Merck & Co., Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE ISSUED APRIL 29, 2011 REGARDING EARNINGS FOR FIRST QUARTER 2011

Merck & Co., Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE ISSUED APRIL 29, 2011 REGARDING EARNINGS FOR FIRST QUARTER 2011 - April 29, 2011

Attached files

Attached files

Merck & Co., Inc. Reports

file	filename
8-K - FORM 8-K - Merck & Co., Inc.	d8k.htm
EX-99.3 - PRESS RELEASE ISSUED APRIL 27, 2011 - Merck & Co., Inc.	dex993.htm
EX-99.2 - CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN THE PRESS RELEASE - Merck & Co., Inc.	dex992.htm

Exhibit 99.1

LOGO

News Release

Merck Announces First Quarter 2011 Financial Results

•

Double-Digit EPS Growth in First Quarter 2011: Non-GAAP EPS of $0.92; GAAP EPS of $0.34

•

Double-Digit Global Growth for JANUVIA, JANUMET, SINGULAIR, REMICADE, NASONEX and ISENTRESS; Key Product Launches Underway

•

Pharmaceutical, Animal Health and Consumer Care Divisions All Contributed Solid Revenue Growth

•

Company Updates Full-Year 2011 EPS Targets: Non-GAAP EPS Range of $3.66 to $3.76; GAAP EPS Range of $2.04 to $2.39

WHITEHOUSE STATION, N.J., April 29, 2011 – Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the first quarter of 2011.


$ in millions, except EPS amounts	First Quarter 2011		First Quarter 2010
Sales	$	11,580	$	11,422
GAAP EPS		0.34		0.09
Non-GAAP EPS that excludes items listed below ¹		0.92		0.83
GAAP Net Income ²		1,043		299
Non-GAAP Net Income that excludes items listed below ^1,²		2,861		2,608

Merck is providing certain 2011 and 2010 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s performance. This information should be considered in addition to, but not in lieu of, information prepared in accordance with GAAP. For a description of the items, see Table 2a, including the related footnotes, attached to this release.

²	Net income attributable to Merck & Co., Inc.

Non-GAAP (generally accepted accounting principles) earnings per share (EPS) for the first quarter of $0.92 excludes purchase accounting adjustments, restructuring costs, merger-related expenses, a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson, and certain other items.

A reconciliation of GAAP to non-GAAP net income and EPS is provided in the tables that follow.


	First Quarter 2011					First Quarter 2010
$ in millions, except EPS amounts	Net Income ²		EPS			Net Income ²		EPS
GAAP	$	1,043	$	0.34		$	299	$	0.09
Difference		1,818		0.58	³		2,309		0.74	³
Non-GAAP that excludes items listed below	$	2,861	$	0.92		$	2,608	$	0.83


$ in millions	First Quarter 2011			First Quarter 2010
Purchase accounting adjustments ⁴	$	1,580		$	2,374
Costs related to restructuring programs		126			351
Merger-related costs		77			87
Arbitration settlement charge		500			—
Other ⁵		(134	)		—
Net decrease (increase) in income before taxes		2,149			2,812
Estimated income tax (benefit) expense ⁶		(331	)		(503	)
Decrease (increase) in net income	$	1,818		$	2,309

“Merck’s first quarter performance underscores that we are successfully delivering on our intent to grow both the top line and the bottom line,” said Kenneth C. Frazier, president and chief executive officer. “Our strong results were largely driven by double-digit growth of key products combined with deliberate cost control measures across all areas of the company as we continue to create a more effective and efficient operating model.

“It is clear that Merck’s business momentum is building, and we continue to demonstrate the ongoing value of the merger. We’re making progress in our robust late-stage pipeline, and leveraging the benefits of our expanded pharmaceutical and vaccine, animal health and consumer portfolio.”

³	Represents the difference between calculated GAAP EPS and calculated non-GAAP EPS which may be different than the amount calculated by dividing the impact of the excluded items by the weighted average shares.

