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EX-99.3 - EX-99.3 - Merck & Co., Inc.a18-37128_1ex99d3.htm
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8-K - 8-K - Merck & Co., Inc.a18-37128_18k.htm

Exhibit 99.2

 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

 

 

 

2018

 

2017

 

% Change

 

 

 

1Q

 

2Q

 

3Q

 

Sep YTD

 

1Q

 

2Q

 

3Q

 

Sep YTD

 

4Q

 

Full Year

 

3Q

 

Sep YTD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

10,037

 

$

10,465

 

$

10,794

 

$

31,296

 

$

9,434

 

$

9,930

 

$

10,325

 

$

29,689

 

$

10,433

 

$

40,122

 

5

%

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

3,184

 

3,417

 

3,619

 

10,220

 

3,049

 

3,116

 

3,307

 

9,472

 

3,440

 

12,912

 

9

%

8

%

Marketing and administrative

 

2,508

 

2,508

 

2,443

 

7,459

 

2,472

 

2,500

 

2,459

 

7,432

 

2,643

 

10,074

 

-1

%

 

Research and development

 

3,196

 

2,274

 

2,068

 

7,538

 

1,830

 

1,782

 

4,413

 

8,024

 

2,314

 

10,339

 

-53

%

-6

%

Restructuring costs

 

95

 

228

 

171

 

494

 

151

 

166

 

153

 

470

 

306

 

776

 

12

%

5

%

Other (income) expense, net

 

(291

)

(48

)

(172

)

(512

)

(71

)

(73

)

(207

)

(351

)

(149

)

(500

)

-17

%

46

%

Income Before Taxes

 

1,345

 

2,086

 

2,665

 

6,097

 

2,003

 

2,439

 

200

 

4,642

 

1,879

 

6,521

 

*

 

31

%

Taxes on Income

 

604

 

370

 

707

 

1,682

 

447

 

488

 

251

 

1,186

 

2,917

 

4,103

 

 

 

 

 

Net Income (Loss)

 

741

 

1,716

 

1,958

 

4,415

 

1,556

 

1,951

 

(51

)

3,456

 

(1,038

)

2,418

 

*

 

28

%

Less: Net Income Attributable to Noncontrolling Interests

 

5

 

9

 

8

 

22

 

5

 

5

 

5

 

16

 

8

 

24

 

 

 

 

 

Net Income (Loss) Attributable to Merck & Co., Inc.

 

$

736

 

$

1,707

 

$

1,950

 

$

4,393

 

$

1,551

 

$

1,946

 

$

(56

)

$

3,440

 

$

(1,046

)

$

2,394

 

*

 

28

%

Earnings (Loss) per Common Share Assuming Dilution (1)

 

$

0.27

 

$

0.63

 

$

0.73

 

$

1.63

 

$

0.56

 

$

0.71

 

$

(0.02

)

$

1.25

 

$

(0.39

)

$

0.87

 

*

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution (1)

 

2,710

 

2,696

 

2,678

 

2,694

 

2,766

 

2,752

 

2,727

 

2,754

 

2,715

 

2,748

 

 

 

 

 

Tax Rate

 

44.9

%

17.8

%

26.5

%

27.6

%

22.3

%

20.0

%

125.5

%

25.5

%

155.2

%

62.9

%

 

 

 

 

 


* 100% or greater

 

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

 

On January 1, 2018, the company adopted a new accounting standard related to defined benefit plans that requires the components of net benefit cost/credit (other than service costs) be presented in the statement of income outside of operating expenses. Upon adoption, net periodic benefit cost/credit other than service cost was reclassified to Other (income) expense, net from the previous classifications within Materials and production costs, Marketing and administrative expenses and Research and development costs.  Previously reported amounts have been reclassified to conform to the new presentation. There was no impact to net income as a result of adopting the new standard.

 

(1) Because the company recorded net losses in the third and fourth quarters of 2017, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive.

 



 

MERCK & CO., INC.

