Stocks: Do Drugs Make You Sick?

Big news out this morning, is the pulling of Merck's Vioxx from the shelves because of fears it can cause heart attacks and strokes. The stock is taking a beating, but it could be just the beginning as the lawsuits are filed from patients on Vioxx who have experienced cardiac events.

The public health angle on all this, might be regarding over-medication. Are we treating too many symptoms, instead of targetting the simple things like diet and exercise? Lifestyle changes may make a difference for many of the common maladies that affect Americans. The idea that one can just take a pill to compensate for a lack of common sense lacks, well, common sense.

The investor angle on drug stocks? There could be closer scrutiny on existing treatments, and new drugs in the pipeline. I wonder if drug stocks, which are generally seen as safe stocks, see some selling as investors move money around to other areas. Drug stocks tend to pay dividends, so could stocks that pay dividends see some buying?