⁴

Amounts for the first quarter of 2011 and 2010 reflect $302 million and $27 million, respectively, of in-process research and development impairment charges. The remaining amounts represent expenses for the amortization of intangible assets and amortization of purchase accounting adjustments to inventories recognized as a result of the merger.

⁵	Represents a gain on the sale of certain manufacturing facilities and related assets reflected in other (income) expense, net.

⁶	Includes an estimated income tax (benefit) expense on the reconciling items. In addition, amount for the first quarter of 2010 includes a $147 million tax charge related to U.S. healthcare reform legislation.

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Select Revenue Highlights

Worldwide sales were $11.6 billion for the first quarter of 2011, an increase of 1 percent compared with the first quarter of 2010. The revenue increase largely reflects strong sales of JANUVIA, JANUMET, SINGULAIR, REMICADE, NASONEX and ISENTRESS, partially offset by lower sales of COZAAR ⁷ and HYZAAR ⁷. In the first quarter of 2011, 18 percent of pharmaceutical sales were from emerging markets.

The table below reflects sales of the company’s top Pharmaceutical products, as well as total sales of Animal Health and Consumer Care products.


$ in millions	First Quarter 2011		First Quarter 2010		Change
Total Sales	$	11,580	$	11,422		1	%

Pharmaceutical ⁸		9,820		9,665		2	%
SINGULAIR		1,328		1,165		14	%
REMICADE		753		674		12	%
JANUVIA		739		511		45	%
ZETIA		582		534		9	%
VYTORIN		480		477		1	%
COZAAR/HYZAAR		426		782		-46	%
NASONEX		373		320		17	%
JANUMET		305		201		52	%
ISENTRESS		292		232		26	%
TEMODAR		248		274		-10	%
GARDASIL		214		233		-8	%
Animal Health		758		709		7	%
Consumer Care⁸		517		489		6	%
Other Revenues ⁹		486		559		-13	%

The combined diabetes franchise for JANUVIA (sitagliptin)/JANUMET (sitagliptin/metformin hydrochloride) continued its strong performance across all geographic regions during the first quarter of 2011, reaching quarterly combined sales of more than $1 billion for the first time – a 47 percent increase compared to the same period last year.

Worldwide sales of SINGULAIR (montelukast sodium), a once-a-day oral medicine indicated for the chronic treatment of asthma and the relief of symptoms of allergic rhinitis, grew 14 percent from the first quarter of 2010 to $1.3 billion, driven by gains in the United States, emerging markets and Japan.

⁷	COZAAR and HYZAAR are registered trademarks of E.I. duPont de Nemours and Company, Wilmington, Del.

⁸

In the first quarter of 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

⁹	Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales. Revenue from AstraZeneca LP recorded by Merck was $322 million in the first quarter of 2011.

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Global sales grew in the quarter for REMICADE (infliximab), a treatment for inflammatory diseases, led by increases in gastrointestinal indications for the treatment of ulcerative colitis and Crohn’s disease as well as emerging market gains.

ISENTRESS (raltegravir), an HIV integrase inhibitor for use in combination with other antiretroviral agents for the treatment of HIV-1 infection, continued strong growth in the quarter driven by demand in the United States and Europe.

As expected, global sales of Merck’s antihypertensive medicines COZAAR (losartan potassium) and HYZAAR (losartan potassium and hydrochlorothiazide) continue to decline following loss of marketing exclusivity for these products in the United States and in major European markets. Sales of TEMODAR (temozolomide), a treatment for certain types of brain tumors, declined due to generic competition in Europe.

Sales of ZOSTAVAX (zoster vaccine live) declined due to continued intermittent supply issues.

Product Performance – Animal Health

The company drove solid first-quarter performance in the Animal Health business across all regions, with a 7 percent sales increase over the same period last year. The growth was led by increased sales of cattle, swine and aquaculture products. The division’s products include pharmaceutical and vaccine products for the prevention, treatment and control of disease in all major farm and companion animal species. In addition, in March of 2011, Merck and sanofi-aventis announced the termination of their agreement to form a new animal health joint venture.

