Merck's sales influenced by healthcare-reform passage, company says

WHITEHOUSE STATION, N.J. Merck will see sales drop by more than a quarter of $1 billion next year as a result of the healthcare-reform bill’s passage, the drug maker said Friday.

The company said increased Medicaid rebates would cause it to incur costs of $35 million in first quarter 2010 and $170 million for the full year, while the elimination of a tax benefit for retiree prescription drug coverage would cause it to take a non-cash charge in the first quarter of $150 million.

In addition, Merck expects to see losses in sales of more than $300 million in 2011. Still, the company said it anticipated growth through 2013.