07:37 ET MRK upgraded at Prudential 43.87: -- Update -- Prudential upgrades to Overweight from Underweight and maintains their $54 target; co's pipeline contains no fewer than 5 drugs in Phase III with significant sales potential: Zocor/Zetia for cholesterol reduction (launch mid-04), Arcoxia as a replacement for Vioxx pain drug (possibly late 2004), substance P for depression (2005), cervical cancer vaccine (2006), and dual PPAR diabetes drug (2006); in addition, MRK is a play on AZN's hot new pipeline drug Exanta (could launch 2H04), as MRK gets almost 20% royalty; finally, firm says that MRK appears to be a vastly "under-owned" name, near-term earnings uncertainty and the 2006 US Zocor patent expiry are factored into its steeply-discounted valuation, and the stock's dividend yield of almost 3.5% is second highest in the group. [Briefing note: MRK announced this morning that it has discontinued Phase III trials for substance P... see 7:11 comment.]