Friday, August 19, 2005

Jury Awards Widow $253.4M in Vioxx Trial

This is the first case to reach a decision. There are 4,200 more court cases facing Merck. Analysts have speculated Merck's liability could reach $18 billion. Merck pulled Vioxx, a $2.5 billion seller, from the market in September 2004 when a long-term study showed it could double risk of heart attack or stroke if taken for 18 months or longer.

Although this case is not directly a GMP issue, it points out the impact trouble can have on a company.

Training Tip

During your GMP training sessions, have small groups of people discuss the impact news like this can have on a company. Answers will include things like:

  • Stock price drops (causing stockholders to get cranky and put pressure on management to improve performance).
  • Reputation of the company is affected, possibly resulting in decreased sales.
  • The actual cost associated with the withdrawal of Vioxx.
  • Lost revenue – Vioxx was a $2.5 billion seller for Merck.
  • The costs associated with legal defense. (Most manufacturing people will quickly point out that lawyers tend to earn more than production operators.)
  • Budget tightening at the company.
  • More FDA scrutiny.
  • Questioning of company officials by Congress.
  • Morale could decrease within the company.

These same consequences that Merck is facing could come about by inattention to GMP. The shortage of flu vaccine last fall was a result of contaminated batches. This was certainly a GMP issue.

Click on http://www.gmptrainingsystems.com/ and go to Articles. You can download a News Article about Vioxx and Merck you can use in your training.


www.GMPTrainingSystems.com

We design and conduct GMP and related Training Programs for the Pharmaceutical and Medical Device industries. Our clients include Pfizer, Bristol-Myers Squibb, Baxa Corp., Genentech, Wyeth, Glaxo SmithKline, Grifols Biologicals, and several others.