Vioxx Pain Could Spread to Medco

Merck's (MRK Quote) withdrawn painkiller, Vioxx, could soon leave pharmacy benefit manager (PBM) Medco (MHS Quote) with its own headaches.

Government officials have already accused Medco -- a former Merck subsidiary that was spun off to shareholders in August of 2003 -- of improperly favoring Merck brands like Vioxx and Zocor, a cholesterol treatment. They claim that Medco often switched patients from cheaper and potentially more appropriate drugs to Merck brands that generated lucrative rebates for the PBM. And they clearly suggest that Medco may have placed customers at risk in the process.

"The primary reason Medco Health switches drugs is to enhance its revenue regardless of health plan costs -- or of any potential adverse or life-threatening clinical outcomes to patients associated with the switch," states a pending federal lawsuit against the company. ...