GSB 714 Bus, Gov’t & Glb Economy
August 3rd, 2014
Case 5:
Merck, the FDA, and the Vioxx Recall
Section I
Merck was one of the world’s leading pharmaceutical firms. The company ranked 4th I sales after Pfizer and Johnson & Johnson and it ranked 5th in assets and market value. Merck ranked 1st in profits, earning $7.33 billion on $30.78 billion in sales.
In 2006, Merck faced major challenges with their once best selling prescription painkillers, Vioxx which was pulled off the market in September of 2004 after Merck learned it increased the risk of heart attacks and strokes.
In 2004, the Justice Department opened a criminal investigation into whether or not the company had “caused federal health programs to pay for the prescription drug when its use was not warranted.”
Merck was renowned for its research labs which had decades of achievements, turning out one innovation after another, including drugs for tuberculosis, cholesterol, hypertension, and AIDS. In the early 2000s Merck spent around 3 billion in research; some felt that the company culture was shaped by its research agenda. The company was described as “intense, driven, loyal, scientifically brilliant, collegial, and arrogant”
Trying to estimate the company’s financial liability from the Vioxx lawsuits would be difficult. From 1999-2004 over 84 million people had taken the drug worldwide. The FDA estimated that 139,000 people in the United States had had heart attacks or strokes as a result of taking Vioxx and 55,000 of those had died. Merrill Lynch estimated the company’s liability for compensatory damages along anywhere from 4-8 billion.
In the US, prescription medicine such as Vioxx were regulated by the Food and Drug Administration (FDA). Before a new drug could be sold in public, the manufacturer had to carry out clinical trials to demonstrate both safety and effectiveness. Advisory panels outside of the medical experts had to review the results of these trials to recommend whether or not the drug should be approved or not.
When FDA shortened their approval time, the percentage of drugs recalled following approval increased from 1.56 percent for 1993-1996 to 5.35 percent for 1997-2001. Vioxx was the ninth drug taken off the market in seven years.
The pharmaceutical industry’s success in increasing the approval of new drugs reflected its strong presence in Washington. Merck spent 40.7 million in lobbying from1998-2004. The most effective technique was to hire former elected officials or members for their staff.
In the 1990’s, 80 percent of pharmaceutical firms growth came from “blockbuster” drugs; medicines that serve vast swaths of the population and garner billions of dollars in annual revenue; drugs such as Vioxx. In 2003, Merck spent 422 million to market Vioxx to doctors and hospitals.
Marketing to doctors and hospitals were important but in the late 1990’s the focus shifted when the FDA allowed drug companies to advertise directly to consumers. Merck spent another 78 million on DTC (direct to consumer) marketing. The DTC was often criticized the advertising saying that it would put pressure on doctors to prescribe drugs that might not be the best for the patient.
Vioxx was known as a selective COX-2 inhibitor, cyclo-oxygenase or COX was associated with pain and inflammation. There were essentially 2 COX enzymes, COX-1 was found to protect stomach lining while COX-2 contributed to pain and inflammation. Other drugs such as Advil suppressed both enzymes which is why some users had stomach irritation.
Many drug companies including Merck were interested by the possibility of developing medicine that could just block COX-2 leaving the stomach-protective COX-1 intact.
After several years of research and testing by Merck scientists, in May of 1999, the FDA approved Vioxx for the treatment of osteoarthritis, acute pain in adults, and menstrual symptoms.
Vioxx quickly became a blockbuster drug for Merck and in its peak in 2001, it generated 2.1 billion in sales in the United Sates alone.
Even before Vioxx was approved, there was evidence that casted doubt on the safety of the drug. Merck Research suggested that some scientists had been worried about cardiovascular risks and VIGOR found that Vioxx was easier on the stomach but caused five times as many heart attacks in the study group, this concerned the FDA and it required Merck to add an additional warning language to its label.
Kaiser/Permanente study showed that patients with big doses of Vioxx had three times the rate of heart attacks than patients on Celebrex (c a competing COX-2 drug), and the APPROVe study by Merck was used to monitor patients enrolled in a trial to see if those taking Vioxx had more heart attacks and strokes than those who were taking a placebo. The study was designed to determine if Vioxx reduced the risk of recurrent colon polyps, Merck hoped the study would lead FDA to approve the drug for this condition .APPROVe was planned before the VIGOR results were known.
On Thursday, September 23rd, 2004, president of Merck Research Lab received a call from scientists monitoring the APPROVe study that after an 18 month trial, individuals using Vioxx were more than two times likely to have a heart attack or stroke than those taking a placebo. The scientist recommended that the study be stopped because of “unacceptable risk”
The president of Merck Research Lab recommended that Vioxx be withdrawn from the market and the CEO agreed. The FDA was contacted and the drug was removed.
