MERCK FORECASTS EARNINGS GROWTH IN 2007 FROM NEW DRUGS

Merck continues to predict growth in its earnings per share (EPS) for 2007, due to high expectations for its new products and savings from a global restructuring plan.

The new products anticipated to contribute major sales include diabetes drug Januvia and vaccines RotaTeq, Zostavax and Gardasil, Merck said Dec. 6. Merck estimates a 2007 EPS range of $2.51 to $2.59, up from the estimated $2.48 to $2.52 for 2006.

Gardasil, which gained FDA approval in June, is the world's first vaccine to treat cervical cancer and other diseases caused by the human papillomavirus. Recently approved Zostavax prevents shingles in adults age 60 and older, and RotaTeq protects infants against rotavirus.

The company forecasted worldwide 2007 sales of its vaccines reaching $2.8-$3.2 billion. The highest projected performer of all of Merck's drugs was respiratory drug Singulair, with anticipated worldwide sales of $3.7-$4 billion.

New drugs are particularly important to the company in the face of competition from generics. For example, Merck's cholesterol drug Zocor, which lost patent protection earlier this year, is projected to add $600-$900 million in sales in 2007, significantly lower than 2006 estimates of $2.6-$2.9 billion.

Merck also cited its global restructuring program as cutting costs and contributing to the earnings growth. The program, announced in 2005, calls for the elimination of 7,000 jobs by the end of 2008. As of Sept. 30, approximately 3,900 positions had been eliminated, the company said.