Drug giants Merck & Co. and Upjohn...

Drug giants Merck & Co. and Upjohn Co. reported higher first-quarter profits and sales as global demand for their products increased.

Rahway, N.J.-based Merck said first-quarter earnings jumped 18% to $568.7 million, or $1.47 a share, compared to $483.5 million, or $1.25, a year ago.

Upjohn overcame a 39% drop in sales of its controversial sleeping drug Halcion to increase profit by 8% in the first quarter. The Kalamazoo, Mich., firm earned $143.7 million, or 80 cents a share, compared to $133.2 million, or 73 cents, a year ago.