Merck Wins a Battle but Consumers Press on in Vioxx War
Merck was victorious on Tuesday, September 26, against consumer Robert Smith, a 56 year old Kentucky native who had a heart attack after taking Vioxx for about 4 months. Smith, a manager at a chemical plant, began taking Vioxx in 2002. He had a heart attack in February 2003.
Smith's case involved something that the other nine Vioxx trials did not: Smith took the drug after the medication's label was changed to warn of an increased risk of cardiovascular problems. The nine previous suits that were tried were brought by people who took the pill before the label change. The company has won five and lost four trials, with one victory overturned last month.
Merck pulled Vioxx from the market in September 2004 after a clinical study connected long-term use of the pain reliever with an increased risk of heart attack or stroke in certain patients.
Merck currently faces more than 14,000 suits filed in state and federal courts by former Vioxx users who claim they were injured by the drug. It is also being investigated by state and federal authorities. Dow Jones MarketWatch comments that some believe that consumers will begin to file more Vioxx suits very soon, citing the end of a two-year statute of limitations on Sept. 30 in some states.
So what does this mean for consumers still fighting Merck over Vioxx injuries? Well, while winning five of ten trials might sound good, Merck cannot continue the costly strategy of trying each Vioxx case separately. Merck states in a Chicago Tribune article that it can, but if it loses more trials, Wall Street will not be forgiving and its stock price will plummet. "We view this decision as a positive for the company, but stress that we believe no single verdict or decision is a proxy for potential outcomes to follow," Lehman Brothers analyst Anthony Butler told clients in a note issued Wednesday.
Therefore, consumers injured by Vioxx should continue their attempts to hold the drug maker responsible for these injuries. Wall Street wants certainty and finality. How else could Big Tobacco pay out more than $200 plus billion dollars and stay in business? Merck's stock price will stabilize and possibly increase as soon as it smells the coffee and develops a plan to settle all Vioxx cases.