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Merck & Co. (NYSE:MRK) has announced that it will pay $4.85 billion to settle thousands of state and federal lawsuits over its drug Vioxx.

In one of the largest drug settlements ever, company officials estimate that, if accepted, the deal would end 45,000 to 50,000 personal injury lawsuits. Vioxx users have been suing based on the drug being responsible for their heart attacks or ischemic strokes.

"Without this settlement, the litigation might very well stretch on for years," Merck executive vice president Kenneth Frazier said during a conference call.

Vioxx was removed from the market in September 2004 after researchers found that the arthritis treatment double the risk of heart attack and stroke in users. Previously, the drug was making Merck approximately $2.5 billion a year.

Yahoo is reporting that

To qualify for a settlement, plaintiffs must have filed claims by Thursday and meet several criteria, including medical proof that they suffered a heart attack or stroke, that they received at least 30 Vioxx pills and that they received enough pills to support a presumption that they were ingested within two weeks before injury. That is a big concession by Merck, which has long claimed that Vioxx caused harm only after 18 months of use. Those claims were dismissed by independent scientists and plaintiffs lawyers. Payments would vary, depending on severity of injuries, length of time that Vioxx was used and each person's risk factors for cardiovascular disease. A complex system would assign points to each claimant. Payments could start as early as August 2008.

Read more in the Official Vioxx Settlement Statement

[Source: Yahoo News]