Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Merck & Co., Inc. | a15-16281_18k.htm |
| EX-99.1 - EX-99.1 - Merck & Co., Inc. | a15-16281_1ex99d1.htm |
Exhibit 99.2
MERCK & CO., INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 1a
|
|
|
2015 |
|
2014 |
|
% Change |
| |||||||||||||||||||||||||
|
|
|
1Q |
|
2Q |
|
June YTD |
|
1Q |
|
2Q |
|
June YTD |
|
3Q |
|
4Q |
|
Dec YTD |
|
2Q |
|
June YTD |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Sales |
|
$ |
9,425 |
|
$ |
9,785 |
|
$ |
19,210 |
|
$ |
10,264 |
|
$ |
10,934 |
|
$ |
21,198 |
|
$ |
10,557 |
|
$ |
10,482 |
|
$ |
42,237 |
|
-11 |
% |
-9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Costs, Expenses and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Materials and production |
|
3,569 |
|
3,754 |
|
7,323 |
|
3,903 |
|
4,893 |
|
8,796 |
|
4,223 |
|
3,749 |
|
16,768 |
|
-23 |
% |
-17 |
% | |||||||||
|
Marketing and administrative |
|
2,601 |
|
2,624 |
|
5,226 |
|
2,734 |
|
2,973 |
|
5,707 |
|
2,975 |
|
2,924 |
|
11,606 |
|
-12 |
% |
-8 |
% | |||||||||
|
Research and development |
|
1,737 |
|
1,670 |
|
3,407 |
|
1,574 |
|
1,664 |
|
3,238 |
|
1,659 |
|
2,283 |
|
7,180 |
|
— |
|
5 |
% | |||||||||
|
Restructuring costs |
|
82 |
|
191 |
|
273 |
|
125 |
|
163 |
|
288 |
|
376 |
|
349 |
|
1,013 |
|
17 |
% |
-5 |
% | |||||||||
|
Other (income) expense, net (1) |
|
55 |
|
739 |
|
793 |
|
(163 |
) |
(650 |
) |
(813 |
) |
(166 |
) |
(10,634 |
) |
(11,613 |
) |
* |
|
* |
| |||||||||
|
Income Before Taxes |
|
1,381 |
|
807 |
|
2,188 |
|
2,091 |
|
1,891 |
|
3,982 |
|
1,490 |
|
11,811 |
|
17,283 |
|
-57 |
% |
-45 |
% | |||||||||
|
Income Tax Provision (Benefit) |
|
423 |
|
119 |
|
542 |
|
360 |
|
(142 |
) |
218 |
|
648 |
|
4,484 |
|
5,349 |
|
|
|
|
| |||||||||
|
Net Income |
|
958 |
|
688 |
|
1,646 |
|
1,731 |
|
2,033 |
|
3,764 |
|
842 |
|
7,327 |
|
11,934 |
|
-66 |
% |
-56 |
% | |||||||||
|
Less: Net Income (Loss) Attributable to Noncontrolling Interests |
|
5 |
|
1 |
|
7 |
|
26 |
|
29 |
|
55 |
|
(53 |
) |
11 |
|
14 |
|
|
|
|
| |||||||||
|
Net Income Attributable to Merck & Co., Inc. |
|
$ |
953 |
|
$ |
687 |
|
$ |
1,639 |
|
$ |
1,705 |
|
$ |
2,004 |
|
$ |
3,709 |
|
$ |
895 |
|
$ |
7,316 |
|
$ |
11,920 |
|
-66 |
% |
-56 |
% |
|
Earnings per Common Share Assuming Dilution |
|
$ |
0.33 |
|
$ |
0.24 |
|
$ |
0.57 |
|
$ |
0.57 |
|
$ |
0.68 |
|
$ |
1.25 |
|
$ |
0.31 |
|
$ |
2.54 |
|
$ |
4.07 |
|
-65 |
% |
-54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Average Shares Outstanding Assuming Dilution |
|
2,865 |
|
2,850 |
|
2,856 |
|
2,971 |
|
2,949 |
|
2,957 |
|
2,911 |
|
2,880 |
|
2,928 |
|
|
|
|
| |||||||||
|
Tax Rate |
|
30.6 |
% |
14.7 |
% |
24.8 |
% |
17.2 |
% |
-7.5 |
% |
5.5 |
% |
43.5 |
% |
38.0 |
% |
30.9 |
% |
|
|
|
| |||||||||
* 100% or greater
Sum of quarterly amounts may not equal year-to-date amounts due to rounding.
