Medco Pulls the Plug on IPO

Wild swings in U.S. stocks have all but shut down the new issues market over the last week and a half, and a slew of companies have delayed their initial public offerings or canceled them outright.

On Wednesday, Merck's (MRK Quote) pharmacy benefits unit Medco became the latest company to scrap plans for a public offering. In a filing with the Securities and Exchange Commission, the company, which had already postponed the offering three times, said the decision was "due solely to market conditions."

"The biggest enemies for the IPO market are uncertainty and volatility, which abound in this market," said David Menlow, president of IPOfinancial.com.

Pricing Pressure

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