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B4 The Bell Thursday September 30


Hiding Bear

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Brian: Agree, that is a pretty big hit to mrk, not sure if they can maintain the divvie. Need to do some research.

I'm sure they are both self-insured and have some reinsurance partner where they have layed-off some of the risk. Cases like this stay in the courts for 10 to 20 years before anything happens either way so the dividend should be secure for the near term.

 

I wasn't talking about yield, I was talking about PE. Some earnings will be hit by the pulling of Vioxx but I don't know how much of their business was in that drug alone. I do know they have an extensive line with many other popular drugs.

 

MRK is probably big enough to weather the storm. Still think they will recover most of their price quickly.

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