C.R. Bard faces DoJ FCA probe, posts Q2 earnings

C.R. Bard (NYSE:BCR) said today that the US Department of Justice is investigating possible False Claims Act violations related to the sales and marketing of its FloChec and QuantaFlow devices, alongside releasing Q2 earnings which topped expectations on The Street.

The Murray Hill, N.J.-based company said this month it was served with a “civil investigative demand” from the DoJ, which was seeking documents and information relating to possible FCA violations, according to an SEC filing.

Bard said it was cooperating with the requests, but that it could not give any solid assurances that the investigation and proceedings would not have a material adverse effect on the company’s business, results, financial condition or liquidity.

In its earnings report, the company reported profits of $139.7 million, or $1.86 per share, on sales of $979.7 million for the 3 months ended June 30, seeing the bottom-line shrink 12.2% while sales grew 5.2% compared with the same quarter during the previous year.

Adjusted to exclude 1-time items, earnings per share were $2.92, just ahead of the $2.84 consensus on The Street, where analysts were looking for sales of $979.7 million, just in line with Bard’s posted revenue.

“We continue to see strong, balanced growth across our portfolio and geographies. Half-way through 2017, each of our businesses has performed at or above the top of our forecasted constant currency revenue growth ranges for the full year. In the second quarter we reached a new milestone, with revenue from emerging markets now representing 12 percent of total company revenues. We are pleased with the continued momentum of our global business as we prepare to merge with Becton, Dickinson and Company in the fourth quarter of 2017,” CEO & chair Timothy Ring said in a press release.

Bard reiterated its guidance for the full 2017 fiscal year, expecting to see earnings per share between $11.70 and $11.90 with sales increasing between 6% and 7% compared to 2016.

Shares in C.R. Bard have stayed steady today in light of the news, down 0.1% at $321.04 as of 2:04 p.m. EDT.

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