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Legal Troubles Cost Drug Companies More Than Money; R&D Also Takes A Hit; Expert: courts, industry, regulators need a better way of dealing with suits.(HEALTH & MEDICINE)(Q & A)

Investor's Business Daily

| August 01, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: PETER BENESH

When a drug causes harmful side effects, the drug's manufacturer might end up paying many billions of dollars to settle lawsuits.

That's the scenario facing Merck. The giant drug maker is defending itself in the first of some 4,200 anticipated civil trials involving Vioxx, a pain killer that has been linked to serious side effects including blood clots, heart attacks and stroke.

The trial, which began July 11, is being heard in a state court in Angleton, Texas.

Another high profile case involves Wyeth, maker of the diet drug fen phen, which has caused heart problems in some users.

Wyeth continues to slog its way through 42,000 suits brought against it for the drug.

The Food and Drug Administration asked Wyeth to pull fen phen in July 1997 after Mayo Clinic doctors reported the side effects. Wyeth has paid more than $14 billion in lawsuits already. It has allocated a total of $21 billion for all claims.

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