Pfizer settles 80% of Chantix lawsuits for $273 million

[Bill Godshall]

Pfizer settles 80% of Chantix lawsuits for $273 million
Pfizer settles suits over anti-smoking drug for $273 mln


Hopefully, this will encourage some public health and product safety advocates to join me in urging FDA to at least require Chantix to have a black box warning for suicide and suicidal thoughts, and perhaps to remove it from the market.

While I don't want FDA to remove Chantix from the market (because it has helped some smokers quit), I think Chantix should be recommended by public health officials as a Plan E smoking cessation remedy (after cold turkey, e-cigarettes, smokeless tobacco and NRT) since Chantix poses far greater risks than these 4 other smoking cessation methods.

Hopefully, this Chantix settlement will make state legislatures reconsider their support of bills to require taxpayers and healthcare insurance companies to subsidize (i.e. pay for) Chantix for smokers who call the state quitlines and those who enroll in smoking cessation programs.

Also, perhaps this Chantix settlement will convince FDA, CTFK, ACS, AHA, ALA, AMA, AAP, Legacy, etc. to stop promoting Chantix as a "safe and effective" way to quit smoking.

 

[Bill Godshall]

In addition to the $273 million settlement for about 80% (i.e. 2,160) of the 2,700 lawsuits, Pfizer also set aside $15 million to purportedly "finalize the remaining claims."

While that settlement may sound large, its only an average of $126,388 per plaintiff, and probably less than $75,000 per plaintiff after the lawyers take their cut and expenses.

But since Pfizer only settled with plaintiffs who agreed to settle their cases, it is very likely that many/most/all plaintiffs who didn't settle want a lot more money than Pfizer offered.

Thus, settling the remaining 20% of cases (and/or taking them to trial) almost certainly will cost Pfizer far more than $15 million (i.e. perhaps ten or twenty times that amount). I suspect that Pfizer simply budgeted $15 million for the quarter (or year) for that purpose, and that ongoing litigation and resolving settlements will continue for many more years (especially since Pfizer is still agressively marketing Chantix, which will generate even more lawsuits).

 

[Petrodus]

Expected lawsuits are just a part of BP's budgeted business plan.

Pfizer will continue marketing Chantix until the cost outweighs the benefit.
In other words ... As long as they are making a profit on Chantix ...
The commercials will continue to run on TV .. day after day after day !!


Sarcasm Alert
Q: Will the FDA ever recall Chantix ??
A: The FDA would have to first get permission from Pfizer.

 

[Bill Godshall]

I don't know how much Chantix Pfizer sells in the US each year, but the $273 million settlement probably accounts for much, most or all of the operating profit Pfizer has made on Chantix since it began selling the drug.

Under proper accounting, Pfizer would pass along their Chantix litigation costs to future Chantix consumers (as a cost of doing business).

I suspect that Pfizer has also increased the price of Chantix to cover future litigation costs.

Unfortunately, as with other prescription drugs, the primary consumers of Chantix are government agencies (via Medicare, Medicaid, VA, state smoking cessation programs) and healthcare insurers, which (unlike real consumers) don't care much about price hikes, which are simply passed along to taxpayers (i.e. higher taxes) and to healthcare policy holders (i.e. higher insurance premiums).

 

[sonicdsl]

Thanks for the update, Bill. I had read somewhere though that Chantix was already required to have the black box warning, no? Maybe it was just a plea to require it. I was thinking it should be removed, but I trust your judgement, if you think it still has a place as last resort (providing it's under careful watch, maybe as controlled-substance-type reg's?).

Also, I was wondering if the settlement precluded or required "admission of guilt", so to speak, as I know oftentimes settlements do not include admissions as such.

 

[NorthOfAtlanta]

Stuff like this makes you wonder just how loud we are going to have to be to overcome people who consider a quarter billion dollar loss as a cost of doing business?

 

[Petrodus]

Stuff like this makes you wonder just how loud we are going to have to be to overcome people who consider a quarter billion dollar loss as a cost of doing business?

