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Merck Announces First-Quarter 2014 Financial Results

  Merck Announces First-Quarter 2014 Financial Results

  *First-Quarter 2014 Non-GAAP EPS of $0.88, Excluding Certain Items; GAAP
    EPS of $0.57; Confirms 2014 Full-Year Non-GAAP EPS Target of $3.35 to
    $3.53, Excluding Certain Items; GAAP EPS Range of $2.15 to $2.47
  *Worldwide Sales were $10.3 Billion, a Decrease of 4 Percent, Reflecting
    Unfavorable Impact of Patent Expiries and a 2 Percent Unfavorable Impact
    from Foreign Exchange
  *Strategic Initiatives Drove Cost Reductions and Portfolio Divestitures,
    Generating First-Quarter 2014 Benefits
  *Sales of REMICADE, SIMPONI and ISENTRESS, as well as Diabetes and Vaccines
    Franchises Grew
  *FDA Approved GRASTEK and RAGWITEK Sublingual Allergen Extract
    Immunotherapy Tablets and Accepted Filings for V503 and Suvorexant;
    Company Announced Progress in Key Clinical Programs Including HCV and HIV
  *Repurchased $7.5 Billion of Common Stock Over Previous 12 Months as Part
    of Ongoing Share Repurchase Program

Business Wire

WHITEHOUSE STATION, N.J. -- April 29, 2014

Merck (NYSE:MRK), known as MSD outside the United States and Canada, today
announced financial results for the first quarter of 2014.

                                                                  
                                                           First     First
                                                           Quarter   Quarter
$ in millions, except EPS amounts                         2014     2013
Sales                                                     $10,264  $10,671
GAAP EPS                                                  0.57     0.52
Non-GAAP EPS that excludes items listed below^1           0.88     0.85
GAAP Net Income^2                                         1,705    1,593
Non-GAAP Net Income that excludes items listed below^1,2  2,601    2,585
                                                                             

Non-GAAP (generally accepted accounting principles) earnings per share (EPS)
for the first quarter of $0.88 exclude acquisition-related costs,
restructuring costs and certain other items.

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

                                                                  
                                                           First     First
                                                           Quarter   Quarter
$ in millions, except EPS amounts                          2014     2013
EPS                                                               
GAAP EPS                                                  $0.57    $0.52
Difference^3                                              0.31     0.33
Non-GAAP EPS that excludes items listed below^1           $0.88    $0.85
                                                                             
Net Income                                                        
GAAP net income^2                                         $1,705   $1,593
Difference                                                896      992
Non-GAAP net income that excludes items listed below^1,2  $2,601   $2,585
                                                                             
Decrease (Increase) in Net Income Due to Excluded Items:          
Acquisition-related costs^4                               $1,137   $1,237
Restructuring costs                                       326      194
Net decrease (increase) in income before taxes            1,463    1,431
Income tax (benefit) expense^5                            (567)    (439)
Decrease (increase) in net income                         $896     $992
                                                                             

“Investing in the best opportunities for growth while being disciplined in
managing our costs enabled us to deliver bottom-line performance,” said
Kenneth C. Frazier, chairman and chief executive officer, Merck. “This is an
exciting time as we prepare to commercialize the next wave of innovation
coming out of Merck’s research labs over the next few years.”

Select Revenue Highlights

Worldwide sales were $10.3 billion for the first quarter of 2014, a decrease
of 4 percent compared with the first quarter of 2013, 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     Change
                                Quarter    Quarter
$ in millions                  2014      2013                Ex-exchange
Total Sales                    $10,264   $10,671   -4%        -2%
Pharmaceutical                 8,451     8,891     -5%        -3%
JANUVIA/JANUMET                1,334     1,293     3%         5%
ZETIA/VYTORIN                  972       1,023     -5%        -4%
REMICADE                       604       549       10%        7%
ISENTRESS                      390       362       8%         8%
GARDASIL                       383       390       -2%        2%
NASONEX                        312       385       -19%       -16%
PROQUAD, M-M-R II and VARIVAX  280       272       3%         4%
SINGULAIR                      271       337       -20%       -13%
Animal Health                  813       840       -3%        0%
Consumer Care                  546       571       -4%        -3%
Other Revenues                 454       369       23%        17%
                                                                             

Pharmaceutical Revenue Performance

First-quarter pharmaceutical sales declined 5 percent to $8.5 billion,
including a 2 percent negative impact due to foreign exchange. Expected
declines occurred in several products due to the ongoing impact of the loss of
market exclusivity, including TEMODAR (temozolomide), SINGULAIR (montelukast
sodium), NASONEX (mometasone furoate monohydrate) and COZAAR (losartan
potassium)/HYZAAR (losartan potassium and hydrochlorothiazide). These declines
were partially offset by growth in the diabetes franchise of JANUVIA
(sitagliptin)/JANUMET (sitagliptin and metformin HCI), as well as REMICADE
(infliximab), SIMPONI (golimumab) and ISENTRESS (raltegravir).