(1) Other (income) expense, net includes equity income from affiliates. Prior periods have been reclassified to conform to the current presentation.
MERCK & CO., INC.
CONSOLIDATED STATEMENT OF INCOME
GAAP TO NON-GAAP RECONCILIATION
SECOND QUARTER 2014
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2c
|
|
|
|
|
Acquisition and |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
Divestiture- |
|
Restructuring |
|
Certain Other |
|
Adjustment |
|
|
| ||
|
|
|
GAAP |
|
Related Costs (1) |
|
Costs (2) |
|
Items (3) |
|
Subtotal |
|
Non-GAAP |
| ||
|
Sales |
|
$ |
10,934 |
|
|
|
|
|
|
|
|
|
$ |
10,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Costs, Expenses and Other |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Materials and production |
|
4,893 |
|
1,724 |
|
171 |
|
|
|
1,895 |
|
2,998 |
| ||
|
Marketing and administrative |
|
2,973 |
|
32 |
|
44 |
|
|
|
76 |
|
2,897 |
| ||
|
Research and development |
|
1,664 |
|
|
|
43 |
|
|
|
43 |
|
1,621 |
| ||
|
Restructuring costs |
|
163 |
|
|
|
163 |
|
|
|
163 |
|
— |
| ||
|
Other (income) expense, net |
|
(650 |
) |
|
|
|
|
(741 |
) |
(741 |
) |
91 |
| ||
|
Income Before Taxes |
|
1,891 |
|
(1,756 |
) |
(421 |
) |
741 |
|
(1,436 |
) |
3,327 |
| ||
|
Taxes on Income |
|
(142 |
) |
|
|
|
|
|
|
(947 |
)(4) |
805 |
| ||
|
Net Income |
|
2,033 |
|
|
|
|
|
|
|
(489 |
) |
2,522 |
| ||
|
Less: Net Income Attributable to Noncontrolling Interests |
|
29 |
|
|
|
|
|
|
|
|
|
29 |
| ||
|
Net Income Attributable to Merck & Co., Inc. |
|
$ |
2,004 |
|
|
|
|
|
|
|
(489 |
) |
$ |
2,493 |
|
|
Earnings per Common Share Assuming Dilution |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Average Shares Outstanding Assuming Dilution |
|
|
2,949 |
|
|
|
|
|
|
|
|
|
2,949 |
| |
|
Tax Rate |
|
-7.5 |
% |
|
|
|
|
|
|
|
|
24.2 |
% | ||
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 $1.1 billion for the amortization of intangible assets recognized as a result of mergers and acquisitions, as well as $660 million of impairment charges on product intangibles. Amounts included in marketing and administrative expenses reflect merger integration costs, as well as transaction and certain other costs related to business acquisitions and divestitures.
(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 a gain related to AstraZeneca’s option exercise.
(4) Represents the estimated tax impact on the reconciling items, including a net benefit of $517 million recorded in connection with AstraZeneca’s option exercise.
MERCK & CO., INC.
