On June 1, MRK closed at 37.18, marking its 2012 low.
By Oct. 18, the stock had risen to 47.96 – a gain of more than 29% – marking its 2012 high.
As we speak, the stock is hovering around 40.8, down 9+% on the day. Its steep decline began Dec. 11, when it was trading around 45. That was the day Merck announced that its large Tredaptive study was a bust.
Which means: in the wake of the Tredaptive failure, MRK has lost about 10% of its value.
Happy New Year, Kenneth Frazier.
Now let’s look at 2013.
Yesterday, PETA announced its plan (and a very clever one it is) to force Merck’s board of directors to change their policies on abusive animal testing. That by buying $2,000 worth of MRK, which in turn – according to SEC rules – gives them the legal right to submit a resolution at the company’s next board of directors meetings calling for more humane animal-use policies.
Will be interesting to see if Merck’s board – which, under the direction of Mr. Frazier, obviously has no sympathy for thousands of men the world over suffering from post-finasteride syndrome as a result of taking Propecia – shows any mercy for non-human creatures. And if they do, think of what a slap in the face that will be for its HUMAN customers.
Later in the year, Propecia victims will have their day in court with Merck. And if Mr. Frazier uses the same playbook he whipped out in the infamous Voixx trials, the company will “fight every last” Propecia case. But if they lose the first so-called bellwether case, I predict MRK will drop to a two-year low of 29.71.
And if they lose the subsequent, say, three cases, my prediction is a ten-year low of 21.93. At that point, the media will start drawing well-deserved parallels between Merck’s Vioxx pogrom and Propecia fiasco.
Anyone care to bet against me?
If you win, I will personally send you a case of finasteride (generic version).
that hurts so much.