The decision follows an independent review of the treatment that confirmed a heightened risk of stroke, the Kenilworth, NJ-based pharmaceutical company said in a statement.
"We are disappointed that the overall benefit-risk profile for odanacatib does not support filing or further development," Roger Perlmutter, president of Merck Research Laboratories, said in a statement.
The stock was inactive in pre-market trading on Friday after closing up 0.18% to $62.90 on Thursday.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Merck's strengths such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: MRK
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.