Worldwide combined sales of JANUVIA and JANUMET, medicines that help lower
blood sugar levels in adults with type 2 diabetes, grew 3 percent to $1.3
billion in the first quarter, including a 2 percent negative impact from
foreign exchange. The growth reflects higher sales in Europe, the United
States and the emerging markets, which were partially offset by declines in
Japan.

Combined sales of ZETIA (ezetimibe) and VYTORIN (ezetimibe/simvastatin),
medicines for lowering LDL cholesterol, decreased 5 percent to $972 million in
the first quarter, including a 1 percent negative impact from foreign
exchange. The decrease was driven by lower demand in the United States.

Combined sales of REMICADE and SIMPONI, treatments for inflammatory diseases,
grew 16 percent to $760 million in the first quarter, including a 3 percent
positive impact from foreign exchange. The growth reflects continued European
launches of SIMPONI and continued growth in several markets in Europe.

Worldwide sales of ISENTRESS, an HIV integrase inhibitor for use in
combination with other antiretroviral agents for the treatment of HIV-1
infection, increased 8 percent to $390 million in the first quarter. The
increase was driven by strong growth in Europe and the emerging markets.

Merck’s sales of GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16,
and 18) Vaccine, Recombinant], a vaccine to help prevent certain diseases
caused by four types of human papillomavirus (HPV), were $383 million, a
decrease of 2 percent for the first quarter, including a 4 percent negative
impact from foreign exchange. The results reflect lower sales in Japan
following the government’s decision in July 2013 to suspend active promotion
of HPV vaccines, partially offset by higher sales in the United States and
from the national immunization program in Brazil.

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
20 percent to $271 million in the first quarter, mostly due to patent expiries
in major European markets in February 2013.

Animal Health Revenue Performance

Animal Health sales totaled $813 million for the first quarter of 2014, a 3
percent decrease compared with the first quarter of 2013, including a 3
percent negative impact due to foreign exchange. The results reflect the
company’s decision last year to voluntarily suspend sales of ZILMAX
(zilpaterol hydrochloride), a feed supplement for beef cattle, in the United
States and Canada. Excluding sales of ZILMAX, Animal Health sales increased 5
percent in the first quarter, driven by higher sales of poultry, swine and
aqua products. In the first quarter, the European Commission granted marketing
authorization for BRAVECTO (fluralaner), a chewable tablet that kills fleas
and ticks in dogs for up to 12 weeks; the company anticipates approval in the
United States later in 2014.

Consumer Care Revenue Performance

First-quarter global sales of Consumer Care products were $546 million, a
decrease of 4 percent compared to the first quarter of 2013, including a 1
percent negative impact due to foreign exchange. The sales decrease was
primarily due to product divestitures and a shortened allergy season in North
America.

Other Revenue Performance

Other revenues – primarily comprising alliance revenue, miscellaneous
corporate revenues and third-party manufacturing sales – increased 23 percent
to $454 million compared to the first quarter of 2013. The increase was
primarily driven by $232 million in proceeds from the sale of marketing rights
for SAPHRIS (asenapine) in the United States, partially offset by lower
revenue from AstraZeneca (AZ) recorded by Merck, which declined 44 percent to
$147 million in the first quarter of 2014, as well as by lower third-party
manufacturing sales.

The company expects that AZ will elect to exercise its option to buy the
company’s interest in a subsidiary and, through it, the company’s interest in
Nexium and Prilosec. If AZ exercises its option, as of July 1, 2014, Merck
will no longer record equity income from AZ and supply sales to AZ will end.

First-Quarter Expense and Other Information

The costs detailed below totaled $8.3 billion on a GAAP basis during the first
quarter of 2014 and include $1.5 billion of acquisition-related costs and
restructuring costs.

