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Merck Announces First-Quarter 2013 Financial Results

  Merck Announces First-Quarter 2013 Financial Results

  *2013 First-Quarter Non-GAAP EPS of $0.85, Excluding Certain Items; GAAP
    EPS of $0.52
  *Worldwide Sales were $10.7 Billion, a Decrease of 9 Percent Primarily as a
    Result of Patent Expiries, and Including a 2 Percent Unfavorable Impact
    from Foreign Exchange
  *Growth in Vaccines, Immunology, HIV, Animal Health and Consumer Care
    Products
  *Received Breakthrough Therapy Designation for Lambrolizumab, an
    Investigational Candidate for Advanced Melanoma; Five Products Currently
    Under Regulatory Review
  *Announced New $15 Billion Share Repurchase Program; Plans to Repurchase
    Approximately $7.5 Billion of Common Stock over the Next Twelve Months
  *Revises 2013 Full-Year Non-GAAP EPS Target to $3.45 to $3.55, Excluding
    Certain Items; Revises GAAP EPS Range to $1.92 to $2.16

Business Wire

WHITEHOUSE STATION, N.J. -- May 01, 2013

Merck (NYSE: MRK), known as MSD outside the United States and Canada, today
announced financial results for the first quarter of 2013.

                                                          
                                                           First     First
$ in millions, except EPS amounts                         Quarter  Quarter
                                                           2013      2012
Sales                                                     $10,671  $11,731
GAAP EPS                                                  0.52     0.56
Non-GAAP EPS that excludes items listed below^1           0.85     0.99
GAAP Net Income^2                                         1,593    1,738
Non-GAAP Net Income that excludes items listed below^1,2  2,585    3,044

Non-GAAP (generally accepted accounting principles) earnings per share (EPS)
for the first quarter of $0.85 exclude acquisition-related costs,
restructuring costs and certain other items. First quarter non-GAAP EPS
included unanticipated net tax benefits of approximately $0.06 per share.

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

                                                          
$ in millions, except EPS amounts                          First Quarter
                                                           2013    2012
EPS
GAAP EPS                                                  $0.52   $0.56
Difference^3                                              0.33    0.43
Non-GAAP EPS that excludes items listed below^1           $0.85   $0.99
                                                                  
Net Income
GAAP net income^2                                         $1,593  $1,738
Difference                                                992     1,306
Non-GAAP net income that excludes items listed below^1,2  $2,585  $3,044
                                                                    
Decrease (Increase) in Net Income Due to Excluded Items:
Acquisition-related costs^4                               $1,237  $1,289
Restructuring costs                                       194     293
Net decrease (increase) in income before taxes            1,431   1,582
Income tax (benefit) expense^5                            (439)   (276)
Decrease (increase) in net income                         $992    $1,306

“Our first quarter performance reflects the challenges of major patent
expiries coupled with the impact of currency and other headwinds,” said
Kenneth C. Frazier, chairman and chief executive officer, Merck. “During the
quarter, we took focused actions to reach our EPS target while at the same
time advancing Merck’s pipeline in our laboratories and through strategic
deals and partnerships. I remain confident in the future opportunities for our
strong and diverse business and committed to delivering long-term value to our
shareholders.”

Select Revenue Highlights

Worldwide sales were $10.7 billion for the first quarter of 2013, a decrease
of 9 percent compared with the first quarter of 2012, including a 2 percent
negative effect from foreign exchange.

The following table reflects sales of the company's top pharmaceutical
products, as well as total sales of animal health and consumer care products.

                                                               
                          First          First                     Change
$ in millions            Quarter       Quarter       Change     Ex-exchange
                          2013           2012
Total Sales              $10,671       $11,731       -9%        -7%
Pharmaceutical           8,891         10,082        -12%       -10%
JANUVIA                  884           919           -4%        -1%
ZETIA                    629           614           2%         4%
REMICADE                 549           519           6%         5%
JANUMET                  409           392           4%         4%
VYTORIN                  394           444           -11%       -11%
GARDASIL                 390           284           37%        39%
NASONEX                  385           375           3%         7%
ISENTRESS                362           337           8%         8%
SINGULAIR                337           1,340         -75%       -73%
PROQUAD, M-M-R II and    272           255           7%         7%
VARIVAX
Animal Health            840           821           2%         4%
Consumer Care            571           554           3%         4%
Other Revenues           369           274           34%        33%