Section II
The major issue or problem in this case is if Merck should be held responsible for the potential deadly side effects of patients using Vioxx and whether or not Merck “caused federal health programs to pay for the prescription drug when its use was not warranted”. Vioxx is a selective COX-2 inhibitor that was created for pain and inflammation but unlike other drugs it had a COX-2 enzyme as well that protects the stomach lining from damage such ulcers. The evidence that there is a problem is the fact that the company had to pull the drug from the market and that the Justice Department opened a criminal investigation against Merck.
Vioxx was presented to the market in May of 1999 when the FDA approved the drug for the treatment of osteoarthritis, acute pain in adults, and menstrual symptoms. During the time that the FDA approved this drug, the approval time was shortened and the drug was approved by the FDA before all studies were completed. There was evidence that there would be problems with Vioxx even before the drug was approved by the FDA. Merck Research showed that during the development stage, scientists were worried with cardiovascular risks, VIGOR was a study completed in 2000 after the drug was on the market that found that the Vioxx group had nearly five times as many heart attacks. “Dr. Edward Scolnick, said that cardiovascular events were clearly there and called them a shame”. The Kaiser/Permanente study found that patients with a high dose of Vioxx had three times the rate of heart attacks as patients on Celebrex (competitor drug) The APPROVe trial was designed to determine of Vioxx reduced the risk of colon polyps but once Merck learned of possibly cardiovascular risk, they decided to monitor the trial.
The risks of using Vioxx were too great not to ignore so in September of 2004, Dr. Peter Kim, president of Merck Research Lab received a call from the scientists on the APPROVe trial that told him after 18 months of monitoring, the individuals were more than twice as likely to have heart attacks or strokes than those using a placebo. The scientists recommended that the study be halted because if the unacceptable risk to the patients. During the next few days of this recommendation, Peter Kim meet with several doctors and recommended that Vioxx be removed from the market. The CEO of Merck agreed and contacted the FDA and Vioxx was removed from the market.
Section III
1. Do you believe that Merck acted in a socially responsible and ethical manner with regard to Vioxx? Why or why not? In your answer, please address the company’s drug development and testing, marketing, and advertising, relationships with government regulators and policymakers, and handling of the recall?
I do not believe that Merck made a socially responsible decision when Vioxx was introduced into the pharmaceutical market. There were scientists that were involved in product development and testing that knew that there were serious health risks that could be side effects of the medication such as cardiovascular complications. Merck should have considered what could have been potentially happened and the medication should have been changed in order to minimize the harmful side effects. There were several developments during the Vioxx testing and there were several issues regarding the safety of the drugs that heart attacks resulted from the medication.
Merck used an advertising technique called direct-to-consumer, which was new in the pharmaceutical industry as it was the first time they were allowed to advertise to consumers. Consumers would request this medication, making doctors feel obliged to prescribe from the commercials they saw on television and in magazines. The government and policymakers received large sums of money from the development company during the advertising and marketing phase of the drug. When studies became public of Vioxx users being twice as susceptible to heart attacks, the president of Merck Research Lab, Dr. Kim recommended recalling the drugs due to the elevated risks for users as well as the lack of knowledge as to what was causing the heart attacks. There were mixed emotions for some stating that stronger warning labels should be used and that prescription was to be left for the doctor and patient’s assessment.
2. What should or could Merck have done differently, if anything?
There are several things that Merck could have done differently during the development of Vioxx. When the early stages of research and development showed that Vioxx had an increased potential for cardiovascular events, more extensive research should have been done to determine why there was an increased potential for cardiovascular events. Merck should have continued studies such as APPROVe and VIGOR even if the drug was already approved by the FDA. Addition more extensive testing to determine these potential cardiovascular events, Merck should be asked why these studies weren’t completed during the testing and development stage opposed to when the drug was already approved by the FDA. Merck should have held their product to a higher standard than their competitors and fully research all potential possibilities of why cardiovascular events occurred before the drug was put on the market.
3. What is the best way for society to protect consumers of prescription medicines? Specifically, what are the appropriate roles for pharmaceutical companies, government regulators and policymakers, patients and their physicians, and the court system in assuring the safety and effectiveness of prescription medicine?
The appropriate role of government regulators and policymakers should be to endure the welfare of the public health. They should ensure that pharmaceutical companies do not interfere with the healthcare system such as limited DTC so that doctors can prescribe the correct medications for their patients not what medication their patients saw on a commercial. They should also minimize the influence of politics when making healthcare decisions. Pharmaceutical companies should not appoint former politicians to their staff. The pharmaceutical companies’ role in society should be one of the researcher. The companies should clearly state any and all side effects in a way that patients can see them. The pharmaceutical companies should not directly advertise to the patients. The companies should inform the doctors of the potential risks and they should focus on the wellbeing of the patients. The doctors and physicians’ role in this is to regulate the actual prescriptions given to the patients and to make sure they are informing the patients of the potential risks. The patients should take an active role in their healthcare and make sure they are well informed before taking a prescription. The Court Systems role in this is quite simple-ensure that all laws are being followed and those who are not be fined and appropriate action is taken.
