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EX-99.1 - EX-99.1 - Merck & Co., Inc.a16-3346_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

 

3Q

 

4Q

 

Full Year

 

1Q

 

2Q

 

3Q

 

4Q

 

Full Year

 

4Q

 

Full Year

 

Sales

 

$

9,425

 

$

9,785

 

$

10,073

 

$

10,215

 

$

39,498

 

$

10,264

 

$

10,934

 

$

10,557

 

$

10,482

 

$

42,237

 

-3

%

-6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

3,569

 

3,754

 

3,761

 

3,850

 

14,934

 

3,903

 

4,893

 

4,223

 

3,749

 

16,768

 

3

%

-11

%

Marketing and administrative

 

2,601

 

2,624

 

2,472

 

2,615

 

10,313

 

2,734

 

2,973

 

2,975

 

2,924

 

11,606

 

-11

%

-11

%

Research and development

 

1,737

 

1,670

 

1,500

 

1,797

 

6,704

 

1,574

 

1,664

 

1,659

 

2,283

 

7,180

 

-21

%

-7

%

Restructuring costs

 

82

 

191

 

113

 

233

 

619

 

125

 

163

 

376

 

349

 

1,013

 

-33

%

-39

%

Other (income) expense, net (1)

 

55

 

739

 

(170

)

905

 

1,527

 

(163

)

(650

)

(166

)

(10,634

)

(11,613

)

*

 

*

 

Income Before Taxes

 

1,381

 

807

 

2,397

 

815

 

5,401

 

2,091

 

1,891

 

1,490

 

11,811

 

17,283

 

-93

%

-69

%

Income Tax Provision (Benefit)

 

423

 

119

 

566

 

(166

)

942

 

360

 

(142

)

648

 

4,484

 

5,349

 

 

 

 

 

Net Income

 

958

 

688

 

1,831

 

981

 

4,459

 

1,731

 

2,033

 

842

 

7,327

 

11,934

 

-87

%

-63

%

Less: Net Income (Loss) Attributable to Noncontrolling Interests

 

5

 

1

 

5

 

5

 

17

 

26

 

29

 

(53

)

11

 

14

 

 

 

 

 

Net Income Attributable to Merck & Co., Inc.

 

$

953

 

$

687

 

$

1,826

 

$

976

 

$

4,442

 

$

1,705

 

$

2,004

 

$

895

 

$

7,316

 

$

11,920

 

-87

%

-63

%

Earnings per Common Share Assuming Dilution

 

$

0.33

 

$

0.24

 

$

0.64

 

$

0.35

 

$

1.56

 

$

0.57

 

$

0.68

 

$

0.31

 

$

2.54

 

$

4.07

 

-86

%

-62

%

Average Shares Outstanding Assuming Dilution

 

2,865

 

2,850

 

2,836

 

2,813

 

2,841

 

2,971

 

2,949

 

2,911

 

2,880

 

2,928

 

 

 

 

 

Tax Rate

 

30.6

%

14.7

%

23.6

%

-20.4

%

17.4

%

17.2

%

-7.5

%

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

FOURTH 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

 

$

10,482

 

 

 

 

 

 

 

 

 

$

10,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

3,749

 

984

 

105

 

 

 

1,089

 

2,660

 

Marketing and administrative

 

2,924

 

81

 

57

 

 

 

138

 

2,786

 

Research and development

 

2,283

 

329

 

108

 

 

 

437

 

1,846

 

Restructuring costs

 

349

 

 

 

349

 

 

 

349

 

 

Other (income) expense, net (4)

 

(10,634

)

 

 

 

 

(10,679

)

(10,679

)

45

 

Income Before Taxes

 

11,811

 

(1,394

)

(619

)

10,679

 

8,666

 

3,145

 

Taxes on Income

 

4,484

 

 

 

 

 

 

 

3,854

(5)

630

 

Net Income

 

7,327

 

 

 

 

 

 

 

4,812

 

2,515

 

Less: Net Income Attributable to Noncontrolling Interests

 

11

 

 

 

 

 

 

 

 

 

11

 

Net Income Attributable to Merck & Co., Inc.

 

$

7,316

 

 

 

 

 

 

 

4,812

 

$

2,504

 

Earnings per Common Share Assuming Dilution

 

$

2.54

 

 

 

 

 

 

 

 

 

$

0.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution

 

2,880

 

 

 

 

 

 

 

 

 

2,880

 

Tax Rate

 

38.0

%

 

 

 

 

 

 

 

 

20.0

%

 

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 acquisitions. Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions, including severance costs which are not part of the company’s formal restructuring programs, as well as transaction and certain other costs related to divestitures. Amounts included in research and development expenses reflect a $316 million charge resulting from an increase in the estimated fair value of a liability for contingent consideration, as well as in-process research and development (IPR&D) impairment charges of $13 million.

 

(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) Included in other (income) expense, net is an $11.2 billion gain on the divestiture of Merck’s Consumer Care business, an additional gain of $84 million on the divestiture of certain ophthalmic products in several international markets and a $628 million loss on the extinguishment of debt.

