Rumors are abound that pharmaceutical giant Merck may need to file bankruptcy in the near future. Due to the large influx of lawsuits concerning safety issues with Vioxx, Merck may have to pay some large settlements.

In an interview with Marketwatch, Chairman and Chief Executive Raymond Gilmartin claimed that there is absolutely no truth to the rumors that Merck is in any trouble. He said Merck has plenty of cash available and that they are continuing with their stock buy back program.

What will happen with Merck? Only time will tell. It all depends on how the lawsuits go. The lawsuits may go badly for Merck since there is some evidence that the company knew about safety issues as early as 1999 and with held that info.