CONSOLIDATED STATEMENT OF INCOME
GAAP TO NON-GAAP RECONCILIATION
SIX MONTHS ENDED JUNE 30, 2014
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2d
|
|
|
|
|
Acquisition and |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
Divestiture- |
|
Restructuring |
|
Certain Other |
|
Adjustment |
|
|
| ||
|
|
|
GAAP |
|
Related Costs (1) |
|
Costs (2) |
|
Items (3) |
|
Subtotal |
|
Non-GAAP |
| ||
|
Sales |
|
$ |
21,198 |
|
|
|
|
|
|
|
|
|
$ |
21,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Costs, Expenses and Other |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Materials and production |
|
8,796 |
|
2,850 |
|
290 |
|
|
|
3,140 |
|
5,656 |
| ||
|
Marketing and administrative |
|
5,707 |
|
43 |
|
75 |
|
|
|
118 |
|
5,589 |
| ||
|
Research and development |
|
3,238 |
|
|
|
94 |
|
|
|
94 |
|
3,144 |
| ||
|
Restructuring costs |
|
288 |
|
|
|
288 |
|
|
|
288 |
|
— |
| ||
|
Other (income) expense, net |
|
(813 |
) |
|
|
|
|
(741 |
) |
(741 |
) |
(72 |
) | ||
|
Income Before Taxes |
|
3,982 |
|
(2,893 |
) |
(747 |
) |
741 |
|
(2,899 |
) |
6,881 |
| ||
|
Taxes on Income |
|
218 |
|
|
|
|
|
|
|
(1,514 |
)(4) |
1,732 |
| ||
|
Net Income |
|
3,764 |
|
|
|
|
|
|
|
(1,385 |
) |
5,149 |
| ||
|
Less: Net Income Attributable to Noncontrolling Interests |
|
55 |
|
|
|
|
|
|
|
|
|
55 |
| ||
|
Net Income Attributable to Merck & Co., Inc. |
|
$ |
3,709 |
|
|
|
|
|
|
|
(1,385 |
) |
$ |
5,094 |
|
|
Earnings per Common Share Assuming Dilution |
|
$ |
1.25 |
|
|
|
|
|
|
|
|
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Average Shares Outstanding Assuming Dilution |
|
2,957 |
|
|
|
|
|
|
|
|
|
2,957 |
| ||
|
Tax Rate |
|
5.5 |
% |
|
|
|
|
|
|
|
|
25.2 |
% | ||
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 $2.2 billion for the amortization of intangible assets recognized as a result of mergers and acquisitions, as well as $660 million of impairment charges on product intangibles. Amounts included in marketing and administrative expenses reflect merger integration costs, as well as transaction and certain other costs related to business acquisitions and divestitures.
(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 a gain related to AstraZeneca’s option exercise.
(4) Represents the estimated tax impact on the reconciling items, including a net benefit of $517 million recorded in connection with AstraZeneca’s option exercise, as well as a benefit of approximately $300 million associated with a capital loss generated in the first quarter.
MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
SECOND QUARTER 2015
(AMOUNTS IN MILLIONS)
Table 3a
|
|
|
Global |
|
U.S. |
|
International |
| ||||||||||||||||||
|
|
|
2Q 2015 |
|
2Q 2014 |
|
% Change |
|
2Q 2015 |
|
2Q 2014 |
|
% Change |
|
2Q 2015 |
|
2Q 2014 |
|
% Change |
| ||||||
|
TOTAL SALES (1) |
|
$ |
9,785 |
|
$ |
10,934 |
|
-11 |
|
$ |
4,265 |
|
$ |
4,429 |
|
-4 |
|
$ |
5,520 |
|
$ |
6,505 |
|
-15 |
|
|
PHARMACEUTICAL |
|
8,564 |
|
9,087 |
|
-6 |
|
3,934 |
|
3,462 |
|
14 |
|
4,631 |
|
5,625 |
|
-18 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Primary Care and Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Zetia |
|
635 |
|
717 |
|
-11 |
|
409 |
|
408 |
|
|
|
226 |
|
309 |
|
-27 |
| ||||||
|
Vytorin |
|
320 |
|
417 |
|
-23 |
|
123 |
|
158 |
|
-22 |
|
197 |
|
259 |
|
-24 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Diabetes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Januvia |
