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EX-99.1 - EX-99.1 - Merck & Co., Inc.a14-22973_1ex99d1.htm

Exhibit 99.2

 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

 

 

 

2014

 

2013

 

% Change

 

 

 

1Q

 

2Q

 

3Q

 

Sep YTD

 

1Q

 

2Q

 

3Q

 

Sep YTD

 

4Q

 

Full Year

 

3Q

 

Sep YTD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

10,264

 

$

10,934

 

$

10,557

 

$

31,755

 

$

10,671

 

$

11,010

 

$

11,032

 

$

32,713

 

$

11,319

 

$

44,033

 

-4

%

-3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

3,903

 

4,893

 

4,223

 

13,019

 

3,959

 

4,284

 

4,104

 

12,347

 

4,607

 

16,954

 

3

%

5

%

Marketing and administrative

 

2,734

 

2,973

 

2,975

 

8,681

 

2,987

 

3,140

 

2,803

 

8,929

 

2,982

 

11,911

 

6

%

-3

%

Research and development

 

1,574

 

1,664

 

1,659

 

4,897

 

1,907

 

2,101

 

1,660

 

5,668

 

1,836

 

7,503

 

 

-14

%

Restructuring costs

 

125

 

163

 

376

 

664

 

119

 

155

 

870

 

1,144

 

565

 

1,709

 

-57

%

-42

%

Equity income from affiliates

 

(124

)

(92

)

(24

)

(241

)

(133

)

(116

)

(102

)

(351

)

(53

)

(404

)

-76

%

-31

%

Other (income) expense, net

 

(39

)

(558

)

(142

)

(737

)

282

 

201

 

172

 

656

 

157

 

815

 

*

 

*

 

Income Before Taxes

 

2,091

 

1,891

 

1,490

 

5,472

 

1,550

 

1,245

 

1,525

 

4,320

 

1,225

 

5,545

 

-2

%

27

%

Income Tax Provision (Benefit)

 

360

 

(142

)

648

 

865

 

(66

)

310

 

375

 

618

 

410

 

1,028

 

 

 

 

 

Net Income

 

1,731

 

2,033

 

842

 

4,607

 

1,616

 

935

 

1,150

 

3,702

 

815

 

4,517

 

-27

%

24

%

Less: Net Income (Loss) Attributable to Noncontrolling Interests

 

26

 

29

 

(53

)

3

 

23

 

29

 

26

 

79

 

34

 

113

 

 

 

 

 

Net Income Attributable to Merck & Co., Inc.

 

$

1,705

 

$

2,004

 

$

895

 

$

4,604

 

$

1,593

 

$

906

 

$

1,124

 

$

3,623

 

$

781

 

$

4,404

 

-20

%

27

%

Earnings per Common Share Assuming Dilution

 

$

0.57

 

$

0.68

 

$

0.31

 

$

1.57

 

$

0.52

 

$

0.30

 

$

0.38

 

$

1.20

 

$

0.26

 

$

1.47

 

-18

%

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution

 

2,971

 

2,949

 

2,911

 

2,942

 

3,053

 

3,010

 

2,960

 

3,007

 

2,959

 

2,996

 

 

 

 

 

Tax Rate

 

17.2

%

-7.5

%

43.5

%

15.8

%

-4.3

%

24.9

%

24.6

%

14.3

%

33.5

%

18.5

%

 

 

 

 

 

* 100% or greater

 

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

 



 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME

GAAP TO NON-GAAP RECONCILIATION

THIRD QUARTER 2013

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

 

 

 

 

 

Acquisition and

 

 

 

 

 

 

 

 

 

 

 

Divestiture-

 

Restructuring

 

Adjustment

 

 

 

 

 

GAAP

 

Related Costs (1)

 

Costs (2)

 

Subtotal

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

11,032

 

 

 

 

 

 

 

$

11,032

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

4,104

 

1,176

 

57

 

1,233

 

2,871

 

Marketing and administrative

 

2,803

 

20

 

31

 

51

 

2,752

 

Research and development

 

1,660

 

 

 

9

 

9

 

1,651

 

Restructuring costs

 

870

 

 

 

870

 

870

 

 

Equity income from affiliates

 

(102

)

 

 

 

 

 

 

(102

)

Other (income) expense, net

 

172

 

 

 

 

 

 

 

172

 

Income Before Taxes

 

1,525

 

(1,196

)

(967

)

(2,163

)

3,688

 

Taxes on Income

 

375

 

 

 

 

 

(558

)(3)

933

 

Net Income

 

1,150

 

 

 

 

 

(1,605

)

2,755

 

Less: Net Income Attributable to Noncontrolling Interests

 

26

 

 

 

 

 

 

 

26

 

Net Income Attributable to Merck & Co., Inc.

