Merck's profits rise - what irony

No Vioxx Sales, But Merck's Profits Rise

Lower Costs Offset Lost Revenue From Withdrawn Drug; Earnings Rise At Pitney Bowes

October 25, 2005

From Wire Service Reports 

NEW YORK

-- Merck & Co. said Monday that its third-quarter profits rose 7 percent as lower costs offset a revenue dip stemming from the loss of sales from Vioxx, the pain reliever the company withdrew last year.

Merck, which also makes Zocor for high cholesterol and the osteoporosis treatment Fosamax, reported net income of $1.42 billion, or 65 cents a share. That beat by 3 cents a share the consensus forecast of analysts surveyed by Thomson Financial.

In the same period of 2004, Merck posted net income of $1.33 billion, or 60 cents a share, and took a charge of $141 million for costs related to withdrawing Vioxx. Merck withdrew Vioxx after a study showed it doubled patients' risk of heart attack and stroke after 18 months of use.

Merck reported an $80 million charge related to ongoing job cuts during the quarter.

Revenue slipped 2 percent, to $5.42 billion, down 2 percent from $5.54 billion.