Merck losing supporters in it's Vioxx legal defense

rding to TheStreet.com, as the number of Vioxx-related cases mounts, Merck is discovering that some of its insurers don't want to pay for the company's defense against the lawsuits. Merck says it will fight the insurers' efforts to reduce or eliminate coverage. Merck said the insurers initiated an arbitration proceeding to cancel certain policies "and to void all of their obligations under those policies with respect to the Vioxx lawsuits." The carriers also want to "void their coverage obligations with respect to certain other types of losses covered by those policies," the SEC filing said. Merck added that the number of product liability lawsuits filed in state and federal courts has grown to 850 as of Jan. 31, featuring more than 2,400 plaintiff groups. Merck removed Vioxx from the market Sept. 30 after noting that a clinical trial showed long-term use of the arthritis drug -- more than 18 months -- was linked to higher risks of heart attacks and strokes.

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