Prudential Analyst sees Merck Losing Vioxx Lawsuit

The odds are against Merck & Co. prevailing in a wrongful-death civil Vioxx lawsuit being tried in Texas, an analyst at Prudential Equity Group says. It is the first Vioxx-related lawsuit to come to trial.

The plaintiff in the case has alleged that Merck’s Vioxx contributed to the sudden death of a man in Texas who had been using the drug for about eight months.

“We think the odds are against Merck, and that that share price could contract more than 5%, but less than 10%, if a sizable award is meted out against the company,” wrote Anderson, who has a neutral rating on the stock.

Anderson also said that a victory for Merck is likely to raise the stock price by the same percentage range.

Source: MarketWatch

The first vioxx lawsuit is coming to an end soon. Lawyers on both sides said they expected to make their final arguments Wednesday, after plaintiff’s lawyer Mark Lanier presents two rebuttal witnesses Tuesday. Both legal teams worked Monday to hash out issues jurors will consider in reaching a verdict.