GAAP TO NON-GAAP RECONCILIATION

THIRD QUARTER 2017

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

 

 

 

GAAP

 

Acquisition and
Divestiture-Related
Costs 
(1)

 

Restructuring
Costs 
(2)

 

Certain Other
Items 
(3)

 

Adjustment
Subtotal

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

$

3,307

 

768

 

25

 

 

 

793

 

$

2,514

 

Marketing and administrative

 

2,459

 

11

 

 

 

 

 

11

 

2,448

 

Research and development

 

4,413

 

271

 

2

 

2,350

 

2,623

 

1,790

 

Restructuring costs

 

153

 

 

 

153

 

 

 

153

 

 

Other (income) expense, net

 

(207

)

(18

)

 

 

 

 

(18

)

(189

)

Income Before Taxes

 

200

 

(1,032

)

(180

)

(2,350

)

(3,562

)

3,762

 

Income Tax Provision (Benefit)

 

251

 

(179

)(4)

(39

)(4)

(234

)(5)

(452

)

703

 

Net (Loss) Income

 

(51

)

(853

)

(141

)

(2,116

)

(3,110

)

3,059

 

Net (Loss) Income Attributable to Merck & Co., Inc.

 

(56

)

(853

)

(141

)

(2,116

)

(3,110

)

3,054

 

(Loss) Earnings per Common Share Assuming Dilution

 

$

(0.02

)

(0.31

)

(0.05

)

(0.77

)

(1.13

)

$

1.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Rate

 

125.5

%

 

 

 

 

 

 

 

 

18.7

%

 

Only the line items that are affected by non-GAAP adjustments are shown.

 

Merck is providing certain 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 results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

 


(1) Amounts included in materials and production costs primarily reflect expenses for the amortization of intangible assets recognized as a result of business acquisitions.  Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions and divestitures.  Amounts included in research and development expenses reflect $245 million of in-process research and development (IPR&D) impairment charges and $26 million of expenses related to an increase in the estimated fair value measurement of liabilities for contingent consideration.  Amount included in other (income) expense, net represents royalty income related to the termination of the Sanofi-Pasteur MSD joint venture.

 

(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company’s formal restructuring programs.

 

(3) Amount included in research and development expenses represents an aggregate charge related to the formation of a collaboration with AstraZeneca PLC.

 

(4) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

 

(5) Represents a net tax benefit related to the settlement of certain federal income tax issues.

 



 

MERCK & CO., INC.

GAAP TO NON-GAAP RECONCILIATION

NINE MONTHS ENDED SEPTEMBER 30, 2017

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d

 

 

 

GAAP

 

Acquisition and
Divestiture-Related
Costs 
(1)

 

Restructuring
Costs 
(2)

 

Certain Other
Items 
(3)

 

Adjustment
Subtotal

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

$

9,472

 

2,450

 

121

 

 

 

2,571

 

$

6,901

 

Marketing and administrative

 

7,432

 

40

 

3

 

 

 

43

 

7,389

 

Research and development

 

8,024

 

289

 

11

 

2,350

 

2,650

 

5,374

 

Restructuring costs

 

470

 

 

 

470

 

 

 

470

 

 

Other (income) expense, net

 

(351

)

18

 

 

 

(9

)

9

 

(360

)

Income Before Taxes

 

4,642

 

(2,797

)

(605

)

(2,341

)

(5,743

)

10,385

 

Income Tax Provision (Benefit)

 

1,186

 

(464

)(4)

(132

)(4)

(319

)(5)

(915

)

2,101

 

Net Income

 

3,456

 

(2,333

)

(473

)

(2,022

)

(4,828

)

8,284

 

Net Income Attributable to Merck & Co., Inc.

 

3,440

 

(2,333

)

(473

)

(2,022

)

(4,828

)

8,268

 

Earnings per Common Share Assuming Dilution

 

$

1.25

 

(0.85

)

(0.17

)

(0.73

)

(1.75

)

$

3.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Rate

 

25.5

%

 

 

 

 

 

 

 

 

20.2

%

 

Only the line items that are affected by non-GAAP adjustments are shown.

 

Merck is providing certain 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 results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

 


(1) Amounts included in materials and production costs primarily reflect $2.3 billion of expenses for the amortization of intangible assets recognized as a result of business acquisitions, as well as intangible asset impairment charges of $123 million.  Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions and divestitures.  Amounts included in research and development expenses reflect $253 million of in-process research and development (IPR&D) impairment charges, as well as $36 million of expenses related to an increase in the estimated fair value measurement of liabilities for contingent consideration.  Amounts included in other (income) expense, net reflect an increase in the estimated fair value measurement of liabilities for contingent consideration, partially offset by royalty income related to the termination of the Sanofi-Pasteur MSD joint venture.

