UPDATE 1-Merck CEO faults company's record in 2008

By Ransdell Pierson

NEW YORK, Jan 7 (Reuters) - The chief executive of Merck & Co Inc (MRK.N) said on Wednesday several setbacks last year were partly due to poor company execution, including failure to win U.S. approval for its Cordaptive cholesterol pill or approval to sell its Gardasil cervical cancer vaccine to older girls and women.

Richard Clark, speaking at a Goldman Sachs (GS.N) healthcare meeting here, said other setbacks included snags in producing vaccines and the company's response to new safety concerns for its Singulair asthma drug.

The biggest setback was the April rejection of Cordaptive by the U.S. Food and Drug Administration and FDA suggestions two months later that the company not resubmit its marketing application for the potential blockbuster product until new safety and efficacy data become available in 2013.

Singulair, whose fast sales growth over the past decade have made it Merck's biggest product, is expected to generate relatively flat sales this year due to freshly raised concerns the pill can increase the risk of suicidal thoughts.

"2008 was a disappointing year. In many ways an unacceptable year," Clark acknowledged when asked at the meeting whether the setbacks were due in part to questionable execution.

Clark noted that vaccine manufacturing problems have been addressed and said the appropriate message about Singulair is that the drug's long safety record makes it an attractive option for patients.

Merck's shares have fallen 47 percent in the past year, far more than rival large drugmakers. They have also been hurt by sharply declining sales of cholesterol drugs Vytorin and Zetia following data from two clinical trials that raised doubts about their effectiveness.

Merck was down 2.5 percent to $29.21 in afternoon trading on the New York Stock Exchange, amid slight declines for the drug sector and a sharp pullback for the broad stock market. (Editing by Andre Grenon)