Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Merck and Company    MRK

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

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

share with twitter share with LinkedIn share with facebook
share via e-mail
06/22/2012 | 07:32pm CEST
   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 [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on MERCK AND COMPANY
05/18AstraZeneca insists future is bright after big Crestor sales hit
05/18MERCK AND : WHO to start treatment with Merck's Ebola vaccine
05/18ONCOLYTICS BIOTECH : Announces Collaboration with Merck and Northwestern Univers..
05/17Jounce sags after ICOS mAb readout
05/16MERCK AND : New Data from Merck’s Leading Immuno-Oncology Clinical Develop..
05/15MERCK AND : Ebola Vaccine Headed to Congo to Help Contain Outbreak
05/15MERCK AND : Moderna and Merck expand partnership to develop new cancer vaccines
05/14MERCK AND : US Pharma Giants Reap Profits as Trump Abandons Campaign Promises
05/14ASTRAZENECA : and Merck & Co., Inc. - Lynparza tablets receive EU approval for t..
05/14MERCK AND : Provectus Biopharmaceuticals Completes Enrollment of Phase 1B Trial ..
More news
News from SeekingAlpha
05/18MeiraGTx Aims For $86 Million U.S. IPO 
05/18Merck recovers from FDA alert-stoked selloff 
05/18This May Be The Best Time To Pick Up Exelixis In 2018 
05/18Investors bullish on biotechs after Trump drug pricing speech 
05/18How To Retire Today With $1 Million 
Financials ($)
Sales 2018 42 112 M
EBIT 2018 13 641 M
Net income 2018 7 201 M
Debt 2018 15 704 M
Yield 2018 3,29%
P/E ratio 2018 22,72
P/E ratio 2019 15,25
EV / Sales 2018 4,15x
EV / Sales 2019 3,95x
Capitalization 159 B
Duration : Period :
Merck and Company Technical Analysis Chart | MRK | US58933Y1055 | 4-Traders
Technical analysis trends MERCK AND COMPANY
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 69,1 $
Spread / Average Target 17%
EPS Revisions
Kenneth C. Frazier Chairman, President & Chief Executive Officer
Robert M. Davis CFO & Executive Vice President-Global Services
Thomas Henry Glocer Independent Director
Rochelle B. Lazarus Independent Director
Leslie A. Brun Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
JOHNSON & JOHNSON-11.36%332 184
PFIZER-1.41%212 424
NOVARTIS-6.55%202 969
ROCHE HOLDING LTD.-8.90%193 622
AMGEN-0.01%115 567