Liability Estimation for Pharma and Medical Device Products Liability

Pharmaceutical or medical device companies facing multiclaimant products liability situations will inevitably seek to evaluate the total liability exposure. Whether early in the process or later in the claim lifecycle, an effective analytical approach integrates information from various sources and provides flexibility to model alternative outcomes. The catalyst necessitating the preparation of a robust liability estimation analysis varies from case to case. Common impetus may include, among other things: evaluation of potential settlement structures with underlying claimants, assessment of overall risk for management planning, quantification of cash flow needs, financial reporting purposes, contemplated corporate transactions, and insurance coverage analysis. Each situation is different, but a general framework can guide the process to ensure consideration of the substantive issues.