Merck & Co. Inc. on Thursday said its first-quarter profit fell as the spinoff of its pharmacy benefits division offset moderately higher drug sales and cost-cutting.
Sales rose 1 percent, but would have fallen without the benefit of the weak dollar.
The drugmaker, based in Whitehouse Station, New Jersey, reported earnings of $1.62 billion, or 73 cents per share, compared with $1.71 billion, or 76 cents per share, a year earlier.
That was at the high end of the company’s own forecast of 71 cents to 73 cents per share.
Excluding pharmacy-benefits unit Medco, which was spun off last year, Merck earned 68 cents per share a year ago.
“Total sales increased 1 percent for the quarter, reflecting strong growth in Merck’s major in-line franchises,” the company said in a release. The increased sales included a benefit from the weak dollar of 5 percentage points. The weak dollar raises the value of products sold overseas when they are converted into dollars.
