Apr 5, 2006 2 min read

WHITEHOUSE STATION, N.J. (AP) – Drug maker Merck & Co. said Tuesday it anticipates posting a higher profit in the first quarter than originally expected because of strong sales of its cholesterol drug, Zocor. Merck said it now expects to report earnings of 61 to 67 cents per share, at least 15 percent higher than its forecast of 52 to 58 cents per share announced in January.

Zocor is Merck’s top-selling medicine and the second-most popular cholesterol drug in the country.

Merck will lose its exclusive patent on the drug in June.

Analysts have said they expected insurers to push patients from competing drugs to Zocor in the short term and then to lower-cost generic versions.

Merck’s anticipated earnings include charges related to its global restructuring and job cuts announced in November. Without those charges, Merck said profit for the quarter ended March 31 would be 71 to 75 cents per share.

Twenty analysts surveyed by Thomson Financial last month estimated the Whitehouse Station-based company would average first-quarter earnings of 64 cents per share.

The announcement of the adjusted earnings projection came just a few hours before an Atlantic City jury began deliberating the case of two men who say Merck’s now-withdrawn arthritis drug, Vioxx, caused their heart attacks.

The monthlong trial is among more than 9,600 Vioxx-related lawsuits. To date, Merck has won two cases – one victory coming after a retrial – and lost one.

Merck reaffirmed full-year profit of $1.98 to $2.12 per share.

Merck shares rose 25 cents to $35.66 per share in midday trading on the New York Stock Exchange. Shares have been trading in a 52-week range of $25.50 to $36.65 per share.

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On the Net:

Merck & Co.: www.merck.com

AP-ES-04-04-06 1253EDT