Pharmaceuticals: Strategic Withdrawal

Strategic Withdrawal

Dow Corning Corp., which pioneered silicone-gel breast implants in 1962, last week became the third manufacturer to abandon the market. The target of hundreds of lawsuits that could cost the company $1 billion, Dow Corning finally succumbed to the national furor that erupted over allegations that the implants can cause major health problems.

Even as the company withdrew, it insisted that there is no proof that leakage from Dow implants causes significant damage. But it announced a $10 million fund for research into implant questions and said it will pay up to $1,200 (of a cost that ranges from $500 to...