US$256m impairment leads to Aceto loss

An impairment charge of US$256 million relating to Aceto’s Rising Pharmaceuticals generics business has led the firm to a US$259 million operating loss in its financial third quarter ended 31 March 2018. The goodwill and intangible asset impairment followed “a decline in actual and forecasted revenue and earnings due to persistent adverse conditions in the generics market”, as well as a notification from the US government that 11 products previously purchased from Lucid are not in compliance with country-of-origin requirements of government contracts (Generics bulletin, 9 March 2018, page 4).