Merck Says Earnings Suffered from Vioxx Withdrawal,
Sets Aside $600 Million for Defense Costs

WHITEHOUSE STATION, N.J. - Merck & Co., Inc. reported Jan. 25 that fourth quarter earnings dropped more than 20 percent compared to a year ago, due mostly to fallout from its decision to pull Vioxx from the market and the possible legal ramifications of the withdrawal.

The company reported earnings of $1.1 billion, about $300 million less than in the fourth quarter of 2003. Merck said the results were negatively affected by the loss of nearly $700 million in revenue that the drug maker would have anticipated earning had it not decided to voluntarily withdraw Vioxx from the market …