NEW YORK - US pharmaceutical giant Merck said Thursday its first-quarter earnings fell 15 percent, dragged down by the withdrawal of its onetime blockbuster arthritis drug Vioxx.
For the quarter ended March 31, Merck reported net income of 1.37 billion dollars, or 62 cents a share, compared with 1.62 billion, or 73 cents a share, in the same period last year.
Despite the drop, the earnings per share were better than the average Wall Street forecast of 59 cents.
Revenue fell to 5.36 billion dollars from 5.63 billion last year.
In late September 2004, Merck abruptly yanked one of its top-selling drugs, Vioxx, from the international market over safety concerns.
Although the Food and Drug Administration has said the drug can be put back on the market, albeit with restrictions, Merck has yet to do so. Vioxx had 2003 sales of about 2.5 billion dollars.
"Our first-quarter performance was driven by a number of factors, including ongoing cost management, the favorable impact of foreign exchange and overall revenue performance," said Merck chairman, president and chief executive Raymond Gilmartin.
"Sales of Merck products were consistent with the company's expectations."
Looking forward, Merck tweaked its 2005 financial forecast, stating that it now sees adjusted earnings per share of between 2.44 and 2.52 dollars a share. On April 13, it said the range would be between 2.42 and 2.52 dollars.
04/21/2005 14:55 GMT