Product Performance – Consumer Care

Merck Consumer Care delivered a first-quarter sales increase of 6 percent compared to the first quarter of 2010, with strong performance across several key brands including CLARITIN and COPPERTONE. Consumer Care includes footcare and suncare consumer products, and a variety of over-the-counter medicines.

First Quarter Expense and Other Information

The costs detailed below on a GAAP basis during the first quarter of 2011 totaled $9.4 billion and include $1.8 billion of purchase accounting adjustments, restructuring costs and merger-related costs.

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				Included in expenses for the period
$ in millions First Quarter 2011	GAAP			Purchase Accounting Adjustments⁴		Restructuring Costs			Merger- Related Costs		Non-GAAP¹
Materials and production	$	4,059		$	1,278	$	72		$	19	$	2,690
Marketing and administrative		3,164			—		23			58		3,083
Research and development		2,158			302		45			—		1,811
Restructuring costs		(14	)		—		(14	)		—		—

First Quarter 2010
Materials and production	$	5,216		$	2,347	$	57		$	—	$	2,812
Marketing and administrative		3,222			—		—			80		3,142
Research and development		2,051			27		6			—		2,018
Restructuring costs		288			—		288			—		—

The gross margin was 64.9 percent for the first quarter of 2011 and 54.3 percent for the first quarter of 2010, reflecting 11.9 and 21.1 percentage point unfavorable impacts, respectively, from the purchase accounting adjustments, restructuring and merger-related costs noted above.

Equity income from affiliates was $138 million in the first quarter. Equity income from affiliates primarily includes the AstraZeneca LP, Johnson & Johnson Merck Consumer Pharmaceuticals Company and Sanofi Pasteur MSD partnerships.

Other (income) expense, net was $622 million of expense in the first quarter of 2011 which includes a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson. Other (income) expense, net for the first quarter of 2010 was $167 million of expense.

The GAAP effective tax rate was 38.1 percent for the first quarter of 2011. The non-GAAP effective tax rate, which excludes the impact of purchase accounting adjustments, restructuring costs, merger-related expenses, a $500 million charge related to the resolution of the arbitration proceeding, and certain other items, was 25.5 percent for the quarter.

Key Developments

•

Merck reached an agreement with Johnson & Johnson that settles the arbitration proceeding about the distribution rights for REMICADE (infliximab) and SIMPONI (golimumab).

•

Merck now has five investigational medicines under regulatory review in the United States and European Union (EU), including two that were accepted for review in the first quarter of 2011.

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VICTRELIS (boceprevir), the company’s investigational oral hepatitis C protease inhibitor currently under Priority Review status by the U.S. Food and Drug Administration (FDA) and accelerated assessment status by the EU, was recommended for approval by unanimous vote by the FDA’s Antiviral Drugs Advisory Committee on April 27, 2011.

An investigational extended-release formulation of JANUMET (sitagliptin/metformin HCI) for Type 2 diabetes is under standard review by the FDA.

The FDA accepted for standard review during the first quarter of 2011 a combination of JANUVIA (sitagliptin) and ZOCOR (simvastatin) for the investigational treatment of diabetes and dyslipidemia.

Tafluprost, an investigational prostaglandin analogue ophthalmic solution, was accepted for standard review by the FDA in the first quarter of 2011.

NOMAC-E2 (acetate 2.5 mg /17ß-estradiol 1.5 mg), an investigational monophasic combined oral contraceptive tablet for the use by women to prevent pregnancy was recommended for approval by the Committee for Medicinal Products for Human Use of the European Medicines Agency.

•

Two medicines received regulatory approval for expanded indications.

In the United States, ZOSTAVAX (Zoster Vaccine Live) received an expanded age indication for the prevention of herpes zoster, commonly known as shingles, to include adults 50 to 59 years of age, and

In the EU, SIMPONI (golimumab) received approval for use in combination with methotrexate in certain adults with severe, active and progressive rheumatoid arthritis for the reduction in the rate of progression of joint damage as measured by X-ray.