                      
$ in millions           Included in expenses for the period
                                Acquisition-                
First Quarter                    Related        Restructuring
2014                   GAAP    Costs^(4)     Costs          Non-GAAP^(1)
Materials and          $3,903  $1,126        $119           $2,658
production
Marketing and          2,734   11            31             2,692
administrative
Research and           1,574   –-            51             1,523
development
Restructuring costs    125     –-            125            –-
                                                                             
First Quarter
2013                                                     
Materials and          $3,959  $1,184        $43            $2,732
production
Marketing and          2,987   23            17             2,947
administrative
Research and           1,907   30            15             1,862
development
Restructuring costs    119     –-            119            –-
                                                                             

The gross margin was 62.0 percent for the first quarter of 2014 compared to
62.9 percent for the first quarter of 2013, reflecting 12.1 and 11.5
percentage point unfavorable impacts, respectively, from the
acquisition-related costs and restructuring costs noted above. The non-GAAP
gross margin decline primarily reflects the impact of product mix, partially
offset by the favorable impact of foreign exchange.

Marketing and administrative expenses, on a non-GAAP basis, were $2.7 billion
in the first quarter of 2014, a decrease from $2.9 billion in the same period
of 2013. The decline was primarily due to productivity measures.

Research and development (R&D) expenses, on a non-GAAP basis, were $1.5
billion in the first quarter of 2014, a decrease from $1.9 billion in the
first quarter of 2013. The decline reflects targeted reductions and lower
clinical development spending as a result of portfolio prioritization and
increased focus on the company’s key therapeutic opportunities, as well as
timing of certain programs set to begin throughout the rest of 2014.

Equity income from affiliates was $124 million for the first quarter,
primarily reflecting the performance of partnerships with AZ and Sanofi
Pasteur MSD.

Other (income) expense, net, was $39 million of income in the first quarter of
2014, compared to $282 million of expense in the first quarter of 2013. The
first quarter of 2014 includes a $182 million gain on the divestiture of the
company’s Sirna Therapeutics, Inc. subsidiary. The first quarter of 2013
included approximately $140 million of exchange losses due to a Venezuelan
currency devaluation.

The GAAP effective tax rate of 17.2 percent for the first quarter of 2014
reflects the impacts of acquisition-related costs and restructuring costs, as
well as a benefit of approximately $300 million associated with a capital loss
generated in the quarter. The non-GAAP effective tax rate, which excludes
these items, was 26.1 percent for the quarter.

Key Developments

Clinical

  *Interim Phase 2 data for MK-5172/MK-8742, an investigational oral
    combination regimen for treatment of chronic hepatitis C virus (HCV),
    presented at the 2014 Annual Meeting of the European Association for the
    Study of the Liver, showed sustained viral response in hard-to-cure and
    treatment-naïve, non-cirrhotic patients.
  *Interim Phase 2b data on doravirine (MK-1439), an investigational
    treatment for HIV, presented at the 21^st Conference on Retroviruses and
    Opportunistic Infections, demonstrated potent antiretroviral activity in
    treatment-naïve HIV-1 infected adults in combination with
    tenofovir/emtricitabine after 24 weeks of therapy; a Phase 3 clinical
    program is planned to begin in the second half of 2014.

Regulatory

  *The U.S. Food and Drug Administration (FDA) approved GRASTEK (Timothy
    Grass Pollen Allergen Extract) and RAGWITEK (Short Ragweed Pollen Allergen
    Extract), the company’s sublingual allergen extract immunotherapy tablets.
  *The FDA accepted a Biologics License Application for V503, a 9-valent HPV
    vaccine candidate, in February.
  *The FDA accepted the resubmission of a New Drug Application for suvorexant
    for insomnia in April.
  *The European Committee for Medicinal Products for Human Use issued a
    positive opinion for vintafolide in patients with platinum-resistant
    ovarian cancer.

Financial Targets

Merck reiterated that it expects full-year 2014 non-GAAP EPS to be between
$3.35 and $3.53, and 2014 GAAP EPS to be between $2.15 and $2.47. The 2014
non-GAAP range excludes acquisition-related costs, costs related to
restructuring programs, potential gains associated with the expected
termination of the AZ joint venture and certain other items. The 2014 EPS
targets (both non-GAAP and GAAP) include a potential devaluation of the
Venezuelan Bolivar.

At current exchange rates, Merck continues to expect full-year 2014 revenues
to be between $42.4 billion and $43.2 billion. This includes the expectation
that AZ will elect to end the partnership between the companies at mid-year,
as well as lost revenue from patent expirations across multiple markets and
previously announced product divestitures.

In addition, the company continues to expect full-year 2014 non-GAAP marketing
and administrative as well as R&D expenses to be below 2013 levels. The
company continues to anticipate its full-year 2014 non-GAAP tax rate to be in
the range of 24 to 26 percent; the rate does not include a 2014 benefit of an
R&D tax credit.

A reconciliation of anticipated 2014 EPS, as reported in accordance with GAAP
to non-GAAP EPS that excludes certain items, is provided in the table below.

