Vioxx settlement
Merck & Co has recently announced and agreed to pay $4.85 billion to settle claims that its painkiller Vioxx caused heart attacks and strokes in thousands of users.
The agreement covers lawsuits filed against the company in U.S. courts, resolving a major legal battle that cost the drugmaker a third of its market value in 2004. How do you think they will make up this deficit and settlement?
In the settlement Merck did not admit Vioxx caused patient injury and did not admit fault.
The drugmaker, whose shares rose in pre-market trade on news of the deal, said it would take a charge of $4.85 billion to cover costs of the agreement.
This settlement is a reversal from what Merck previously said it intended to do regarding the lawsuit.
Merck said it will still defend all claims not included in the settlement.
This reversal may be in part related to the litigation over Wyeth's Phen-Fen diet drug that was only now coming to a close after 10 years in the courts and over $21 billion in settlement costs.
Since the withdrawal of Vioxx, Merck has won 11 court cases over the drug and lost 5. It is appealing those cases that it lost.
Merck shares tumbled on news of the withdrawal of the drug in 2004, losing more than a third of their market value. But with Vioxx victories in court, and a string of successful new medicines, the company's value has recouped those losses.
Their recoup of losses certainly couldn’t be related to the high price for the drugs; could it?
The agreement covers lawsuits filed against the company in U.S. courts, resolving a major legal battle that cost the drugmaker a third of its market value in 2004. How do you think they will make up this deficit and settlement?
In the settlement Merck did not admit Vioxx caused patient injury and did not admit fault.
The drugmaker, whose shares rose in pre-market trade on news of the deal, said it would take a charge of $4.85 billion to cover costs of the agreement.
This settlement is a reversal from what Merck previously said it intended to do regarding the lawsuit.
Merck said it will still defend all claims not included in the settlement.
This reversal may be in part related to the litigation over Wyeth's Phen-Fen diet drug that was only now coming to a close after 10 years in the courts and over $21 billion in settlement costs.
Since the withdrawal of Vioxx, Merck has won 11 court cases over the drug and lost 5. It is appealing those cases that it lost.
Merck shares tumbled on news of the withdrawal of the drug in 2004, losing more than a third of their market value. But with Vioxx victories in court, and a string of successful new medicines, the company's value has recouped those losses.
Their recoup of losses certainly couldn’t be related to the high price for the drugs; could it?
Labels: drugs, legal, settlement
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