Reality Alert

 

[r77r7r]

Pfizer settles 80% of Chantix lawsuits for $273 million
Pfizer settles suits over anti-smoking drug for $273 mln


Hopefully, this will encourage some public health and product safety advocates to join me in urging FDA to at least require Chantix to have a black box warning for suicide and suicidal thoughts, and perhaps to remove it from the market.

While I don't want FDA to remove Chantix from the market (because it has helped some smokers quit), I think Chantix should be recommended by public health officials as a Plan E smoking cessation remedy (after cold turkey, e-cigarettes, smokeless tobacco and NRT) since Chantix poses far greater risks than these 4 other smoking cessation methods.

Hopefully, this Chantix settlement will make state legislatures reconsider their support of bills to require taxpayers and healthcare insurance companies to subsidize (i.e. pay for) Chantix for smokers who call the state quitlines and those who enroll in smoking cessation programs.

Also, perhaps this Chantix settlement will convince FDA, CTFK, ACS, AHA, ALA, AMA, AAP, Legacy, etc. to stop promoting Chantix as a "safe and effective" way to quit smoking.

Maybe you should rethink that Bill. I couldn't believe it when I read what you had written. Do you maybe think that the lawsuits are frivolous?

 

[Poeia]

I don't know how much Chantix Pfizer sells in the US each year, but the $273 million settlement probably accounts for much, most or all of the operating profit Pfizer has made on Chantix since it began selling the drug.

Under proper accounting, Pfizer would pass along their Chantix litigation costs to future Chantix consumers (as a cost of doing business).

I suspect that Pfizer has also increased the price of Chantix to cover future litigation costs.

Unfortunately, as with other prescription drugs, the primary consumers of Chantix are government agencies (via Medicare, Medicaid, VA, state smoking cessation programs) and healthcare insurers, which (unlike real consumers) don't care much about price hikes, which are simply passed along to taxpayers (i.e. higher taxes) and to healthcare policy holders (i.e. higher insurance premiums).

Bloomberg article
December 12, 2012 (12/12/12)

Chantix generated $720 million in sales last year for Pfizer, the world’s largest drugmaker, according to data compiled by Bloomberg. The FDA notice said that about 2.3 million Chantix prescriptions were dispensed in the year ended in September.

So, for about 1/3 of one year's profits, Pfizer gets to keep selling it.

 

[Rickajho]

Hey Bill

But, but, but...

That article you cited says:

"By 2009, the Food and Drug Administration had required a so-called black-box label on the drug warning of the risk of suicidal thoughts, depression and other behavior changes."

Chantix does have that black box warning at this point, doesn't it?

I wonder how the drug is faring overseas, lawsuit-wise.

I know a couple few people who tried Chantix in a smoking cessation group - none of them could get past the side effects to consider continuing it.

 

[Bill Godshall]

That news article's claim was inaccurate.

In 2009, the FDA required a Black Box warning on Chantix for heart attack risks, but not for suicide, suicidal thoughts or depression.

r77r7r wrote

Maybe you should rethink that Bill. I couldn't believe it when I read what you had written. Do you maybe think that the lawsuits are frivolous?

From 1986 to 1998, I advocated and assisted with lawsuits against cigarettes companies, which resulted in the 1998 MSA and dozens of court verdicts against cigarette companies. But just as I oppose prohibition of cigarette sales (and alcohol, motorcyles, parachutes, snowmobiles and hundreds of other hazardous products whose manufacturers have been sued) I think that many/most hazardous prescription drugs should remain legal.

The civil justice system is part of the free market system, with litigation costs and jury awards factored into the cost of the product(s).

Regarding Chantix accounting data, it would be helpful to know if Chantix generated $720 million in US sales last year, or if that figure also applies to sales abroad. I've read other articles indicating that about half of all smoking cessation drugs sold worldwide are sold in the US.

Also please note that $720 million in Chantix sales probably generated no more than $100 million in operating profit for Pfizer.

