Image via WikipediaMerck booked a $950 million reserve in the third quarter to cover an anticipated resolution of a government investigation of the company's former pain drug Vioxx.
Merck, Whitehouse Station, N.J., withdrew Vioxx from the market in 2004 after it was linked to a higher risk of heart attacks and strokes. The company previously settled thousands of personal-injury lawsuits filed by Vioxx users and their families for about $4.85 billion.
The latest matter stems from a Justice Department probe of Merck's research, marketing and selling activities surrounding Vioxx. Merck previously disclosed the government was conducting a criminal investigation of the matter.
The U.S. Attorney's Office in Boston last year sent Merck a letter identifying the company as the target of a grand jury investigation regarding Vioxx.
"The company's discussions with the government are ongoing," said Merck spokesman Ron Rogers
Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201010290807dowjonesdjonline000408%20&title=merck-books-950-million-reserve-to-settle-us-vioxx-probe#ixzz144IpwqIb
Merck, Whitehouse Station, N.J., withdrew Vioxx from the market in 2004 after it was linked to a higher risk of heart attacks and strokes. The company previously settled thousands of personal-injury lawsuits filed by Vioxx users and their families for about $4.85 billion.
The latest matter stems from a Justice Department probe of Merck's research, marketing and selling activities surrounding Vioxx. Merck previously disclosed the government was conducting a criminal investigation of the matter.
The U.S. Attorney's Office in Boston last year sent Merck a letter identifying the company as the target of a grand jury investigation regarding Vioxx.
"The company's discussions with the government are ongoing," said Merck spokesman Ron Rogers
Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201010290807dowjonesdjonline000408%20&title=merck-books-950-million-reserve-to-settle-us-vioxx-probe#ixzz144IpwqIb
