Merck Says It's Battling with High-Level Excess Insurers, Reports Spike in Claims

Merck & Co. announced in March that its insurers have commenced an arbitration proceeding seeking to void all obligations under policies it issued the drug manufacturer that may apply to the nearly 1,000 Vioxx-related lawsuits the company is now facing.

In a quarterly report issued by the company in March, Merck said its upper level excess insurers, which provide excess insurance policies potentially applicable to all Vioxx lawsuits, commenced arbitration seeking to cancel the policies.

"The notice also purports to reserve the right of the insurers to raise other coverage defenses, including with respect to the application of exclusions, the …