The decision could leave drug companies exposed to more liability lawsuits
The Supreme Court ruled that Wyeth, on of the world’s biggest drug companies, should be held accountable for the injuries caused to a patient from inadequately labelled drugs, according to reports.
The Court’s decision upholds a verdict from a Vermont court that Diana Levine was entitled to a $6.7m judgment against Wyeth for injuries suffered after taking one of the drug maker's medicines.
Patients and drug companies have been locked in a long running legal battle over the issue of whether federal regulation of prescription drugs prevents lawsuits over drug safety.
Wyeth claimed that because the Food and Drug Administration approved the label that prevented any claims against it on the grounds the label was inadequate.
“[The Supreme Court decision] will likely lead to increased insurance premiums for pharmaceutical companies seeking product liability coverage.
But the Supreme Court brushed the argument aside and stressed that the ‘manufacturer bears responsibility for the content of its label at all times.’
In so doing the court prevented Wyeth from palming off its responsibility to issue warnings on its products.
The decision is seen increasing the number of liability lawsuits and creating more uncertainty about labelling practices, said Dow Jones.
It will likely lead to increased insurance premiums for pharmaceutical companies seeking product liability coverage, said the law firm Edwards Angell Palmer and Dodge.