Pharmaceutical Revenue Performance

First-quarter pharmaceutical sales declined 12 percent to $8.9 billion,
including a 2 percent negative impact due to foreign exchange. Declines of
SINGULAIR (montelukast sodium), MAXALT (rizatriptan benzoate) and CLARINEX
(desloratadine) following loss of market exclusivity were partially offset by
strong growth for GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16
and 18) Vaccine, Recombinant], ZOSTAVAX (zoster vaccine live), REMICADE
(infliximab), SIMPONI (golimumab) and ISENTRESS (raltegravir).

Sales from emerging markets grew 6 percent, including a 2 percent negative
impact from foreign exchange. Emerging market sales accounted for
approximately 21 percent of pharmaceutical sales in the first quarter of 2013.
China continues to be a key driver of growth in the emerging markets with
sales increasing 23 percent for the first quarter, including a 2 percent
benefit from foreign exchange.

Worldwide sales of the combined diabetes franchise of JANUVIA
(sitagliptin)/JANUMET (sitagliptin/metformin HCI) declined 1 percent to $1.3
billion in the first quarter, including a 2 percent negative impact from
foreign exchange. The decline reflects lower sales in the United States of 5
percent, primarily driven by reduced customer inventory levels, which were
partially offset by growth in the rest of the world.

Sales of ZETIA (ezetimibe) and VYTORIN (ezetimibe/simvastatin), medicines for
lowering LDL cholesterol, declined 3 percent to $1.0 billion in the first
quarter driven by lower sales of VYTORIN, partially offset by growth of ZETIA
in the United States.

Combined sales of REMICADE and SIMPONI, treatments for inflammatory diseases,
increased 11 percent to $657 million in the first quarter of 2013.

Merck’s sales of GARDASIL, a vaccine to help prevent certain diseases caused
by four types of human papillomavirus (HPV), were $390 million, an increase of
37 percent for the quarter. The increase was driven by higher sales in the
United States, reflecting continued strong uptake in males and higher public
sector purchases, as well as favorable performance in the emerging markets.

ISENTRESS, an HIV integrase inhibitor for use in combination with other
antiretroviral agents for the treatment of HIV-1 infection, grew 8 percent to
$362 million in the first quarter driven by strong growth in the emerging
markets and Europe.

Worldwide sales of SINGULAIR, a once-a-day oral medicine for the chronic
treatment of asthma and the relief of symptoms of allergic rhinitis, declined
75 percent to $337 million in the first quarter. The patents for SINGULAIR
expired in the United States in August 2012 and expired in major European
markets in February 2013. The company experienced a significant and rapid
reduction in sales in the United States and is now also experiencing a
substantial decline in Europe.

Sales of VICTRELIS (boceprevir), the company's oral hepatitis C virus protease
inhibitor, declined 1 percent in the first quarter to $110 million, including
a 2 percent negative impact from foreign exchange. Lower sales in the United
States were partially offset by continued growth in international markets.

Sales of ZOSTAVAX, a vaccine for the prevention of herpes zoster, were $168
million in the first quarter of 2013, up from $76 million in the first quarter
of 2012, driven by strong demand in the United States.

Animal Health Revenue Performance

Animal Health sales totaled $840 million for the first quarter of 2013, a 2
percent increase compared with the first quarter of 2012, including a 2
percent negative impact due to foreign exchange. The increase was driven by
strong performance in companion animal products, including sales of ACTIVYL, a
new product for the treatment and prevention of fleas and ticks in dogs and
cats, as well as continued growth in poultry products. Animal Health products
include pharmaceutical and vaccine products for the prevention, treatment and
control of disease in all major farm and companion animal species.

Consumer Care Revenue Performance

First-quarter global sales of Consumer Care were $571 million, an increase of
3 percent compared to the first quarter of 2012, including a 1 percent
negative impact due to foreign exchange. The sales increase was primarily due
to COPPERTONE suncare products and CLARITIN.

Other Revenue Performance

Other revenues – primarily comprising alliance revenue, miscellaneous
corporate revenues and third-party manufacturing sales – increased 34 percent
to $369 million compared to the first quarter of 2012. The increase was
primarily driven by higher revenue from AstraZeneca LP (AZLP) recorded by
Merck, which increased 41 percent to $262 million as compared with atypically
lower first quarter 2012 AZLP revenues.

