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I know that some of the European countries are over a year behind in paying AZN's bills and have been for a while. From an accounting perspective, you have to write that off even if it is from country vs. company. What is masking this a little is the fact that you are selling new product to that country. These new sales are offsetting the write offs that you need to make on the old receivables that you have not been able to collect.

If Spain (using your example not saying that they are one of the countries over a year behind in their payments) renegotiates the price of Crestor to something lower a la the Germans, this will impact the amount of new revenue that will be used to offset the write off of the old. The only way that I can see Spain (again your example) getting new pricing would be if they paid some of their old bills to bring their receivables closer to current and I don't think they can do that given their current economic status.

I hope that helps you in your decision making process regarding the pharmas.

Fool on!
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