8. Merck’s Vioxx
This happened in 2004.
A pathbreaking medication for arthritis had hit the market in 1999 that soon turned into a super hit. It was Merck’s Vioxx.
However, in September 2004, the same drug got entangled in a controversy when studies revealed that it shot up the risk of fatal strokes and heart attacks. Merck had to recall the medication.
By this time, about 20 million Americans were already on this medication. An astonishing study showed that 140,000 Americans had suffered heart attacks after being on this medication. About 88,000 of them had died.
After effect:
In 2007, Merck settled a lawsuit for $4.8 billion.
In 2011, it had a settlement of $950 million with DoJ.
In 2016, the company’s shareholders settled a lawsuit for $830 million.
The medication recall had cost the pharmaceutical giant $8.9 billion.
It took Merck two years before it could recover in the market.