First-Quarter Expense and Other Information

The costs detailed below totaled $9.0 billion on a GAAP basis during the first
quarter of 2013 and include $1.4 billion of acquisition-related costs and
restructuring costs.

                          
$ in millions              Included in expenses for the period
                                   Acquisition-   Restructuring
First Quarter 2013                Related       Costs          Non-GAAP^1
                           GAAP     Costs^4
Materials and production  $3,959  $1,184        $43            $2,732
Marketing and             2,987   23            17             2,947
administrative
Research and              1,907   30            15             1,862
development
Restructuring costs       119     –-            119            –-
                                                               
First Quarter 2012
Materials and             $4,037  $1,229        $5             $2,803
production
Marketing and             3,074   51            24             2,999
administrative
Research and              1,862   9             45             1,808
development
Restructuring costs       219     –-            219            –

The gross margin was 62.9 percent for the first quarter of 2013 and 65.6
percent for the first quarter of 2012, reflecting 11.5 and 10.5 percentage
point unfavorable impacts, respectively, from the acquisition-related costs
and restructuring costs noted above. The gross margin decline primarily
reflects the impact of the SINGULAIR patent expiries.

Marketing and administrative expenses, on a non-GAAP basis, were $2.9 billion
in the first quarter of 2013, a decrease from $3.0 billion in the first
quarter of 2012.

Research and development (R&D) expenses, on a non-GAAP basis, were $1.9
billion in the first quarter of 2013, an increase from $1.8 billion in the
first quarter of 2012.

Equity income from affiliates was $133 million for the first quarter,
primarily reflecting the performance of partnerships with AZLP and Sanofi
Pasteur MSD.

Other (income) expense, net was $282 million of expense in the first quarter
of 2013, compared to $142 million of expense in the first quarter of 2012. The
first quarter of 2013 includes approximately $140 million of exchange losses
due to a Venezuelan currency devaluation.

The GAAP effective tax rate of (4.3)% for the first quarter of 2013 reflects
the impact of acquisition-related costs and restructuring costs, as well as an
out-of-period tax benefit of approximately $160 million associated with the
resolution of a previously disclosed legacy Schering-Plough federal income tax
issue. The non-GAAP effective tax rate, which excludes these items, was 12.5%
for the quarter. Both the GAAP and non-GAAP first quarter effective tax rates
reflect the favorable impact of tax legislation enacted in the first quarter
of 2013. The first quarter 2013 tax rates also reflect the net favorable
impact of other discrete items, primarily a reduction in tax reserves upon
expiration of applicable statute of limitations, which resulted in
unanticipated net tax benefits of approximately $0.06 per share as noted
above.

Key Developments

The company noted the following developments:

  *Announced a new share repurchase program of up to $15 billion of Merck’s
    common stock for its treasury. The company expects to repurchase
    approximately $7.5 billion of common stock over the next 12 months,
    financed through a combination of debt issuance and operating cash flows,
    with the remainder to be repurchased over time with no time limit.
  *Entered into a worldwide (except Japan) collaboration agreement with
    Pfizer Inc. (Pfizer) to develop and commercialize ertugliflozin, an
    investigational oral sodium glucose cotransporter (SGLT2) inhibitor being
    evaluated for the treatment of type 2 diabetes. Merck and Pfizer will
    collaborate on the clinical development and commercialization of
    ertugliflozin and ertugliflozin-containing fixed-dose combinations with
    metformin and JANUVIA.
  *Announced that the U.S. Food and Drug Administration (FDA) has designated
    lambrolizumab (MK-3475), an investigational antibody therapy for advanced
    melanoma, as a “Breakthrough Therapy.”
  *Entered into an agreement with Bristol-Myers Squibb (BMS) to conduct a
    Phase II clinical trial to evaluate the safety and efficacy of a
    once-daily oral combination regimen consisting of BMS’ investigational
    NS5A replication complex inhibitor and Merck’s investigational NS3/4A
    protease inhibitor (MK-5172) for the treatment of genotype 1 hepatitis C
    virus infection.
  *Increased investment in emerging markets with the opening of a new
    pharmaceutical manufacturing facility in Hangzhou, China. The site will
    package Merck medicines for China and the Asia Pacific region and become a
    critical part of the company’s global supply chain.
  *Announced FDA acceptance of a Biologics License Application (BLA) for an
    investigational Timothy grass pollen (Phleum pratense) allergy
    immunotherapy tablet (AIT) for review. The company also submitted a BLA to
    the FDA for its investigational ragweed pollen (Ambrosia artemisiifolia)
    AIT.
  *Entered into an agreement with Samsung Bioepis Co., Ltd (Samsung) to
    develop and commercialize multiple biosimilar candidates. Under the
    agreement, Samsung will be responsible for preclinical and clinical
    development, process development and manufacturing, clinical trials and
    registration and Merck will be responsible for commercialization.

