Merck & Co hits four-year high, despite downturn in 2nd-qtr net income

US pharma giant Merck & Co (NYSE: MRK) saw its shares rise 4.1% to $45.10 by Friday’s trading close, its highest since 2008, after posting a solid set of financial results for the second quarter of 2012, with earnings per share rising 11% to $1.05, beating analysts’ consensus forecasts of $1.01.

However, net income (including one-time items) dropped 11% to $1.79 billion, or $0.58 a share, hit by acquisition-related costs and restructuring charges as the company faces up to the patent expiry of its asthma drug Singulair (montelukast sodium), cutting thousands of jobs ahead of the anticipated sales decline for the product. Global sale increased 1% increased 1% to $12.3 billion for the quarter (or +5% excluding the impact of foreign exchange), helped by double digit growth for some of its leading products. Sales also were unfavorably impacted by the arbitration settlement agreement with Johnson & Johnson.

Confirms full-year earnings forecast