Merck & Co and Johnson & Johnson settlements

US drug giant Merck & Co (NYSE: MRK) revealed yesterday that it has entered into an agreement to resolve all class action related to its COX-2 inhibitor pain killer Vioxx (rofecoxib) in Canada amounting to up to C$36.9 million ($36.0 million). The agreement was signed by Merck and plaintiffs' representatives and is pending approval by courts in Canada's provinces.

"This agreement is structured to provide certainty and finality toward resolving Vioxx cases in Canada for a fixed amount," said Bruce Kuhlik, executive vice president and general counsel of Merck, noting that, "under the agreement, there will be an orderly, documented and objective process to examine individual claims to determine qualification."

If the agreement is approved and specified conditions are met, Merck will pay a total amount of at least C$21,806,250 but not more than C$36,881,250. This would resolve all Vioxx certified class actions, putative class actions, other litigation and claims related to Vioxx in Canada.