Pharmaceuticals Merck Disaster Bad For All Drugmakers Matthew Herper, 09.30.04, 4:00 PM ET
Merck's Legal Nightmare Merck Withdraws Vioxx Study Revives Debate On Arthritis Drugs Celebrate The Risk Profile
The recall of Vioxx--an arthritis treatment taken by millions of people--is a disaster for everyone.
Of course it's bad news for Merck (nyse: MRK - news - people ), the drug's maker. Vioxx brought in $2.5 billion last year, and withdrawing it will cut 50 cents to 60 cents from Merck's earnings per share for the year. Its guidance for 2004 is earnings per share of $3.11 to $3.17.
It is also bad news for the four million people worldwide who are currently taking Vioxx, many of whom may feel it is the only drug that helps their pain. The recall is likewise bad news for the 84 million who have taken the arthritis blockbuster, which was heavily advertised in television placements featuring figure skater Dorothy Hamill.