- Second-Quarter 2014 Non-GAAP EPS of
$0.85, Excluding Certain Items, and GAAP EPS of $0.68
- 2014 Full-Year Non-GAAP EPS Target of
$3.43 to $3.53, Excluding Potential Venezuelan Bolivar Devaluation
and Certain Other Items; 2014 Full-Year GAAP EPS Target of $4.44 to
$4.77
- 2014 Full-Year Non-GAAP EPS Target
Includes $0.06 to $0.09 Anticipated Dilution From Planned Sale of
Merck Consumer Care and Research Collaboration With Bayer, and
Planned Acquisition of Idenix
- Generated Worldwide Sales of $10.9
Billion, a Decrease of 1 Percent, Reflecting Unfavorable Impact of
Patent Expiries, Divested Products and Decline in Sales of
Hepatitis C Products
- Grew Top Five Franchises by 6 Percent
in Total
- Pembrolizumab (MK-3475), an
Investigational Anti-PD-1 Antibody, Accepted in Second Quarter for
Regulatory Review in Both the United States and European Union
Merck (NYSE:MRK), known as MSD outside the United States and
Canada, today announced financial results for the second quarter of
2014.
Second Quarter Second
Quarter $ in millions, except EPS amounts
2014
2013 Sales $10,934 $11,010 GAAP EPS
0.68 0.30
Non-GAAP EPS that excludes items listed
below1
0.85 0.84
GAAP Net Income2
2,004 906 Non-GAAP Net Income that excludes items
listed below1,2 2,493 2,530
Non-GAAP (generally accepted accounting principles) earnings per
share (EPS) for the second quarter of $0.85 exclude acquisition-
and divestiture-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. Year-to-date results can be
found in the attached tables.
Second Quarter Second
Quarter $ in millions, except EPS amounts
2014
2013 EPS GAAP EPS
$0.68 $0.30
Difference3
0.17 0.54 Non-GAAP EPS that excludes items listed
below1 $0.85 $0.84
Net Income
GAAP net income2 $2,004 $906
Difference 489 1,624 Non-GAAP net income that
excludes items listed below1,2 $2,493 $2,530
Decrease (Increase) in Net Income Due to Excluded Items:
Acquisition- and divestiture-related
costs4
$1,756 $1,768 Restructuring costs 421
278 Gain on AstraZeneca option exercise (741) --
Other -- (13) Net decrease (increase) in income
before taxes 1,436 2,033
Income tax (benefit) expense5
(947) (409)
Decrease (increase) in net income
$489 $1,624
“We delivered a strong first half of the year, making progress
in transforming our operating model, fueling innovation and
managing costs, while focusing on our best opportunities,” said
Kenneth C. Frazier, chairman and chief executive officer, Merck.
“I’m excited as we are preparing for a series of important and
promising product launches later this year that we believe will
make a meaningful difference to patients, healthcare providers and
payers, while creating value for society and shareholders.”
Select Revenue Highlights
Worldwide sales were $10.9 billion for the second quarter of
2014, a decrease of 1 percent compared with the second quarter of
2013, with no net impact 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.
Second Quarter Second Quarter
Change Change $ in millions
2014
2013 Ex-exchange Total Sales
$10,934 $11,010 -1% -1% Pharmaceutical 9,087
9,310 -2% -2% JANUVIA/JANUMET 1,577
1,547 2% 2% ZETIA/VYTORIN 1,134 1,067
6% 5% REMICADE 607 527 15% 9% ISENTRESS
453 412 10% 10% GARDASIL 409 383
7% 9% PROQUAD, M-M-R II and VARIVAX 326 339
-4% -3% SINGULAIR 284 281 1% 3% NASONEX
258 325 -21% -20% Animal Health 872 851
2% 3% Consumer Care 583 490 19% 20%
Other Revenues 392 359 9% 6%
Pharmaceutical Revenue Performance
Second-quarter pharmaceutical sales declined 2 percent to $9.1
billion. Expected declines occurred due to the ongoing impact of
the loss of market exclusivity for TEMODAR (temozolomide) and
NASONEX (mometasone furoate monohydrate). Additionally, sales from
the hepatitis franchise of VICTRELIS (boceprevir) and PEGINTRON
(peginterferon alfa-2b) declined as a result of increased
competition. These declines were partially offset by growth in
REMICADE (infliximab), SIMPONI (golimumab) and ISENTRESS
(raltegravir), as well as the cardiovascular franchise of ZETIA
(ezetimibe)/VYTORIN (ezetimibe/simvastatin) and the diabetes
franchise of JANUVIA (sitagliptin)/JANUMET (sitagliptin and
metformin HCI).
