Merck "overweight"

NEW YORK, November 15 (newratings.com) - Analysts at Morgan Stanley maintain their "overweight" rating on Merck & Co Inc (MRK.NYS). The 12-month target price is set to $34.In a research note published this morning, the analysts mention that Judge Higbee’s preliminary decision to only hear the cases for which Vioxx users have used the drug for more than 18 months is positive for Merck. This decision means that the cases that reach the trial stage in New Jersey would be significantly below the the pending 3000 cases, Morgan Stanley says. The company’s ultimate legal liability is likely to decline significantly, provided the decision is finalised, since only a small portion of Vioxx users have taken the drug for a period longer than 18 months, the analysts add.