Drug makers’ earnings climb

Sales of anti-cholesterol pills bolstered profits at Merck & Co. and Schering-Plough Corp., partners in marketing two of the fastest-growing treatments to prevent heart disease.

Wyeth and Baxter International Inc. also reported Thursday an increase in first-quarter earnings on higher sales of drugs for arthritis and hemophilia. Wyeth shares fell after the fourth-largest U.S. drug maker said two new products would be delayed.

Shares of Schering-Plough, based in Kenilworth, N.J., rose $2.45, or 8.6%, to $31. Wyeth, based in Madison, N.J., fell 67 cents, or 1.2%, to $55.66. Shares of Merck rose 46 cents, or almost 1%, to $50.15. The Whitehouse Station, N.J.-based company’s stock gained 14% this month. Baxter, based in Deerfield, Ill., gained 82 cents, or 1.5%, to $55.68.

Merck’s first-quarter profit rose 12% as demand for asthma and cholesterol drugs and cancer vaccine Gardasil made up for sales of older medicines lost to generic competition. Earnings increased to $1.7 billion, or 78 cents a share, from $1.52 billion, or 69 cents, a year earlier, Merck said, while profit excluding costs from plant closings and job cuts was 84 cents.

Revenue increased 6.7% to $5.77 billion, aided by new diabetes pill Januvia, cholesterol pills Vytorin and Zetia, asthma drug Singulair and cervical cancer vaccine Gardasil.

Combined sales of Vytorin and Zetia increased 47% to $1.2 billion, Merck said. Merck and Schering-Plough split revenue from the drugs. Sales of Merck vaccines, including Gardasil and the rotavirus vaccine RotaTeq, more than tripled to $903 million.

Schering-Plough, the ninth-biggest U.S. drug maker, said first-quarter earnings rose 52% on demand for Vytorin and Zetia. Net income increased to $565 million, or 36 cents a share, from $372 million, or 24 cents, a year earlier, and revenue jumped 17% to $3 billion.

Wyeth’s earnings climbed 12% on demand for arthritis drug Enbrel and pneumonia vaccine Prevnar. Net income rose to $1.25 billion, or 92 cents a share, from $1.12 billion, or 82 cents, a year earlier. Revenue increased 11% to $5.37 billion.

Wyeth shares fell after the company said U.S. regulators had postponed reviews of experimental menopause drugs Pristiq and Viviant, which had been set for approval decisions next week.

Baxter, the maker of drugs and medical equipment, said first-quarter profit rose 43% as it sold more treatments made using biotechnology. Net income increased to $403 million, or 61 cents a share, from $282 million, or 43 cents, a year earlier.

Revenue increased 11% to $2.68 billion, and the company raised its profit and sales forecasts.