Vioxx Lawsuits Swamp Merck

Last week, Merck's board appointed a special committee to review the company's actions. This committee will speak for the board in shareholder litigation matters and recommend changes in corporate policy, if necessary.

The company recently issued financial guidance for the fourth quarter, for the 2004 full year and for 2005, but it did not comment on the legal costs of the Vioxx withdrawal.

Potential litigation expense is one reason why three major ratings firms -- Standard & Poor's, Moody's and Fitch -- have cut their ratings on the company.

Merck estimates that 105 million U.S. prescriptions were written for Vioxx between May 1999 and August 2004. The company says approximately 20 million people in the U.S. used the drug. The number of foreign patients is unknown. Frazier said Merck has "no reliable estimate" on how many used Vioxx for prolonged periods of time.

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