Vioxx
Merck Puts More Money in the Vioxx Reserve
The JereBeasley Report
August 2007 - Page 21
Merck & Co. has increased to $810 million the amount it has set aside to pay for Vioxx lawsuits. Merck added $210 million to increase the reserve to $810 million as of June 30th, according to a filing with the U.S. Securities and Exchange Commission. The reserve represents the best estimate of costs to be incurred through 2008, according to the filing by Merck. Presently, as reported, Merck faces 26,950 U.S. Vioxx suits. Interestingly, Merck has spent $258 million this year in suits worldwide with last year's costs at $500 million.
Of suits filed in the U.S., 8,575 are pending in the multidistrict litigation (MDL) in federal court in New Orleans. Another 16,400 are in a New Jersey state court. Merck also has been sued in Europe, Australia, Brazil, Canada, Israel, and Turkey. Merck says it's not interested in a global settlement and boasts that it hasn't established a reserve to pay claims. Our firm has seen nothing to indicate that policy will change. Merck would rather pay defense lawyers and highly-paid experts than to pay anything to Vioxx victims. About 10 cases are scheduled for trial before the end of the year. I have to wonder how Merck shareholders view the company's litigation policy with all of the bad news now available to the public relating to Vioxx and how truly bad the company's conduct has been.
New Study Suggests Vioxx's Heart Attack Risks Were Immediate
The JereBeasley Report
August 2007 – Page 21
As you know, Merck spent big bucks trying to entice the media, the medical community, and even potential jurors to believe that heart attack risks don't come about until after 18 months of use. Results from an unpublished study suggest increased heart risks associated with Vioxx began immediately. This exposes the 18-month myth, which had no basis in fact. This discovery can't be viewed as good news for Merck in its ongoing litigation. Currently, there are about 28,000 Vioxx lawsuits around the U.S. involving heart attacks and strokes. For a limited time, Merck got away with its manufactured and bogus defense that the higher risks were only experienced by patients on long-term treatments of 18 months or more.
The present study, known as VICTOR, was conducted by Oxford University scientists and was accepted for publication by the New England Journal of Medicine. According to a manuscript reviewed by the Wall Street Journal, and reported on July 3rd, half of the cardiovascular incidents associated with Vioxx occurred in patients taking the drug for less than 12 months. Elevated risks went away within 14 days of cessations (other studies have shown the risk continues for months afterward). There had been earlier studies that indicate that heart attack risks could occur with a relatively short period of Vioxx use. Now this latest study puts the nail in Merck's coffin on this issue.
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