How much net profit did Wyeth make on Fen-Phen?

Discussion in 'Wyeth' started by Anonymous, May 24, 2006 at 4:59 PM.

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  1. Anonymous

    Anonymous Guest

    Fen-phen pact seen resolving least serious claims

    By Ransdell Pierson Wed May 24, 1:50 PM ET



    NEW YORK (Reuters) - Wyeth said on Wednesday a federal judge had approved an amendment to a national settlement of lawsuits over its recalled "fen-phen" diet drugs that will speed compensation for the least serious health claims.

    The May 2004 amendment of the settlement between Wyeth and lawyers for former fen-phen users was approved by Judge Harvey Bartle in Philadelphia. It changes payment procedures and guidelines and creates a new supplemental fund, into which Wyeth will ultimately deposit $1.275 billion.

    Company spokesman Doug Petkus said the money is part of the $21.1 billion Wyeth has previously set aside to cover legal costs and settlements since two of its diet drugs were recalled in 1997 after being linked to heart-valve damage. He said Wyeth is not contemplating new charges.

    "The company maintains that the $21.1 billion we've put into reserves is the amount that will be required to manage the diet drug issues going forward," Petkus said. Wyeth in recent months had cautioned that additional fen-phen charges might be required.

    The agreement covers about 42,000 people who have not yet been compensated under the earlier Wyeth global settlement with former users of the diet drugs, Petkus said.

    "These claims involve people with the least serious" alleged harm from the drugs, said Petkus, but represent "the most numerous" outstanding claims.

    Thousands of other former users of the drugs, typically alleging more serious harm, have opted out of the national settlement. They are reserving the right to sue Wyeth, in hopes of winning greater compensation.

    "The approved amendment to the settlement will help Wyeth take care of a lot of the low-level claims, and let it focus on the more difficult claims," said Oppenheimer & Co. analyst Scott Henry.

    Wyeth's recalled drugs were Pondimin, whose chemical name is fenfluramine, and Redux, whose chemical name is dexfenfluramine. To make the fen-phen slimming cocktail, which was taken by 6 million Americans, either one of the drugs was combined with another called phentermine that is still sold by other companies.

    Shares of Wyeth were down 66 cents, or 1.4 percent, to $46.74, in afternoon trade on the New York Stock Exchange, amid a decline of 0.8 percent for the American Stock Exchange Pharmaceutical Index of other large drugmakers.
     

  2. Anonymous

    Anonymous Guest

    Good question.
     
  3. Anonymous

    Anonymous Guest

    Wyeth has still made boatloads of $$$ even when you subtract the losses due to lawsuits.

    Same for Merck and Vioxx. Drug companies know this. I'm sure they think, so what if a few thousand people die or get injured, we will still make billions buying doctors to overprescribe this drug.

    [​IMG]
     
  4. Anonymous

    Anonymous Guest

    No wonder the jury is throwing one billion dollars per case against the Uncle in punitive damages in these lung problem cases going on now ---- and why Wyeth took a walk on trying to appeal it.

    Puntives are meant to hurt and disgorge ill-gotten profits. They are benchmarked to the value of the company to teach them a lesson.

    This new round of lung damage law suits is going to cost Wyeth plenty because these cases are just starting; not the heart damage cases which are now winding down.

    More to come. Watch this spot. There go a few more years of bonuses. How do they keep the morale up there?
     
  5. Anonymous

    Anonymous Guest

    My bonus was great last year. Don't you remember? Wyeth kicked ASS last year. We had to raise estimates a few times.

    You don't really know your facts, do you?
     
  6. Anonymous

    Anonymous Guest

    Read my lips. $21 BILLION in legal damages (so far, still counting) is not a Good Thing.

    Wyeth has no credible pipeline or R&D. Wyeth needed to spend that money developing its future, not paying and paying for its sordid and criminally reckless past.

    No matter how you slice it. The company shot itself in its own foot. And strangely keeps doing it. Why is that?
     
  7. will123

    will123 Guest

    Nobody said that the 21 Billion was a "good thing". Hello??? Further, how much of that 21 billion was the result of fraud by lawyers as opposed to true claims of harm? There are many many lessons to be learned from fen phen.