 

$

1,124

 

 

 

 

 

$

(1,605

)

$

2,729

 

Earnings per Common Share Assuming Dilution

 

$

0.38

 

 

 

 

 

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution

 

2,960

 

 

 

 

 

 

 

2,960

 

Tax Rate

 

24.6

%

 

 

 

 

 

 

25.3

%

 

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 for the amortization of intangible assets recognized as a result of mergers and acquisitions. Amounts included in marketing and administrative expenses reflect merger integration costs.

 

(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 estimated tax impact on the reconciling items, as well as a net benefit of approximately $165 million related to the settlements of certain federal income tax issues.

 



 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME

GAAP TO NON-GAAP RECONCILIATION

NINE MONTHS ENDED SEPTEMBER 30, 2013

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d

 

 

 

 

 

Acquisition and

 

 

 

 

 

 

 

 

 

 

 

 

 

Divestiture-

 

Restructuring

 

Certain Other

 

Adjustment

 

 

 

 

 

GAAP

 

Related Costs (1)

 

Costs (2)

 

Items

 

Subtotal

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

32,713

 

 

 

 

 

 

 

 

 

$

32,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

12,347

 

3,875

 

193

 

 

 

4,068

 

8,279

 

Marketing and administrative

 

8,929

 

62

 

64

 

 

 

126

 

8,803

 

Research and development

 

5,668

 

264

 

38

 

 

 

302

 

5,366

 

Restructuring costs

 

1,144

 

 

 

1,144

 

 

 

1,144

 

 

Equity income from affiliates

 

(351

)

 

 

 

 

 

 

 

 

(351

)

Other (income) expense, net

 

656

 

 

 

 

 

(13

)

(13

)

669

 

Income Before Taxes

 

4,320

 

(4,201

)

(1,439

)

13

 

(5,627

)

9,947

 

Taxes on Income

 

618

 

 

 

 

 

 

 

(1,406

)(3)

2,024

 

Net Income

 

3,702

 

 

 

 

 

 

 

(4,221

)

7,923

 

Less: Net Income Attributable to Noncontrolling Interests

 

79

 

 

 

 

 

 

 

 

 

79

 

Net Income Attributable to
Merck & Co., Inc.

 

$

3,623

 

 

 

 

 

 

 

$

(4,221

)

$

7,844

 

Earnings per Common Share Assuming Dilution

 

$

1.20

 

 

 

 

 

 

 

 

 

$

2.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution

 

3,007

 

 

 

 

 

 

 

 

 

3,007

 

Tax Rate

 

14.3

%

 

 

 

 

 

 

 

 

20.3

%

 

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 $3.5 billion for the amortization of intangible assets recognized as a result of mergers and acquisitions, as well as $330 million of impairment charges on product intangibles.  Amounts included in marketing and administrative expenses reflect merger integration costs.  Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges.

 

(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 estimated tax impact on the reconciling items, as well as net benefits of approximately $325 million related to the settlements of certain federal income tax issues.

 



 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

THIRD QUARTER 2014

(AMOUNTS IN MILLIONS)

Table 3a

 

 

 

Global

 

U.S.

 

International

 

 

 

3Q 2014

 

3Q 2013

 

% Change

 

3Q 2014

 

3Q 2013

 

% Change

 

3Q 2014

 

3Q 2013

 

% Change

 

TOTAL SALES (1)

 

$

10,557

 

$

11,032

 

-4

 

$

4,409

 

$

4,905

 

-10

 

$

6,148

 

$

6,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PHARMACEUTICAL

 

9,134

 

9,475

 

-4

 

3,837

 

4,148

 

-8

 

5,297

 

5,327

 

-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Care and Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

660

 

662

 

 

 

361

 

369

 

-2

 

298

 

293

 

2

 

Vytorin

 

369

 

396

 

-7

 

133

 

165

 

-19

 

236

 

