Merck Unit Often Favored Own Drugs

A Merck & Co. subsidiary that was supposed to find drugs at discount prices for corporations and health plans often favored expensive Merck products such as Zocor and Pepcid, newly unsealed court documents indicate.

U.S. District Judge Charles Brieant unsealed papers Tuesday in federal court in White Plains, N.Y., revealing market share for Merck products among clients of Medco, a pharmacy benefits management company that is part of Whitehouse Station, N.J.-based Merck.

Several Merck drugs had higher market shares among Medco customers than among the population at large. The class action, a consolidation of several suits, alleges Medco violated its duty to its clients.

Merck shares dipped 13 cents to $58.98 on the NYSE.