Combined sales of JANUVIA and JANUMET, medicines that help lower
blood sugar levels in adults with type 2 diabetes, grew 2 percent
to $1.6 billion in the second quarter. The growth reflects higher
sales in Europe and the emerging markets, which were partially
offset by declines in Japan. Sales in the United States decreased 1
percent.
Combined sales of ZETIA and VYTORIN, medicines for lowering LDL
cholesterol, increased 6 percent to $1.1 billion in the second
quarter, including a 1 percent positive impact from foreign
exchange. The growth was driven by higher sales of ZETIA in the
United States, reflecting wholesaler purchases and price
increases.
Combined sales of REMICADE and SIMPONI, treatments for
inflammatory diseases, grew 21 percent to $781 million in the
second quarter, including a 6 percent positive impact from foreign
exchange.
Worldwide sales of ISENTRESS, an HIV integrase inhibitor for use
in combination with other antiretroviral agents for the treatment
of HIV-1 infection, increased 10 percent to $453 million in the
second quarter. The increase was driven by strong growth in Europe
and the emerging markets.
Animal Health Revenue Performance
Animal Health sales totaled $872 million for the second quarter
of 2014, a 2 percent increase compared with the second quarter of
2013, including a 1 percent negative impact due to foreign
exchange. The growth was primarily driven by BRAVECTO (fluralaner),
a chewable tablet that kills fleas and ticks in dogs for up to 12
weeks, which launched in Europe and the United States, as well as
higher sales in poultry and aqua products. This growth was
partially offset by the loss of sales of ZILMAX (zilpaterol
hydrochloride), a feed supplement for beef cattle. The company
decided last year to voluntarily suspend sales of ZILMAX in the
United States and Canada. Excluding the impact of the ZILMAX sales
suspension, Animal Health sales increased 9 percent in the second
quarter.
Consumer Care Revenue Performance
Second-quarter global sales of Consumer Care products were $583
million, an increase of 19 percent compared to the second quarter
of 2013, including a 1 percent negative impact due to foreign
exchange. The increase reflects sales reversals in the second
quarter of 2013 from the termination in China of certain Consumer
Care distribution arrangements together with associated termination
costs. Excluding those actions, Consumer Care global sales grew 4
percent, including the 1 percent negative impact due to foreign
exchange. Consumer Care global sales in the second quarter of 2014
benefited from the strong performance of CLARITIN and
COPPERTONE.
Other Revenue Performance
Other revenues – primarily comprising alliance revenue,
miscellaneous corporate revenues and third-party manufacturing
sales – increased 9 percent to $392 million compared to the second
quarter of 2013. The increase was primarily driven by higher
revenue from AstraZeneca (AZ) recorded by Merck, which grew 29
percent to $316 million in the second quarter of 2014, partially
offset by lower third-party manufacturing sales.
On June 30, 2014, AZ exercised its option to buy the company’s
interest in a subsidiary and, through it, the company’s interest in
Nexium and Prilosec. As of July 1, 2014, Merck no longer records
equity income from AZ and supply sales to AZ have ended.
Second-Quarter Expense and Other Information
The costs detailed below totaled $9.7 billion on a GAAP basis
during the second quarter of 2014 and include $2.2 billion of
acquisition- and divestiture-related costs and restructuring
costs.