232

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diabetes & Obesity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia / Janumet

 

1,439

 

1,369

 

5

 

740

 

701

 

6

 

698

 

668

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Medicine & Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

186

 

170

 

9

 

119

 

106

 

12

 

67

 

64

 

4

 

Implanon / Nexplanon

 

158

 

96

 

65

 

93

 

50

 

86

 

65

 

46

 

42

 

Dulera

 

124

 

82

 

51

 

117

 

78

 

51

 

6

 

4

 

61

 

Follistim AQ

 

97

 

124

 

-22

 

39

 

55

 

-29

 

58

 

69

 

-16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital and Specialty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hepatitis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PegIntron

 

84

 

104

 

-19

 

4

 

9

 

-59

 

81

 

95

 

-15

 

Victrelis

 

27

 

121

 

-78

 

 

 

45

 

*

 

27

 

75

 

-64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HIV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress

 

412

 

427

 

-3

 

207

 

227

 

-9

 

205

 

199

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancidas

 

183

 

151

 

21

 

4

 

7

 

-49

 

179

 

144

 

24

 

Invanz

 

141

 

130

 

9

 

72

 

70

 

3

 

69

 

59

 

17

 

Noxafil

 

107

 

75

 

42

 

40

 

23

 

73

 

67

 

52

 

29

 

Bridion

 

90

 

75

 

20

 

 

 

 

 

 

 

90

 

75

 

20

 

Primaxin

 

91

 

88

 

4

 

1

 

8

 

-93

 

91

 

80

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remicade

 

604

 

574

 

5

 

 

 

 

 

 

 

604

 

574

 

5

 

Simponi

 

170

 

126

 

35

 

 

 

 

 

 

 

170

 

126

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cosopt / Trusopt

 

34

 

104

 

-68

 

1

 

5

 

-84

 

33

 

100

 

-67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emend

 

136

 

123

 

11

 

80

 

73

 

9

 

56

 

49

 

13

 

Temodar

 

88

 

162

 

-46

 

1

 

71

 

-99

 

87

 

91

 

-4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respiratory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nasonex

 

261

 

297

 

-12

 

154

 

179

 

-14

 

107

 

118

 

-9

 

Singulair

 

218

 

280

 

-22

 

5

 

29

 

-83

 

214

 

252

 

-15

 

Clarinex

 

49

 

54

 

-10

 

7

 

6

 

4

 

42

 

48

 

-12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cozaar / Hyzaar

 

195

 

238

 

-18

 

6

 

11

 

-44

 

188

 

227

 

-17

 

Arcoxia

 

132

 

112

 

18

 

 

 

 

 

 

 

132

 

112

 

18

 

Fosamax

 

114

 

140

 

-19

 

3

 

7

 

-52

 

111

 

133

 

-17

 

Propecia

 

66

 

71

 

-7

 

5

 

7

 

-30

 

61

 

64

 

-4

 

Zocor

 

61

 

65

 

-6

 

5

 

6

 

-14

 

56

 

59

 

-5

 

Remeron

 

47

 

44

 

7

 

1

 

1

 

-8

 

46

 

43

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vaccines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil

 

590

 

665

 

-11

 

511

 

548

 

-7

 

79

 

117

 

-33

 

ProQuad, M-M-R II and Varivax

 

421

 

421

 

 

 

377

 

386

 

-2

 

44

 

35

 

26

 

RotaTeq

 

174

 

201

 

-14

 

126

 

154

 

-19

 

48

 

47

 

3

 

Zostavax

 

181

 

185

 

-2

 

149

 

169

 

-12

 

32

 

16

 

*

 

Pneumovax 23

 

197

 

193

 

2

 

150

 

149

 

1

 

48

 

44

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Pharmaceutical (2)

 

1,228

 

1,350

 

-9

 

326

 

433

 

-25

 

902

 

916

 

-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANIMAL HEALTH

 

885

 

800

 

11

 

216

 

208

 

4

 

669

 

591

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER CARE

 

401

 

443

 

-9

 

262

 

282

 

-7

 

139

 

160

 

-13

 

Claritin OTC

 

110

 

123

 

-11

 

75

 

90

 

-17

 

35

 

33

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Revenues (3)

 

137

 

314

 

-56

 

94

 

266

 

-65

 

43

 

48

 

-10

 

Astra

 

1

 

220

 

-99

 

1

 

220

 

-99

 

 

 

 

 

 

 

 

* 100% or greater

 

(1) Only select products are shown.

