Merck’s year begins as 2007 ended, with controversy

Source: Healthcare Digital

Date :31/01/2008 06:02:00

Merck & Co. posts $1.63 billion loss following $4.85 billion charge for its Vioxx litigation settlement.

The US drugmaker of allergy and asthma pill Singulair and osteoporosis treatment Fosamax reported a $1.63 billion net loss in the fourth quarter, or 75 cents per share, due to billions of dollars in costs to settle litigation and government probes.

The loss was offset by charges totaling $5.8 billion, including $4.85 billion in costs to settle up to 50,000 claims from more than 27,000 lawsuits over Merck’s painkiller Vioxx – which it withdrew in 2004.

It was withdrawn after a company study found it increased the risk of heart attack and stroke.

Other charges included $274 million for ongoing restructuring and $671 million for the anticipated resolution of federal and state civil probes into past marketing practices.

Vytorin, Zetia

In addition, Merck provided on Wednesday new details its cholesterol drug Vytorin, sold in joint venture with Schering-Plough of the US. A recent study showed that Vytorin was no more effective than a generic drug at stopping plaque from accumulating in arteries, leading to government scrutiny and lawsuits against Merck and Schering-Plough.

Along with Congressional inquiries into the study’s delay, Merck said it faced about 50 class-action lawsuits over the marketing of Vytorin and Zetia, another cholesterol drug.

Merck said it is monitoring the "potential financial impact" about the Vytorin study.

Meanwhile, sales of Vytorin and Zetia, totaled $1.5 billion in the fourth quarter. Merck recorded $538 million as fourth-quarter equity income.

January 31, 2008