$ in millions
Included in expenses for the
period Acquisition- and
Restructuring GAAP Divestiture- Costs
Non-GAAP1
Second Quarter Related 2014
Costs4
Materials and production $4,893
$1,724 $171 $2,998 Marketing and
administrative 2,973 32 44 2,897
Research and development 1,664 -- 43
1,621 Restructuring costs 163 -- 163 --
Second Quarter 2013
Materials and production
$4,284 $1,515 $93 $2,676 Marketing and
administrative 3,140 19 16 3,105
Research and development 2,101 234 14
1,853 Restructuring costs 155 -- 155 --
The gross margin was 55.2 percent for the second quarter of 2014
compared to 61.1 percent for the second quarter of 2013, reflecting
17.4 and 14.6 unfavorable percentage point impacts, respectively,
from the acquisition- and divestiture-related costs, and
restructuring costs noted above. The non-GAAP gross margin decline
primarily reflects the impacts of product mix, patent expiries,
foreign exchange and inventory write-offs, primarily VICTRELIS.
Marketing and administrative expenses, on a non-GAAP basis, were
$2.9 billion in the second quarter of 2014, a decrease from $3.1
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 $1.6 billion in the second quarter of 2014, a decrease
from $1.9 billion in the second 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 in the second half of
2014.
Equity income from affiliates was $92 million for the second
quarter, primarily reflecting the performance of partnerships with
AZ and Sanofi Pasteur MSD.
Other (income) expense, net, was $558 million of income in the
second quarter of 2014, compared to $201 million of expense in the
second quarter of 2013. The second quarter of 2014 includes a $741
million gain recorded in connection with AZ’s option exercise.
The GAAP effective tax rate of (7.5) percent for the second
quarter of 2014 reflects the impacts of acquisition- and
divestiture-related costs and restructuring costs, as well as a net
benefit of $517 million associated with AZ’s option exercise. The
non-GAAP effective tax rate, which excludes these items, was 24.2
percent for the quarter.
Key Developments
- Merck announced an agreement to acquire
Idenix Pharmaceuticals, Inc. for $24.50 per share in cash
(approximately $3.85 billion) to expand its portfolio of
investigational therapies for hepatitis C. The company commenced a
tender offer, which is expected to close on Aug. 4, 2014.
- The U.S. Food and Drug Administration
(FDA) and European Medicines Agency have accepted regulatory
applications for pembrolizumab (MK-3475), an investigational
anti-PD-1 antibody, for the treatment of patients with advanced
melanoma. Regulatory action in the United States is expected by
Oct. 28, 2014.
- Bayer AG agreed to purchase Merck
Consumer Care for $14.2 billion; the sale is expected to close in
the second half of 2014. The companies also announced that Merck
will pay Bayer AG $1 billion as part of a clinical development
collaboration.
- Merck received a Complete Response
Letter from the U.S. FDA for its New Drug Application for
corifollitropin alfa, a sustained follicle stimulant for controlled
ovarian stimulation in women participating in assisted reproductive
technologies. Merck is evaluating the information provided in the
Complete Response Letter. Corifollitropin alfa is marketed as
ELONVA in more than 75 countries.
For a full listing of company developments that occurred in the
second quarter of 2014, visit the newsroom at www.merck.com.
Financial Outlook
Merck expects full-year 2014 non-GAAP EPS to be between $3.43
and $3.53, which excludes the potential impact of a Venezuelan
Bolivar devaluation that was previously included in the range. The
full-year 2014 non-GAAP EPS range reflects strong performance in
the first half of the year and also includes anticipated dilution
of $0.06 to $0.09 from the planned sale of Merck Consumer Care and
the research collaboration with Bayer, and the planned acquisition
of Idenix. The 2014 non-GAAP EPS range excludes acquisition- and
divestiture-related costs and costs related to restructuring
programs. The 2014 non-GAAP EPS range also excludes one-time gains
associated with AZ’s option exercise, the sale of the company’s
ophthalmics business in certain international markets and the
planned sale of Merck Consumer Care, as well as certain other
items. Merck now expects full-year 2014 GAAP EPS to be between
$4.44 and $4.77.
At current exchange rates, Merck continues to expect full-year
2014 revenues to be between $42.4 billion and $43.2 billion.