Financial Targets

Merck now expects full-year 2013 non-GAAP EPS to be between $3.45 and $3.55,
and 2013 GAAP EPS to be between $1.92 and $2.16. The 2013 non-GAAP range
excludes acquisition-related costs, costs related to restructuring programs
and certain other items. The company updated its full-year guidance due to
pressures on sales that are greater than previously anticipated, including
foreign exchange, as well as new R&D programs and a revised tax rate.

At current exchange rates, Merck now expects full-year 2013 sales to be
approximately 3 to 4 percent below prior year levels with foreign exchange
accounting for more than 2 percentage points of the decline.

In addition, the company now expects full-year 2013 non-GAAP R&D expense to be
slightly higher than 2012 levels. The company now expects its full-year 2013
non-GAAP tax rate to be in the range of 22 to 23 percent.

A reconciliation of anticipated 2013 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 2013
GAAP EPS                                        $1.92 to $2.16
Difference^3                                    1.53 to 1.39
Non-GAAP EPS that excludes items listed below   $3.45 to $3.55
                                                 

Acquisition-related costs^4                     $5,125 to $4,800
Restructuring costs                             700 to 500
Net decrease (increase) in income before taxes  5,825 to 5,300
Income tax (benefit) expense^5                  (1,180) to (1,070)
Decrease (increase) in net income               $4,645 to $4,230

Total Employees

As of March 31, 2013, Merck had approximately 82,000 employees worldwide.

Earnings Conference Call

Investors, journalists and the general public may access a live audio webcast
of the call today at 8:00 a.m. EDT on Merck’s website at
http://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 and using ID code number 22104203. Members of
the media are invited to monitor the call by dialing (706) 758-9928 or (800)
399-7917 and using ID code number 22104203. Journalists who wish to ask
questions are requested to contact a member of Merck's Media Relations team at
the conclusion of the call.

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 and
connect with us on Twitter, Facebook and YouTube.

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. These statements are based upon the current beliefs and
expectations of Merck’s management and are subject to significant risks and
uncertainties. There can be no guarantees with respect to pipeline products
that the products will receive the necessary regulatory approvals or that they
will prove to be commercially successful. If underlying assumptions prove
inaccurate or risks or uncertainties materialize, actual results may differ
materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry
conditions and competition; general economic factors, including interest rate
and currency exchange rate fluctuations; the impact of pharmaceutical industry
regulation and health care legislation in the United States and
internationally; global trends toward health care cost containment;
technological advances, new products and patents attained by competitors;
challenges inherent in new product development, including obtaining regulatory
approval; Merck’s ability to accurately predict future market conditions;
manufacturing difficulties or delays; financial instability of international
economies and sovereign risk; dependence on the effectiveness of Merck’s
patents and other protections for innovative products; and the exposure to
litigation, including patent 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 2012
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).

^1 Merck is providing certain 2013 and 2012 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
description of the items, see Table 2a, including the related footnotes,
attached to this release.

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

^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 for the
period.

^4 Includes expenses for the amortization of intangible assets recognized as a
result of mergers and acquisitions, as well as intangible asset impairment
charges. Also includes integration and other costs associated with mergers and
acquisitions.

^5 Includes the estimated tax impact on the reconciling items. In addition,
amount for 2013 includes a benefit of approximately $160 million associated
with the resolution of a previously disclosed legacy Schering-Plough federal
income tax issue.

