Will institutional shareholders drive Vioxx strategy?

As we have been saying for some time, the real powers behind an eventual resolution of the Vioxx litigation might well be the hedge funds and institutional shareholders of Merck stock. While not specifically mentioned in this article published in todays Wall Street Journal, it is none the less an interesting look into the profound impact these big shareholders and investors have on over all company strategy and direction.

The longer the litigation drags on, the greater the uncertainty about the eventual cost, the longer the stock price will remain at historically low levels. As this pressure builds, the big players are going to start pushing for resolution, and that is probably when it will get done. Read the article to get a glimpse of some of the other companies that have felt the wrath of the hedge funds.