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 $4.44 to $4.77 Difference3
(1.01) to (1.24) Non-GAAP EPS that excludes items listed
below $3.43 to $3.53 Acquisition- and
divestiture-related costs $5,300 to $5,000 Restructuring
costs 1,500 to 1,200 Gain on AZ option exercise (741)
Gain on sale of ophthalmics business (500) to (550) Gain on
planned sale of Merck Consumer Care (11,000) to (11,300) Net
decrease (increase) in income before taxes (5,441) to
(6,391) Estimated income tax (benefit) expense 2,485 to
2,755 Decrease (increase) in net income ($2,956) to ($3,636)
Total Employees
As of June 30, 2014, Merck had approximately 73,000 employees
worldwide. In addition, the company’s joint ventures in China and
Brazil, which are included in the consolidated results of Merck,
had about 1,100 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
62998996. Members of the media are invited to monitor the call by
dialing (706) 758-9928 or (800) 399-7917 and using ID code number
62998996. 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 of $1.1 billion and $1.2 billion in the
second quarter of 2014 and 2013, respectively, for the amortization
of intangible assets recognized as a result of mergers and
acquisitions, as well as intangible asset impairment charges of
$660 million and $564 million in the second quarter of 2014 and
2013, respectively. Also includes merger integration costs, as well
as transaction and certain other costs related to business
acquisitions and divestitures.
5 Includes the estimated tax impact on the reconciling items,
which for the second quarter of 2014 includes a net benefit of $517
million recorded in connection with AstraZeneca’s option
exercise.
MERCK & CO., INC. CONSOLIDATED STATEMENT OF
INCOME - GAAP (AMOUNTS IN MILLIONS, EXCEPT PER SHARE
FIGURES) (UNAUDITED) Table 1
GAAP
% Change
GAAP
% Change
2Q14 2Q13
June YTD2014
June YTD2013
Sales $
10,934 $ 11,010 -1% $ 21,198 $ 21,681 -2%
Costs, Expenses and Other Materials and production (1) 4,893 4,284
14% 8,796 8,243 7% Marketing and administrative (1) 2,973 3,140 -5%
5,707 6,126 -7% Research and development (1) 1,664 2,101 -21% 3,238
4,008 -19% Restructuring costs (2) 163 155 5% 288 274 5% Equity
income from affiliates (3) (92 ) (116 ) -21% (217 ) (249 ) -13%
Other (income) expense, net (1) (4) (558 ) 201 * (596 ) 484 *
Income Before Taxes 1,891 1,245 52% 3,982 2,795 42% Income Tax
(Benefit) Provision (142 ) 310 218 244 Net Income 2,033 935 * 3,764
2,551 48% Less: Net Income Attributable to Noncontrolling Interests
29 29 55 52 Net Income Attributable to Merck & Co., Inc. $
2,004 $ 906 * $ 3,709 $ 2,499 48% Earnings per Common Share
Assuming Dilution $ 0.68 $ 0.30 * $ 1.25
$ 0.82 52% Average
Shares Outstanding Assuming Dilution 2,949 3,010 2,957 3,030 Tax
Rate (5) -7.5 % 24.9 % 5.5 %
8.7 %
* 100% or greater
(1) Amounts include the impact of acquisition and
divestiture-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 second quarter and first
six months of 2014 includes a gain of $741 million related to
AstraZeneca's option exercise. In addition, other (income) expense,
net in the first six months of 2014 includes net gains of $168
million related to the divestiture of the company's Sirna
Therapeutics, Inc. subsidiary. Other (income) expense, net in the
first six months of 2013 reflects approximately $140 million of
exchange losses as a result of a Venezuelan currency
devaluation.
(5) The effective income tax rates for the second quarter and
first six months of 2014 reflect a net benefit of $517 million
recorded in connection with AstraZeneca's option exercise. In
addition, the effective income tax rate for the first six months of
2014 reflects a benefit of approximately $300 million associated
with a capital loss generated in the first quarter of 2014.
