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news.Pharmaceutical giant Merck & Co has revealed that it faces tax liabilities in the US and Canada that could total $5.58 billion, as a result of past transactions disagreements.
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The news comes as Merck has other liability concerns relating to the drug Vioxx, which was withdrawn from the market after it was suggested that the treatment could cause heart attacks and strokes. Merck faces thousands of lawsuits concerning Vioxx that could potentially cost the company billions of dollars.
The details of the tax disputes were disclosed in a quarterly filing with the Securities and Exchange Commission. In the filing Merck commented that it disagreed with the tax assessments and said it planned to challenge the matter.
“The resolution will not have a material adverse effect on the company’s financial position or liquidity,” the company said.
The Wall Street Journal has recently reported that from the potential liabilities reported in the filing, Merck has already disclosed $2.3 billion associated with a 1993 partnership deal.