|
1,044 |
|
1,058 |
|
-1 |
|
648 |
|
566 |
|
14 |
|
396 |
|
492 |
|
-20 |
| ||||||
|
Janumet |
|
554 |
|
519 |
|
7 |
|
263 |
|
235 |
|
12 |
|
292 |
|
284 |
|
3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
General Medicine & Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NuvaRing |
|
182 |
|
178 |
|
2 |
|
126 |
|
112 |
|
13 |
|
56 |
|
66 |
|
-16 |
| ||||||
|
Implanon / Nexplanon |
|
124 |
|
119 |
|
4 |
|
74 |
|
67 |
|
10 |
|
50 |
|
52 |
|
-3 |
| ||||||
|
Dulera |
|
120 |
|
103 |
|
17 |
|
116 |
|
98 |
|
18 |
|
5 |
|
5 |
|
-10 |
| ||||||
|
Follistim AQ |
|
111 |
|
102 |
|
9 |
|
52 |
|
30 |
|
71 |
|
60 |
|
72 |
|
-17 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Hospital and Specialty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Hepatitis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
PegIntron |
|
52 |
|
103 |
|
-50 |
|
|
|
8 |
|
* |
|
52 |
|
95 |
|
-46 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
HIV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Isentress |
|
375 |
|
453 |
|
-17 |
|
212 |
|
228 |
|
-7 |
|
163 |
|
225 |
|
-27 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Hospital Acute Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cubicin(2) |
|
293 |
|
6 |
|
* |
|
266 |
|
|
|
|
|
27 |
|
6 |
|
* |
| ||||||
|
Cancidas |
|
134 |
|
156 |
|
-14 |
|
7 |
|
4 |
|
57 |
|
127 |
|
152 |
|
-16 |
| ||||||
|
Invanz |
|
139 |
|
134 |
|
4 |
|
79 |
|
64 |
|
24 |
|
60 |
|
71 |
|
-15 |
| ||||||
|
Noxafil |
|
117 |
|
98 |
|
19 |
|
50 |
|
35 |
|
43 |
|
67 |
|
63 |
|
6 |
| ||||||
|
Bridion |
|
87 |
|
82 |
|
6 |
|
|
|
|
|
|
|
87 |
|
82 |
|
6 |
| ||||||
|
Primaxin |
|
88 |
|
81 |
|
9 |
|
1 |
|
|
|
* |
|
87 |
|
81 |
|
7 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Remicade |
|
455 |
|
607 |
|
-25 |
|
|
|
|
|
|
|
455 |
|
607 |
|
-25 |
| ||||||
|
Simponi |
|
169 |
|
174 |
|
-3 |
|
|
|
|
|
|
|
169 |
|
174 |
|
-3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Oncology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Emend |
|
134 |
|
144 |
|
-7 |
|
79 |
|
78 |
|
1 |
|
55 |
|
66 |
|
-17 |
| ||||||
|
Keytruda |
|
110 |
|
|
|
* |
|
86 |
|
|
|
* |
|
24 |
|
|
|
* |
| ||||||
|
Temodar |
|
80 |
|
93 |
|
-14 |
|
2 |
|
5 |
|
-57 |
|
78 |
|
88 |
|
-11 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Diversified Brands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Respiratory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Nasonex |
|
215 |
|
258 |
|
-16 |
|
124 |
|
141 |
|
-12 |
|
91 |
|
117 |
|
-22 |
| ||||||
|
Singulair |
|
212 |
|
284 |
|
-25 |
|
10 |
|
8 |
|
19 |
|
201 |
|
275 |
|
-27 |
| ||||||
|
Clarinex |
|
55 |
|
69 |
|
-20 |
|
6 |
|
5 |
|
27 |
|
49 |
|
64 |
|
-24 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cozaar / Hyzaar |
|
189 |
|
214 |
|
-12 |
|
9 |
|
8 |
|
6 |
|
180 |
|
206 |
|
-12 |
| ||||||
|
Arcoxia |
|
115 |
|
141 |
|
-18 |
|
|
|
|
|
|
|
115 |
|
141 |
|
-18 |
| ||||||
|
Fosamax |
|
96 |
|
121 |
|
-21 |
|
3 |
|
6 |
|
-44 |
|
93 |
|
116 |
|
-20 |
| ||||||
|
Zocor |
|
63 |
|
69 |
|
-9 |
|
5 |
|
5 |
|
-7 |
|
58 |
|
63 |
|
-9 |
| ||||||
|
Propecia |
|
39 |
|
58 |
|
-32 |
|
4 |
|
5 |
|
-23 |
|
35 |
|
53 |
|
-33 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Vaccines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Gardasil / Gardasil 9 |
|
427 |
|
409 |
|
4 |
|
308 |
|
294 |
|
5 |
|
118 |
|
115 |
|
3 |
| ||||||
|
ProQuad, M-M-R II and Varivax |
|
358 |
|
326 |
|
10 |
