Merck boosted by new drugs demand

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Strong sales of new vaccines and treatments has helped drugs group Merck & Co lift second quarter profits.

Earnings for the three months to 30 June came in at $1.68bn (Â£816m), or 77 cents a share, up from $1.5bn in 2006.

Worldwide sales grew 6% to $6.1bn, driven by demand for its Zetia and Vytorin cholesterol medicine - a joint venture with Schering Plough.

The above-expected profits prompted Merck to raise its full-year forecast to earnings per share of $3 to $3.50.

Vioxx costs

Excluding restructuring costs, earnings for the second quarter came in at 82 cents a share.

The firm also said that it had put $210m towards the future cost of defending itself in lawsuits linked to its Vioxx tablets.

Vioxx was pulled from the market in September 2004 after a study found it could double the risk of heart attacks.

Merck faces some 7,000 outstanding lawsuits connected to Vioxx, and experts have estimated its potential liabilities in the matter at more than $5bn.