Merck liability climbs after ruling

Pharma watchers continue to struggle to make sense of the verdict in Ernst v. Merck as the focus of attention shifts toward upcoming cases facing the drug company, particularly the trial scheduled to start in September in Atlantic City, New Jersey. On Monday, Wall Street analyst Catherine Arnold doubled her earlier estimate of the drug maker's liability for the painkiller to $10 billion as a result of the company's defeat in the case. To put those numbers in perspective: on Friday, the value of Merck's stock fell $5 billion as investors reacted to the news of the verdict. In 2003, the last full year in which the painkiller was on the market, Merck brought in $2.5 billion from sales of the Cox-2 inhibitor.

- see this story from the Baltimore Sun

PLUS: While the Ernst case has earned Houston attorney W. Mark Lanier instant notoriety, the attorney will not see very much of the award, The Wall Street Journal reports. Story (sub. req.)

ALSO: The Ernst decision has divided supporters of the drug industry and critics. In an editorial in today's Boston Globe, economists Steven Sharell and Michael Polansky argue that the verdict will ultimately hurt consumers. Op-Ed