Merck wins key battle over Vioxx

ATLANTIC CITY, N.J. -- Merck & Co. won its first court battle over its painkiller Vioxx yesterday when a New Jersey state jury found that the drug maker properly warned consumers about the risks of the medication. The verdict absolved Merck of liability for a heart attack suffered by a Vioxx user.

After deliberating for less than eight hours over three days, the jury cleared the nation's number five pharmaceutical company of allegations it failed to warn consumers about the drug's risks.

The verdict was Merck's first win out of two Vioxx-related trials. In August, a Texas jury found the company liable in a Vioxx user's death. Merck is appealing that ruling, and it still faces about 7,000 lawsuits over Vioxx.

Much of the seven-week New Jersey trial, eagerly watched by plaintiffs from around the country, relied on the testimony of medical experts. Witnesses for Merck testified the company believed Vioxx was safe for the heart before it was pulled from the market in response to a study that showed it doubled risk of heart attacks and strokes when taken for at least 18 months.

Yesterday's verdict means it might take several more cases, including a federal case that will start Nov. 28 in Houston, before lawyers can find any sort of precedent that might determine Merck's ultimate Vioxx liability.

Merck was elated by its victory.

''We feel very much vindicated," Merck general counsel Kenneth Frazier said. ''The jury found in our favor, we believe, because the evidence showed that Merck acted responsibly."

Frazier said Merck will fight each lawsuit individually, adding that mass settlements aren't appropriate because facts in each case differ.

Wall Street analysts said the company clearly will face huge legal costs given its plan to fight each lawsuit. The company has set aside just $675 million for legal defense costs, but nothing for jury awards or settlements.

''It's still going to be a marathon" in the courts, said Barbara Ryan, pharmaceuticals analyst at Deutsche Bank North America.

About 20 million Americans took Vioxx after it hit the market, embracing it for its effectiveness in relieving pain while sparing them the upset stomachs, ulcers and other gastric problems associated with other analgesics. At its peak, Vioxx was a $2.5 billion-a-year blockbuster.