Any Merck Shareholders?

[IHateMyJob2004]

I had a small postiion in MErck. About 5% of my portfolio.

I have no prolbem with the verdict, but $250 MILLION? That is simply redicuolous. There will be an appeal.

Oh, I was followign the case a bit and it seemed liek a VERY weak case. I have no idea how it could have been proven 100% that Vioxx caused the guys death.

 

[Legendary]

They were villified by the press - the appeals process will prevent any sort of actual payout for a loooong time.
I'm not a shareholder, but I think my dad is.

 

[Hammer]

that 250 will be reduced a lot on appeal.

 

[UNCjigga]

Problem is, this is just THE FIRST lawsuit, and the award is for ONE individual! There are still other lawsuits and possibly a class action lawsuit pending. Doesn't matter that they will appeal, what matters more at this point I think is that this case may set a precedent for other pending litigation against Cox-2 inhibitor drug makers.

 

[UNCjigga]

Mark Lanier, attorney for Carol Ernst, widow of Robert Ernst, slammed papers down and shouted "Yes!" when the judge read the punitive damages. Mr. Lanier told reporters, referring to the jury: "These people are good, solid people. They know right and they know wrong. It sends the message that the drug companies must tell us the good the bad and the ugly."

Trial lawyers are the ugly! 🙂

 

[jadinolf]

Gee if VIOXX would kill me I'd be rich.

 

[Wallydraigle]

No one's life is worth more than $30,000. And it's ridiculous.

 

[jadinolf]

Originally posted by: Wallydraigle
No one's life is worth more than $30,000. And it's ridiculous.

That it is. I can't put a value on the life of a 59 year old but yes, it's ridiculous.

 

[slayek]

No it's a lesson that big pharma companies need to know before making billions on a drug. There can not be a $$ amount for a life.

 

[jadinolf]

Originally posted by: slayek
No it's a lesson that big pharma companies need to know before making billions on a drug. There can not be a $$ amount for a life.

If this keeps up no one will be willing to sell medicines.

THEN you die.

 

[ponyo]

I'm a Merck shareholder. I'm very comfortable with the stock right now and have no plan to sell. I do have plan to add more shares though. I expected this verdict so it wasn't a shock to me.

I view Merck in similar light to Phillip Morris and their lawsuits. MO stock was and still is undervalued to due to the litigation issues. Lawsuits will never stop and stock will get occassional shock from court decisions. I went through similar with MO back in 2000-current. When I bought Phillip Morris, it was paying 10% dividend! That's insane. All due to the smoker lawsuits. Now the stock has more than tripled and I've collected all that sweet dividend in the meantime.

Merck is paying ~5% dividend. I've time to wait and don't care about the noise from the lawsuits. I know the company will survive and dividend is pretty safe. I just view these dips from lawsuit verdict as buying opportunities and will keep adding. Merck is one of my core holdings and will be for many years to come.