•

In the United States, the FDA approved SYLATRON (peginterferon alfa-2b) for the adjuvant treatment of patients with melanoma with microscopic or gross nodal involvement within 84 days of definitive surgical resection including complete lymphadenectomy.

•

The company formed a new joint venture with Sun Pharmaceutical Industries Ltd., a leading Indian multinational pharmaceutical company, to develop, manufacture and commercialize new combinations and formulations of innovative, branded generics for the emerging markets.

•

Merck agreed to acquire Inspire Pharmaceuticals, Inc., a specialty pharmaceutical company, for approximately $430 million to expand and position its ophthalmology portfolio for future growth. The transaction is expected to close in the second quarter of 2011.

Page 6

Financial Targets

The company updated its 2011 non-GAAP EPS target range to $3.66 to $3.76 from the previous target range of $3.64 to $3.76. The target range excludes purchase accounting adjustments, restructuring costs, merger-related expenses, the $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson, and certain other items. The 2011 GAAP EPS target range is $2.04 to $2.39.

In addition, the company lowered its non-GAAP R&D expense target to a range of $8.0 billion to $8.4 billion for the full year of 2011. This target excludes restructuring costs and in-process R&D impairment charges.

Merck continues to expect full year 2011 revenue to grow in the low- to mid-single digit percent range from a base of $46.0 billion in 2010.

Merck continues to estimate that its consolidated non-GAAP 2011 tax rate will be approximately 20 percent to 22 percent.

A reconciliation of anticipated 2011 EPS as reported in accordance with GAAP to non-GAAP EPS that excludes certain items is provided in the table below.


$ in millions, except EPS amounts		Full Year 2011
GAAP EPS		$2.04 to $2.39
EPS difference ³		1.62 to 1.37
Non-GAAP EPS that excludes items listed below		$3.66 to $3.76


Purchase accounting adjustments ⁴		$5,400 to $5,100
Costs related to restructuring programs		900 to 700
Merger-related costs		200 to 100
Arbitration settlement charge		500
Other ⁵		(134)
Net decrease (increase) in income before taxes		6,866 to 6,266
Estimated income tax (benefit) expense ¹⁰		(1,840) to (2,000)
Decrease (increase) in net income		$5,026 to $4,266

Total Employees

As of March 31, 2011, Merck had approximately 93,000 employees worldwide.

Earnings Conference Call

Investors are invited to a live audio webcast of Merck’s first quarter earnings conference call today at 8:00 a.m. EDT by visiting Merck’s Web site, www.merck.com/investors/events-and-presentations/home.html. Institutional investors and analysts can participate in the call by dialing (706) 758-9927 or (877) 381-5782. Journalists are

¹⁰	Includes an estimated income tax (benefit) expense on the reconciling items as well as a range of estimated tax benefits expected to be recorded in the second quarter as a result of the conclusion of federal tax audits.

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invited to monitor the call by dialing (706) 758-9928 or (800) 399-7917. A replay of the call will be available starting at 11 a.m. EDT today for approximately one week. To listen to the replay, dial (706) 645-9291 or (800) 642-1687 and enter ID No. 51049889.

About Merck

Today’s Merck is a global healthcare leader working to help the world be well. Merck is known as MSD outside the United States and Canada. Through our prescription medicines, vaccines, biologic therapies, and consumer care and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to healthcare through far-reaching policies, programs and partnerships. For more information, visit www.merck.com.

Forward-Looking Statement

This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about the benefits of the merger between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period; the impact of pharmaceutical industry regulation and health care legislation; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions.

Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck’s 2010 Annual Report on Form 10-K and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).

