Merck Says It Doesn’t Have Enough Insurance
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Merck & Co., which pulled its Vioxx painkiller from the market last year in the biggest drug recall, said it probably doesn’t have enough insurance to cover the costs of lawsuits associated with the withdrawal.
The company has $630 million in product liability insurance for Vioxx, after deductibles and co-insurance, Whitehouse Station, N.J.-based Merck said in a Securities and Exchange Commission filing. It also has $190 million in insurance for company directors and executives named in securities suits.
The company hasn’t established any reserves for potential liability relating to the Vioxx lawsuits, though it has set aside $675 million solely for its legal defense costs.
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