Merck & Co. Inc. (NYSE: MRK) announced on Sunday that Gardasil, its vaccine for preventing cervical cancer, may offer protection for women up to age 45. The vaccine is approved for use in girls and women ages 9 to 26, but Merck is seeking FDA approval to expand its use to older women. Even though Merck's vaccine has been shown to decrease the chances of developing cervical cancer by up to two-thirds, the drug has found opponents who balk at vaccinating their daughters against HPV, which is generally a sexually transmitted disease. However, expanding the market to older women could take the focus off that issue as well as increase Merck's market at the same time. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MRK.

The stock has hit a one-year high of $58.36 this month after hitting a one-year low of 42.29 last November. MRK opened this morning at $55.00. So far today the stock has hit a low of $55.00 and a high of $56.85. As of 10:50, MRK is trading at $56.63, up $0.59 (1.1%). The chart for MRK looks bullish and steady, while S&P gives the stock a 4 STARS (out of 5) buy rating.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that the Bush administration has agreed to join in regional talks with Iran and Syria over Iraq, which are being launched by the Iraqi government next month.
• Also in the Wall Street Journal, billionaire investor Carl Icahn is pushing Blockbuster Inc's (NYSE: BBI) board to withhold some of CEO John Antioco's $7.6 million bonus.
• In what could be good news for Merck & Co Inc's (NYSE: MRK) Gardasil vaccine, a study suggested the prevalence of HPV, which can cause cervical cancer, is greater than previous estimates had suggested, reported the Wall Street Journal.
• According to the Financial Times (subscription required), Russia has increased the pressure on a key asset held by TNK-BP, BP p.l.c. ADS's (NYSE: BP) Russia venture, as BP CEO Lord Browne arrived in Moscow for talks of a possible transfer of part of a key asset to the state.

OTHER PAPERS:

• The Economic Times of India reported that confectionery-maker Hershey Company (NYSE: HSY) is acquiring a 51% stake in the food and beverage business of the Godrej group for about $54 million.
• Investor's Business Daily's "New America" column highlighted Radvision Ltd (NASDAQ: RVSN).