Opinion ID: 1211810
Heading Depth: 1
Heading Rank: 3

Heading: Merck Withdraws Vioxx From the Market (September 2004)

Text: On September 30, 2004, Merck announced that it was withdrawing Vioxx from the market based on a new study showing an increased risk of confirmed cardiovascular events beginning after 18 months of continuous therapy. App. at 584. Merck's stock price dropped more than $12 per share that day, to close at $33.00, down 27% from the previous day's close. Securities analysts expressed their surprise at the suddenness of Merck's action. On November 1, 2004, the Wall Street Journal reported, internal Merck e-mails and marketing materials as well as interviews with outside scientists show that the company fought forcefully for years to keep safety concerns from destroying the drug's commercial prospects. App. at 589. Merck's stock price dropped another 9.7% based on this news. The news, which was first published nearly a year after Appellants filed their complaint, prompted one securities analyst to remark, new information indicates to us that the situation might not be as innocent as we thought. ... We recommend that investors sell Merck shares. App. at 594.