Merck's 2Q net drops on higher costs, charges

NEW JERSEY: Drugmaker Merck & Co. posts a 52 percent drop in second-quarter net income, due to higher costs for sales, administration and restructuring and sharply lower income from partnerships.

Merck, the world's second-biggest drug company by revenue, says its net income amounts to $752.4 mn, or 24 cents per share. That's down from $1.56 bn, or 74 cents a share, in 2009's second quarter.

Excluding a host of charges, income would have been $2.71 bn, or 86 cents a share. That beat the forecast of analysts, who were expecting 83 cents a share, excluding one-time items, on revenue of $11.45 bn.

Revenue nearly doubled to $11.35 billion, mainly due to a huge acquisition that brought a host of new prescription and nonprescription drugs.