 

(2) Includes Pharmaceutical products not individually shown above.  Other Vaccines sales included in Other Pharmaceutical were $116 million and $127 million on a global basis for third quarter 2014 and 2013, respectively.

 

(3) 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.  On June 30, 2014, AstraZeneca exercised its option to buy Merck’s interest in a subsidiary and through it, Merck’s interest in Nexium and Prilosec.  As a result, the company no longer records supply sales for these products.

 



 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

SEPTEMBER YEAR-TO-DATE 2014

(AMOUNTS IN MILLIONS)

Table 3b

 

 

 

Global

 

U.S.

 

International

 

 

 

Sep YTD 14

 

Sep YTD 13

 

% Change

 

Sep YTD 14

 

Sep YTD 13

 

% Change

 

Sep YTD 14

 

Sep YTD 13

 

% Change

 

TOTAL SALES (1)

 

$

31,755

 

$

32,713

 

-3

 

$

12,983

 

$

13,727

 

-5

 

$

18,772

 

$

18,987

 

-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PHARMACEUTICAL

 

26,672

 

27,677

 

-4

 

10,429

 

11,093

 

-6

 

16,243

 

16,584

 

-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Care and Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

1,988

 

1,941

 

2

 

1,093

 

1,054

 

4

 

895

 

887

 

1

 

Vytorin

 

1,146

 

1,207

 

-5

 

410

 

491

 

-16

 

736

 

716

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diabetes & Obesity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia / Janumet

 

4,350

 

4,208

 

3

 

2,229

 

2,167

 

3

 

2,121

 

2,041

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Medicine & Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

531

 

492

 

8

 

334

 

303

 

10

 

198

 

190

 

4

 

Implanon / Nexplanon

 

379

 

282

 

34

 

220

 

144

 

53

 

159

 

139

 

14

 

Dulera

 

328

 

229

 

43

 

312

 

218

 

43

 

16

 

11

 

52

 

Follistim AQ

 

309

 

380

 

-19

 

103

 

158

 

-34

 

206

 

222

 

-7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital and Specialty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hepatitis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PegIntron

 

300

 

372

 

-19

 

16

 

31

 

-49

 

284

 

341

 

-17

 

Victrelis

 

132

 

347

 

-62

 

5

 

134

 

-96

 

128

 

213

 

-40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HIV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress

 

1,255

 

1,201

 

4

 

626

 

633

 

-1

 

629

 

569

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancidas

 

505

 

477

 

6

 

15

 

22

 

-33

 

491

 

455

 

8

 

Invanz

 

390

 

360

 

8

 

195

 

185

 

5

 

195

 

175

 

11

 

Noxafil

 

280

 

212

 

32

 

95

 

63

 

50

 

185

 

149

 

24

 

Bridion

 

245

 

206

 

19

 

 

 

 

 

 

 

245

 

206

 

19

 

Primaxin

 

243

 

256

 

-5

 

4

 

15

 

-76

 

239

 

241

 

-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remicade

 

1,815

 

1,651

 

10

 

 

 

 

 

 

 

1,815

 

1,651

 

10

 

Simponi

 

500

 

354

 

41

 

 

 

 

 

 

 

500

 

354

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cosopt / Trusopt

 

232

 

313

 

-26

 

2

 

13

 

-86

 

230

 

299

 

-23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emend

 

402

 

373

 

8

 

228

 

213

 

7

 

174

 

160

 

9

 

Temodar

 

264

 

596

 

-56

 

5

 

287

 

-98

 

259

 

310

 

-16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respiratory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nasonex

 

830

 

1,008

 

-18

 

428

 

506

 

-15

 

402

 

501

 

-20

 

Singulair

 

773

 

898

 

-14

 

18

 

45

 

-60

 

755

 

853

 

-12

 

Clarinex

 

180

 

180

 

 

 

18

 

14

 

32

 

162

 

166

 

-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cozaar / Hyzaar

 

614

 

760

 

-19

 

20

 

26

 

-23

 

594

 

734

 

-19

 

Arcoxia

 

400

 

354

 

13

 

 

 

 

 

 

 

400

 

354

 

13

 

Fosamax

 

358

 