    That being said, wyeth did have a very good year last year and has outperformed its peers over the last few years. Wyeth employees are getting bonuses, be sure of that.

    Regarding wyeth's pipeline, how "credible" it is depends on your position I guess. Why is Wyeth consistently recognized for its pipeline if things are so bad? You need to further substantiate your "credible" comment. As it stands, you comments reflect more your distaste for wyeth than anything else.
     
  8. Anonymous

    Anonymous Guest

    You seem to be forgetting material facts:

    1. Wyeth SETTLED that amount in damages. They participated in this fraud then if you say they went to phony cases. Guess again. Wyeth was happy to not face another jury because their bad facts were killing them. They got of easy with only $21 billion. Your fraud claim does not fly.

    2. The phrase is always "wyeth has one of the better pipelines in the business". Get it?

    Wyeth has a lousy pipeline but their smoke and mirrors marketing brigade has everyone believing they have something which in this industry alone is "something". No one else has any real surprises up their sleeves because they all sold out long ago.

    Ergo, Wyeth has one of the "best" in the business. This is like saying 1000 times 0 is still 0.

    Or maybe you understand Saddam Hussein now when he claimed he had WMD just to keep Iran off balance, when in fact he had shit. Only Bush was too stupid to understand this.
     
  9. Anonymous

    Anonymous Guest

    you seem to be forgetting that AHP was in such fine shape from a profit stand point, that had we not engineered the legal fiascos someone would have purchased us for a premium. Sure, shareholders and employees would have been RICH beyond dreams, but then again I am already rich beyond dreams and I wouldn't have had a little empire to run and turn over to my minnion, little Bobby. Signed - John in NJ
     
  10. Anonymous

    Anonymous Guest

    Forbes Broke 5 years I tell You
     
  11. Anonymous

    Anonymous Guest

    Not enough to keep licking the stamps on your paystubs.
     
  12. Anonymous

    Anonymous Guest

    [ QUOTE ]
    You seem to be forgetting material facts:

    1. Wyeth SETTLED that amount in damages. They participated in this fraud then if you say they went to phony cases. Guess again. Wyeth was happy to not face another jury because their bad facts were killing them. They got of easy with only $21 billion. Your fraud claim does not fly.
    The attornies who participated in the case ADMITTED that up to 75% of the claims were fraudulent. This is being looked into.
    2. The phrase is always "wyeth has one of the better pipelines in the business". Get it?

    Wyeth has a lousy pipeline but their smoke and mirrors marketing brigade has everyone believing they have something which in this industry alone is "something". No one else has any real surprises up their sleeves because they all sold out long ago.
    Hey, can I borrow your brain? I'm building an idiot.

    Ergo, Wyeth has one of the "best" in the business. This is like saying 1000 times 0 is still 0.

    Or maybe you understand Saddam Hussein now when he claimed he had WMD just to keep Iran off balance, when in fact he had shit. Only Bush was too stupid to understand this.

    [/ QUOTE ]
    Based on your dumbass remarks, I'd say you're in no position to be calling ANYONE idiot.
     
  13. Anonymous

    Anonymous Guest

    It would be nice if only credible people were allowed to post.... Anti-Wyeth people stay off (in other words- get a life, losers)
     
  14. Anonymous

    Anonymous Guest

    Wyeth probably got what they deserved, given their manipulations of the FDA to get Redux approved. But a deeper problem is American obesity and the willingness to believe that you can and must lose weight by taking a little pill.
     
  15. so what about the poor shmuck claimants that were suckered into this fenphen settlement by cooked echo qualifiers by cooked lawyers? Judge Bartle III needs to be looked at by federal authorities for failure to prosecute this fraud. He turned his back on claimants within this settlement. He is a disgrace to the bench and should be removed and censored.
     
  16. #16 Anonymous, Feb 4, 2014 at 5:47 PM
    Last edited by a moderator: Jul 30, 2017 at 9:27 AM
    Anonymous

    Anonymous Guest

    In America everything is easier by taking a pill. Got forbid you walk a little, eat a little less, drink diet soda/water. We live in a pill taking society. Unfortunately there is no such thing as a 100% safe pill. Would aspirin be approved today? How about the "magic bullet" penicillin? 1.5 billion to get a drug approved!!! This industry is dying a slow death. Once price controls come….good bye!!