 

(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company’s formal restructuring programs.

 

(3) Amount included in research and development expenses represents an aggregate charge related to the formation of a collaboration with AstraZeneca PLC.

 

(4) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

 

(5) Includes the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments, as well as a $234 million net tax benefit related to the settlement of certain federal income tax issues and an $88 million tax benefit related to the settlement of a state income tax issue.

 



 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

THIRD QUARTER 2018

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3a

 

 

 

Global

 

U.S.

 

International

 

 

 

3Q 2018

 

3Q 2017

 

% Change

 

3Q 2018

 

3Q 2017

 

% Change

 

3Q 2018

 

3Q 2017

 

% Change

 

TOTAL SALES (1)

 

$

10,794

 

$

10,325

 

5

 

$

5,030

 

$

4,594

 

9

 

$

5,764

 

$

5,732

 

1

 

PHARMACEUTICAL

 

9,658

 

9,156

 

5

 

4,649

 

4,197

 

11

 

5,010

 

4,959

 

1

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keytruda

 

1,889

 

1,047

 

80

 

1,109

 

604

 

84

 

780

 

442

 

76

 

Emend

 

123

 

137

 

-10

 

71

 

88

 

-20

 

52

 

49

 

6

 

Temodar

 

46

 

68

 

-32

 

 

 

 

 

 

 

46

 

68

 

-33

 

Alliance Revenue - Lynparza

 

49

 

5

 

*

 

33

 

 

 

 

 

15

 

5

 

*

 

Alliance Revenue - Lenvima

 

43

 

 

 

 

 

30

 

 

 

 

 

13

 

 

 

 

 

Vaccines (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil / Gardasil 9

 

1,048

 

675

 

55

 

740

 

484

 

53

 

308

 

191

 

62

 

ProQuad / M-M-R II / Varivax

 

525

 

519

 

1

 

429

 

419

 

2

 

96

 

100

 

-4

 

Pneumovax 23

 

214

 

229

 

-7

 

160

 

174

 

-8

 

54

 

56

 

-3

 

RotaTeq

 

191

 

179

 

7

 

134

 

127

 

6

 

57

 

52

 

10

 

Zostavax

 

54

 

234

 

-77

 

(1

)

139

 

-101

 

56

 

94

 

-41

 

Hospital Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridion

 

217

 

185

 

17

 

96

 

63

 

52

 

120

 

122

 

-1

 

Noxafil

 

188

 

162

 

16

 

89

 

78

 

13

 

99

 

83

 

19

 

Invanz

 

137

 

159

 

-14

 

74

 

93

 

-20

 

62

 

66

 

-6

 

Cubicin

 

95

 

91

 

4

 

55

 

41

 

33

 

40

 

50

 

-19

 

Cancidas

 

79

 

94

 

-16

 

2

 

6

 

-62

 

77

 

88

 

-13

 

Primaxin

 

72

 

73

 

-1

 

1

 

5

 

-86

 

71

 

68

 

5

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Simponi

 

210

 

219

 

-4

 

 

 

 

 

 

 

210

 

219

 

-4

 

Remicade

 

135

 

214

 

-37

 

 

 

 

 

 

 

135

 

214

 

-37

 

Neuroscience

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Belsomra

 

66

 

56

 

17

 

23

 

27

 

-12

 

43

 

30

 

44

 

Virology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress / Isentress HD

 

275

 

310

 

-11

 

123

 

143

 

-14

 

151

 

167

 

-9

 

Zepatier

 

104

 

468

 

-78

 

18

 

228

 

-92

 

86

 

241

 

-64

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

165

 

320

 

-48

 

9

 

65

 

-86

 

157

 

255

 

-39

 

Vytorin

 

92

 

142

 

-35

 

 

 

(6

)

108

 

92

 

148

 

-38

 

Atozet

 

84

 

59

 

42

 

 

 

 

 

 

 

84

 

59

 

42

 

Adempas

 

94

 

70

 

35

 

 

 

 

 

 

 

94

 

70

 

35

 

Diabetes (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia

 

927

 

1,012

 

-8

 

498

 

598

 

-17

 

429

 

414

 

4

 

Janumet

 

563

 

513

 

10

 

225

 

197

 

14

 

339

 

316

 