# # #

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MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1


	GAAP						% Change
	1Q11			1Q10			% Change
Sales	$	11,580		$	11,422			1	%

Costs, Expenses and Other
Materials and production ⁽¹⁾		4,059			5,216			-22	%
Marketing and administrative ^{(1) / (2)}		3,164			3,222			-2	%
Research and development ^{(1) / (2)}		2,158			2,051			5	%
Restructuring costs ⁽³⁾		(14	)		288			*
Equity income from affiliates ⁽⁴⁾		(138	)		(138	)		—
Other (income) expense, net ^{(1) / (5)}		622			167			*

Income Before Taxes		1,729			616			*
Income Tax Provision		658			286
Net Income		1,071			330			*
Less: Net Income Attributable to Noncontrolling Interests		28			31
Net Income Attributable to Merck & Co., Inc.	$	1,043		$	299			*
Earnings per Common Share Assuming Dilution ⁽⁶⁾	$	0.34		$	0.09			*

Average Shares Outstanding Assuming Dilution		3,104			3,141
Tax Rate ⁽⁷⁾		38.1	%		46.4	%

*³ 100%

(1)	Amounts include the impact of purchase accounting adjustments, restructuring costs, merger-related costs and certain other items. See accompanying tables for details.

(2)	The first quarter of 2010 includes a $24 million reclassification of certain expenses from marketing and administrative to research and development.

(3)	Represents separation and other related costs associated with restructuring activities.

(4)	Primarily reflects equity income from AstraZeneca LP, Johnson & JohnsonºMerck Consumer Pharmaceuticals Company and Sanofi Pasteur MSD partnerships.

(5)

Other (income) expense, net in the first quarter of 2011 includes a charge of $500 million related to the resolution of the arbitration proceeding with Johnson & Johnson and a $134 million gain on the sale of certain manufacturing facilities and related assets. Other (income) expense, net in the first quarter of 2010 includes $102 million of income on the settlement of certain disputed royalties and $80 million of exchange losses due to a Venezuelan currency devaluation.

(6)

The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate earnings per common share assuming dilution was $1,040 million and $298 million for the first quarter of 2011 and 2010, respectively.

(7)

The GAAP effective tax rate for the first quarter of 2011 was 38.1%. Excluding the impact of the non-GAAP items detailed in the accompanying table, the effective tax rate was 25.5% for the first quarter of 2011. The GAAP effective tax rate for the first quarter of 2010 was 46.4%. Excluding the impact of the non-GAAP items detailed in the accompanying table, the effective tax rate was 23.0% for the first quarter of 2010.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FIRST QUARTER 2011

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a


	GAAP			Purchase Accounting ⁽¹⁾			Restructuring Costs ⁽²⁾			Merger-Related Costs ⁽³⁾			Certain Other Items ⁽⁴⁾			Adjustment Subtotal			Non-GAAP
Sales	$	11,580														$	—		$	11,580
Materials and production		4,059			1,278			72			19						1,369			2,690
Marketing and administrative		3,164						23			58						81			3,083
Research and development		2,158			302			45									347			1,811
Restructuring costs		(14	)					(14	)								(14	)		—
Equity income from affiliates		(138	)														—			(138	)
Other (income) expense, net		622												366			366			256
Income Before Taxes		1,729			(1,580	)		(126	)		(77	)		(366	)		(2,149	)		3,878
Taxes on Income		658															(331	) ⁽⁵⁾		989
Net Income		1,071															(1,818	)		2,889
Less: Net Income Attributable to Noncontrolling Interests		28															—			28
Net Income Attributable to Merck & Co., Inc.	$	1,043														$	(1,818	)	$	2,861
Earnings per Common Share Assuming Dilution	$	0.34																	$	0.92	⁽⁶⁾
Average Shares Outstanding Assuming Dilution		3,104																		3,104
Tax Rate		38.1	%																	25.5	%

Merck is providing non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s performance. This information should be considered in addition to, but not in lieu of, information prepared in accordance with GAAP.

(1)

Amounts included in materials and production costs reflect expenses for the amortization of intangible assets and the amortization of purchase accounting adjustments to inventories recognized as a result of the merger. Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges.

(2)	Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested.

(3)	Merger-related costs include integration costs associated with the merger.

(4)	Included in other (income) expense, net is a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson and a $134 million gain on the sale of certain manufacturing facilities and related assets.

(5)	Represents the estimated tax impact on the reconciling items.

