Merck cleared in suit on Vioxx health risks
By John Curran
Associated Press
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ATLANTIC CITY, N.J. — Merck & Co. won its first court battle over its Vioxx painkiller yesterday when a New Jersey state jury found that the drugmaker properly warned consumers about the risks of the medication. The verdict absolved Merck of liability for a heart attack suffered by a Vioxx user.
After deliberating for less than eight hours over three days, the jury cleared the nation's No. 4 pharmaceutical company of allegations it failed to warn consumers about the drug's risks and engaged in "unconscionable commercial practices" in marketing it to doctors and their patients.
The verdict was Merck's first win out of two Vioxx-related trials. In August, a Texas jury found the company liable in a Vioxx user's death. Merck is appealing that ruling yet still faces about 7,000 lawsuits over Vioxx, which it voluntarily pulled off the market last year because of links to heart attacks and strokes after 18 months' use.
Much of the seven-week New Jersey trial, eagerly watched by lawyers and plaintiffs from around the country, relied on the testimony of medical experts. Witnesses for Merck testified the company believed Vioxx was safe for the heart before the drug was pulled from the market in response to a study that showed it doubled risk of heart attacks and strokes when taken for at least 18 months.
Yesterday's verdict means it might take several more cases, including a federal case that will start Nov. 28 in Houston, before lawyers can find any sort of precedent that might determine Merck's ultimate Vioxx liability.
"We feel very much vindicated," Merck general counsel Kenneth Frazier said. "The jury found in our favor, we believe, because the evidence showed that Merck acted responsibly."
Frazier said Merck will fight each lawsuit individually, adding that mass settlements aren't appropriate because facts in each case differ.
"There's an awful lot at stake, not just for Merck," but for the pharmaceutical industry and patients, he said, claiming floods of lawsuits can discourage scientific research and keep needed drugs off the market.
Wall Street analysts said the company clearly will face huge legal costs given its plan to fight each lawsuit. The company has set aside just $675 million for legal defense costs, but nothing for jury awards or settlements.
"It's still going to be a marathon" in the courts, said Barbara Ryan, analyst at Deutsche Bank North America.
About 20 million Americans took Vioxx after it hit the market, embracing it for its effectiveness in relieving pain while sparing them the upset stomachs, ulcers and other gastric problems associated with some other analgesics. At its peak, Vioxx was a $2.5 billion-a-year blockbuster.
Correction: The pharmaceutical firm Merck & Co. is ranked No. 5 worldwide by revenue and No. 4 in the United States, according to IMS Health, a health information research company. A previous version of this story reported the company's rankings incorrectly.