                                               
                                                 Full Year
$ in millions, except EPS amounts               2014
GAAP EPS                                        $2.15 to $2.47
Difference^3                                    1.20 to 1.06
Non-GAAP EPS that excludes items listed below   $3.35 to $3.53
                                                 
                                                 
Acquisition-related costs^4                     $4,600 to $4,350
Restructuring costs                             1,300 to 1,000
Gain on AZ option exercise                      (700) to (725)
Net decrease (increase) in income before taxes  5,200 to 4,625
Estimated income tax (benefit) expense          (1,675) to (1,535)
Decrease (increase) in net income               $3,525 to $3,090
                                                 

Total Employees

As of March 31, 2014, Merck had approximately 74,000 employees worldwide. In
addition, the company’s joint ventures in China and Brazil, which are included
in the consolidated results of Merck, had about 1,200 employees.

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 17424702. Members of
the media are invited to monitor the call by dialing (706) 758-9928 or (800)
399-7917 and using ID code number 17424702. 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. You can also follow our
Twitter conversation at $MRK.

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 2013
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 2014 and 2013 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. Amount for 2014
also includes a benefit of approximately $300 million associated with a
capital loss generated in the quarter. In addition, amount for 2013 includes a
benefit of approximately $160 million associated with the resolution of a
previously disclosed federal income tax issue.

                                        
MERCK & CO., INC.
CONSOLIDATED STATEMENT OF OPERATIONS - GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 1
                                                                  
                                          GAAP                        % Change
                                          1Q14        1Q13           
                                                                   
Sales                                     $ 10,264    $ 10,671       -4    %
                                                                      
Costs, Expenses and Other
Materials and production ^(1)               3,903        3,959        -1    %
Marketing and administrative ^(1)           2,734        2,987        -8    %
Research and development ^(1)               1,574        1,907        -17   %
Restructuring costs ^(2)                    125          119          5     %
Equity income from affiliates ^(3)          (124   )     (133   )     -7    %
Other (income) expense, net ^(1) (4)        (39    )     282          *
Income Before Taxes                         2,091        1,550        35    %
Income Tax (Benefit) Provision              360          (66    )
Net Income                                  1,731        1,616        7     %
Less: Net Income Attributable to            26           23
Noncontrolling Interests
Net Income Attributable to Merck & Co.,   $ 1,705      $ 1,593        7     %
Inc.
Earnings per Common Share Assuming        $ 0.57     $ 0.52        10    %
Dilution
                                                     
Average Shares Outstanding Assuming         2,971        3,053
Dilution
Tax Rate ^(5)                              17.2   %   -4.3   %
                                                                      

* 100% or greater

(1) Amounts include the impact of acquisition-related costs, restructuring
costs and certain other items. 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 2014 includes a gain
of $182 million on the divestiture of the company's Sirna Therapeutics, Inc.
subsidiary. 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 2014 reflects a
benefit of approximately $300 million associated with a capital loss generated
in the quarter. 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 federal income tax issue.


MERCK & CO., INC.
CONSOLIDATED STATEMENT OF OPERATIONS
GAAP TO NON-GAAP RECONCILIATION
FIRST QUARTER 2014
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2a
                                                                     
                 GAAP         Acquisition-   Restructuring   Adjustment      Non-GAAP
                             Related        Costs ^(2)      Subtotal        
                              Costs ^(1)
                                                                            
Sales            $ 10,264                                                    $ 10,264
                                                                             
Costs,
Expenses and
Other
Materials and      3,903      1,126          119               1,245           2,658
production
Marketing and      2,734      11             31                42              2,692
administrative
Research and       1,574                     51                51              1,523
development
Restructuring      125                       125               125             -
costs
Equity income
from               (124   )                                    -               (124   )
affiliates
Other (income)     (39    )                                    -               (39    )
expense, net
Income Before      2,091      (1,137   )     (326     )        (1,463 )        3,554
Taxes
Taxes on           360                                         (567   ) ^(3)   927
Income
Net Income         1,731                                       (896   )        2,627
Less: Net
Income
Attributable       26                                          -               26
to
Noncontrolling
Interests
Net Income
Attributable     $ 1,705                                     $ (896   )      $ 2,601
to Merck &
Co., Inc.
Earnings per
Common Share     $ 0.57                                                     $ 0.88   
Assuming
Dilution
                                                                            
Average Shares
Outstanding        2,971                                                       2,971
Assuming
Dilution
Tax Rate          17.2   %                                                   26.1   %
                                                                                      

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.

(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 $300 million associated with a capital loss generated
in the quarter.

