Merck loses Vioxx case

Merck has lost its court case against Vioxx and has been asked to pay millions in damages, according to reports today.

The trial, which is the second involving Vioxx in a product-liability case, found that Merck had “knowingly misrepresented or failed to disclose” material facts to the case’s claimant and that his doctors were not at fault.

The claimant, Gerald Barnett aged 62, had a heart attack in 2002 following the use of Vioxx for over 31 months and was awarded $51 million (27 million pounds) in compensatory damages and a further $1 million (530,000 pounds) in punitive damages according to the Seattle Times.

Shaojing Tong, an analyst with Mehta Partners, told Reuters: “This verdict will remind people that Merck still faces significant potential financial liability for Vioxx, which could wind up being at least $5 billion [2.6 billion pounds] in the long run.”

The verdict marks the second time that Merck has lost a case against Vioxx, with stocks plunging previously when Vioxx was recalled two years ago. However, analysts suggest that the company will do favourably due its new Gardasil cervical cancer vaccine and its experiental Januvia diabetes treatment.

Merck’s shares have performed favourably this year, despite the recent trial. They have risen by 28 per cent already outperforming about an eight per cent rise forth American Stock Exchange Index of large drug makers.

© Adfero Ltd