$894 million deal ends pain of Pfizer's lawsuits

Crime, Law and JusticeTrials and ArbitrationJustice SystemMedicineHealthMerck & Company Incorporated

      TRENTON, N.J. (AP) - Drug giant Pfizer Inc. has reached an $894
million deal to end most of the lawsuits over its two prescription
pain relievers, the popular Celebrex and a similar drug, Bextra, no
longer on the market.
      The world's biggest drugmaker said Friday it has agreements in
principle to end more than 90 percent of personal injury lawsuits
brought by people claiming the pills caused heart attacks, strokes
or other harm.
      The settlement includes roughly 7,000 personal injury cases,
mainly plaintiffs who took since-withdrawn Bextra, said plaintiff
attorney Perry Weitz. He represents nearly 2,000 claimants, about
10 percent of them relatives of people who died.
      "It gives Pfizer closure and the claimants their money sooner,
rather than later or never at all," Weitz said.
      Pfizer hopes to finalize claims covered by the settlement, which
now includes up to 92 percent of plaintiffs, by year's end. It also
hopes to include many of the remaining claimants in the settlement
and will fight any remaining personal injury suits with court
motions or at trial, General Counsel Amy Schulman told The
Associated Press.
      "I don't think either side has an interest in protracting
this," Schulman said in an interview.
      Weitz said plaintiff lawyers will "have issues" with Pfizer
"if their claimants aren't paid before the end of the year."
      In early trading, Pfizer shares were down 47 cents, or 2.8
percent, at $16.50.
      Schulman said the deal comes after two important court rulings -
one by a New York state judge overseeing many of the state-level
personal injury cases and the other by a federal judge in San
Francisco coordinating pretrial steps in federal lawsuits over the
drugs.
      "We teed up some pretrial motions for a court ruling on whether
there was significantly reliable evidence that would allow an
expert to testify as to whether there was an increased risk of
heart attack and stroke at the most common dose," 200 milligrams,
Schulman said. Both judges ruled that was not the case, she said.
      The proposed deal also would end suits by insurers and patients
seeking to recover what they spent on Bextra and Celebrex, as well
as claims by 33 states and the District of Columbia that Pfizer
improperly promoted Bextra.
      Out of the total settlement, $745 million will go to settle
personal injury cases, $60 million will cover settlements with
attorneys general in the 33 states and the District of Columbia,
and $89 million will cover consumer fraud class action cases over
reimbursement for money spent on the two drugs. Two additional
states, Louisiana and Mississippi, still have pending cases
regarding Pfizer's promotion of the drugs.
      New York-based Pfizer's research and development headquarters
are in Connecticut, in New London and Groton. The company withdrew
Bextra from the market in 2005, a year after Merck & Co. withdrew
its Vioxx, a similar drug.
      The Vioxx withdrawal, which triggered an avalanche of lawsuits
against Merck, also raised concerns about the safety of other
medicines in the same class, called Cox-2 inhibitors. They were
heavily touted by their makers as superior to traditional
nonsteroidal anti-inflammatory drugs, or NSAIDs, such as ibuprofen,
because they block an enzyme involved in promoting inflammation but
- unlike NSAIDs - don't block an enzyme that protects the stomach
from bleeding and other side effects.
      Other NSAIDs, such as ibuprofen and naproxen, have also been
linked to increased heart risks.
      Celebrex is the only Cox-2 inhibitor that the Food and Drug
Administration has allowed to remain on the U.S. market.
      Attorney Christopher Seeger, a member of the plaintiffs steering
committee, said he'll "have no problem recommending" the
settlement to the roughly 400 clients he represents.
      "We're very satisfied with the deal," Seeger said.
      Schulman said the company's negotiations with opposing lawyers
had been under way for some time but picked up in the late summer.
      "Litigation can be distracting, and putting these matters
behind us helps our shareholders and, most importantly, patients
and doctors," Schulman said.
      Weitz noted that it took four or five years to get through
trials for less than 20 cases in the massive Vioxx litigation,
because the court system can only handle a limited number of cases
at a time.
      Pfizer will take a pretax charge of $894 million to its
third-quarter earnings, which it is scheduled to report on Tuesday.
      Merck, based in Whitehouse Station, N.J., has begun paying a
$4.85 billion settlement to end about 50,000 lawsuits brought by
people claiming Vioxx cause heart attacks, ischemic strokes or
death. It still faces other litigation over the former blockbuster
arthritis treatment.

Copyright © 2014, Los Angeles Times
Comments
Loading