Vioxx had been linked with an increased risk of heart problems
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Profits at US pharmaceutical giant Merck fell 21%, after the firm was forced to withdraw its Vioxx painkiller last year.
Sales of the drug were halted amid safety fears on 30 September, causing a dip in fourth-quarter profits to $1.1bn (£0.59bn), from $1.4bn a year ago.
The firm also added $604m pre-tax to its reserves for Vioxx litigation.
Better-than-expected sales of other key drugs led sales to rise 2.2% to $5.75bn, it announced late on Tuesday.
The firm has not yet established reserves to cover the cost of settling lawsuits from people who claim they have been harmed by using Vioxx.