Product returns. The Company’s
customers have the right to return any unopened product during the 18-month
period beginning six months prior to the labeled expiration date and ending
12 months after the labeled expiration date. As a result, in calculating
the allowance for product returns, the Company must estimate the likelihood
that product sold to wholesalers might remain in their inventory to within six
months of expiration and analyze the likelihood that such product will be
returned within 12 months after expiration.
In estimating the likelihood of product remaining in wholesalers’ inventory, the Company relies on information from wholesalers regarding their inventory levels, measured hospital demand as reported by third-party sources and on internal sales data. The Company also considers its wholesalers’ past buying patterns, estimated remaining shelf life of product previously shipped and the expiration dates of product currently being shipped.
In estimating the likelihood of product returns, the Company relies primarily on historic patterns of returns and estimated remaining shelf life of product previously shipped.
• This excerpt taken from the MDCO 10-K filed Mar 15, 2006. Product returns. Our customers have
the right to return any unopened product during the 18-month period
beginning six months prior to the labeled expiration date and ending
12 months after the labeled expiration date. As a result, in calculating
the accrual for product returns, we must estimate the likelihood that product
sold to wholesalers might remain in their inventory to within six months of
expiration and analyze the likelihood that such product will be returned within
12 months after expiration.
In estimating the likelihood of product remaining in our wholesalers’ inventory, we rely on information from our wholesalers regarding their inventory levels, measured hospital demand as reported by third party sources and on internal sales data. We also consider our wholesalers’ past buying patterns, estimated remaining shelf life of product previously shipped and the expiration dates of product currently being shipped. In estimating the likelihood of product return, we rely primarily on historic patterns of returns and estimated remaining shelf life of product previously shipped. During 2005, $0.1 million of Angiomax was returned to us, representing less than 0.1% of the total revenue from Angiomax sales. During 2004, $0.6 million of Angiomax was returned to us, representing approximately 0.4% of the total revenue from Angiomax sales. At December 31, 2005 and 2004, our accrual for product returns was $0.2 million and $0.6 million, respectively. Despite higher revenue in 2005 compared to 2004, we reduced our accrual for product returns at December 31, 2005 compared to December 31, 2004 in light of reduced levels of inventories held by wholesalers resulting from our fee-for-service arrangements and the low level of product returns during 2005. A 10% change in our accrual for product returns in 2005 would not have had a material effect on our reported revenue in 2005. · This excerpt taken from the MDCO 10-Q filed Nov 8, 2005. Product returns. The Company’s
customers have the right to return any unopened product during the 18-month
period beginning six months prior to the labeled expiration date and ending
12 months after the labeled expiration date. As a result, in calculating
the allowance for product returns, the Company must estimate the likelihood
that product sold to wholesalers might remain in their inventory to within six
months of expiration and analyze the likelihood that such product will be
returned within 12 months after expiration.
In estimating the likelihood of product remaining in wholesalers’ inventory, the Company relies on information from wholesalers regarding their inventory levels and measured hospital demand as reported by the Company’s largest wholesalers, other third party sources and internal sales data. The Company believes that the information from its wholesalers and third party sources is directionally reliable, but the Company is unable to verify the accuracy of such data independently. The Company also considers its wholesalers’ past buying patterns, estimated remaining shelf life of product previously shipped and the expiration dates of product currently being shipped. In estimating the likelihood of product returns, the Company relies primarily on historic patterns of returns and estimated remaining shelf life of product previously shipped.
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• This excerpt taken from the MDCO 10-Q filed Aug 8, 2005. Product returns. The Company’s customers have the right to
return any unopened product during the 18-month period beginning six months
prior to the labeled expiration date and ending 12 months after the
labeled expiration date. As a result, in calculating the allowance for product
returns, the Company must estimate the likelihood that product sold to
wholesalers might remain in their inventory to within six months of expiration
and analyze the likelihood that such product will be returned within 12 months
after expiration.
In estimating the likelihood of product remaining in wholesalers’ inventory, the Company relies on information from wholesalers regarding their inventory levels, measured hospital demand as reported by third party sources and internal sales data. The Company believes the information from its wholesalers and third party sources is directionally reliable, but the Company is unable to verify the accuracy of such data independently. The Company also considers its wholesalers’ past buying patterns, estimated remaining shelf life of product previously shipped and the expiration dates of product currently being shipped.
In estimating the likelihood of product returns, the Company relies primarily on historic patterns of returns and estimated remaining shelf life of product previously shipped.
• This excerpt taken from the MDCO 10-Q filed May 6, 2005. Product returns. The Company’s
customers have the right to return any unopened product during the 18-month
period beginning six months prior to the labeled expiration date and ending
12 months after the labeled expiration date. As a result, in calculating
the allowance for product returns, the Company must estimate the likelihood
that product sold to wholesalers might remain in their inventory to within six
months of expiration and analyze the likelihood that such product will be
returned within 12 months after expiration.
In estimating the likelihood of product remaining in wholesalers’ inventory, the Company relies on information from wholesalers regarding their inventory levels, measured hospital demand as reported by third party sources and on internal sales data. The Company believes the information from its wholesalers and third party sources is directionally reliable, but the Company is unable to verify the accuracy of such data independently. The Company also considers its wholesalers’ past buying patterns, estimated remaining shelf life of product previously shipped and the expiration dates of product currently being shipped.
In estimating the likelihood of product return, the Company relies primarily on historic patterns of returns and estimated remaining shelf life of product previously shipped.
• This excerpt taken from the MDCO 10-K filed Mar 14, 2005. Product returns. Our customers have
the right to return any unopened product during the 18-month period beginning
six months prior to the labeled expiration date and ending 12 months after
the labeled expiration date. As a result, in calculating the allowance for
product returns, we must estimate the likelihood that product sold to
wholesalers might remain in their inventory to within six months of expiration
and analyze the likelihood that such product will be returned within 12 months
after expiration.
In estimating the likelihood of product remaining in our wholesalers’ inventory, we rely on information from our wholesalers regarding their inventory levels, measured hospital demand as reported by third party sources and on internal sales data. We believe the information from our wholesalers and third party sources is directionally reliable, but we are unable to verify the accuracy of such data independently. We also consider our wholesalers’ past buying patterns, estimated remaining shelf life of product previously shipped and the expiration dates of product currently being shipped. In estimating the likelihood of product return, we rely primarily on historic patterns of returns and estimated remaining shelf life of product previously shipped. During 2004, $0.6 million of Angiomax was returned to us, representing approximately 0.4% of the total revenue from Angiomax sales. At December 31, 2004 and 2003, our allowance for returns was $0.6 million and $1.1 million, respectively. A 10% change in our allowance for product returns in 2004 would have an approximate $0.1 million effect on our reported revenue in 2004. · | EXCERPTS ON THIS PAGE:
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