Merck & Co. said on Friday that its proceeds will be impacted unconstructively by about $170 million throughout the existing financial year as a result of health-care legislation, and the company anticipated a negative impact of up to $350 million in the subsequent year.

The drug manufacturer stated that its long-term earnings guidance should not be affected and it reaffirmed its formerly stated projection, calling for a high single-digit non-GAAP EPS compound yearly growth rate for the joint company from 2009 to 2013 when contrasted to Merck 2009 non-GAAP EPS.

In spite of those costs, Merck stated that it is still working with an aim to manufacture compound yearly growth in the high single digits exclusive of one-time items through 2013 as contrasted with its 2009 results.

Market analyst Dr. Timothy Anderson of Bernstein Research made calculations, which are based on the percentage of Merck sales that come from the United States, the legislation's earnings-per-share impact would be about 1% in the current year and about 2% in the subsequent year. He formerly had estimated that those hits would be roughly 4% and 6% for this year and 2011, correspondingly.

Merck shares increased to $1.69, or %5, to $35.46 in trading on Friday. Other U. S. drug makers also saw their shares increase at a significant rate.

Merck, which is based in Whitehouse Station, is the manufacturer of asthma and allergy drug Singulair and cholesterol drugs Vytorin and Zetia. It is expected to report its first-quarter results on May 4.

Numerous other leading U. S. companies have been taking big charges for the lost prescription drug tax benefit, as the first-quarter corporate earnings season starts.

Shares of drug makers normally plunged in the next few days as investors are worried about the health reform's overall impact that will take place on the pharmaceutical industry.