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February 15, 2013

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tom sightings

Interesting. I wonder, how much of that $688 million did the investors get? How much did the lawyers get? And how much have Merck drug prices gone up to cover the litigation costs?

Rita

Hi Tom,

Good questions. Usually, when it's a government settlement they announce what the money will be spent for.

In many legal cases, the attorneys get a third of the winnings.

As for Merck's prices, I'm sure the company has a tremendous legal budget. If you read my blogs often, you will have seen dozens of articles about prescription drug companies settling for millions again and again for deceptive business practices, including promoting off label uses of the drugs. It looks to me like legal costs are a part of their business costs.

Thanks for your comment.

Rita

P.S. Doctors can prescribe drugs for off label uses, but drug companies can't promote them.

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