Gschäftsbericht 2018

110 | Galenica financial statements 2018 Finance Notes to the consolidated financial statements of the Galenica Group 21. Contingent liabilities and commitments Accounting principles A contingent liability is disclosed for an obligation where it is not probable that an outflow of resources will be required or where the amount of the obligation cannot be estimated with sufficient reliability. Galenica is subject to a variety of risks. These risks include, but are not limited to, risks regarding product liability, patent law, tax law, competition laws and anti-trust laws. A number of Group companies are currently involved in administrative proceedings, legal disputes and investigations relating to their business activities. The results of ongoing proceedings can- not be predicted with certainty. Management has established appropriate provisions for any expenses likely to be incurred. These projections, however, are also subject to uncertainty. Galenica does not expect the results of these proceedings to have a significant impact on the financial statements. In March 2017, the Swiss Competition Commission (COMCO) issued a ruling, which imposed a fine of up to CHF 4.5 million on Galenica. The ruling relates to an investigation from 2012. Galenica regards the ruling issued by COMCO as incorrect in fact and in law. Galenica has taken the ruling to the Federal Administrative Court. A decision by the Federal Administrative Court is expected in 2019 at the earliest. Galenica entered into various obligations regarding the purchase of services, goods, and equipment as part of its ordinary business operations. Galenica signed purchase agreements to acquire pharmacies and other business in the next few years. The purchase prices will be fixed at the time of transfer of ownership on the basis of net asset value and discounted cash flow. The unrecognised commitments are expected to involve payments of CHF 14.1 million (previous year: CHF 23.5 million) at the most. The pur- chase rights have an estimated volume of CHF 14.6 million (previous year: CHF 23.9 million). These purchase rights or obligations fall due between 2019 and 2023.
 Galenica signed purchase agreements to acquire property, plant and equipment totalling CHF 1.5 million (previous year: CHF 7.0 million). The payments under these purchase commitments become due in 2019. There are no unusual pending transactions or risks to be disclosed.