The flood of phone calls to plaintiffs' lawyers began
soon after pharmaceutical giant Merck & Co. Inc. announced
Thursday that it would withdraw its painkiller Vioxx from
the market because of safety concerns.
But just how bad will the legal fallout get for the
Whitehouse Station, N.J., drugmaker?
Merck is bracing for an onslaught of lawsuits, but some
analysts - and even some lawyers who represent Vioxx
patients - doubt that the company faces anything on the
scale of the failed diet-drug combination known as fen-phen.
More than 100,000 lawsuits were filed by patients
saying they were injured by fen-phen. The massive
litigation has cost Madison, N.J.-based Wyeth $16.6
billion so far.
"Our preliminary estimate is that about 16,632 people
may ultimately file a legitimate lawsuit" against Merck
over Vioxx, analyst Tim Anderson wrote in a report issued
yesterday by the Prudential Equity Group.
"We do not expect the liability to blossom into
anything remotely close to fen-phen," he added.
Even before Merck's Vioxx withdrawal announcement,
several hundred suits had been filed against the company
by users of the arthritis pain medicine, including 175 in
New Jersey.
"The number of cases will be growing exponentially,"
said Andy Birchfield, a Montgomery, Ala., lawyer who has
filed 58 Vioxx suits. About half involve the families of
people who died from heart attacks or strokes while on the
arthritis pain medicine, Birchfield said.
"I think you will have a lot of people now going back
and recognizing that, when I had my heart attack or when
my mom or dad had a heart attack, they were taking Vioxx,"
he said. "We have received a tremendous number of calls"
during the last two days.
Not 'as big as fen-phen'
Even so, some lawyers do not see Vioxx litigation
growing to rival fen-phen, at least in number.
"I don't think it is as big as fen-phen," said Sol H.
Weiss, a Philadelphia lawyer representing dozens of Vioxx
users, including some who died while on the drug.
Weiss, who also represents fen-phen users, said there
would likely be fewer Vioxx cases because the drug leaves
the body relatively quickly and does not appear to cause
lasting damage unless a patient suffers a heart attack or
stroke while taking it.
"Right now, the science looks like if you are going to
have a Vioxx event, it will occur while you are on the
drug," said Christopher A. Seeger, a New York lawyer who
represents more than 300 people who allegedly suffered a
Vioxx-related heart attacks or strokes.
Shanin Specter, a Philadelphia lawyer involved in Vioxx
cases, said that while there might be a more limited
number of cases, the damages collected by successful
plaintiffs will likely to be bigger than fen-phen.
"The vast bulk of fen-phen users had less significant
injuries than a heart attack or a stroke," Specter said.
The first Vioxx cases could go to trial at the end of
this year or early next year. It is too early to estimate
the ultimate cost to the company in legal fees and
potential damages. However, some lawyers say it could be
similar to litigation faced by Bayer AG over its
cholesterol-lowering Baycol, which cost that company more
than $1 billion.
Merck: Not sure of liability
"It is not possible at this time to reasonably estimate
the company's potential liability," said Merck spokesman
Tony Plohoros in a statement yesterday. "A series of
highly unfavorable outcomes... could have a material
adverse effect on the company's financial position."
Plohoros and other company officials declined to
disclose how much money Merck would put in reserve to
cover potential losses.
Until Thursday, Merck had consistently defended Vioxx
in the face of studies that suggested links with
cardiovascular problems.
The company said it was withdrawing Vioxx from the
market because a new study had revealed the drug doubled
the risk of heart attacks and strokes in patients who took
the drug daily for more than 18 months.
Despite the study's findings, plaintiffs' and defense
lawyers agreed it was still necessary to show a link
between the injury and use of the drug.
"There have been cases that we have evaluated and
turned down where we could not find the strong connection
between Vioxx and the heart attack," Birchfield, the
Alabama lawyer, said.
About 20 million people have taken Vioxx since it was
introduced in the United States in 1999, the company
estimates. The company said it was unclear how many of
those people had used the drug regularly for more than 18
months.
Vioxx generated $2.5 billion in worldwide sales a year
- 11 percent of the company's total.
Merck's stock, after plunging 27 percent on Thursday,
rose 31 cents yesterday to close at $33.31.