It seems like Vioxx is in the news today, where, according to the New York Times Merck Agrees to Pay $4.85 Billion for Vioxx Claims "….Merck announced today that it will pay $4.85 billion to settle 27,000 lawsuits by people who contend they or their family members suffered injury or died after taking the drug."

"…the agreement is far smaller than Wall Street analysts and lawyers predicted when Merck withdrew Vioxx, and especially after the verdict in the first case. In 2005, most analysts estimated that Merck’s ultimate liability in Vioxx would be between $10 billion and $25 billion."

It's interesting that one would think that Drug stocks would rise on the news of a lower than expected settlement (my feeling, too, is that it should have been higher) but Drug stocks slipped; Merck jumps on Vioxx settlement but Merik gained (while the rest slip).

"…Early Friday, Merck said that it has agreed to settle about 85% of the individual claims, or up to 50,000 cases, filed against it over Vioxx for $4.85 million.

Under the agreement, claimants will have to show evidence that they had procured at least 30 Vioxx pills and suffered a heart attack or stroke within 14 days of taking the drug. Merck pulled Vioxx off the market in September 2004 after a study showed users who took the drug for 18 months or longer had a significantly higher risk of suffering a heart attack or stroke. "