Merck (NYSE: MRK) is recently trading at $39.85 in pre-open trading, below its close of $44.51.
A panel of cardiologists called on physicians to sharply curtail their use of cholesterol-lowering drugs Vytorin (combination of Merck's Zocor and Schering-Plough (NYSE: SGP) Zetia) and Zetia after a clinical study showed the drugs didn't work better than less expensive statin drugs.
MRK announced, based on the recommendation of the Steering Committee for ACHIEVE (An Assessment of Coronary Health Using Intima-Media Thickness Endpoint for Vascular Effects), further patient enrollment in the study has been put on hold.
MRK April and May option implied volatility of 38 is above its 26-week average of 31 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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