The effective income tax rates for the second quarter and first
six months of 2013 reflect benefits from reductions in tax reserves
upon expiration of applicable statute of limitations. In addition,
the effective tax rate for the first six months of 2013 reflects
the favorable impact of tax legislation enacted in the first
quarter of 2013, 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
INCOME GAAP TO NON-GAAP RECONCILIATION SECOND QUARTER
2014 (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED) Table 2a
Acquisition
and Restructuring Certain Other Adjustment
GAAP Divestiture-
Costs (2)
Items (3)
Subtotal Non-GAAP
Related Costs (1)
Sales
$
10,934 $ 10,934 Costs, Expenses and Other Materials
and production
4,893 1,724 171 1,895 2,998 Marketing and
administrative
2,973 32 44 76 2,897 Research and development
1,664 43 43 1,621 Restructuring costs
163 163 163 -
Equity income from affiliates
(92 ) (92 ) Other
(income) expense, net
(558 ) (741 ) (741 ) 183 Income
Before Taxes
1,891 (1,756 ) (421 ) 741 (1,436 ) 3,327 Taxes
on Income
(142 ) (947 )
(4)
805 Net Income
2,033 (489 ) 2,522 Less: Net Income
Attributable to Noncontrolling Interests
29 29 Net Income
Attributable to Merck & Co., Inc.
$ 2,004 $ (489
) $ 2,493 Earnings per Common Share Assuming Dilution
$
0.68 $ 0.85 Average Shares
Outstanding Assuming Dilution
2,949 2,949 Tax Rate
-7.5 % 24.2 %
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 of $1.1 billion for the amortization of intangible assets
recognized as a result of mergers and acquisitions, as well as $660
million of impairment charges on product intangibles. Amounts
included in marketing and administrative expenses reflect merger
integration costs, as well as transaction and certain other costs
related to business acquisitions and divestitures.
(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 gain related to AstraZeneca's option
exercise.
(4) Represents the estimated tax impact on the reconciling
items, including a net benefit of $517 million recorded in
connection with AstraZeneca's option exercise.
MERCK & CO.,
INC. CONSOLIDATED STATEMENT OF INCOME GAAP TO
NON-GAAP RECONCILIATION SIX MONTHS ENDED JUNE 30, 2014
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED) Table 2b
Acquisition and Restructuring
Certain Other Adjustment GAAP
Divestiture-
Costs (2)
Items (3)
Subtotal Non-GAAP
Related Costs (1)
Sales $ 21,198 $ 21,198
Costs, Expenses and Other Materials and production 8,796
2,850 290 3,140 5,656 Marketing and administrative 5,707 43 75 118
5,589 Research and development 3,238 94 94 3,144 Restructuring
costs 288 288 288 - Equity income from affiliates (217 ) (217 )
Other (income) expense, net (596 ) (741 ) (741 ) 145 Income Before
Taxes 3,982 (2,893 ) (747 ) 741 (2,899 ) 6,881 Taxes on Income 218
(1,514 )
(4)
1,732 Net Income 3,764 (1,385 ) 5,149 Less: Net Income Attributable
to Noncontrolling Interests 55 55 Net Income Attributable to Merck
& Co., Inc. $ 3,709 $ (1,385 ) $ 5,094 Earnings per Common
Share Assuming Dilution $ 1.25 $ 1.72
Average Shares Outstanding Assuming Dilution 2,957 2,957 Tax Rate
5.5 % 25.2 %
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 of $2.2 billion for the amortization of intangible assets
recognized as a result of mergers and acquisitions, as well as $660
million of impairment charges on product intangibles. Amounts
included in marketing and administrative expenses reflect merger
integration costs, as well as transaction and certain other costs
related to business acquisitions and divestitures.
(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 gain related to AstraZeneca's option
exercise.
(4) Represents the estimated tax impact on the reconciling
items, including a net benefit of approximately $517 million
recorded in connection with AstraZeneca's option exercise, as well
as a benefit of approximately $300 million associated with a
capital loss generated in the first quarter.
