Dow establishes fund to settle Bendectin suits Merrell Dow Pharmaceuticals has agreed to establish a $120 million fund to settle current and potential claims in the U.S. involving Bendectin, an antinausea drug for pregnant women formerly produced by the Dow Chemical subsidiary. More than 700 lawsuits currently charge that the drug, which was taken by millions of women during the 27 years it was marketed, was responsible for birth defects ranging from missing limbs to heart defects to cleft palates. Merrell Dow denied any liability in reaching the settlement, saying it had agreed to the plan solely for business reasons. The company stopped production of Bendectin in June 1983, also for business reasons. "Basically, we can no longer justify expending large amounts of money on attorneys' fees, defense costs, and personnel costs for a product which is no longer being manufactured and which, due to our litigious society, could be the subject of litigation for years in the future," c o m m e n t e d David B. Sharrock, president of the unit. Merrell Dow will pay $120 million into the fund over a period of 20 years. An initial payment of $40 million will be made now, followed by an additional $20 million once the settlement is approved by an appeals court. Annual installments of $5 million or $2 million will complete the fund after that. The total, which could exceed $120 million eventually with investment interest, will be used to pay not only claimants but also attorneys' fees and administrative costs. The settlement was made possible when Cincinnati federal district court judge Carl B. Rubin established a class of claims to encompass all suits. Final approval from Judge Rubin will not come until after those who suffered birth defects have a chance to testify at a hearing on the settlement's fairness next month. The settlement resembles the $180 million agreement reached between attorneys on the eve of the agent orange trial in May (C&EN, May
Oreffice: solely for business reasons 14, page 6). Dow Chemical was one of seven defendants in that case. A committee, to be appointed by the court, will have to decide how to divide the fund among the claimants on Bendectin. It is anticipated that, in addition to the more than 700 people already suing Merrell Dow, others will now come forward. Merrell Dow has won two previous court cases involving Bendectin, including one in which a $750,000 jury award was set aside by the judge. Still, the experience has clearly been a searing one for the company and its corporate parent. In a past interview, Dow chief executive Paul F. Oreffice told C&EN that Dow would never produce another drug for pregnant women. D
Eastman to expand its animal nutrition efforts Eastman chemical division of Eastman Kodak plans to move its animal nutrition research facilities in Rochester to a new expanded center to be built near t h e firm's Kingsport, Tenn., chemical research and production complex. Some of the 30 animal nutritionists, physiologists, endocrinologists, microbiologists, and veterinarians to be employed in the new center will transfer from the Rochester laboratory. Support personnel will add another 30 to that number. Scheduled to open in 1986, the 200-acre site will have, in addition to labora-
tories, a barn for 100 dairy cows, a feedlot for 500 beef cattle, facilities for smaller farm animals, and a feed mill. Construction will begin early in 1985. Eastman has done research on animal nutrition for the past 15 years, says James Chitwood, who is a vice president and director of research for the chemical division. Future products from the company will come out of its positions in raw materials, patents, and processing techniques, he says. The first such product, announced in April, is a feed supplement that increases milk production in cows 10%, or about 3 to 4 lb per day per cow. The supplement is a mixture of volatile, branched-chain fatty acids occurring naturally in cattle rumen. These acids are thought to be nutrients for the microorganisms that live in the rumen. Eastman produces such branched-chain acids as isobutyric and 2-ethylhexanoic at its Kingsport plant. The new product will be tested on 64 farms in Michigan, beginning this fall. Plans for a beef cattle feedlot have generated speculation that other products the company may be working on include feed additives to enhance flesh formation. But executive vice president Toy F. Reid has refused to confirm this, saying that speculation on the company's future products is premature. •
Two petition candidates to vie for ACS director posts Two candidates for positions on the American Chemical Society's Board of Directors have been nominated by petition to compete with previously selected candidates in the ACS election this fall. For director from Region III, petition candidate Ned D. Heindel of Lehigh University will vie with George E. Heinze and Barbara A. Montague. And for director from Region VI, petition candidate Attila E. Pavlath of USDA's Western Regional Research Center will run against Orville F. Hill and Jean'ne M. Shreeve. Election ballots for these posts as well as for ACS president-elect will be mailed to members in October.
July 23, 1984 C&EN
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