7

 

Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

234

 

214

 

9

 

193

 

160

 

21

 

41

 

54

 

-25

 

Implanon / Nexplanon

 

186

 

155

 

20

 

133

 

110

 

21

 

53

 

45

 

19

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulair

 

161

 

161

 

 

 

5

 

16

 

-68

 

156

 

145

 

7

 

Cozaar / Hyzaar

 

103

 

128

 

-20

 

4

 

9

 

-53

 

99

 

119

 

-17

 

Arcoxia

 

83

 

80

 

3

 

 

 

 

 

 

 

83

 

80

 

3

 

Nasonex

 

71

 

42

 

67

 

7

 

(23

)

129

 

64

 

65

 

-2

 

Follistim AQ

 

60

 

72

 

-16

 

26

 

30

 

-13

 

34

 

41

 

-18

 

Dulera

 

50

 

59

 

-15

 

44

 

52

 

-16

 

6

 

7

 

-6

 

Fosamax

 

45

 

53

 

-16

 

2

 

4

 

-46

 

42

 

48

 

-13

 

Other Pharmaceutical (4) 

 

980

 

952

 

3

 

317

 

266

 

19

 

666

 

688

 

-3

 

ANIMAL HEALTH

 

1,021

 

1,000

 

2

 

306

 

290

 

6

 

715

 

710

 

1

 

Livestock

 

660

 

655

 

1

 

153

 

137

 

12

 

508

 

518

 

-2

 

Companion Animals

 

361

 

345

 

5

 

153

 

153

 

 

 

207

 

192

 

8

 

Other Revenues (5)

 

115

 

169

 

-32

 

75

 

107

 

-30

 

39

 

63

 

-39

 

 


* 200% or greater

 

(1) Only select products are shown.

 

(2) Total Vaccines sales were $2,159 million and $1,924 million on a global basis for third quarter 2018 and 2017, respectively.

 

(3) Total Diabetes sales were $1,506 million and $1,531 million on a global basis for third quarter 2018 and 2017, respectively.

 

(4) Includes Pharmaceutical products not individually shown above.

 

(5) Other Revenues are comprised primarily of Healthcare Services segment revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.

 



 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

SEPTEMBER YEAR-TO-DATE 2018

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

 

 

 

Global

 

U.S.

 

International

 

 

 

Sep YTD 2018

 

Sep YTD 2017

 

% Change

 

Sep YTD 2018

 

Sep YTD 2017

 

% Change

 

Sep YTD 2018

 

Sep YTD 2017

 

% Change

 

TOTAL SALES (1)

 

$

31,296

 

$

29,689

 

5

 

$

13,425

 

$

13,096

 

3

 

$

17,871

 

$

16,593

 

8

 

PHARMACEUTICAL

 

27,859

 

26,101

 

7

 

12,206

 

11,887

 

3

 

15,653

 

14,214

 

10

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keytruda

 

5,020

 

2,512

 

100

 

2,906

 

1,522

 

91

 

2,114

 

990

 

114

 

Emend

 

396

 

413

 

-4

 

239

 

257

 

-7

 

157

 

156

 

1

 

Temodar

 

159

 

198

 

-20

 

3

 

4

 

-40

 

156

 

194

 

-19

 

Alliance Revenue - Lynparza

 

125

 

5

 

*

 

88

 

 

 

 

 

37

 

5

 

*

 

Alliance Revenue - Lenvima

 

78

 

 

 

 

 

49

 

 

 

 

 

29

 

 

 

 

 

Vaccines (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil / Gardasil 9

 

2,317

 

1,675

 

38

 

1,422

 

1,195

 

19

 

894

 

481

 

86

 

ProQuad / M-M-R II / Varivax

 

1,343

 

1,273

 

5

 

1,097

 

1,058

 

4

 

246

 

215

 

14

 

Pneumovax 23

 

586

 

558

 

5

 

394

 

392

 

1

 

192

 

166

 

15

 

RotaTeq

 

540

 

525

 

3

 

384

 

377

 

2

 

156

 

148

 

6

 

Zostavax

 

163

 

547

 

-70

 

16

 

356

 

-96

 

147

 

191

 

-23

 

Hospital Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridion

 

661

 

495

 

33

 

272

 

162

 

67

 

389

 

333

 

17

 

Noxafil

 

551

 

458

 