4. How should the present system be changed, if at all, to better protect patients?
I do not think that the present system should be changed but consumers need to take their health and medical decisions seriously. By having patients more involved in their medical decisions, they won’t have to just rely on the pharmaceutical companies and our doctors to make all our medical decisions. While some doctors are paid by the pharmaceutical companies to introduce new drugs to their patients, it should be about healing the sick and not making money from them. Merck should have remembered their core values of “we try never to forget that medicine is for the people. It is not for profits. The profits follow, and if we have remembered that, they never fail to appear. The better we have remembered that, the larger they have been.” Merck should have remembered to protect the people by doing further research to determine the cause of the cardiovascular events before putting hundreds of thousands of patients in risk of getting heart attacks or strokes.
You May Also Find These Documents Helpful
-
“After less than 11 hours of deliberation, a Texas jury yesterday found Merck & Co. responsible for the death of a 59-year-old tri-athlete who was taking the company's once-popular painkiller, Vioxx.” The man’s widow was awarded 253.4 million in damages. Merck was a leading pharmaceutical company established in 1981. They produced groundbreaking drugs during the late 1980’s and were considered one of the most ethical and profitable companies in the industry. However, Merck’s reputation started declining throughout the 1990’s.…
- 718 Words
- 3 Pages
Good Essays -
In May of 1999, the FDA approved the use of rofecoxib. Marketed under the name of Vioxx, rofecoxib was manufactured and distributed by Merck, a large pharmaceutical company. Doctors prescribed the drug as a non-steroidal anti-inflammatory and prescription painkiller. Five years after its release, rofecoxib was withdrawn because of a study that showed the drug more than doubled the risk of heart attack or stroke. Because of Merck’s ongoing and increasing knowledge of the dangerous effects of the drug while continuing to distribute rofecoxib, Merck should be held accountable for acting unethically.…
- 972 Words
- 4 Pages
Good Essays -
Vioxx (Rofecoxib) medication is a class of drug called nonsteroidal and inflammatory drugs (NSAIDs). Vioxx was introduced on May 20, 1999 by Merck & Co. It has been used by over 20 million Americans since it was put on the market. Vioxx works by reducing substances that cause inflammation, pain and fever in the body. Vioxx is used to reduce pain, inflammation, and stiffness cause by osteoarthritis, rheumatoid arthritis and certain forms of juvenile rheumatoid arthritis. Also vioxx is used to treat acute pain in adults, treat migraines, and menstrual pain. Vioxx was available on prescription in both tablets and as an oral suspension. At the hospitals it was also available in injection. Vioxx was prescribed worldwide to up to 80 million people at some time. Vioxx belongs to a class of…
- 830 Words
- 4 Pages
Good Essays -
Cited: Waymor, Damion. Rhetorical and Critical Approached to Public Relations Edition 2. March 19, 2009…
- 672 Words
- 3 Pages
Good Essays -
“May 5, 2005. It was the darkest hour in the pharmaceutical giant 's 114-year history. Merck was drowning in liability suits stemming from Vioxx, its $2.5 billion-a-year arthritis drug, which it had to pull from the market because of a link to heart attacks and strokes. Two other blockbusters worth a combined $7 billion in annual sales were facing patent expirations. And Merck 's labs, which other companies once hailed as a bastion of scientific innovation, were crippled by a culture that buried good ideas under layers of bureaucracy. But in the morass, Clark saw opportunity (www.businessweek.com).”…
- 435 Words
- 2 Pages
Good Essays -
Merck & Co. marketed a drug called Vioxx. The drug was said to have less gastrointestinal problems than its competition – Naproxen. However, Vioxx had considerably more side effects including; heart attacks and strokes (Vershoor,C.C, 2006). Merck and Co. were accused of several unethical acts, therefore, the drugs were pulled from the market in September 2004. Unfortunately, not before 100 million prescriptions were filled. Merck & Co. was also accused of misrepresenting or concealing of study results to doctors. The New England Journal of Medicine reported that previous studies of three patients had been withheld. All three patients suffered heart attacks when taking Vioxx. Sales reps for Merck & Co. were trained to use subliminal selling tactics. Additionally, Merck & Co. only chose biased speakers of their products at educational…
- 985 Words
- 3 Pages
Better Essays -
