Merck slashes Zocor price as patent expires

Merck's decision to slash the price of Zocor just days before it loses patent protection has triggered a storm of controversy. U.S. Senator Charles Schumer (D-NY) has attacked Merck for colluding with health insurers to offer the drug at a price less than a new generic. Such a tactic would upset the usual market forces at play when a new generic is introduced at a deep discount to the original. Merck, however, scoffed at the suggestion, saying that it was being criticized for pricing a product too low. Teva, meanwhile, saw its stock price get hit as investors reacted to projections that Merck's move could undercut generic sales considerably.

- here's the AP report on Merck