Drug maker, Merck & Co's profits for the second quarter fell less than analysts' expectations.

The company's second quarter net profits stood at $1.56 billion or 74 cents per share, down from $1.77 billion or 82 cents per share for the same period, a year ago.

CEO Richard Clark aims to reverse the sales decline by buying Schering-Plough Corp for experimental treatments.

CEO's reassurance to buy the Schering-Plough Corp also helped in sending company's shares up more than 6 percent.

Merck is expected to cut its costs by about 15 percent by acquiring Schering-Plough.

A fall in the sales of cholesterol drugs such as Vytorin and Zetia dragged company's earnings down.

However, Asthma drug Singulair's sound sales helped in offsetting decline in other drugs.

Revenue from Singulair's sales stood at $1.3 billion, representing 16 percent higher sales.

Merck is also planning vaccines for women's health treatments and drugs for patients of diabetes and cancer.