Pfizer Inc., the world's largest drug maker, agreed to pay $430 million to resolve most personal-injury claims against a subsidiary that sold products containing asbestos in the 1970s.
The settlement will result in a third-quarter after-tax charge of $229 million, New York-based Pfizer said. Quigley Co., the subsidiary Pfizer bought in 1968, filed for federal bankruptcy protection in Manhattan on Friday. Quigley at one time made materials used to coat steelmaking equipment.
Wall Street analysts expect Pfizer to earn in the third quarter about $4.1 billion, or 54 cents a share, before charges and other one-time items, according to Thomson Financial.
Pfizer also agreed to contribute $405 million over 40 years to a trust that would pay remaining and future claims against Quigley, whose only activity since 1992 has been managing litigation. Pfizer and Quigley are named in 171,611 pending lawsuits that claim personal injury caused by exposure to asbestos, silica or mixed dust, the company said.