Shares of Merck and Schering-Plough fell to record lows Monday, as analysts warned new clinical data would cause sales of their blockbuster cholesterol drug Vytorin to fall further.
The companies market Vytorin through a joint venture, but earlier this year, partial results from a clinical study showed that it was no more effective at limiting plaque buildup than Merck's Zocor, a drug that is already available in generic form.
Is it worth buying either company on the dip?
I think at some point Merck will be a buy, but not just yet says Pete Najarian on CNBC’s Closing Bell.
Does anyone benefit from the news?
Generics could benefit, he replies. Also look at AstraZeneca for their drug Crestor. And while you’re at it, check out Genzyme and Isis for their diabetes and cholesterol franchises.