Merck Pays $688M To Settle Suits Over Enhance Trial

On the eve of a widely anticipated courtroom battle, Merck has agreed to settle shareholder lawsuits over the highly controversial Enhance clinical trial for the Vytorin cholesterol pill. The latest deal actually resolves two separate lawsuits in which the drugmaker has agreed to make a total payment of $688 million, which was described as one of the 25 largest securities class action settlements ever by the lawyers who represented Merck shareholders. For those who may not recall, the Enhance clinical trial was designed to boost sales of Vytorin, which combines Zetia and Zocor, but ended in failure. And a ruckus erupted when it became known that Merck (MRK) and its partner, Schering-Plough – which it later acquired – changed the primary endpoint, raising questions about whether patients received sufficient benefit for a heavily promoted and expensive pill (read this). As we wrote previously, the change in the primary endpoint was made without consulting the lead investigator (look here). Then, the drugmakers appointed an allegedly independent panel to review the data, but no one knew three members had financial conflicts until the names were later released (read here). Meanwhile, several insiders, among them Schering-Plough executives such as Carrie Cox, sold huge chunks of stock, raising speculation about insider trading (see this). This set off various government investigations by the US Senate Finance Committee and various state agencies, among others (back st...
Source: Pharmalot - Category: Pharma Commentators Authors: Tags: Uncategorized Carrie Cox Fred Hassan Merck Schering Plough Vytorin Zetia Zocor Source Type: blogs