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The Justice Department has launched a criminal investigation into Merck & Co.'s handling of the painkiller Vioxx®. This comes after The Wall Street Journal reported, among other things, that officials at Merck were aware of the potential cardiovascular risks associated with Vioxx®.
According to the third quarter regulatory filing by Merck, the conclusions that come from the investigation could be "highly unfavorable" and "could have a material adverse effect on the Company's financial position, liquidity and results of operations." This is partially based on Merck's estimate that 105 million Vioxx® prescriptions were written in the U.S. between May 1999 and August 2004. Those prescriptions were given to approximately 20 million patients, producing annual sales of about $2.5 billion (based on the year 2003).
Additionally, the Securities and Exchange Commission has begun an informal inquiry into Merck's dealings. Their focus is most likely to be whether investors were fully informed by Merck about risks discovered during research of Vioxx®.
Finally, the Senate Finance Committee is investigating Merck's relationship with the Food and Drug Administration involving Vioxx®.
As of October 31, 2004, there were approximately 375 Vioxx® personal injury lawsuits involving about 1000 different patient groups against Merck. Merck says that it expects more lawsuits to be filed based on "media reports and other sources." According to Richard Evans, a drug industry analyst with Sanford Bernstein, Merck's potential product liability is "$12 billion and climbing."
If you believe that you or a relative were injured by taking Vioxx® please use the form below to contact our law firm.
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