Merck shares rise following Niaspin-Zetia study

NEW YORK - Shares of Merck & Co. rose Monday as Wall Street brushed off the potential for a severe impact from a rival company's sponsored study that showed the cholesterol drug Niaspin is potentially more effective than Merck's Zetia.

The stock rose 87 cents, or 2.6 percent, to $33.97 in afternoon trading. Shares reached a 52-week high of $34.35 earlier in the trading session.

Abbott Laboratories, which is based in North Chicago, Ill. and makes Niaspin, sponsored the study that showed the drug was more effective than Zetia at shrinking plaque buildup in arteries. In the study, Zetia users suffered more heart attacks and other problems.

But, heart experts and Wall Street view the study as too limited to warrant patients switching treatments.

The results were presented Sunday at an American Heart Association conference and published on the Internet by the New England Journal of Medicine.

"The two New England Journal of Medicine editorials found the study thought-provoking and well-conducted but mentioned several limitations," said Cowen and Co. analyst Steve Scala.

He said the study was stopped too early and more patients and data would have likely had an impact on the outcome. Also, there were statistical limitations with the study.

He reaffirmed a "outperform" rating on Merck, headquartered in Whitehouse Station, N.J.

Last year, a large study found that Merck's combo pill Vytorin, which includes Zetia and Zocor, was no more effective than Zocor alone. Zocor is a statin now available as a cheap generic. Still, Vytorin and Zetia remain blockbuster drugs, despite lagging sales.

"Results favored Niaspan in this trial, however, in commentary in the New England Journal of Medicine, issue was taken with the trial's statistics, length, early stoppage, the small number of patients, and the lack of regression seen in other CIMT (similar) trials," said BMO Capital Markets analyst Robert Hazlett.

He also reaffirmed a "outperform" rating on Merck.

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