Are you surprised? The drugmaker blamed increased spending on research, higher overhead and costs related to its $14.3 billion acquisition in the prior quarter of Organon Biosciences. First-quarter net income was $291 million, or 15 cents a share, compared with $565 million, or 36 cents, a year earlier. Excluding some items, the showing beat estimates of 37 cents or 38 cents, depending upon whose forecasts you were reading ahead of time.

Revenue, meanwhile, increased 57 percent to $4.7 billion when throwing in the Organon products. Sales of Vytorin and Zetia - the troubled cholesterol meds - were $1.2 billion worldwide, a 6 percent year-over-year rise. In the US, however, the joint venture sales for those meds amounted to $851 million, down 5 percent.

“Our team overcame enormous challenges in 2003 and 2004. Those challenges were much bigger than the ones we face today. We are determined to power through,” ceo Fred Hassan says in a statement.

Fred will hold a teleconference in a little while and we will update you with any gems.