                                                               
                                                                      
                                                                      
MERCK & CO., INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 1
                                                                      
                                                                     
                                          GAAP                        % Change
                                          1Q13        1Q12
                                                                   
Sales                                     $ 10,671     $ 11,731       -9%
                                                                      
Costs, Expenses and Other
Materials and production ^(1)               3,959        4,037        -2%
Marketing and administrative ^(1)           2,987        3,074        -3%
Research and development ^(1)               1,907        1,862        2%
Restructuring costs ^(2)                    119          219          -46%
Equity income from affiliates ^(3)          (133   )     (110   )     21%
Other (income) expense, net ^(4)            282          142          99%
Income Before Taxes                         1,550        2,507        -38%
Income Tax (Benefit) Provision              (66    )     740
Net Income                                  1,616        1,767        -9%
Less: Net Income Attributable to            23           29
Noncontrolling Interests
Net Income Attributable to Merck &        $ 1,593      $ 1,738        -8%
Co., Inc.
Earnings per Common Share Assuming        $ 0.52     $ 0.56        -7%
Dilution
                                                     
Average Shares Outstanding Assuming         3,053        3,074
Dilution
Tax Rate ^(5)                              -4.3   %   29.5   %

(1) Amounts include the impact of acquisition-related costs and restructuring
costs. See accompanying tables for details.
(2) Represents separation and other related costs associated with
restructuring activities under the company's formal restructuring programs.
(3) Primarily reflects equity income from the AstraZeneca LP and Sanofi
Pasteur MSD partnerships.
(4) Other (income) expense, net in the first quarter of 2013 reflects
approximately $140 million of losses due to exchange as a result of a
Venezuelan currency devaluation.
(5) The GAAP effective tax rate for the first quarter of 2013 reflects the
favorable impact of various discrete items, including the impact of tax
legislation enacted in the first quarter of 2013, a reduction in tax reserves
upon expiration of applicable statute of limitations, as well as a benefit of
approximately $160 million associated with the resolution of a previously
disclosed legacy Schering-Plough federal income tax issue.

                                                                              
                                                                                         
MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME

GAAP TO NON-GAAP RECONCILIATION

FIRST QUARTER 2013

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a
                                                                                     
                                    Acquisition-     Restructuring     Adjustment
                     GAAP           Related          Costs ^(2)        Subtotal          Non-GAAP
                                    Costs ^(1)
                                                                                        
Sales                $ 10,671                                                            $ 10,671
                                                                                         
Costs,
Expenses and
Other
Materials and          3,959        1,184            43                1,227               2,732
production
                                                                                         
Marketing and          2,987        23               17                40                  2,947
administrative
                                                                                         
Research and           1,907        30               15                45                  1,862
development
                                                                                         
Restructuring          119                           119               119                 -
costs
                                                                                         
Equity income
from                   (133   )                                                            (133   )
affiliates
                                                                                         
Other (income)         282                                                                 282
expense, net
                                                                                         
Income Before          1,550        (1,237   )       (194     )        (1,431  )           2,981
Taxes
                                                                                         
Taxes on               (66    )                                        (439    )  ^(3)     373
Income
                                                                                         
Net Income             1,616                                           (992    )           2,608
                                                                                         
Less: Net
Income
Attributable           23                                                                  23
to
Noncontrolling
Interests
                                                                                         
Net Income
Attributable         $ 1,593                                           (992    )         $ 2,585
to Merck &
Co., Inc.
                                                                                         
Earnings per
Common Share         $ 0.52                                                             $ 0.85   
Assuming
Dilution
                                                                                        
Average Shares
Outstanding            3,053                                                               3,053
Assuming
Dilution
Tax Rate              -4.3   %                                                           12.5   %

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 recognized as a result of mergers and
acquisitions. Amounts included in marketing and administrative expenses
reflect merger integration costs. 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 related to
actions under the company's formal restructuring programs.
                                        
(3) Represents the estimated tax impact on the reconciling items, as well as a
benefit of approximately $160 million associated with the resolution of a
previously disclosed legacy Schering-Plough federal income tax issue.