21

 

257

 

220

 

17

 

294

 

237

 

24

 

Invanz

 

437

 

445

 

-2

 

252

 

268

 

-6

 

185

 

177

 

4

 

Cubicin

 

287

 

290

 

-1

 

150

 

148

 

1

 

137

 

141

 

-3

 

Cancidas

 

257

 

327

 

-22

 

10

 

17

 

-45

 

247

 

310

 

-20

 

Primaxin

 

212

 

206

 

3

 

6

 

7

 

-12

 

206

 

199

 

3

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Simponi

 

673

 

602

 

12

 

 

 

 

 

 

 

673

 

602

 

12

 

Remicade

 

459

 

651

 

-29

 

 

 

 

 

 

 

459

 

651

 

-29

 

Neuroscience

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Belsomra

 

191

 

150

 

27

 

76

 

72

 

5

 

115

 

78

 

47

 

Virology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress / Isentress HD

 

860

 

896

 

-4

 

383

 

422

 

-9

 

477

 

474

 

1

 

Zepatier

 

347

 

1,363

 

-75

 

8

 

683

 

-99

 

339

 

680

 

-50

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

696

 

1,021

 

-32

 

34

 

298

 

-89

 

662

 

723

 

-8

 

Vytorin

 

414

 

565

 

-27

 

11

 

114

 

-90

 

402

 

451

 

-11

 

Atozet

 

258

 

171

 

51

 

 

 

 

 

 

 

258

 

171

 

51

 

Adempas

 

238

 

221

 

7

 

 

 

 

 

 

 

238

 

221

 

7

 

Diabetes (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia

 

2,756

 

2,799

 

-2

 

1,466

 

1,646

 

-11

 

1,291

 

1,153

 

12

 

Janumet

 

1,693

 

1,572

 

8

 

625

 

640

 

-2

 

1,067

 

933

 

14

 

Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

686

 

573

 

20

 

550

 

425

 

29

 

135

 

148

 

-9

 

Implanon / Nexplanon

 

535

 

503

 

6

 

375

 

367

 

2

 

160

 

137

 

17

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulair

 

521

 

550

 

-5

 

16

 

28

 

-44

 

505

 

522

 

-3

 

Cozaar / Hyzaar

 

348

 

360

 

-3

 

18

 

15

 

26

 

330

 

345

 

-4

 

Nasonex

 

274

 

266

 

3

 

8

 

16

 

-49

 

266

 

250

 

6

 

Arcoxia

 

249

 

272

 

-8

 

 

 

 

 

 

 

249

 

272

 

-8

 

Follistim AQ

 

198

 

232

 

-15

 

83

 

104

 

-21

 

115

 

128

 

-10

 

Fosamax

 

159

 

180

 

-12

 

3

 

7

 

-53

 

155

 

173

 

-10

 

Dulera

 

149

 

210

 

-29

 

128

 

191

 

-33

 

21

 

19

 

9

 

Other Pharmaceutical (4) 

3,023

 

3,017

 

 

 

877

 

876

 

 

 

2,150

 

2,140

 

 

 

ANIMAL HEALTH

 

3,176

 

2,894

 

10

 

924

 

842

 

10

 

2,252

 

2,052

 

10

 

Livestock

 

1,946

 

1,816

 

7

 

383

 

359

 

7

 

1,563

 

1,457

 

7

 

Companion Animals

 

1,230

 

1,078

 

14

 

541

 

483

 

12

 

689

 

595

 

16

 

Other Revenues (5)

 

261

 

694

 

-62

 

295

 

367

 

-20

 

(34

)

327

 

-110

 

 


* 200% or greater

 

(1) Only select products are shown.

 

(2) Total Vaccines sales were $5,254 million and $4,843 million on a global basis for September YTD 2018 and 2017, respectively.

 

(3) Total Diabetes sales were $4,510 million and $4,389 million on a global basis for September YTD 2018 and 2017, respectively.

 

(4) Includes Pharmaceutical products not individually shown above.

 

(5) Other Revenues are comprised primarily of Healthcare Services segment revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.

