Merck & Co In 2-For-1 Stock Split, First Since 1992

On the back of a strong surge in its share price, buoyed by its newdrugs, the US pharmaceutical giant Merck & Co says it is splitting its stock 2-for-1 for shares held as of January 25. Merck's last split, which was 3-for-1, was in 1992.

The stock split is a reflection of the "hot move" that Merck has made to the magic level of $150 per share, according to analyst David Sak of Gruntal & Co, who noted that the decision is not a surprise but the timing is.

He had expected the company to announce the stock split at the same time as posting first-quarter results around the end of January. Mr Saks, among other analysts, was also surprised that Merck has filed a New Drug Application for Vioxx (rofecoxib; see page 18) so soon; they had thought the news would be released at the company's analysts meeting on December 9.