More on Merck

Merck settles lawsuits over cholesterol drug for $688 million Merck & Co. has agreed to pay $688 million to settle two long-running lawsuits brought by investors who alleged the drugmaker delayed releasing bad news on its blockbuster cholesterol drugs to prevent a drop in sales. Merck, the world’s third biggest drugmaker by revenue, said yesterday that it agreed to the settlement because it’s in the best interest of the company and current shareholders. It is taking a charge of nearly a half-billion dollars against 2012 earnings. The delay in releasing results of a study that was meant to bolster sales of pricey cholesterol pills Zetia and Vytorin triggered criticism by analysts, investors, some scientists and the media — and ultimately an investigation by Congress. The maker of Januvia Type 2 diabetes pills and the Gardasil vaccine against sexually transmitted cancers admitted no wrongdoing. The deal must be approved by a federal judge. “The settlement gets a cloud out of the sky for Merck,” said Erik Gordon, an analyst and professor at University of Michigan’s Ross School of Business. The settlement is among the top 25 securities class action settlements ever, according to Bernstein Litowitz Berger & Grossmann LLP, co-lead counsel in the litigation brought by a number of large pension funds. Merck said in a statement that it’s taking a charge of $493 million. The company also restated previously reported financial results, reducing its 2012 fourth-quarte...
Source: PharmaGossip - Category: Pharma Commentators Authors: Source Type: blogs