|
301 |
|
276 |
|
9 |
|
57 |
|
50 |
|
13 |
| ||||||
|
Zostavax |
|
149 |
|
156 |
|
-4 |
|
107 |
|
116 |
|
-8 |
|
43 |
|
40 |
|
5 |
| ||||||
|
RotaTeq |
|
89 |
|
147 |
|
-40 |
|
48 |
|
101 |
|
-53 |
|
41 |
|
46 |
|
-11 |
| ||||||
|
Pneumovax 23 |
|
106 |
|
102 |
|
4 |
|
70 |
|
85 |
|
-17 |
|
35 |
|
17 |
|
* |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other Pharmaceutical (3) |
|
1,128 |
|
1,389 |
|
-19 |
|
346 |
|
316 |
|
9 |
|
782 |
|
1,073 |
|
-27 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
ANIMAL HEALTH |
|
840 |
|
872 |
|
-4 |
|
215 |
|
185 |
|
16 |
|
625 |
|
687 |
|
-9 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
CONSUMER CARE (4) |
|
0 |
|
583 |
|
* |
|
0 |
|
406 |
|
* |
|
0 |
|
177 |
|
* |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other Revenues (5) |
|
381 |
|
392 |
|
-3 |
|
117 |
|
376 |
|
-69 |
|
264 |
|
16 |
|
* |
| ||||||
* 100% or greater
(1) Only select products are shown.
(2) Cubicin sales for 2014 represent the previous licensing agreement in Japan prior to the acquisition.
(3) Includes Pharmaceutical products not individually shown above. Other Vaccines sales included in Other Pharmaceutical were $76 million on a global basis for both second quarter 2015 and 2014.
(4) On October 1, 2014, the company divested the Consumer Care business to Bayer.
(5) Other revenues are comprised primarily of alliance revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities. 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
JUNE YEAR-TO-DATE 2015
(AMOUNTS IN MILLIONS)
Table 3b
|
|
|
Global |
|
U.S. |
|
International |
| ||||||||||||||||||
|
|
|
June YTD 15 |
|
June YTD 14 |
|
% Change |
|
June YTD 15 |
|
June YTD 14 |
|
% Change |
|
June YTD 15 |
|
June YTD 14 |
|
% Change |
| ||||||
|
TOTAL SALES (1) |
|
$ |
19,210 |
|
$ |
21,198 |
|
-9 |
|
$ |
8,218 |
|
$ |
8,574 |
|
-4 |
|
$ |
10,992 |
|
$ |
12,624 |
|
-13 |
|
|
PHARMACEUTICAL |
|
16,830 |
|
17,538 |
|
-4 |
|
7,571 |
|
6,592 |
|
15 |
|
9,259 |
|
10,946 |
|
-15 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Primary Care and Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Zetia |
|
1,202 |
|
1,328 |
|
-9 |
|
754 |
|
732 |
|
3 |
|
448 |
|
596 |
|
-25 |
| ||||||
|
Vytorin |
|
640 |
|
777 |
|
-18 |
|
234 |
|
277 |
|
-16 |
|
406 |
|
500 |
|
-19 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Diabetes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Januvia |
|
1,928 |
|
1,916 |
|
1 |
|
1,149 |
|
1,040 |
|
10 |
|
779 |
|
876 |
|
-11 |
| ||||||
|
Janumet |
|
1,063 |
|
995 |
|
7 |
|
475 |
|
448 |
|
6 |
|
589 |
|
547 |
|
8 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
General Medicine & Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NuvaRing |
|
348 |
|
346 |
|
1 |
|
238 |
|
215 |
|
11 |
|
110 |
|
131 |
|
-16 |
| ||||||
|
Implanon / Nexplanon |
|
261 |
|
221 |
|
18 |
|
158 |
|
127 |
|
25 |
|
103 |
|
94 |
|
10 |
| ||||||
|
Dulera |
|
251 |
|
205 |
|
22 |
|
241 |
|
194 |
|
24 |
|
10 |
|
10 |
|
-1 |
| ||||||
|
Follistim AQ |
|
193 |
|
213 |
|
-9 |
|
86 |
|
64 |
|
33 |
|
107 |
|
148 |
|
-28 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Hospital and Specialty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Hepatitis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
PegIntron |
|
108 |
|
216 |
|
-50 |
|
|
|
12 |
|
* |
|
108 |
|
203 |
|
-47 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
HIV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Isentress |