                                                                     
                                                                             
MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3
                                                                           
                 2013      2012                                              %
                           1Q       2Q       3Q       4Q       Full      Change
                 1Q                                                Year
                                                                    1Q
                                                                             
TOTAL SALES      $10,671   $11,731  $12,311  $11,488  $11,738  $47,267   -9
^(1)
PHARMACEUTICAL   8,891     10,082    10,560    9,875     10,085    40,601    -12
                                                                             
Primary Care
and Women's
Health
Cardiovascular
Zetia            629       614       632       645       676       2,567     2
Vytorin          394       444       445       423       435       1,747     -11
                                                                             
Diabetes &
Obesity
Januvia          884       919       1,058     975       1,134     4,086     -4
Janumet          409       392       411       405       452       1,659     4
                                                                             
Respiratory
Nasonex          385       375       293       292       308       1,268     3
Singulair        337       1,340     1,431     602       480       3,853     -75
Dulera           68        39        50        52        67        207       76
Asmanex          40        48        51        42        44        185       -16
                                                                             
Women's Health
& Endocrine
NuvaRing         151       146       157       156       164       623       4
Fosamax          137       184       186       152       154       676       -26
Follistim AQ     122       116       125       111       116       468       5
Implanon         84        76        85        93        94        348       12
Cerazette        61        67        72        64        68        271       -9
                                                                             
Other
Arcoxia          121       112       117       109       115       453       8
Avelox           36        73        44        30        55        201       -51
                                                                             
Hospital and
Specialty
                                                                             
Immunology
Remicade         549       519       518       490       549       2,076     6
Simponi          108       74        76        86        95        331       46
                                                                             
Infectious
Disease
Isentress        362       337       398       399       381       1,515     8
Cancidas         162       145       166       163       145       619       12
PegIntron        126       162       183       165       143       653       -23
Victrelis        110       111       126       149       115       502       -1
Invanz           110       101       110       118       116       445       9
Noxafil          65        59        66        66        68        258       11
                                                                             
Oncology
Temodar          216       237       225       227       229       917       -9
Emend            116       102       145       111       131       489       14
                                                                             
Other
Cosopt /         105       124       105       102       113       444       -15
Trusopt
Bridion          63        58        60        68        75        261       8
Integrilin       47        53        60        48        51        211       -11
                                                                             
Diversified
Brands
Cozaar /         267       336       337       295       315       1,284     -21
Hyzaar
Primaxin         84        88        104       109       83        384       -5
Zocor            82        103       96        86        98        383       -20
Claritin Rx      76        87        48        47        63        244       -13
Propecia         68        108       100       104       112       424       -37
Clarinex         61        134       140       64        56        393       -55
Remeron          52        57        66        52        57        232       -8
Maxalt           40        156       154       166       162       638       -74
Proscar          39        51        55        55        56        217       -23
                                                                             
Vaccines
Gardasil         390       284       324       581       442       1,631     37
ProQuad, M-M-R   272       255       316       396       306       1,273     7
II and Varivax
Zostavax         168       76        148       202       225       651       *
RotaTeq          162       142       142       150       168       601       14
Pneumovax 23     111       112       101       160       208       580       -1
                                                                             
Other
Pharmaceutical   1,022     1,066     1,034     1,065     1,161     4,333     -4
^(2)
                                                                             
                                                                             
ANIMAL HEALTH    840       821       865       815       898       3,399     2
                                                                             
CONSUMER CARE    571       554       552       451       395       1,952     3
Claritin OTC     177       169       145       118       100       532       5
                                                                             
Other Revenues   369       274       333       347       360       1,315     34
^(3)
Astra            262       186      223      255      251      915       41

* 100% or greater
Sum of quarterly amounts may not equal year-to-date amounts due to rounding.
^(1) Only select products are shown.
^(2) Includes Pharmaceutical products not individually shown above. Other
Vaccines sales included in Other Pharmaceutical were $53 million for the first
quarter of 2013. Other Vaccines sales included in Other Pharmaceutical were
$60 million, $75 million, $116 million, and $69 million for the first, second,
third, and fourth quarters of 2012, respectively.
^(3) Other revenues are primarily comprised of alliance revenue, miscellaneous
corporate revenues and third party manufacturing sales.

Contact:

Merck
Media Contacts:
Steve Cragle, 908-423-3461
Kelley Dougherty, 908-423-4291
or
Investor Contacts:
Carol Ferguson, 908-423-4465
Alex Kelly, 908-423-5185