Financial Report: Merck

Merck 4Q07

4Q Revenues: $6.2 billion (+3%)

4Q Loss: $1.6 billion (earnings were $473.9 million in 4Q06)

FY Revenues: $24.2 billion (+7%)

FY Earnings: $3.3 billion (-26%)

Comments: 4Q Singulair sales were up 20% to $1.2 billion and FY sales were $4.3 billion (+19%). Global sales of Cozaar and Hyzaar were $891 million in the quarter (+ 3%) and were $3.4 billion for the year (+6%). Worldwide sales of Fosamax and Fosamax plus D were $796 million in the quarter (+1%) and for the year were $3.0 billion (-3%). Fosamax will lose marketing exclusivity in February 2008. Gardasil sales were $339 million for the quarter and $1.5 billion for the year. Sales of the cholesterol drugs Zetia and Vytorin (split between Merck and Schering-Plough) were up 34% in the quarter and FY to $1.5 billion and $5.2 billion, respectively. 4Q loss includes charges related to the U.S. VIOXX Settlement Agreement ($4 billion) and civil governmental investigations, restructuring charges and an insurance arbitration gain. R&D expenses in the quarter were down 20% to $1.4 billion and for the year were $4.9 billion (+2%).