Dividend.com: Schering Sheared

Schering Gets Plowed

Schering-Plough(SGP Quote) is getting socked this afternoon, after the company released disappointing data on cholesterol drug Vytorin. The drug, co-developed with Merck(MRK Quote), apparently doesn't lower the risk of major heart valve problems and the need for related surgical procedures.

The company reported two more problems with the drug as well. Studies showed a failure in reducing atherosclerotic disease, in which plaque builds up and blocks an artery. Also, cancer patients taking Vytorin were more likely to have "serious" heart events. However, the study did involve a small number of people, and such results could have been more coincidental.

For investors in Merck, we are not changing our recommendation off our "Recommended" list, based on this information. As for Schering-Plough, we have not been a fan of the stock and do not currently recommend the shares. Schering-Plough pays a dividend yield of 1.21%, based on Friday's close of $21.44. The company seems to be constantly stuck in "turnaround mode," and there are other names in the pharmaceutical sector we like much better. Albemarle - No Earnings Spark to Put Out ...