Merck Slips Amid Warning About Zocor

Updated from 3:50 p.m. EDT

Shares of Merck(MRK Quote) shed more than 3% Monday after the pharmaceutical giant posted a rise in second-quarter profit but cut sales guidance for its Zocor cholesterol drug.

The company reported net income of $1.87 billion, or 83 cents a share, for the three months ended June 30, missing analysts' estimates by a penny, according to Thomson First Call. Net income was up 7% from $1.75 billion for the same period last year, while EPS was up 8% from 77 cents. Revenue rose 4% to $13.28 billion from $12.81 billion for the Whitehouse Station, N.J., company.

Merck lowered its year-end revenue guidance slightly for two big products -- Zocor, its top-selling product, and Vioxx, its arthritis and pain medication. It raised its year-end revenue guidance for other major products -- Cozaar and Hyzaar for high blood pressure, and Fosamax for osteoporosis. ...