For by three years Merck and Co. (NYSE: MRK) has been distracted by its pain medication Vioxx. The company voluntarily withdrew the drug from the market in the fall of 2004 following its own study that showed potential higher risk of heart attack. Law suits ensued. that wee hours, it has been reported that 44,000 plaintiffs have submitted paperwork to accept the $4.85 billion settlement agreement and it is believed that Merck will reach the self imposed 85% threshold to go forward with the deal.

If that comes to pass, Merck, which has been defending itself case by case with mixed results, will be able to take a giant step forward in terms of putting that doubtful part of its history behind it. Merck

has won more cases than it has lost, but until that is settled, the unknown leaves doubts in some investors’ minds and naturally some drag on the stock.

When Vioxx was originally pulled off the market, the stock immediately tanked and sensationalist analysts envisioned losses as high as $50 billion. At the instance, I did my own analysis and that settlement turns out to be very shut to my own guesstimate. Trusting my own analysis, I began recommending the stock on that site and to family members, and bought into Merck in several portfolios.

Continue reading Merck nearing 85% settlement target; worth considering

Original post by Sheldon Liber

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