The Trials and Tribulations of Merck

Fall from (dis)grace

As you know, I’ve been reporting every step of the way (somewhat gleefully, I’ll admit) the trials and tribulations that pharmaceutical giant Merck has faced in the wake of the scandalous national disaster caused by its killer drug Vioxx. Today, there’s more to report – and from where I’m sitting, it’s good news

To recap a bit, the first two Vioxx decisions have been handed down in court in the last few months (you read about both of them right here in the Daily Dose). One of these resulted in the largest drug liability award in tort history – more than a QUARTER-BILLION dollars to the next of kin of a Texas victim of the drug (of course, Merck’s appealing this outcome). The second resulted in nearly the opposite: A more or less complete exoneration of Merck from liability for a New Jersey man’s heart attack. Merck’s stock price jumped up as a result.

Now, however, there are finally rumblings that the Vioxx scandal is taking a major toll on the drug giant. And it’s not just the Cox-2 debacle that’s putting a strain on Merck’s bottom line. A recent Fortune article tells the story:

Merck still faces over 7,000 trials over Vioxx. Estimating the possible costs of settling these cases, both in terms of awards and legal fees, is nearly impossible, but it’ll surely run into the multiple billions
With marquis product Vioxx off the market, one of Merck’s most significant revenue streams is erased – nearly $2.5 billion a year
Merck’s biggest blockbuster, cholesterol drug Zocor, will face competition from generic versions of the drug staring in June, likely halving (at least) the 5.2 billion in annual profits the drug generates
Over the next 5 years, roughly half of Merck’s profits (over $50 billion a year) are expected to evaporate as other key drugs’ patent protection expires – while no new blockbuster products are expected to be approved over this time period
Merck’s response to this crisis is a massive corporate cost-cutting campaign which includes more than 5,000 layoffs – including some in key research and development positions

All this makes me wonder: Could this be the beginning of the end for this evil giant? Probably not. Drugs are the most profitable business in the world, and drug makers are the most protected-by-the-Feds of all U.S. businesses. But hey, one can hope, right?

At the very least, I can cheer for them to be financially ruined for a decade so the rest of the industry thinks twice about pumping us full of deadly poisons. After all, it’s obvious that the only thing that motivates Big Pharma is its own bottom line – not your flat-line or any fear of the anemic FDA. To me, this reversal of priority stinks of corruption and greed, and it always has.

And speaking of hazardous things that smell

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Everyone loves that “new car smell,” right?

It smells clean and full of the promise of many happy, trouble-free miles. Some would say (and they’d be right, in a way) that the aroma of a new automobile is the smell of success. You can even buy this smell in spray cans to spruce up the funky interior of your old car

But leave it to the health weenies to spoil all the fun.

According to recent whiny articles in NewsDay and the AP, the “fumes” from the glues, paints, upholstery and plastics used in the new car manufacturing process can cause headaches, nausea, drowsiness, and throat irritation. As if this isn’t bad enough, some evidence has linked these fumes (called VOCs) to cancer – though not in the low concentrations new car owners are likely exposed to.

Be that as it may, some Japanese manufacturers are trying to minimize the smell. Domestic and Euro carmakers are expected to do the same.

Listen, I’m certainly not advocating exposure to harmful industrial toxins. But it sure would be a shame if this delightful smell – that first visceral, pleasing thing about your new car – were somehow to be found truly harmful. I guess if you were really worried about it, you could limit yourself to buying only used cars

I’ll wait for the proof, myself.

Sniffing out the tripe from the hype,

William Campbell Douglass II, MD