421

 

-15

 

13

 

16

 

-21

 

346

 

405

 

-15

 

Propecia

 

197

 

206

 

-4

 

14

 

18

 

-22

 

183

 

188

 

-3

 

Zocor

 

194

 

221

 

-12

 

15

 

18

 

-16

 

179

 

204

 

-12

 

Remeron

 

137

 

150

 

-8

 

3

 

4

 

-20

 

134

 

146

 

-8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vaccines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil

 

1,382

 

1,438

 

-4

 

1,075

 

1,047

 

3

 

307

 

390

 

-21

 

ProQuad, M-M-R II and Varivax

 

1,027

 

1,032

 

-1

 

894

 

933

 

-4

 

133

 

99

 

34

 

RotaTeq

 

490

 

507

 

-3

 

357

 

382

 

-7

 

133

 

125

 

6

 

Zostavax

 

479

 

494

 

-3

 

393

 

443

 

-11

 

86

 

51

 

69

 

Pneumovax 23

 

400

 

412

 

-3

 

318

 

315

 

1

 

82

 

97

 

-15

 

Other Pharmaceutical (2)

 

3,617

 

4,139

 

-13

 

971

 

1,195

 

-19

 

2,642

 

2,942

 

-10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANIMAL HEALTH

 

2,569

 

2,491

 

3

 

578

 

658

 

-12

 

1,992

 

1,833

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER CARE (3)

 

1,531

 

1,504

 

2

 

1,058

 

1,073

 

-1

 

473

 

431

 

10

 

Claritin OTC

 

433

 

379

 

14

 

324

 

343

 

-6

 

109

 

36

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Revenues (4)

 

983

 

1,041

 

-5

 

919

 

902

 

2

 

64

 

139

 

-54

 

Astra

 

465

 

727

 

-36

 

465

 

727

 

-36

 

 

 

 

 

 

 

 

* 100% or greater

 

(1) Only select products are shown.

 

(2) Includes Pharmaceutical products not individually shown above.  Other Vaccines sales included in Other Pharmaceutical were $291 million and $267 million on a global basis for September YTD 2014 and 2013, respectively.

 

(3) September YTD 2013 includes a reduction to Consumer Care sales that reflects 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.  On June 30, 2014, AstraZeneca exercised its option to buy Merck’s interest in a subsidiary and through it, Merck’s interest in Nexium and Prilosec.  As a result, the company no longer records supply sales for these products.  Other revenues in September YTD 2014 include $232 million of revenue recognized in connection with the sale of U.S. Saphris rights.

 



 

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

%

 

%

 

 

 

2014

 

2013

 

Change

 

Change

 

 

 

1Q 2014

 

2Q 2014

 

3Q 2014

 

Sep YTD

 

1Q 2013

 

2Q 2013

 

3Q 2013

 

Sep YTD

 

4Q 2013

 

Full Year

 

3Q

 

Sep YTD

 

TOTAL PHARMACEUTICAL

 

$

8,451

 

$

9,087

 

$

9,134

 

$

26,672

 

$

8,891

 

$

9,310

 

$

9,475

 

$

27,677

 

$

9,760

 

$

37,437

 

-4

 

-4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

3,130

 

3,462

 

3,837

 

10,429

 

3,256

 

3,689

 

4,148

 

11,093

 

3,761

 

14,854

 

-8

 

-6

 

% Pharmaceutical Sales

 

37.0

%

38.1

%

42.0

%

39.1

%

36.6

%

39.6

%

43.8

%

40.1

%

38.5

%

39.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe (1)

 

2,478

 

2,537

 

2,297

 

7,312

 

2,465

 

2,343

 

2,276

 

7,084

 

2,535

 

9,619

 

1

 

3

 

% Pharmaceutical Sales

 

29.3

%

27.9

%

25.2

%

27.4

%

27.7

%

25.2

%

24.0

%

25.6

%

26.0

%

25.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

835

 

859

 

730

 

2,423

 

1,034

 

948

 

893

 

2,875

 

1,074

 

3,949

 

-18

 

-16

 

% Pharmaceutical Sales

 

9.9

%

9.5

%

8.0

%

9.1

%

11.6

%

10.2

%

9.4

%

10.4

%

11.0

%

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

809

 

840

 

878

 

2,528

 

822

 

874

 

799

 

