Merck & Co’s drop due to Vioxx recall

Merck & Co yesterday said its quarterly profit fell 28% due to last month’s recall of its Vioxx arthritis drug, and the company predicted 2004 earnings will fall as much as 11% because of the recall.

Merck reported third-quarter earnings of $1.33 billion, or 60 cents per share in the third quarter, compared with $1.86 billion, or 83 cents per share, in the year-ago period.

The Whitehouse Station, New Jersey-based firm said the Vioxx recall had a negative effect on earnings of $553 million.