Merck stock goes up after Vioxx settlement

Merck has agreed to settle most of the lawsuits relating to its Vioxx drug for nearly $5 billion. And after it announced the settlement, Merck’s stock went up more than two percent. The settlement agreement will apply to about 95 percent of the suits that had been filed involving Vioxx, a painkiller which caused strokes and heart attacks. Earlier, Merck withdrew the drug from the market. Some analysts had predicted that Merck’s liability could go as high as $50 billion. To qualify under the settlement, plaintiffs must proof that they suffered strokes or heart attacks, and that they had used at least 14 Vioxx pills no more than 14 days before their medical event.