MORE than $1 billion was wiped off profits at Merck yesterday as the embattled drug company continues to struggle after the withdrawal from the market of its Vioxx painrelieving drug.

Merck’s profit for the second quarter of the year plunged by $1.05 billion (£598 million) as higher taxes and falling sales combined with the Vioxx withdrawal to worsen the drug- maker’s malaise.

The shares plunged more than 3 per cent, wiping a further $2 billion from the company’s value, adding to the $32 billion the shares have lost since the potentially deadly side-effects of Vioxx were revealed last year.

Profit for the second quarter fell to $720.6 million, or 33 cents a share, from $1.77 billion, or 79 cents, in the same period a year ago. Sales dropped 9 per cent to $5.47 billion.

Merck has suffered continuing poor sales and a falling share price since last October, when it was revealed that Vioxx, a pain reliever used by arthritis sufferers and one of its biggest selling drugs, could cause heart attacks and strokes in some patients.

The drug was withdrawn, sparking panic among millions of patients who took it worldwide. Many have filed lawsuits against the company, while a number of class actions have been launched in the US.

The first Vioxx court case began in Texas last week on behalf of Robert Ernst, a family man and marathon runner who died of heart failure at the age of 59 after taking Vioxx for tendonitis. His family claims that Mr Ernst, who was a personal trainer and fitness enthusiast, was killed by heart failure induced by Vioxx.

Merck denies that the drug was responsible for his death.

Nancy Santanello, a chief researcher for the drug company, this week testified at the trial that Merck was concerned about the dangers of Vioxx for at least a year before it began selling the drug to the public.

Ms Santanello told the court on Tuesday that Edward Scolnick, president of the company’s research unit, raised concerns in 1998 that Vioxx might cause heart attacks and strokes. Merck started selling Vioxx in May 1999.

The company, has set aside $675 million to fight the flurry of Vioxx lawsuits.

The biggest dent in Merck’s second-quarter profits was caused by a $640 million tax charge after the company opted to bring some $15 billion of overseas profits back to the US.

Explore Health

• Expert Advice

• Health Features

• Mental Health

• Alternative Medicine

• Child Health

• Health Club