Merck is trading at about $26 or $27. This is about a 75% decrease from the stock's January 2001 high.
Merck obviously has troubles. It faces expensive litigation even if it wins, and possible regulatory review. It has lost the earnings of one of its primary performers. According to rumors, Merck resumes are floating around the industry.
I still haven't done a thorough investigation of how I think the stock should be valued. However, my gut is telling me that the market is overreacting. Traders have a tendency to do this. The PE is 8.5, the dividend yield is almost 6%. Even if the price can only hold steady, 6% yield is pretty good.