Merck & Co, the second-largest US drugmaker, reported fourth-quarter profit that topped analyst estimates on higher sales of the Januvia diabetes drug. The company forecast 2012 earnings that matched estimates.

A promising experimental Aids vaccine failed to work in a large international test, leading the US-based developer to halt the study, it has been revealed.

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.