Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Merck & Co., Inc.    MRK

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Merck & Co., Inc. : Lawsuit Claims Merck Overstated Mumps Vaccine Effectiveness

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/22/2012 | 07:32pm CET
   By Jon Kamp 
 

Two former Merck & Co. Inc. (MRK) employees have sued the company in federal court alleging Merck overstated the effectiveness of a mumps vaccine for which the U.S. government paid hundreds of millions of dollars.

Merck--which stressed that none of these allegations relate to the safety of its product--said the lawsuit is "completely without merit", and that it plans to "vigorously defend itself." The Whitehouse Station, N.J., drug maker also noted that the U.S. Department of Justice has thus far declined to participate in the case after its own two-year probe.

Mumps is a contagious disease that causes symptoms like fever, headache and swollen salivary glands. It was a common illness for kids and young adults before childhood vaccinations became common decades ago, according to the Centers for Disease Control and Prevention, although there were outbreaks in 2006 and 2009. The agency says vaccines are the best way to prevent mumps.

Merck introduced the first vaccine 45 years ago, and since the 1970s it's been part of a combination product that also immunizes children against rubella and measles. According to the lawsuit--filed by former Merck virologists Stephen Krahling and Joan Wlochowski--the company allegedly defrauded the U.S. for more than a decade by hiding the fact the vaccine had become less effective.

As a result, the former employees say the government has long paid for a product that doesn't live up to Merck's claims. The lawsuit seeks a judgment against Merck equal to three times the damages suffered by the U.S., plus the maximum allowable award for the former employees under federal whistleblower laws.

The suit was first filed in 2010 in the U.S. District Court for the Eastern District of Pennsylvania. It was unsealed Thursday after the government declined to get involved in the case.

Merck confirmed Krahling and Wlochowski were former employees, but it said they haven't worked at the company for a decade.

"It's important to understand that none of the allegations in the complaint relate to the safety of M-M-R II"--the vaccine in question--"and we remain confident that M-M-R II helps protect against measles, mumps and rubella as described in the labeling for the vaccine," Merck said in a statement.

"M-M-R II continues to be recommended for routine administration to children by public health authorities around the world, including the U.S. Centers for Disease Control and Prevention and the U.S. Food and Drug Administration," the company said.

Merck doesn't specifically break out sales for the vaccine, but the company reported combined U.S. sales of $1.1 billion last year for that product and two other childhood vaccines. Merck shares recently traded up 1.9% to $40.19 and have risen 6.6% this year.

Write to Jon Kamp at jon.kamp@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MERCK & CO., INC.
02:10p MERCK : StayWell Earns Re-accreditation From the National Committee for Quality ..
03/22 MERCK ANIMAL HEALTH : Completes Acquisition of Vallée S.A.
03/17 MERCK : Keytruda`s head-to-head against Opdivo rockets meds to Nos. 2 and 3 in a..
03/16 MERCK & CO., INC. (NYSE : MRK) Sued By Numerous Plaintiffs Over Harm Caused By I..
03/14 MERCK : FDA Approves Merck’s KEYTRUDA® (pembrolizumab) for Adult and Pedia..
03/14 MERCK : Provides Update on Supplemental Biologics License Application (sBLA) for..
03/14 MERCK : Lawsuit claims Arkin misled eCam shareholders
03/13 MERCK & CO : ex-dividend day
03/09 MERCK : Researchers at Merck & Company Report Findings in Computational Biology ..
03/09 MERCK : Reports from Merck & Company Describe Recent Advances in Pharmacology an..
More news
Sector news : Pharmaceuticals - NEC
11:53a TEVA PHARMACEUTICAL INDUSTRIES : Pharm says media reports of up to 6,000 layoffs..
03/22 MYLAN : recalls 81,000 EpiPens outside U.S. after reports of failure
03/21DJSANOFI'S PRESCRIPTION FOR GROWTH : Drug Sales in the Middle Kingdom
03/20 FTSE rises to record close after Article 50 trigger date set
03/17DJPFIZER : Files 8K - Other Events
More sector news : Pharmaceuticals - NEC
News from SeekingAlpha
02:23p Pharma Development Budgets Grow As Roche Remains A Believer
09:57a Gilead Doesn't Offer A Compelling Risk/Reward
03/22 Merck loses appeal in Fosamax failure-to-warn suit; shares ease 1%
03/22 BIOLINERX : Update And Preview Of The Company's Q4 And FY 2016 Financial Results..
03/22 SNIPPET ROUNDUP : Medica And Cell Medica Are In The Money, But Endo And Valeant ..
Advertisement
Financials ($)
Sales 2017 39 720 M
EBIT 2017 13 557 M
Net income 2017 8 404 M
Debt 2017 4 038 M
Yield 2017 2,96%
P/E ratio 2017 19,73
P/E ratio 2018 16,39
EV / Sales 2017 4,49x
EV / Sales 2018 4,34x
Capitalization 174 344 M
More Financials
Chart MERCK & CO., INC.
Duration : Period :
Merck & Co., Inc. Technical Analysis Chart | MRK | US58933Y1055 | 4-Traders
Full-screen chart
Technical analysis trends MERCK & CO., INC.
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 69,0 $
Spread / Average Target 8,7%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Kenneth C. Frazier Chairman, President & Chief Executive Officer
Robert M. Davis Chief Financial Officer & Executive Vice President
Clark Golestani Chief Information Officer & Executive VP
Thomas Henry Glocer Independent Director
Rochelle B. Lazarus Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MERCK & CO., INC.7.86%174 344
JOHNSON & JOHNSON9.59%342 277
ROCHE HOLDING LTD.7.52%217 164
PFIZER INC.6.13%205 273
NOVARTIS AG0.47%194 072
SANOFI7.63%115 490
More Results