Pharmaceutical giant Merck & Co. says the new U.S. Health Care Reform legislation will slice $35 million from revenue in the first financial quarter and about $170 million for the entire year.

The impact could be double in 2011, says the company. Merck attributes the revenue impact to increased Medicaid rebates and a charge related to taxes on post-retirement medical benefits.

According to a press statement, the company estimates that the unfavorable sales impact related to the passage of the health care legislation will be approximately $300 to $350 million in 2011.

Merck will announce its first quarter 2010 sales and earnings announcement on May 4, 2010.