Merck’s new arthritis drug Arcoxia was rejected by an FDA panel by a vote of 20-to-1. Apparently, the drug has cardiovascular risks. The same problem with a related drug that company produced, Vioxx, has lead to liability suits that total into the billions of dollars.
According to The Wall Street Journal: A Merck spokeswoman said the company was "disappointed" by the vote and still believes Arcoxia can be a valuable treatment option. Merck will continue to work with the FDA."
Given the problems that Merck (MRK) has had with Vioxx it is stunning that they would even take a similar drug to the FDA. The scientists at the big drug company had obviously read studies about the risks of Arcoxia, and so has Merck’s management. At one point, Merck faced over 14,000 Vioxx liability cases.
The push by Merck for approval of the new drug may be because of pressures that generic manufacturers are putting on Big Pharm as drugs go "off patent" and are replaced by cheaper versions.The trend is hurting the financial results and share prices of many drug companies.
But, Merck should know better than to fan the flames of an already raging fire.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks