Pharma giant Merck & Co., Inc. (MRK) on Monday said that it has won a summary judgment against the State of Texas stemming from state funds that had been used to support the now-withdrawn arthritis drug, Vioxx.
The judge in the case dismissed all claims in the lawsuit, which was filed in 2005 by the Texas attorney general's office. The suit had sought damages and penalties from Merck for alleged violations of the Texas Medicaid Fraud Prevention Act.
Merck voluntarily withdrew Vioxx from the market on Sept. 30, 2004, citing increased heart attack and stroke risk among long-term, high-dosage patients.
Merck shares rose 22 cents, or 0.6%, in premarket trading Monday.
The Bottom Line
The stock was removed from the "recommended" list last July 21, when shares traded at $35.33 U.S.
The company has a dividend yield of 4.17%, based on Friday’s closing stock price of $36.46 U.S.
The company has technical support in the $30-$31 U.S. price area. If the stock can firm up, overhead resistance can be seen around the $40 U.S. price level. Some experts will likely remain on the sidelines for now.
Merck & Co., Inc. (MRK) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
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