I think with the aspect of economics the company has done the right thing as far as design great drugs in the past, and often even took losses with the making and delivery of those drugs. When it comes to Vioxx, I tend to believe that they should have informed the public and the doctors prescribing and taking this drug with all their findings and notions before the hard evidence came about. I do believe that not telling the whole truth about their findings to the doctors and the pubic goes against my belief in ethics. If I had anything to do with the distribution of the drug before the 2004 removal from market, I would have really studied the reports and warnings, and if I saw what was being reported and said from the scientist, then I would have stopped the sale of it then, and not wait until 2004. I would then have made a public address and told the public and doctors why we are stopping the sale and production of this drug. This would have again put more faith into the company from the public view as well. This is a hard question because if we look at the tobacco companies, they are still selling tobacco that has been proven over and over again to be harmful to humans and animals. I am a smoker and hopefully one day will quit, but for a company to continue to produce and sell a known harmful and deadly product, this is ethically bad for them as well as our government to even allow it. Where is the ethics in all of this? I will never figure that one out.…
- 900 Words
- 3 Pages
Good Essays -
The actions Merck undertook when marketing Vioxx and emphasizing its safety even after finding out the product’s side effects endangered all its key stakeholders and showed the real face of the company that accented its highly ethical maxims. Cardiovascular side effects of the Vioxx increased the risk of complications that could have caused patient’s death, therefore Merck violated the basic right to life of all the Vioxx consumers. It was already mentioned that Vioxx caused 3468 deaths by heart attack and stroke. All these tragedy events could have been prevented if Merck provided adequate information about all the peculiarities of Vioxx. Even though Merck argued that the withdrawal of tests results was caused by its utilitarian intention…
- 578 Words
- 3 Pages
Good Essays -
Merck is one of the largest and most profitable drug companies in the world, but they have also been a leader in a donation program that helps Third World countries in Africa, South America and Yemen since the 1980’s.…
- 656 Words
- 3 Pages
Satisfactory Essays -
References: Carl, H. T., Lee-Ing Tong, & James, E. T. (2009). The vioxx recall case and comments. Competitiveness Review, 19(2), 114-118. doi: http://dx.doi.org/10.1108/10595420910942289…
- 1377 Words
- 6 Pages
Powerful Essays -
AbstractVioxx became Merck’s most profitable drug in the early 2000’s. The drug was a blockbuster in terms of sales, profit and prescriptions issued. Vioxx also was recalled by Merck and taken off the market in 2004 due to adverse cardiac events CITATION Law14 \l 1033 (Lawerence & Weber, 2014). The drug recall has been studied and discussed as controversial due to the clinical data Merck had in its studies, the FDA quick approval, lobbyist efforts in Washington, and the enormous marketing effort by Merck. The system in place allowed thousands of individuals that where prescribed Vioxx to have…
- 1192 Words
- 5 Pages
Good Essays -
The manufacturer also overdid the promotion on the drug therefore endangering millions of lives through the huge sales made.…
- 528 Words
- 3 Pages
Satisfactory Essays -
1. I believe that Merck was completely responsible for everything that came along with releasing Vioxx to the public. The signs that the drug might not be as safe as they had hoped for should have been enough for them to halt on the release. It was unethical thing they did was not do all the research to find out how serious the effects of the drug really were.…
- 318 Words
- 2 Pages
Satisfactory Essays -
Many drugs that Big Pharma shepherded through FDA approval--drugs like Vioxx, Fen Phen, Celebrex and Zohydro--killed hundreds of people before they were removed from pharmacy shelves. The medical industry and consumers no longer need Big Pharma or its inherent evils. Small, independent researchers, University research departments, private laboratories, government studies and the experiences of hospitals and medical clinics--working autonomously--can deliver better results faster than Big Pharma ever could or would unless those results guaranteed huge profits and virtual marketing monopolies.…
- 840 Words
- 4 Pages
Good Essays -
In the year 2000, Merck produced a controversial product called Vioxx. Four years later it gained worldwide attention because of the drug’s potential cardiovascular risks. This was detrimental to the company’s reputation because it was alleged Merck knowingly distributed Vioxx despite its risk. Both Barbara Martinez and Anne W. Mathews of the Wall Street Journal wrote articles into the investigation of Vioxx. Their article suggests Merck knew the dangers of Vioxx at an early stage of its clinical trials. This information is derived from Edward Scolnick’s email to colleagues, that “the cardiovascular events are clearly there" and called it a "shame."He compared Vioxx to other drugs with known side effects and wrote, “there is always a hazard” (Martinez, Mathews, 2004). Further complications arose for Merck when Richard Horton from the Lance published an article about Merck’s marketing document labeled “Dodge Ball Vioxx” (Horton 2004). This document was intended for the company’s sales representatives which, discussed how to respond to questions about Vioxx. In order to refute the arguments brought up by the Wall Street journalists and Richard Horton, Merck published their own Open Letters. In the Open Letters, Merck used three strategies to try and counter the negative press over its handling of Vioxx. Their persuasive strategies focused on the company’s good sense and knowledge, good moral character, and good will.…
- 710 Words
- 3 Pages
Good Essays