Personal Injury Resources

The finanical point of view on Vioxx, Celebrex and Bextra. FDA actions may change the course of class action law suits.

Merck voluntarily withdrew Vioxx from the market on Sept. 30, saying that research showed a higher cardiovascular risk among patients taking the drug for more than 18 months vs. patients receiving a placebo.

If the FDA approves a return of Vioxx even with a host of restrictions, "this could be an effective response to trial lawyers who have argued that Vioxx should not have been on the market in the first place," said Risinger, who has neutral ratings on Merck and Pfizer.

Favorable FDA action plus the enactment of recent changes in tort law "suggests to us that our previously published $4 billion to $18 billion range can come down," said Risinger. (He doesn't own shares; his firm says it "does and seeks to do business" with companies mentioned in research reports.)

Although Pfizer is being sued over Celebrex and Bextra, the heaviest litigation involves Merck and Vioxx. As of Dec. 31, the company had counted 575 lawsuits alleging personal injuries caused by the arthritis drug. Merck also has been named as defendant in some 70 class-action suits relating to personal injury claims. It has been named as a defendant in 30 lawsuits involving claims of violations of federal securities laws and laws governing employee retirement plans. Merck also is defending Vioxx suits filed in several other countries.