Correction:

In my post this morning, I noted that the anti-cholesterol drug Vytorin was manufactured by Merck & Co. It was not. The manufacturer is Schering-Plough, Inc.

In late morning trading on Monday, the two biotech giants took a beating after the news that Vytorin failed a key clinical trial.

Merck & Co. fell $6.82, or 15 percent, to $37.69 and Schering-Plough Inc. declined $4.98, or 26 percent, to $14.49.