(6)

The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $2,853 million for the first quarter of 2011.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FIRST QUARTER 2011

(AMOUNTS IN MILLIONS)

Table 3


	2011		2010										% Change
	1Q		1Q		2Q		3Q		4Q		Full Year		1Q
TOTAL SALES ⁽¹⁾	$	11,580	$	11,422	$	11,346	$	11,125	$	12,094	$	45,987		1


PHARMACEUTICAL ⁽²⁾		9,820		9,665		9,638		9,523		10,441		39,267		2

Cardiovascular
Zetia		582		534		564		571		629		2,297		9
Vytorin		480		477		490		485		562		2,014		1
Integrilin		64		70		70		63		63		266		-9

Diabetes & Obesity
Januvia		739		511		600		600		675		2,385		45
Janumet		305		201		218		247		288		954		52

Diversified Brands
Cozaar / Hyzaar		426		782		485		423		415		2,104		-46
Zocor		127		116		117		114		121		468		10
Claritin Rx		120		98		58		53		86		296		23
Propecia		106		100		113		109		124		447		7
Proscar		60		58		56		58		44		216		3
Remeron		60		51		59		50		62		223		18
Vasotec / Vaseretic		57		59		63		69		64		255		-4

Infectious Disease
Isentress		292		232		267		278		313		1,090		26
PegIntron		166		186		185		168		198		737		-11
Cancidas		158		153		150		135		174		611		3
Primaxin		136		159		158		135		158		610		-14
Avelox		106		106		59		59		92		316		1
Invanz		87		75		83		91		113		362		16
Noxafil		55		49		50		52		48		198		12
Rebetol		53		56		55		55		54		221		-7
Crixivan / Stocrin		45		52		48		49		58		206		-13

Neurosciences & Ophthalmology
Maxalt		173		135		133		133		149		550		29
Cosopt / Trusopt		114		115		123		114		131		484		-1

Oncology
Temodar		248		274		271		254		266		1,065		-10
Emend		87		84		93		91		110		378		4
Intron A		49		54		51		50		54		209		-11

Respiratory & Immunology
Singulair		1,328		1,165		1,258		1,215		1,349		4,987		14
Remicade		753		674		669		661		710		2,714		12
Nasonex		373		320		338		259		303		1,219		17
Clarinex		155		164		191		131		138		623		-5
Arcoxia		114		95		95		94		115		398		19
Asmanex		60		51		56		48		53		208		17
Simponi		54		10		18		27		42		97		*
Proventil		42		57		55		43		55		210		-26
Dulera		13		0		0		2		6		8		*

Vaccines
ProQuad, M-M-R II and Varivax		244		319		340		434		285		1,378		-23
Gardasil		214		233		219		316		221		988		-8
RotaTeq		125		93		139		119		169		519		35
Pneumovax		79		51		59		110		156		376		55
Zostavax		24		95		18		23		107		243		-74

Women’s Health & Endocrine
Fosamax		208		230		241		220		234		926		-10
NuvaRing		142		135		145		134		145		559		5
Follistim AQ		133		134		137		119		138		528		—
Implanon		60		51		51		64		71		236		18
Cerazette		59		55		49		56		49		209		7

Other Pharmaceutical ⁽³⁾		745		946		941		942		1,044		3,879		-21

ANIMAL HEALTH		758		709		731		687		815		2,941		7

CONSUMER CARE ⁽²⁾		517		489		544		409		381		1,823		6
Claritin OTC		167		136		167		120		103		526		22

Other Revenues ⁽⁴⁾		486		559		433		506		457		1,956		-13
Astra		322		364		241		345		302		1,252		-11

*	100% or over

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾	Only select products are shown.

⁽²⁾

In the first quarter of 2011, Merck changed the reporting for certain over -the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

⁽³⁾

Includes pharmaceutical products not individually shown above. Other vaccines sales included in Other Pharmaceutical were $54 million for the first quarter of 2011. Other vaccines sales included in Other Pharmaceutical were $55 million, $57 million, $94 million and $75 million for the first, second, third and fourth quarters of 2010, respectively.

⁽⁴⁾	Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

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