Bayer and J&J Move to Settle Xarelto Blood-Thinner Claims -- WSJ
March 26 2019 - 3:02AM
Dow Jones News
The $775 million settlement resolves 25,000 claims over the
blood thinner
By Sara Randazzo
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 26, 2019).
Bayer AG and Johnson & Johnson have agreed to pay $775
million to resolve claims that the blood thinner Xarelto causes
excessive bleeding, according to the companies.
The deal, reached with plaintiffs attorneys, will resolve 25,000
claims and is structured to limit liability going forward.
The two companies, which jointly developed the drug and will
evenly split the settlement cost, have won all six Xarelto cases
that have gone to trial so far.
Xarelto is Bayer's top-selling drug and remains on the market.
The companies aren't admitting liability as part of the deal, which
allows them to pull out if not enough eligible plaintiffs sign onto
it.
Bayer said Monday the settlement "allows the company to avoid
the distraction and significant cost of continued litigation" and
that it remains committed to the more than 45 million patients
world-wide who have been prescribed Xarelto.
Johnson & Johnson said "We believe this is the right thing
to do for patients and their doctors" and that it stands by the
safety of the drug.
Andy Birchfield, a lawyer at Beasley Allen who represents the
plaintiffs, said the elderly plaintiff population and a
warning-label change in 2015 that restricts future claims made now
the right time to settle. "This is really difficult and challenging
litigation," he said. "I think this provides fair compensation to
the claimants here."
The settlement resolves a legal headache for Bayer and Johnson
& Johnson, but several more remain for both companies.
Bayer is fighting claims that its popular weedkiller Roundup
causes non-Hodgkin lymphoma and other cancers; uncertainty over the
litigation and two adverse jury verdicts have depressed the
company's stock price. Other lawsuits challenge the safety of two
Bayer birth-control drugs.
Johnson & Johnson faces lawsuits claiming its talcum-based
baby powder causes cancer as well as claims over hip implants,
pelvic mesh and diabetes medication.
Plaintiffs' lawyers have flooded the airwaves in recent years
with television advertisements warning about the risks of Xarelto.
Approved in 2011, Xarelto belongs to a new generation of blood
thinners aiming to better balance keeping blood thin enough to
avoid clotting but sufficiently thick to prevent bleeding
episodes.
The lawsuits, which have accumulated mostly over the past five
or so years, claim the drugmakers played down Xarelto's risks,
resulting in injuries including internal bleeding, stroke and
death.
In light of the agreement, U.S. District Judge Eldon Fallon in
New Orleans on Monday halted litigation in his courtroom that had
consolidated thousands of Xarelto lawsuits filed in federal court.
The judge put in place extra burdens for anyone looking to pursue
claims outside the settlement process, including submitting a
report from a licensed physician supporting claims that injuries
were caused by Xarelto. Mr. Birchfield said he didn't expect many
new claims to be filed.
Under the settlement, payments will be substantially less for
anyone who was prescribed the drug after Dec. 1, 2015, when its
warning label changed, or for those whose first alleged injury came
after March 1, 2016. Payments are also capped for anyone
hospitalized for two or fewer consecutive days.
Xarelto has been a large revenue generator for Bayer, which is
looking to develop new drugs as the patents on Xarelto and other
top drugs are set to expire in coming years.
Write to Sara Randazzo at sara.randazzo@wsj.com
(END) Dow Jones Newswires
March 26, 2019 02:47 ET (06:47 GMT)
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