|
760 |
|
843 |
|
-10 |
|
399 |
|
419 |
|
-5 |
|
362 |
|
424 |
|
-15 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Hospital Acute Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cubicin(2) |
|
480 |
|
11 |
|
* |
|
432 |
|
|
|
|
|
48 |
|
11 |
|
* |
| ||||||
|
Cancidas |
|
297 |
|
322 |
|
-8 |
|
13 |
|
11 |
|
16 |
|
284 |
|
311 |
|
-9 |
| ||||||
|
Invanz |
|
271 |
|
249 |
|
9 |
|
146 |
|
123 |
|
18 |
|
125 |
|
125 |
|
|
| ||||||
|
Noxafil |
|
228 |
|
172 |
|
32 |
|
95 |
|
55 |
|
74 |
|
133 |
|
118 |
|
13 |
| ||||||
|
Bridion |
|
172 |
|
155 |
|
11 |
|
|
|
|
|
|
|
172 |
|
155 |
|
11 |
| ||||||
|
Primaxin |
|
153 |
|
151 |
|
1 |
|
4 |
|
3 |
|
33 |
|
149 |
|
148 |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Remicade |
|
956 |
|
1,211 |
|
-21 |
|
|
|
|
|
|
|
956 |
|
1,211 |
|
-21 |
| ||||||
|
Simponi |
|
327 |
|
330 |
|
-1 |
|
|
|
|
|
|
|
327 |
|
330 |
|
-1 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Oncology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Emend |
|
255 |
|
266 |
|
-4 |
|
157 |
|
148 |
|
6 |
|
98 |
|
118 |
|
-17 |
| ||||||
|
Keytruda |
|
192 |
|
|
|
* |
|
152 |
|
|
|
* |
|
40 |
|
|
|
* |
| ||||||
|
Temodar |
|
155 |
|
176 |
|
-12 |
|
|
|
4 |
|
* |
|
155 |
|
172 |
|
-10 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Diversified Brands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Respiratory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Nasonex |
|
504 |
|
570 |
|
-11 |
|
267 |
|
274 |
|
-3 |
|
237 |
|
295 |
|
-20 |
| ||||||
|
Singulair |
|
457 |
|
554 |
|
-18 |
|
16 |
|
13 |
|
20 |
|
441 |
|
541 |
|
-19 |
| ||||||
|
Clarinex |
|
106 |
|
131 |
|
-19 |
|
12 |
|
11 |
|
1 |
|
95 |
|
120 |
|
-21 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Cozaar / Hyzaar |
|
374 |
|
419 |
|
-11 |
|
17 |
|
14 |
|
17 |
|
357 |
|
405 |
|
-12 |
| ||||||
|
Arcoxia |
|
238 |
|
268 |
|
-11 |
|
|
|
|
|
|
|
238 |
|
268 |
|
-11 |
| ||||||
|
Fosamax |
|
190 |
|
245 |
|
-22 |
|
6 |
|
9 |
|
-36 |
|
184 |
|
235 |
|
-22 |
| ||||||
|
Zocor |
|
112 |
|
133 |
|
-16 |
|
10 |
|
10 |
|
-1 |
|
102 |
|
123 |
|
-17 |
| ||||||
|
Propecia |
|
92 |
|
131 |
|
-30 |
|
8 |
|
10 |
|
-20 |
|
85 |
|
122 |
|
-30 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Vaccines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Gardasil / Gardasil 9 |
|
785 |
|
792 |
|
-1 |
|
603 |
|
564 |
|
7 |
|
182 |
|
228 |
|
-20 |
| ||||||
|
ProQuad, M-M-R II and Varivax |
705 |
|
606 |
|
16 |
|
609 |
|
517 |
|
18 |
|
96 |
|
89 |
|
8 |
| |||||||
|
Zostavax |
|
324 |
|
298 |
|
9 |
|
257 |
|
245 |
|
5 |
|
67 |
|
53 |
|
25 |
| ||||||
|
RotaTeq |
|
281 |
|
316 |
|
-11 |
|
205 |
|
231 |
|
-11 |
|
76 |
|
85 |
|
-10 |
| ||||||
|
Pneumovax 23 |
|
216 |
|
203 |
|
7 |
|
147 |
|
168 |
|
-12 |
|
69 |
|
35 |
|
97 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other Pharmaceutical (3) |
2,206 |
|
2,769 |
|
-20 |
|
681 |
|
654 |
|
4 |
|
1,524 |
|
2,119 |
|
-28 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
ANIMAL HEALTH |
|
1,669 |
|
1,685 |
|
-1 |
|
417 |
|
362 |
|
15 |
|
1,251 |
|
1,323 |
|
-5 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
CONSUMER CARE (4) |
|
2 |
|
1,130 |
|
* |
|
0 |
|
796 |
|
* |
|
2 |
|
334 |
|
-99 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other Revenues (5) |
|
709 |
|
845 |
|
-16 |
|
230 |
|
825 |
|
-72 |
|
479 |
|
20 |
|
* |
| ||||||
* 100% or greater
(1) Only select products are shown.
