Novice Investing - Merck Got The Nod

Date: Tuesday 07th 2008f October 2008 02:06:43 AM

Merck Got The Nod - 11/03/2005

By: Novice Investing Staff

Merck Co & Inc. (MRK) won a victory for its New Jersey Vioxx case. A lot of major financial newspapers characterizes the win as 'major' but we won't go that far. First of all, the plaintiff does not have a strong case for a win in the first place. He only uses the pill for two months and he is still presently alive. Furthermore, the jury comes from New Jersey, which is Merck's home town and a few other pharmaceutical headquarters. Merck employs a lot of people in the state and the jury is bound to be sympathetic towards Merck.

This is a must-win case for Merck. A win won't change anything while a loss will be devastating to its stock price. As we have said plenty of times, Merck's investors should watch for the first federal case in New Orleans. The venue might be different due to hurricane Catrina. But, wherever it is, investors should watch this trial because this is the federal level. It will set the tone for other lawsuits. For lawsuits in the local court, Merck can always appeal for the court's decision.

Therefore, while it is a relief to get a victory for the New Jersey case, it is still a long way to go. This case does not set a tone for other thousand of cases that Merck has to defend. Enjoy any pop in the stock price. In the meantime, investors can afford to wait with Merck's juicy dividend.

END

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Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding Merck Co & Inc.(MRK) or other securities.

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