 



 

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

 

 

 

2018

 

2017

 

% Change

 

 

 

1Q

 

2Q

 

3Q

 

Sep YTD

 

1Q

 

2Q

 

3Q

 

Sep YTD

 

4Q

 

Full Year

 

3Q

 

TOTAL PHARMACEUTICAL

 

$

8,919

 

$

9,282

 

$

9,658

 

$

27,859

 

$

8,185

 

$

8,759

 

$

9,156

 

$

26,101

 

$

9,290

 

$

35,390

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

3,716

 

3,841

 

4,649

 

12,206

 

3,761

 

3,929

 

4,197

 

11,887

 

3,967

 

15,854

 

11

 

% Pharmaceutical Sales

 

41.7

%

41.4

%

48.1

%

43.8

%

45.9

%

44.9

%

45.8

%

45.5

%

42.7

%

44.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe (1)

 

2,402

 

2,322

 

2,114

 

6,839

 

1,977

 

2,082

 

2,174

 

6,232

 

2,290

 

8,522

 

-3

 

% Pharmaceutical Sales

 

26.9

%

25.0

%

21.9

%

24.5

%

24.2

%

23.8

%

23.7

%

23.9

%

24.7

%

24.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

718

 

834

 

740

 

2,292

 

688

 

818

 

756

 

2,262

 

780

 

3,043

 

-2

 

% Pharmaceutical Sales

 

8.1

%

9.0

%

7.7

%

8.2

%

8.4

%

9.3

%

8.3

%

8.7

%

8.4

%

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

1,112

 

1,224

 

1,054

 

3,390

 

889

 

946

 

994

 

2,829

 

1,054

 

3,883

 

6

 

% Pharmaceutical Sales

 

12.5

%

13.2

%

10.9

%

12.2

%

10.9

%

10.8

%

10.9

%

10.8

%

11.3

%

11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China

 

459

 

530

 

488

 

1,476

 

328

 

353

 

377

 

1,058

 

439

 

1,497

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

398

 

459

 

493

 

1,350

 

375

 

462

 

451

 

1,288

 

547

 

1,836

 

9

 

% Pharmaceutical Sales

 

4.5

%

4.9

%

5.1

%

4.8

%

4.6

%

5.3

%

4.9

%

4.9

%

5.9

%

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eastern Europe/Middle East Africa

 

335

 

356

 

347

 

1,038

 

255

 

314

 

349

 

918

 

397

 

1,314

 

0

 

% Pharmaceutical Sales

 

3.8

%

3.8

%

3.6

%

3.7

%

3.1

%

3.6

%

3.8

%

3.5

%

4.3

%

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

196

 

192

 

177

 

565

 

182

 

171

 

193

 

546

 

193

 

739

 

-8

 

% Pharmaceutical Sales

 

2.2

%

2.1

%

1.8

%

2.0

%

2.2

%

2.0

%

2.1

%

2.1

%

2.1

%

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

42

 

54

 

84

 

179

 

58

 

37

 

42

 

139

 

62

 

199

 

100

 

% Pharmaceutical Sales

 

0.5

%

0.6

%

0.9

%

0.6

%

0.7

%

0.4

%

0.5

%

0.5

%

0.7

%

0.6

%

 

 

 


(1) Europe primarily represents all European Union countries and the European Union accession markets.

 



 

MERCK & CO., INC.

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

 

OTHER (INCOME) EXPENSE, NET

 

 

 

3Q18

 

3Q17

 

Sep YTD
2018

 

Sep YTD
2017

 

Interest income

 

$

(92

)

$

(90

)

$

(257

)

$

(284

)

Interest expense

 

190

 

189

 

569

 

564

 

Exchange losses (gains)

 

42

 

(6

)

119

 

5

 

Equity income from affiliates

 

(81

)

(18

)

(93

)

(11

)

Net periodic defined benefit plan (credit) cost other than service cost

 

(119

)

(121

)

(384

)

(381

)

Other, net

 

(112

)

(161

)

(466

)

(244

)

Total

 

$

(172

)

$

(207

)

$

(512

)

$

(351

)

 

On January 1, 2018, the company adopted a new accounting standard related to defined benefit plans that requires the components of net benefit cost/credit (other than service costs) be presented in the statement of income outside of operating expenses. Upon adoption, net periodic benefit cost/credit other than service cost was reclassified to Other (income) expense, net from the previous classifications within Materials and production costs, Marketing and administrative expenses and Research and development costs.  Previously reported amounts have been reclassified to conform to the new presentation. There was no impact to net income as a result of adopting the new standard.