(2) Cubicin results for the June YTD 2015 period represent sales for the five months following Merck’s acquisition of Cubist. Cubicin sales for 2014 represent the previous licensing agreement in Japan prior to the acquisition.
(3) Includes Pharmaceutical products not individually shown above. Other Vaccines sales included in Other Pharmaceutical were $156 million and $175 million on a global basis for June YTD 2015 and 2014, respectively.
(4) On October 1, 2014, the company divested the Consumer Care business to Bayer.
(5) Other revenues are comprised primarily of alliance revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities. Other revenues in 2014 include $232 million of revenue recognized in connection with the sale of U.S. Saphris rights. 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.
PHARMACEUTICAL GEOGRAPHIC SALES
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3c
|
|
|
2015 |
|
2014 |
|
% Change |
|
% Change |
| |||||||||||||||||||||||
|
|
|
1Q 2015 |
|
2Q 2015 |
|
June YTD |
|
1Q 2014 |
|
2Q 2014 |
|
June YTD |
|
3Q 2014 |
|
4Q 2014 |
|
Full Year |
|
2Q |
|
June YTD |
| |||||||||
|
TOTAL PHARMACEUTICAL |
|
$ |
8,266 |
|
$ |
8,564 |
|
$ |
16,830 |
|
$ |
8,451 |
|
$ |
9,087 |
|
$ |
17,538 |
|
$ |
9,134 |
|
$ |
9,370 |
|
$ |
36,042 |
|
-6 |
|
-4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
United States |
|
3,637 |
|
3,934 |
|
7,571 |
|
3,130 |
|
3,462 |
|
6,592 |
|
3,837 |
|
3,786 |
|
14,214 |
|
14 |
|
15 |
| |||||||||
|
% Pharmaceutical Sales |
|
44.0 |
% |
45.9 |
% |
45.0 |
% |
37.0 |
% |
38.1 |
% |
37.6 |
% |
42.0 |
% |
40.4 |
% |
39.4 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Europe (1) |
|
2,024 |
|
1,896 |
|
3,920 |
|
2,478 |
|
2,537 |
|
5,015 |
|
2,297 |
|
2,269 |
|
9,581 |
|
-25 |
|
-22 |
| |||||||||
|
% Pharmaceutical Sales |
|
24.5 |
% |
22.1 |
% |
23.3 |
% |
29.3 |
% |
27.9 |
% |
28.6 |
% |
25.2 |
% |
24.2 |
% |
26.6 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Japan |
|
627 |
|
629 |
|
1,256 |
|
835 |
|
859 |
|
1,694 |
|
730 |
|
965 |
|
3,389 |
|
-27 |
|
-26 |
| |||||||||
|
% Pharmaceutical Sales |
|
7.6 |
% |
7.3 |
% |
7.5 |
% |
9.9 |
% |
9.5 |
% |
9.7 |
% |
8.0 |
% |
10.3 |
% |
9.4 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Asia Pacific |
|
809 |
|
822 |
|
1,630 |
|
809 |
|
840 |
|
1,650 |
|
878 |
|
910 |
|
3,438 |
|
-2 |
|
-1 |
| |||||||||
|
% Pharmaceutical Sales |
|
9.8 |
% |
9.6 |
% |
9.7 |
% |
9.6 |
% |
9.2 |
% |
9.4 |
% |
9.6 |
% |
9.7 |
% |
9.5 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
China |
|
318 |
|
335 |
|
653 |
|
282 |
|
309 |
|
592 |
|
318 |
|
332 |
|
1,242 |
|
8 |
|
