Last year, the Merck ceo could do no wrong - successful new products were launched and a big chunk of Vioxx litigation was settled. Employee morale and Merck stock were both up. Of course, what a difference a few months can make, especially on Wall Street.

Merck shares were below $35 when Dick succeeded Ray Gilmartin in May 2005, and rose to $60.77 in December. But in January, the controversial Enhance results about Vytorin were unveiled and the stock plummeted. Scrips may have since stabilized, but the stock reached a 52-week low of $40.97 on March 14, The Wall Street Journal points out.

“I am frustrated,” the low-key ceo tells the paper. “I tell employees, ‘You must be frustrated by what happened in the short term, but be determined to deliver on our 2010 objectives.’” His philosophy? “Stick to your knitting…Our credibility in 2006 and 2007 was not misplaced; we’ll have it again in 2008 and 2009.” And then he waxes bullish about the five-year plan he outlined in 2005.

At this point, a five-month plan is more like it. Merck faces key tests this weekend at the meeting of the American College of Cardiology, where the complete Enhance results will be reviewed and data will be presented on a diet pill that’s exhibited psychiatric side effects. In April, the FDA reviews the Cordaptive cholesterol drug. Then there’s a looming patent battel over AstraZeneca’s Nexium ulcer med - Merck shares royalties.

“The next few months are critical for Merck,” Mike Krensavage, an analyst at Raymond James & Associates, tells the paper. “They’ll determine whether the decline in the stock is an overreaction or a legitimate reflection of the value of the company.”

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