Drugmaker Merck Agrees To $4.5B Settlement Over Vioxx
Posted November 9, 2007 12:00 pm.
This article is more than 5 years old.
Drugmaker Merck has agreed to pay a whopping $4.5 billion to cover thousands of lawsuits related to its painkiller Vioxx.
Vioxx, an anti-inflammatory drug used to treat osteoarthritis and other chronic pain conditions, was pulled from shelves in 2004 over concerns about increased risk of heart attack and stroke with prolonged use. The company was subsequently hit with 26,000 lawsuits from 47,000 plaintiffs, as well as 265 possible class action suits. The complainants contend the drug either injured or contributed to the death of loved ones.
The $4.5 billion deal, finalized Friday, will go through if 85 per cent of those who’ve sued the company agree to settle.
Merck said last month that it had an extra $70 million to put toward defending lawsuits over the painkiller. As of September 30, the company had spent $1.2 billion on legal bills with another $1.92 billion in reserve. Payments to complainants would vary based on the nature of the injuries and the amount of time the patient was on Vioxx.
The New Jersey-based company still faces several state and federal investigations.
More about Vioxx, or rofecoxib as its known clinically
