Financial Report: Merck 1Q09

Merck 1Q09

1Q Revenues: $5.4 billion (-8%)

1Q Earnings: $1.4 billion (-57%)

Comments: Worldwide sales of Singulair were $1.1 billion (-4%). Combined global sales of Zetia and Vytorin, as reported by the Merck/Schering-Plough partnership, were $945 million (-23%). Sales of Cozaar and Hyzaar2 were $839 million (-1%). Januvia sales were $411 million (+51%). Sales of Fosamax and Fosamax Plus D dropped 44% to $261 million due to loss of U.S. marketing exclusivity. Restructuring costs, primarily related to employee separations, were $64 million in the quarter compared to $70 million in 1Q08. R&D expenses were $1.2 billion (+14%), which includes $88 million for the company’s 2008 global restructuring program. Earnings in 1Q08 included a $1.4 billion after-tax gain on a distribution from AstraZeneca LP.