4Q Financial Reports

Merck

4Q Revenues: $5.7 billion (flat)

4Q Earnings: $1.1 billion (+2%)

FY Revenues: $22 billion (-4%)

FY Earnings: $4.6 billion (-20%)

Comments: Sales growth of Singulair and Vytorin drove results for the year. Worldwide sales of Singulair reached $819 million for the quarter, up 12% and $3 billion for the year, up 13%. Global sales of Vytorin, developed and marketed by the Merck/Schering-Plough partnership, reached $355 million in the fourth quarter and $1 billion for the year. R&D expenses were $1.1 billion for the quarter, comparable to 4Q2004, and $3.8 billion for the year, down 4%. Restructuring costs were $229 million and $322 million for the quarter and full year. Results include the impact of reserving an additional $295 million in the fourth quarter for VIOXX legal defense costs.

Wyeth

4Q Revenues: $4.7 billion (+2%)

4Q Earnings: $731.7 million (loss of $1.7 billion in 4Q2004)

FY Revenues: $18.8 billion (+8%)

FY Earnings: $3.7 billion (+196%)

Comments: Enbrel and Prevnar performed strong for the quarter and the year. Enbrel sales, in North America, were $674 million for the quarter, up 19% and $2.6 billion for the year, up 35%. Prevnar achieved revenue of $401 million for the quarter, up 18% and $1.5 billion for the year, up 43%. R&D expenses were $875.7 million for the quarter, up 35% and $2.7 billion for the year, up 11%.

Elan

4Q Revenues: $140 million (+13%)

4Q Loss: $58.3 million (loss of $107.1 million 4Q2004)

FY Revenues: $490 million (+2%)

FY Loss: $383.6 million (loss of $394.7 million FY2004)

Comments: Revenue from marketed products was $65.9 million for the quarter, up 28% due to sales of Maxipime and Azactam and revenue from Prialt, which was launched in 2005, offset by a decrease in the sales of Tysabri, which was voluntarily suspended from the market in February 2005. Maxipime sales were up 57% in the quarter to $46.8 million and up 19% for the year to $140.3 million. Azactam sales were $17.5 million for the quarter, up 14% and increased 14% to $57.7 million for the year. Revenue from Prialt was $2 million for the quarter and $6.3 million for the year. R&D expenses were $52.8 million in the quarter, down 26% and flat for the year.