Pharma Roundup: Florida Sues Merck, European Biotech Suffers, and More

Florida suing Merck over “deceptive” Vioxx marketing — The Sunshine State has become the ninth to file a lawsuit against Merck, seeking damages for the $80 million the state’s Medicaid program spent on the drug before its potentially dangerous side effects came to light. [Source: WSJ Health Blog]

Credit woes squeeze European biotech — The credit crisis will likely hamper Europe’s hopes of establishing biotech firms to compete with U.S. powerhouses like Genentech, predicts Pharmafocus. International financial pressures have made IPOs and VC-funding difficult for Europe’s small, specialized companies, leaving them little chance to expand. [Source: Pharmafocus, via PharmaGossip]

Pharma companies have untapped working capital potential — According to Ernst & Young, pharma firms facing uncertain financial futures should consider releasing cash from their working capital. In a study of the 16 largest pharma companies in the U.S. and Europe, the professional services firm found that most could net from $17 to $35 billion. [Source: Medical News Today]

Media report trials in (inadvertently?) pro-Pharma light — The Journal of the American Medical Association has published an investigation into news reports on drug testing, finding that 40% of 306 stories about industry-funded medical trials failed to mention the source of research funding. Furthermore, news outlets often referred to the treatments by brand name. FiercePharma predicts that such practices, presumably beneficial to the industry, will soon disappear with stricter media monitoring. [Source: FiercePharma]