10 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Latin America |
|
630 |
|
676 |
|
1,306 |
|
538 |
|
668 |
|
1,205 |
|
673 |
|
678 |
|
2,557 |
|
1 |
|
8 |
| |||||||||
|
% Pharmaceutical Sales |
|
7.6 |
% |
7.9 |
% |
7.8 |
% |
6.4 |
% |
7.3 |
% |
6.9 |
% |
7.4 |
% |
7.2 |
% |
7.1 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Eastern Europe/Middle East Africa |
|
321 |
|
372 |
|
693 |
|
415 |
|
459 |
|
874 |
|
443 |
|
500 |
|
1,817 |
|
-19 |
|
-21 |
| |||||||||
|
% Pharmaceutical Sales |
|
3.9 |
% |
4.3 |
% |
4.1 |
% |
4.9 |
% |
5.1 |
% |
5.0 |
% |
4.9 |
% |
5.3 |
% |
5.0 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Canada |
|
170 |
|
167 |
|
337 |
|
200 |
|
218 |
|
418 |
|
218 |
|
218 |
|
854 |
|
-23 |
|
-19 |
| |||||||||
|
% Pharmaceutical Sales |
|
2.1 |
% |
2.0 |
% |
2.0 |
% |
2.4 |
% |
2.4 |
% |
2.4 |
% |
2.4 |
% |
2.3 |
% |
2.4 |
% |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Other |
|
48 |
|
68 |
|
117 |
|
46 |
|
44 |
|
90 |
|
58 |
|
44 |
|
192 |
|
55 |
|
30 |
| |||||||||
|
% Pharmaceutical Sales |
|
0.6 |
% |
0.8 |
% |
0.7 |
% |
0.5 |
% |
0.5 |
% |
0.5 |
% |
0.6 |
% |
0.5 |
% |
0.5 |
% |
|
|
|
| |||||||||
(1) Europe primarily represents all European Union countries and the European Union accession markets.
MERCK & CO., INC.
SECOND QUARTER 2015
OTHER (INCOME) EXPENSE, NET - GAAP
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 4
|
|
OTHER (INCOME) EXPENSE, NET
|
|
|
|
|
|
|
June YTD |
|
June YTD |
| ||||
|
|
|
2Q15 |
|
2Q14 |
|
2015 |
|
2014 |
| ||||
|
INTEREST INCOME |
|
$ |
(71 |
) |
$ |
(59 |
) |
$ |
(146 |
) |
$ |
(121 |
) |
|
INTEREST EXPENSE |
|
174 |
|
188 |
|
338 |
|
376 |
| ||||
|
EXCHANGE LOSSES (1) |
|
716 |
|
20 |
|
810 |
|
53 |
| ||||
|
EQUITY INCOME FROM AFFILIATES (2) |
|
(2 |
) |
(92 |
) |
(147 |
) |
(217 |
) | ||||
|
Other, net (3) |
|
(78 |
) |
(707 |
) |
(62 |
) |
(904 |
) | ||||
|
TOTAL |
|
$ |
739 |
|
$ |
(650 |
) |
$ |
793 |
|
$ |
(813 |
) |
(1) Includes foreign exchange losses of $715 million in the second quarter and first six months of 2015 recorded in connection with the revaluation of the company’s net monetary assets in Venezuela.
(2) Includes the performance of the company’s joint ventures and other equity method affiliates, including the Sanofi Pasteur MSD partnership, certain investment funds, as well as AstraZeneca LP until the termination of that relationship on June 30, 2014. Equity income from AstraZeneca LP was $94 million and $192 million in the second quarter and first six months of 2014, respectively.
(3) Other, net in the second quarter and first six months of 2014 includes a $741 million gain on AstraZeneca’s option exercise.