Merck Mauled on Drug Recall

Updated from 7:43 a.m. EDT

Merck (MRK Quote) shares staged a minor recovery early Friday after a 27% decline Thursday when the nation's No. 2 drugmaker said it was taking its arthritis drug Vioxx off the market because of heart safety concerns.

As a result, the company also said it was withdrawing third-quarter financial guidance and cutting its full-year earnings estimate by 50 cents to 60 cents a share.

The company said its decision to pull Vioxx voluntarily, which is effective immediately, is based on new, three-year data from a clinical trial. The trial, which is being stopped, was designed to evaluate the efficacy of Vioxx in preventing recurrence of colorectal polyps ...