Merck Reports: Merck posted a larger-than-expected increase in its core first-quarter earnings, Dow Jones Newswires reports . Excluding special items, profits rose to 92 cents per share from 83 cents, higher than the 84 cents predicted by analysts in a Thomson Reuters survey. The company also increased the low end of its full-year earnings forecast to $3.66 per share, keeping $3.76 as the upper end. Botox Damages: A federal jury has ordered Allergan to pay $212 million in damages to a man who claims the company didn’t warn him that Botox could spark a dangerous autoimmune reaction, Bloomberg News reports . Allergan, which says Botox didn’t cause the man’s brain damage, hasn’t yet decided whether to appeal the decision, BN says. Thumbs Up: Two experimental hepatitis C drugs were endorsed by an FDA advisory panel this week: Vertex’s telaprevir was recommended by an 18-0

vote yesterday, while Merck’s boceprevir saw the same positive vote Wednesday, Dow Jones Newswires reports . Analysts expect both drugs will win FDA approval, setting up a battle for a share of a market that could grow to $12 billion, DJN says. (In other FDA news, the agency approved Johnson & Johnson’s Zytiga to treat advanced prostate cancer, in combination with prednisone.) Exchanging Plans: The insurance exchanges included in the health-care overhaul bill won’t operate until 2014, but some employers are already shifting to private exchanges where workers purchase their own coverage with the help of a set employer contribution, Kaiser Health News and USA Today report . Aon Hewitt said this week it will launch such an exchange intended for companies with 1,000 or more employees. Image: iStockphoto

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A.M. Vitals: Merck’s First-Quarter Profit Beats Expectations