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Latest Business News

Analysts Unsettled by Marketing of Vioxx

Thursday, April 06, 2006 3:50:28 PM
By JEFFREY GOLD

Raymond Gilmartin, former Merck & Co. president and CEO, testifies in a courtroom in Atlantic City, N.J., Thursday, April 6, 2006. The former CEO of Merck & Co. on Thursday denied a plaintiff lawyer's suggestions that the drugmaker withheld information about the safety of its painkiller Vioxx from the Food and Drug Administration.  Gilmartin took the stand in a court hearing aimed at determining whether Merck should pay punitive damages to a 77-year-old man already awarded $4.5 million (3.6 million) in compensatory damages for a heart attack caused by the drug.   (AP Photo/Mary Godleski)NEWARK, N.J. (AP) - Although a New Jersey jury spared Merck & Co. a double hit to the pocketbook, analysts are concerned that its negative findings on the marketing of Vioxx could continue to hurt the company as it defends itself against almost 10,000 lawsuits filed by users of the now-pulled arthritis drug.

Merck's Achilles heel appears to be judgments that it failed to warn that Vioxx could cause heart attacks, lawyers and analysts said Thursday, a day after the jury gave a split verdict to two longtime Vioxx users who survived heart attacks.

However, Alan Klein, a lawyer who has defended another drug maker, said the outcome validated Merck's strategy of handling the litigation case by case, rather than settling, and would prompt some people to drop their lawsuits.


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