Thursday, July 21, 2005

Merck Stock news today July 21, 2005

Merck & Co. reported a drop in second-quarter profit hurt by a tax charge and the withdrawal last year of its Vioxx arthritis drug. Total sales fell 9 percent to $5.5 billion, which was attributed to the loss of Vioxx revenue in large part, which at one time generated some $2.5 billion in annual revenue.

Legal costs associated with the withdrawn drug are expected to rise,but Merck did not increase its legal reserves during the second quarter.

Comment: Why didn't it increase legal reserves? Probably to avoid a double whammy on the pounding the stock is currently taking on the reports.

Crystal Ball: I do believe that the Texas case may settle before it a jury verdict is returned.