Vytorin Prescriptions Fell 9.5% Last Week and Schering-Plough drops another 4%.

Prescriptions for Merck & Co.'s (MRK) and Schering-Plough Corp.'s (SGP) embattled cholesterol drug Vytorin took a hit last week after a study raised questions about its effectiveness, according to a market-research firm.

Total U.S. prescriptions written for Vytorin in the week ended Jan. 18 fell about 9.5% to 359,659 from 397,533 in the week ended Jan. 11, estimated Verispan, a Yardley, Pa., drug-data vendor, according to Dow Jones.

Meanwhile, Schering-Plough stock continued its astonishing tumble today, outpacing the drop in S&P500.

This is simply a diaster for the credibility of the drug industry in general and for Schering-Plough and Fred Hassan in particular.

And, sure looks like Fred Hassan might have expected continued hard times when he promised to buy $2 million in stock SGP last week, only not just then . . . he was going to wait with the purchase until after earnings for the fourth quarter and 2007 are reported on Feb. 12, so it wouldn't look like he traded using inside information. Sure doesn't look like that was the only reason Fred wanted to wait . . . so Teflon-Hassan scores another win in the stock market by not buying his stock just yet.

BrandweekNRX stock tip: Don't buy Schering-Plough until Fred buys Schering-Plough! And when you do, don't spend more than 2% of your cash, just like Fred.

And if you really want to avoid sleepless nights, get rid of 90% of your SGP stock, just like Carrie Cox sold 90% of her exercisable options last year to the tune of $28 million.

Of course, we could be wrong. Even a dead cat bounces when it hits the floor.