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Analyst: Merck Will Manage Vioxx Fallout

Monday, March 27, 2006 5:58:54 PM
By THERESA AGOVINO

NEW YORK (AP) - If the plaintiffs in the Vioxx case currently being tried in New Jersey win, the damage awards are likely to be modest and not affect Merck & Co's ability to manage the financial fallout from the thousands of lawsuits related to the painkiller, a Wall Street analyst wrote Monday.

Jami Rubin, a Morgan Stanley analyst, said there is a "decent chance" the jury will find for either of the two plaintiffs who are suing Merck and whose cases are being heard in a single trial. She said the judge's actions indicate a pro-plaintiff tilt and said she believed the jury isn't as educated as the panel in an earlier New Jersey trial who absolved Merck from any responsibility in the heart attack of man who blamed Vioxx for his affliction.

In the current case, Rubin predicted pain and suffering damages in the $1 million to $2 million range but sees no reason for the jury to award punitive damages because there is no evidence of Merck acting recklessly.


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