The drugmaker confirms the $4.85 billion deal to settle some 27,000 lawsuits, and will hold a conference call later this morning. Merck is setting aside $4 billion for heart attack claims and $850 million for ischemic stroke claims. And the deal only applies to US residents who had their attacks or strokes in the US. Here is a basic outline of the settlement…

- A plaintiff must offer objective medical proof of a heart attack or ischemic stroke; prove that at least 30 pills were received and that a sufficient number were taken prior to the MI or stroke to support the presumption that Vioxx was taken within 14 days before the injury;

- Individual cases will be examined by administrators of the resolution process to determine qualification based on objective, documented facts provided by claimants, including records sufficient for a scientific evaluation of independent risk factors;

- Merck doesn’t admit causation or fault;

- Neither stroke claims that are hemorrhagic in nature nor transient ischemic attacks will qualify;

- Law firms on the federal and state Plaintiffs’ Steering Committees and firms that have tried cases in the coordinated proceedings must recommend enrollment in the program to 100 percent of their clients who allege either MI or ischemic stroke;

- The parties agree to seek court orders from the four coordination judges requiring plaintiffs’ attorneys to promptly register all of their VIOXX claims, whether filed or tolled, and to identify the alleged injury – in order to establish the universe of all existing claims in the US;

Payment obligations will be triggered only if, by March 1, 2008 (subject to extension by Merck), plaintiffs enroll:
(a) 85 percent or more of all currently pending and tolled MI claims;
(b) 85 percent or more of all currently pending and tolled ischemic stroke claims;
(c) 85 percent or more of all eligible claims involving a death;
(d) 85 percent or more of all eligible claims alleging more than 12 months of use.

- There is no opt-out provision;

The exact number of claims covered by this agreement is unknown, but the total dollar amount is fixed. Payments could begin as early as August 2008 and then will be paid over a period of time. But Merck retains its right to terminate this process without any payment to any claimant, and to defend each claim individually at trial if any of the participation conditions in the agreement are not met.