Vioxx producer to cut 7,000 jobs
WThe manufacturer of controversial drug Vioxx has revealed plans to cut 7,000 jobs on the eve of the first federal trial relating to the drug's use.
US pharmaceutical firm Merck said it planned to close five production plants as part of a big restructuring.
The firm will cut its workforce by 11% by 2008 with the aim of saving as much as $4bn (£2.3bn) by 2010.
Merck is due in a Texas court to fight allegations that Vioxx contributed to the death of 53-year old Richard Irvin.
The firm is facing thousands of lawsuits from Vioxx users claiming its use led to heart attacks and strokes.
Different verdicts
The company withdrew Vioxx last year after its own research showed prolonged use of the drug could double the chance of suffering a heart attack or a stroke.
The actions we are announcing today are an important step in positioning Merck to meet the challenges the company faces now and in the future
Richard Clark, Merck chief executive
Earlier this year Merck was found liable for failing to provide sufficient warning about Vioxx's risks in the first state trial and told to pay damages of more than $250m.
However, a second similar lawsuit was thrown out.
The federal case is being brought by the relatives of Mr Irvin who suffered a fatal heart attack in 2001.
At the time of his death, he had been taking Vioxx for a month.
Outstanding lawsuits
Shares in Merck, the world's fifth largest drugmaker, have nearly halved in value since it voluntarily withdrew Vioxx from sale last year.
Merck has denied that it was negligent in its handling of the drug and has pledged to fight all lawsuits, more than 7,800 of which are outstanding.
Half of the jobs being cut will be in the US, the remainder in Merck's other markets.
"The actions we are announcing today are an important step in positioning Merck to meet the challenges the company faces now and in the future," said chief executive Richard Clark.
"We are engaged in an ongoing effort to enhance efficiencies throughout the company and improve the way we discover, develop, manufacture and market our medicines and vaccines."
Merck's shares fell 3% after it announced the restructuring. here you can find all the latest breaking news concerning VIOXX
US pharmaceutical firm Merck said it planned to close five production plants as part of a big restructuring.
The firm will cut its workforce by 11% by 2008 with the aim of saving as much as $4bn (£2.3bn) by 2010.
Merck is due in a Texas court to fight allegations that Vioxx contributed to the death of 53-year old Richard Irvin.
The firm is facing thousands of lawsuits from Vioxx users claiming its use led to heart attacks and strokes.
Different verdicts
The company withdrew Vioxx last year after its own research showed prolonged use of the drug could double the chance of suffering a heart attack or a stroke.
The actions we are announcing today are an important step in positioning Merck to meet the challenges the company faces now and in the future
Richard Clark, Merck chief executive
Earlier this year Merck was found liable for failing to provide sufficient warning about Vioxx's risks in the first state trial and told to pay damages of more than $250m.
However, a second similar lawsuit was thrown out.
The federal case is being brought by the relatives of Mr Irvin who suffered a fatal heart attack in 2001.
At the time of his death, he had been taking Vioxx for a month.
Outstanding lawsuits
Shares in Merck, the world's fifth largest drugmaker, have nearly halved in value since it voluntarily withdrew Vioxx from sale last year.
Merck has denied that it was negligent in its handling of the drug and has pledged to fight all lawsuits, more than 7,800 of which are outstanding.
Half of the jobs being cut will be in the US, the remainder in Merck's other markets.
"The actions we are announcing today are an important step in positioning Merck to meet the challenges the company faces now and in the future," said chief executive Richard Clark.
"We are engaged in an ongoing effort to enhance efficiencies throughout the company and improve the way we discover, develop, manufacture and market our medicines and vaccines."
Merck's shares fell 3% after it announced the restructuring. here you can find all the latest breaking news concerning VIOXX
posted by Chris Placitella at 6:38 AM
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