Merck to Pay $950 Million to Resolve Investigations into Vioxx Marketing

Strategic Insights -

The US Department of Justice has announced that pharmaceutical company Merck will pay $950 million to resolve investigations into its marketing of the painkiller Vioxx. The settlement includes a $321.6 million criminal fine and a $628.4 million civil settlement agreement. Merck will also plead guilty to a misdemeanor charge for marketing Vioxx as a treatment for rheumatoid arthritis before obtaining FDA approval.

The government will receive $426.4 million from the settlement, with $202 million allocated to state Medicaid programs for 43 states and the District of Columbia. This settlement resolves allegations that Merck made false and misleading statements about Vioxx's safety to increase sales and concealed the risks associated with the drug.

This marks the second major settlement for Merck related to Vioxx. In 2007, the company paid $4.85 billion to settle around 50,000 lawsuits related to the drug.

Key Takeaways:

  • Merck will pay $950 million to resolve investigations into Vioxx marketing, including a $321.6 million criminal fine and a $628.4 million civil settlement agreement.
  • The government will receive $426.4 million from the settlement, and $202 million will be distributed to state Medicaid programs for 43 states and the District of Columbia.
  • Merck will plead guilty to a misdemeanor charge for marketing Vioxx as a treatment for rheumatoid arthritis before obtaining FDA approval.
  • The settlement resolves allegations that Merck made false and misleading statements about Vioxx's safety to increase sales and concealed the risks associated with the drug.
  • Merck stopped selling Vioxx in September 2004 after evidence showed the drug doubled the risk of heart attack and stroke.
  • In 2007, Merck paid $4.85 billion to settle around 50,000 Vioxx-related lawsuits.

Statistics:

  • Merck will pay a total of $950 million to resolve investigations into Vioxx marketing.
  • The government will receive $426.4 million from the settlement.
  • $202 million will be distributed to state Medicaid programs for 43 states and the District of Columbia.
  • Merck has paid a total of $5.76 billion to resolve Vioxx-related lawsuits and settlements.
  • Vioxx was approved by the FDA in May 1999, but the government did not initially approve the drug for use in rheumatoid arthritis.

Sources:

  • Associated Press, "Merck to Pay $950 Million to Resolve Vioxx Marketing Investigation" (exact title and wording from original article).