Merck & Co.

Merck 4Q10

4Q Revenues: $12.1 billion (+20%)*

4Q Loss: $531 million (earnings of $6.5 billion in 2009)

FY Revenues: $46.0 billion (+68%)*

FY Earnings: $982 million (earnings of $13.0 billion in 2009)

Comments: Revenues and earnings were skewed as a result of the Schering-Plough acquisition, which closed in 4Q09. Pro-rated figures would have left human health revenues down 2% for 4Q and -1% for FY. Cozaar/Hyzaar posted a 57% drop in sales in 4Q ($415 million) and fell 41% for FY ($2.1 billion). Januvia and Janumet sales rose 27% in 4Q10 to $962 million million, and 29% in FY to $3.3 billion. Gardasil rvenues fell 20% in 4Q to $221 million and 12% to $988 million in FY, as stockpiling sales ended after 2009. Merck wrote down $1.7 billion related to development of vorapaxar, which is apparently finished after trials were halted in January. That cancellation was cited by the company when it reduced its earnings projections through 2013 from high single-digits to low-to-mid-single-digits.

* Revenues for 2009 do not include all Schering-Plough legacy revenues. With those included, 4Q10 revenues were down 1% and FY revenues were flat. Earnings were affected by the 2009 closing as well as the sale of Merck’s interest in Merial.