Merck’s (MRK) earnings for the third quarter came in at 90 cents per share, which was ahead of the Zacks Consensus Estimate of 82 cents, driven by continued growth of its key products and strict cost management. The company reported revenues of $6 billion, up 2% from the same period in 2008. Revenue would have higher, but for the unfavorable foreign exchange movement, which affected global sales by 3%. Weaker-than-expected sales of Gardasil were offset by significantly stronger-than-anticipated Singulair revenues. Although the US Food and Drug Administration (FDA) asked for additional precautions regarding the risks associated with the use of Merck’s lead product Singulair (as well as other leukotriene inhibitors), including suicide and depression, the drug recorded an increase of 5% compared to the third quarter of 2008. Gardasil, Merck’s cervical cancer vaccine, recorded yet another quarter of lower sales. The company recorded $311 million in ...

Investors turn to the large drug company stocks for several reasons. They are considered recession proof, they are a play on the ageing of the baby boomers, and they are often considered safer and less volatile than most other stocks. Since dividends are so vital to many investors they days, the high yielding big pharmas are of interest. All of the following have yields over 2.5%, PE's below 20, and PEGs below 3.Pfizer Inc. (PFE) Its drugs include Lipitor, Norvasc Caduet, Chantix/Champix, Lyrica, Geodon/Zeldox, Aricept, Zoloft, Celebrex, Vfend, Zyvox, Viagra, Detrol, and Zyrtec, and for animals; Clavamox/Synulox, RespiSureOne/StellamuneOne, Bovi-Shield Gold, Dectomax, and Draxxin. The stock yields 7.5% It has a PE of 12.7 and a PEG of 2.12 .Bristol Myers Squibb Co. (BMY) Its drugs include PLAVIX, AVAPRO/AVALIDE, PRAVACHOL, COUMADIN, REYATAZ, SUSTIVA, BARACLUDE, ERBITUX, TAXOL, SPRYCEL, IXEMPRA, ABILIFY, ORENCIA, and EFFERALGAN. The ...