Merck Profit Up, Adds to Vioxx Legal Funds
Merck & Co. said Tuesday its profit edged up 2 percent in the fourth quarter on flat sales as the drug company set aside an additional $295 million for legal defense costs related to its withdrawn painkiller Vioxx Vioxx.
Excluding charges for restructuring and taxes associated with repatriating foreign profits, Merck earned 64 cents a share in the latest quarter. That beat by two cents the consensus estimate of analysts surveyed by Thomson Financial.
Shares of Whitehouse Station, N.J.-based Merck shares rose 10 cents to $34.56 in afternoon trading on the New York Stock Exchange New York Stock Exchange. They are near the upper end of their 52-week range of $25.50 to $35.36.
Sales of Zocor, a cholesterol-lowering treatment, fell 18 percent to $1.1 billion in the quarter. The drug will lose patent protection in June.
Merck withdrew Vioxx from the market in September 2004 after a study showed it increased patients‘ risk of heart attacks and strokes. On Tuesday, Merck announced the number of lawsuits filed against it rose to about 9,650 from about 9,200.
Merck also announced its received a subpoena from Attorneys General of 31 states and the District of Columbia who are investigating whether the company violated state consumer protection laws when marketing Vioxx.
Despite the strong quarter, some analysts can‘t figure out how Merck will obtain such growth with its current pipeline and the upcoming loss of exclusivity on Zocor and eventual generics competition for osteoporosis drug Fosomax.
Merck said it is in discussion with over 40 companies about possible deals. However on the conference call, Merck CEO Richard Clark said the estimates didn‘t include any acquisitions or other types of arrangements. He reiterated earlier comments that the company would be interested in purchasing a biotechnology firm, adding that he would prefer one with existing revenues.
Excluding charges for restructuring and taxes associated with repatriating foreign profits, Merck earned 64 cents a share in the latest quarter. That beat by two cents the consensus estimate of analysts surveyed by Thomson Financial.
Shares of Whitehouse Station, N.J.-based Merck shares rose 10 cents to $34.56 in afternoon trading on the New York Stock Exchange New York Stock Exchange. They are near the upper end of their 52-week range of $25.50 to $35.36.
Sales of Zocor, a cholesterol-lowering treatment, fell 18 percent to $1.1 billion in the quarter. The drug will lose patent protection in June.
Merck withdrew Vioxx from the market in September 2004 after a study showed it increased patients‘ risk of heart attacks and strokes. On Tuesday, Merck announced the number of lawsuits filed against it rose to about 9,650 from about 9,200.
Merck also announced its received a subpoena from Attorneys General of 31 states and the District of Columbia who are investigating whether the company violated state consumer protection laws when marketing Vioxx.
Despite the strong quarter, some analysts can‘t figure out how Merck will obtain such growth with its current pipeline and the upcoming loss of exclusivity on Zocor and eventual generics competition for osteoporosis drug Fosomax.
Merck said it is in discussion with over 40 companies about possible deals. However on the conference call, Merck CEO Richard Clark said the estimates didn‘t include any acquisitions or other types of arrangements. He reiterated earlier comments that the company would be interested in purchasing a biotechnology firm, adding that he would prefer one with existing revenues.
posted by Chris Placitella at 6:32 AM
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