2,495

 

870

 

3,365

 

10

 

1

 

% Pharmaceutical Sales

 

9.6

%

9.2

%

9.6

%

9.5

%

9.2

%

9.4

%

8.4

%

9.0

%

8.9

%

9.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China

 

282

 

309

 

318

 

909

 

271

 

297

 

242

 

810

 

293

 

1,103

 

32

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

538

 

668

 

673

 

1,879

 

596

 

676

 

628

 

1,899

 

667

 

2,567

 

7

 

-1

 

% Pharmaceutical Sales

 

6.4

%

7.3

%

7.4

%

7.0

%

6.7

%

7.3

%

6.6

%

6.9

%

6.8

%

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eastern Europe/Middle East Africa

 

415

 

459

 

443

 

1,317

 

439

 

479

 

431

 

1,349

 

534

 

1,883

 

3

 

-2

 

% Pharmaceutical Sales

 

4.9

%

5.1

%

4.9

%

4.9

%

4.9

%

5.1

%

4.5

%

4.9

%

5.5

%

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

200

 

218

 

218

 

636

 

245

 

257

 

253

 

755

 

276

 

1,030

 

-14

 

-16

 

% Pharmaceutical Sales

 

2.4

%

2.4

%

2.4

%

2.4

%

2.8

%

2.8

%

2.7

%

2.7

%

2.8

%

2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

46

 

44

 

58

 

148

 

34

 

45

 

47

 

127

 

43

 

170

 

22

 

16

 

% Pharmaceutical Sales

 

0.5

%

0.5

%

0.6

%

0.6

%

0.4

%

0.5

%

0.5

%

0.5

%

0.4

%

0.5

%

 

 

 

 

 

(1) Europe primarily represents all European Union countries and the European Union accession markets.

 



 

MERCK & CO., INC.

THIRD QUARTER 2014

EQUITY INCOME / JV SALES / OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

 

 

 

EQUITY INCOME FROM AFFILIATES

 

 

 

 

 

 

 

Sep YTD

 

Sep YTD

 

 

 

3Q14

 

3Q13

 

2014

 

2013

 

ASTRAZENECA LP (1)

 

$

 

$

72

 

$

192

 

$

302

 

Other (2)

 

24

 

30

 

49

 

49

 

TOTAL

 

$

24

 

$

102

 

$

241

 

$

351

 

 

(1) Effective July 1, 2014, the Company no longers records equity income from AstraZeneca LP.

(2) Includes results for Sanofi Pasteur MSD.

 

 

 

SANOFI PASTEUR MSD JOINT VENTURE SALES DETAIL

All sales reported here are end-market JV sales, presented on a “NET” basis.

 

 

 

 

 

 

 

Sep YTD

 

Sep YTD

 

 

 

3Q14

 

3Q13

 

2014

 

2013

 

GARDASIL

 

$

73

 

$

87

 

$

192

 

$

221

 

ZOSTAVAX

 

60

 

41

 

97

 

41

 

FLU VACCINES

 

92

 

93

 

92

 

93

 

OTHER VIRAL VACCINES

 

21

 

23

 

67

 

79

 

ROTATEQ

 

16

 

14

 

48

 

41

 

HEPATITIS VACCINES

 

10

 

8

 

27

 

23

 

Other Vaccines

 

125

 

126

 

304

 

331

 

TOTAL SANOFI PASTEUR MSD SALES

 

$

397

 

$

392

 

$

827

 

$

829

 

 

 

 

OTHER (INCOME) EXPENSE, NET

 

 

 

 

 

 

 

Sep YTD

 

Sep YTD

 

 

 

3Q14

 

3Q13

 

2014

 

2013

 

INTEREST INCOME

 

$

(69

)

$

(67

)

$

(190

)

$

(189

)

INTEREST EXPENSE

 

191

 

215

 

567

 

600

 

EXCHANGE LOSSES

 

61

 

11

 

114

 

278

 

Other, net (1)

 

(325

)

13

 

(1,228

)

(33

)

TOTAL

 

$

(142

)

$

172

 

$

(737

)

$

656

 

 

(1) Other, net in the third quarter and first nine months of 2014 includes a $396 million gain on the sale of certain ophthalmic products in several international markets.  Other, net in the first nine months of 2014 also includes a $741 million gain on AstraZeneca’s option exercise.