Merck & Co to start $4.85B Vioxx payout

US drug major Merck & Co says that it is satisfied that the thresholds necessary to trigger funding of the program to resolve state and federal claims regarding damage resulting from its long withdrawn COX-2 inhibitor Vioxx (rofecoxib) have been met (Marketletters passim). It says that more than 97% of eligible claimants have initiated enrollment in the accord, and that it will begin making interim payments in August.

Under the terms of the agreement, Merck could exercise its right to walk away from the deal if the thresholds and other requirements were not met. However, the company said that it would be waiving that possibility as of August 4. The waiver will trigger Merck's obligation to pay a fixed total of $4.85 billion, with the firm making payments in installments into the resolution fund, with the first amount of $500.0 million scheduled for August 6. Additional payments will be made on a periodic basis going forward, when and as needed to fund both claims and administrative expenses.