So if Chantix generated around $360 million in sales in the US last year, Pfizer probably generated no more than $50 million in operating profit, and Pfizer's settlement represented 4-5 years of Chantix profits.

 

[aikanae1]

How do you figure $720 mil is about $100 mil in profit. There's usually anywhere from a 200% to 2000% mark-up on raw materials on generics (per lef.org study). Chantix I believe still has the patent with no generic competition. A fair share of R&D is funded by grants. I don't have a need to look up the specifics on Chantix but usually new drugs won't go through testing or come to market without financials supporting a much, much higher profit margin.

I also noticed Wikipedia was absent of a lot of the controversy over Chantix.

For the past 6-7 years, I have been pushed Chantix prescriptions more time than I can count. The articles are kinda misleading because the black box warning originated due to increased heart attacks. Black outs and gastrointenstinal problems were known.

Great, I can avoid lung cancer by having a heart attack. I'd like to ask many medical proffessionals about their position on that. It makes me mad that we are guinea pigs.

I think this is an important point to make in any argument for reccomending e-cigs. Chantix rate of smoking cessation was less than 20% and I don't know for how long they remained non-smokers. The study was also done by Pfizer. I think the ecig rate, if anyone wanted to look at it, would easily be higher and longer. Hands down.

I don't think many doctors are aware of all this since they get a bulk of their information from what insurance will or won't cover and pharma reps. Most don't have time to do individual research and that's misleading for them.

Yup I tried it. It was like taking an aspirin. Nothing.

 

[Insignificance]

I know a couple few people who tried Chantix in a smoking cessation group - none of them could get past the side effects to consider continuing it.

I was put on Chantix and after a week I started having racing, suicidal thoughts. I called my doctor and he told me to stop taking it and if the suicidal thoughts continued to call an ambulance. It was one of the scariest moments in my life. I have no doubt that Chantix has worked as advertised for a number of people but when things go wrong they go very, very wrong.

 

[Petrodus]

Ask your doctor if Chantix is right for you.
In other words
We warned you this FDA Approved poison could kill you.
Don't sue us ... Sue your doctor !!

I'm wearing out the mute button on my remote
from pressing it every time a Chantix commercial airs.

 

[Petrodus]

My favorite Chantix commercial ... Link

 

[cherrycakes]

it's bad business if all of their customers kill themselves!

As someone who is ALREADY depressed taking Chantix would be signing a death warrant.

That being said, I guess it's easy to quit smoking when you're DEAD

 

[cherrycakes]

Maybe you should rethink that Bill. I couldn't believe it when I read what you had written. Do you maybe think that the lawsuits are frivolous?

Uh, it's been reported that people have had suicidal thoughts or ACTIONS.
If a family member has killed themselves after taking it, I wouldn't consider that frivolous.

 

[cherrycakes]

After taking ambien and ending up in the ER, and realizing that ambien is STILL somehow on the market, I lost all faith in the FDA. Their only concern is making a profit.

 

[r77r7r]

Uh, it's been reported that people have had suicidal thoughts or ACTIONS.
If a family member has killed themselves after taking it, I wouldn't consider that frivolous.

Cherry- I was tired and shouldn't have picked that word. Wasn't what I meant. What I meant was that I couldn't believe that Bill G. supports using it after all the harm it has done and will continue to do.

I was a Chantix user myself and had a very bad time and many here also.

I certainly don't put it into the category of snowmobiles and motorcycles.

If this is the mindframe of our "advocates" SFPA and CASAA, I don't want any part of it/them.

 

[cherrycakes]

Cherry- I was tired and shouldn't have picked that word. Wasn't what I meant. What I meant was that I couldn't believe that Bill G. supports using it after all the harm it has done and will continue to do.

I was a Chantix user myself and had a very bad time and many here also.

I certainly don't put it into the category of snowmobiles and motorcycles.

If this is the mindframe of our "advocates" SFPA and CASAA, I don't want any part of it/them.

oh ok I was confused, sorry there