Comments on: Merck Will Settle Vioxx Lawsuits For Nearly $5 Billion http://www.pharmalot.com/2007/11/merck-will-settle-vioxx-lawsuits-for-nearly-5-billion/ News, Comment and Conversation Fri, 10 Feb 2012 21:11:26 +0000 http://wordpress.org/?v=2.6.2 By: Outside the Box http://www.pharmalot.com/2007/11/merck-will-settle-vioxx-lawsuits-for-nearly-5-billion/#comment-25034 Outside the Box Fri, 09 Nov 2007 12:46:20 +0000 http://www.pharmalot.com/2007/11/merck-will-settle-vioxx-lawsuits-for-nearly-5-billion/#comment-25034 I've had a theory for the past couple of years that the presence of the Vioxx suit (whilst not something that they looked for) was actually helping Merck because it made them an almost impossible acquisition target following the tumble in their stock value. Boston Scientific aside, it is very unusual for acquirors to be prepared to make a bid for a company that has a large outstanding liability like this, and so Merck were able to buy corporate time by assuring us that they would fight every case. I wonder if this apparent change in direction is related to some M&A activity? Merck's stock is in a much better place and their pipeline isn't - I just wonder.... I’ve had a theory for the past couple of years that the presence of the Vioxx suit (whilst not something that they looked for) was actually helping Merck because it made them an almost impossible acquisition target following the tumble in their stock value. Boston Scientific aside, it is very unusual for acquirors to be prepared to make a bid for a company that has a large outstanding liability like this, and so Merck were able to buy corporate time by assuring us that they would fight every case.

I wonder if this apparent change in direction is related to some M&A activity? Merck’s stock is in a much better place and their pipeline isn’t - I just wonder….

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