The drugmaker took a charge of $4.85 billion to cover the settlment and, as a result, lost $1.6 billion, or 75 cents a share, compared with net income of $473.9 million, or 22 cents, a year earlier. Excluding the Vioxx settlement and ongoing restructuring charges, which involved eliminating 7,200 jobs and closing several plants over the past two years, Merck had a profit of 80 cents, exceeding its forecasts.

Merck ceo Dick Clark will discuss the results in a teleconference shortly and we will pass along the details. Meanwhile, here are a few nuggets from the Merck statement:

- Merck won $455 million from an insurance arbitration award related to Vioxx litigation coverage;

- Marketing and administrative expenses recorded in 2006 include $673 million in reserves for future legal defense costs for the Vioxx litigation and a $48 million charge related to legal costs to defend against Fosamax lawsuits, which charge the osteoporosis med caused deterioration in the jaw, and other bones;

- There was a fourth-quarter charge of $671 million in connection with the anticipated resolution of investigations of civil claims by federal and state authorities for overcharging Medicaid or, as Merck describes this, sales and marketing activities that include nominal pricing programs and samples;

- Global sales of Zetia, which along with Zocor is a component Vytorin, reached $679 million in the fourth quarter, an increase of 27 percent compared with the fourth quarter of 2006. Sales for the year were $2.4 billion, an increase of 25 percent. Fourth-quarter and full-year 2007 global sales of Vytorin reached $776 million and $2.8 billion, an increase of 40 percent and 42 percent, respectively. Look for sequential decreases going forward;

- Gardasil growth appears to be slowing. Sales were $339 million, less than $418 million in last year’s fourth quarter.