                                                                       
MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
(AMOUNTS IN MILLIONS)
Table 3
                                                                               
                 2014        2013                                                %
                                                                                 Change
                 1Q          1Q       2Q       3Q       4Q       Full        1Q
                                                                     Year
                                                                                 
TOTAL SALES      $10,264     $10,671   $11,010   $11,032   $11,319   $44,033     -4
^(1)
PHARMACEUTICAL   8,451       8,891     9,310     9,475     9,760     37,437      -5
                                                                                 
Primary Care
and Women's
Health
Cardiovascular
Zetia            611         629       650       662       716       2,658       -3
Vytorin          361         394       417       396       436       1,643       -8
                                                                                 
Diabetes
Januvia          858         884       1,072     927       1,121     4,004       -3
Janumet          476         409       474       442       503       1,829       16
                                                                                 
General
Medicine &
Women's Health
NuvaRing         168         151       171       170       193       686         11
Follistim AQ     110         122       134       124       101       481         -10
Dulera           102         68        79        82        95        324         49
Implanon         102         84        102       96        120       403         21
                                                                                 
Hospital and
Specialty
                                                                                 
Hepatitis
PegIntron        112         126       142       104       124       496         -11
Victrelis        59          110       116       121       81        428         -46
                                                                                 
HIV
Isentress        390         362       412       427       442       1,643       8
                                                                                 
Hospital
Cancidas         166         162       163       151       183       660         3
Invanz           114         110       120       130       128       488         4
Noxafil          74          65        71        75        98        309         13
Bridion          73          63        69        75        82        288         16
Primaxin         71          84        85        88        79        335         -15
                                                                                 
Immunology
Remicade         604         549       527       574       620       2,271       10
Simponi          157         108       120       126       146       500         45
                                                                                 
Other
Cosopt /         99          105       103       104       103       416         -7
Trusopt
                                                                                 
Oncology
                                                                                 
Emend            122         116       135       123       134       507         5
Temodar          83          216       219       162       111       708         -62
                                                                                 
Diversified
Brands
                                                                                 
Respiratory
Nasonex          312         385       325       297       327       1,335       -19
Singulair        271         337       281       280       298       1,196       -20
Clarinex         62          61        64        54        55        235         2
                                                                                 
Other
Cozaar /         205         267       255       238       246       1,006       -23
Hyzaar
Arcoxia          128         121       121       112       131       484         6
Fosamax          123         137       144       140       139       560         -10
Propecia         74          68        67        71        77        283         8
Zocor            64          82        74        65        79        301         -21
Remeron          50          52        53        44        56        206         -4
                                                                                 
Vaccines
                                                                                 
Gardasil         383         390       383       665       394       1,831       -2
ProQuad, M-M-R   280         272       339       421       273       1,306       3
II and Varivax
RotaTeq          169         162       144       201       129       636         4
Zostavax         142         168       141       185       264       758         -15
Pneumovax 23     101         111       108       193       241       653         -9
                                                                                 
Other
Pharmaceutical   1,175       1,361     1,430     1,350     1,435     5,570       -14
^(2)
                                                                                 
ANIMAL HEALTH    813         840       851       800       871       3,362       -3
                                                                                 
CONSUMER CARE    546         571       490       443       390       1,894       -4
^(3)
Claritin OTC     170         177       78        123       92        471         -4
                                                                                 
Other Revenues   454         369       359       314       298       1,340       23
^(4)
Astra            147         262      245      220      193      920         -44
                                                                                 

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 $98 million in the first
quarter of 2014. Other Vaccines sales included in Other Pharmaceutical were
$53 million, $86 million, $127 million, and $101 million for the first,
second, third, and fourth quarters of 2013, respectively.

^(3) The decrease in Consumer Care sales in the second quarter and full year
of 2013 resulted from the ongoing termination in China of distribution
arrangements and a reversal of sales previously made to those distributors,
together with associated termination costs.

^(4) Other revenues are comprised primarily of alliance revenue, third-party
manufacturing sales and miscellaneous corporate revenues, including revenue
hedging activities. On October 1, 2013, the company divested a substantial
portion of its third-party manufacturing sales. In addition, Other revenues in
the fourth quarter and full year of 2013 reflect $50 million of revenue for
the out-license of a pipeline compound. Other revenues in the first quarter
2014 include $232 million of revenue recognized in connection with the sale of
U.S. Saphris rights.

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Contact:

Merck
Media:
Steve Cragle, 908-423-3461
Lainie Keller, 908-423-4187
or
Investors:
Joe Romanelli, 908-423-5185
Carol Ferguson, 908-423-4465
 
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