Pharma major Merck & Co. Inc. (NYSE: MRK) said its earnings and revenue will fall below Wall Street estimates. Excluding one-time items the company now expects to post earnings in the range of $3.15 to $3.30 a share next year, and revenue in the range of $23.7 billion to $24.2 billion. Guidance for 2009 includes a pretax charge of about $400 million to $600 million associated with the company's restructuring programs.
Analysts on average were looking for adjusted earnings of $3.52 on revenue of $24.59 billion in 2009.

CEO Richard Clark said in a statement "We anticipate that top-line growth will be offset by the effects of a volatile global economy, fluctuations in the foreign exchange markets, as well as continued challenges for certain key products."

The Whitehouse Station, New Jersey-based company said that the strengthening dollar would hit 2009 revenue by 3%, and earnings by 6% per share.

In a conference call with analysts, Chief Financial Officer Peter Kellogg also said that the company expects a drop in the combined global sales of its Vytorin and Zetia cholesterol fighters, which it sells in joint venture with Schering-Plough, due to weak U.S. demand.

The company estimates flat or little 2009 growth for sales of three major products namely asthma medicine Singulair, blood-pressure drug Cozaar, and cervical cancer vaccine Gardasil HPV.

However, the company expects better sales performance on the front of diabetes drugs Januvia and Janumet, AIDS drug Isentress and shingles vaccine Zostavax. The company projected the sales of Januvia and Janumet in the range of $2.4 billion to $2.7 billion.

As part of the restructuring plan, the company also plans to cut 7,200 jobs and closing plants. CEO Clark stated "Our dynamic industry environment calls for us to fundamentally change our business model with even more urgency than ever.This will be an important execution year for Merck as wecontinue the transformation of our company into a more lean and flexible business, and further reduce our cost structure, while strongly supporting our key products and growth opportunities."

Merck hopes to file two new drug applications next year and increase its capital expenditures slightly to $1.6 billion.

The company reaffirmed it expects 2008 adjusted earnings in the range of $3.28 to $3.32 a share in full fiscal year 2008. Analyst on average had estimated the company to earn $3.29.

The company also backed guidance for 2010.

Clark concluded in an email to employees “While it’s easy to lose focus during times of uncertainty, we must not lose sight of our overall goal–regaining leadership in the pharmaceutical industry.”

Shares of Merck fell 60 cents or 2.27% in early trade on Thursday.

Disclosure: Author does not own any of the stocks discussed here.