Diet Drug Settlement Hearings Begin

On May 2, a U.S. District Court in Philadelphia began hearing evidence concerning the fairness of American Home Products' (AHP; Madison, NJ) diet drug settlement. Judge Louis C. Bechtle will decide whether to approve the proposed settlement (subject to appeal by both sides) once the fairness hearing is completed.

Judge Bechtle granted the settlement preliminary approval last November. In December, a 120-day public-notice program began, with less than 1% of the 5.8 million diet drug users choosing to "opt out" of the settlement by March 30, 2000.

Wyeth-Ayerst Laboratories, the pharmaceutical division of AHP, voluntarily withdrew two diet drugs—Redux (dexfenfluramine) and Pondimin (fenfluramine)—from the market on September 15, 1997, after the FDA presented preliminary information about possible heart valve abnormalities in some patients using these products. Federal and state litigation ensued. In November 1999, AHP proposed its comprehensive, nationwide settlement.

The settlement offers a range of benefits depending on whether or not the diet drug user has heart valve regurgitation, and to what extent the condition occurs. Benefits include: refunds for the cost of the drugs, medical screenings, additional medical services or cash payments, and substantial compensation in the event of serious heart valve problems.

Wyeth-Ayerst Laboratories is a research-oriented pharmaceutical company with products in the areas of women's health care, cardiovascular disease therapies, central nervous system drugs, anti-inflammatory agents, vaccines, and generic pharmaceuticals. American Home Products is a research-based pharmaceutical and health care products company.

For more information: American Home Products Corp., 5 Giralda Farms, Madison, NJ 07940-0874. Tel: 973-660-5000. Fax: 973-660-7026.

Edited by Jim Pomager