MERCK & CO., INC. FRANCHISE / KEY PRODUCT
SALES (AMOUNTS IN MILLIONS) Table 3
2014 2013 % Change
1Q 2Q June 1Q
2Q June 3Q 4Q
Full 2Q June
YTD YTD
Year
YTD TOTAL SALES (1)
$10,264
$10,934 $21,198 $10,671
$11,010 $21,681 $11,032
$11,319 $44,033 -1 -2
PHARMACEUTICAL 8,451 9,087 17,538
8,891 9,310 18,201 9,475 9,760
37,437 -2 -4 Primary Care and
Women's Health Cardiovascular Zetia 611 717 1,328 629 650 1,279
662 716 2,658 10 4 Vytorin 361 417 777 394 417 810 396 436 1,643 -4
Diabetes Januvia 858 1,058 1,916 884 1,072 1,956 927 1,121
4,004 -1 -2 Janumet 476 519 995 409 474 883 442 503 1,829 9 13
General Medicine & Women's Health NuvaRing 168 178 346
151 171 322 170 193 686 4 7 Implanon 102 119 221 84 102 187 96 120
403 16 18 Follistim AQ 110 102 213 122 134 257 124 101 481 -24 -17
Dulera 102 103 205 68 79 147 82 95 324 30 39
Hospital and
Specialty Hepatitis PegIntron 112 103 216 126 142 268
104 124 496 -27 -19 Victrelis 59 46 105 110 116 226 121 81 428 -60
-53 HIV Isentress 390 453 843 362 412 775 427 442 1,643 10 9
Hospital Cancidas 166 156 322 162 163 326 151 183 660 -5 -1
Invanz 114 134 249 110 120 230 130 128 488 12 8 Noxafil 74 98 172
65 71 136 75 98 309 38 26 Bridion 73 82 155 63 69 131 75 82 288 20
18 Primaxin 71 81 151 84 85 168 88 79 335 -5 -10 Immunology
Remicade 604 607 1,211 549 527 1,076 574 620 2,271 15 13 Simponi
157 174 330 108 120 228 126 146 500 44 45 Other Cosopt /
Trusopt 99 100 198 105 103 209 104 103 416 -3 -5
Oncology Emend 122 144 266 116 135 250 123 134 507 7
6 Temodar 83 93 176 216 219 434 162 111 708 -57 -59
Diversified Brands Respiratory Nasonex 312 258 570
385 325 711 297 327 1,335 -21 -20 Singulair 271 284 554 337 281 618
280 298 1,196 1 -10 Clarinex 62 69 131 61 64 125 54 55 235 7 5
Other Cozaar / Hyzaar 205 214 419 267 255 522 238 246 1,006
-16 -20 Arcoxia 128 141 268 121 121 242 112 131 484 16 11 Fosamax
123 121 245 137 144 281 140 139 560 -16 -13 Zocor 64 69 133 82 74
156 65 79 301 -8 -15 Propecia 74 58 131 68 67 135 71 77 283 -14 -3
Remeron 50 40 90 52 53 106 44 56 206 -26 -15
Vaccines
Gardasil 383 409 792 390 383 773 665 394 1,831 7 3 ProQuad,
M-M-R II and Varivax 280 326 606 272 339 611 421 273 1,306 -4 -1
RotaTeq 169 147 316 162 144 306 201 129 636 3 3 Zostavax 142 156
298 168 141 309 185 264 758 11 -3 Pneumovax 23 101 102 203 111 108
219 193 241 653 -6 -7
Other Pharmaceutical (2) 1,175
1,209 2,387 1,361 1,430 2,789 1,350 1,435 5,570 -15 -14
ANIMAL HEALTH 813 872 1,685 840
851 1,691 800 871 3,362 2
CONSUMER CARE (3)
546 583 1,130
571 490 1,061 443 390
1,894 19 6 Claritin OTC 170 153 323 177 78 256
123 92 471 95 26
Other Revenues (4)
454
392 845 369 359 727 314
298 1,340 9 16 Astra 147 316
463 262 245 507 220 193
920 29 -9
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 and $76 million for the first and second quarters 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 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.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140729005509/en/
MerckMedia:Steve Cragle, 908-423-3461Lainie Keller,
908-423-4187orInvestors:Joe Romanelli, 908-423-5185Justin Holko,
908-423-5088
Merck (NYSE:MRK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Merck (NYSE:MRK)
Historical Stock Chart
From Apr 2023 to Apr 2024