 

(4) Other (income) expense, net includes equity income from affiliates.

 

(5) Represents the estimated tax impact on the reconciling items.

 



 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME

GAAP TO NON-GAAP RECONCILIATION

YEAR ENDED DECEMBER 31, 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

 

$

42,237

 

 

 

 

 

 

 

 

 

$

42,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

16,768

 

5,254

 

482

 

 

 

5,736

 

11,032

 

Marketing and administrative

 

11,606

 

234

 

200

 

193

 

627

 

10,979

 

Research and development

 

7,180

 

365

 

283

 

 

 

648

 

6,532

 

Restructuring costs

 

1,013

 

 

 

1,013

 

 

 

1,013

 

 

Other (income) expense, net (4)

 

(11,613

)

93

 

 

 

(11,811

)

(11,718

)

105

 

Income Before Taxes

 

17,283

 

(5,946

)

(1,978

)

11,618

 

3,694

 

13,589

 

Taxes on Income

 

5,349

 

 

 

 

 

 

 

2,045

(5)

3,304

 

Net Income

 

11,934

 

 

 

 

 

 

 

1,649

 

10,285

 

Less: Net Income Attributable to Noncontrolling Interests

 

14

 

(56

)

 

 

 

 

(56

)

70

 

Net Income Attributable to Merck & Co., Inc.

 

$

11,920

 

 

 

 

 

 

 

1,705

 

$

10,215

 

Earnings per Common Share Assuming Dilution

 

$

4.07

 

 

 

 

 

 

 

 

 

$

3.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution

 

2,928

 

 

 

 

 

 

 

 

 

2,928

 

Tax Rate

 

30.9

%

 

 

 

 

 

 

 

 

24.3

%

 

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 $4.2 billion for the amortization of intangible assets recognized as a result of acquisitions, as well as $1.1 billion of impairment charges on product intangibles. Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions, including severance costs which are not part of the company’s formal restructuring programs, as well as transaction and certain other costs related to divestitures. Amounts included in research and development expenses reflect a charge of $316 million resulting from an increase in the estimated fair value of a liability for contingent consideration, as well as in-process research and development (IPR&D) impairment charges of $49 million primarily related to the company’s joint venture with Supera Farma Laboratorios S.A. (Supera). Amount included in other (income) expense, net represents a goodwill impairment charge related to the joint venture with Supera. Amount included in net income attributable to noncontrolling interests represents the portion of intangible asset and goodwill impairment charges related to the joint venture with Supera that are attributable to noncontrolling interests.

 

(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) Amount included in marketing and administrative expenses represents an additional year of expense related to the healthcare reform fee in accordance with final regulations issued in the third quarter by the Internal Revenue Service. Included in other (income) expense, net is an $11.2 billion gain on the divestiture of Merck’s Consumer Care business, a $741 million gain related to AstraZeneca’s option exercise, a gain of $480 million on the divestiture of certain ophthalmic products in several international markets and a $628 million loss on the extinguishment of debt.

 

(4) Other (income) expense, net includes equity income from affiliates.

 

(5) 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

FOURTH QUARTER 2015

(AMOUNTS IN MILLIONS)

Table 3a

 

 

 

Global

 

U.S.

 

International

 

 

 

4Q 2015

 

4Q 2014

 

% Change

 

4Q 2015

 

4Q 2014

 

% Change

 

4Q 2015

 

4Q 2014

 

% Change

 

TOTAL SALES (1)

 

$

10,215

 

$

10,482

 

-3

 

$

4,672

 

$

4,088

 

14

 

$

5,543

 

$

6,394

 

-13

 

PHARMACEUTICAL

 

9,027

 

9,370

 

-4

 

4,285

 

3,786

 

13

 

4,742

 

5,584

 

-15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Care and Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

691

 

662

 

4

 

452

 

382

 

18

 

239

 

281

 

-15

 

Vytorin

 

308

 

370

 

-17

 

123

 

145

 

-15

 

185

 

225

 

-18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diabetes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia

 

921

 

1,082

 

-15

 

486

 

570

 

-15

 

435

 

512

 

-15

 

Janumet

 

526

 

570

 

-8

 

227

 

255

 

-11

 

299

 

315

 

-5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Medicine & Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

193

 

191

 

1

 

142

 

127

 

12

 

51

 

64

 

-20

 

Dulera

 

153

 

132

 

16

 

146

 

125

 

17

 

7

 

7

 

3

 

Implanon / Nexplanon

 

151

 

123

 

23

 

102

 

71

 

44

 

49

 

52

 

-6

 

Follistim AQ

 

95

 

102

 

-7

 

37

 

38

 

-4

 

58

 

64

 

-8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital and Specialty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hepatitis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PegIntron

 

34

 

81

 

-58

 

(1

)

2

 

*

 

35

 

79

 

-56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HIV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress

 

374

 

418

 

-11

 

194

 

218

 

-11

 

180

 

201

 

-10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cubicin(2)

 

322

 

7

 

*

 

308

 

 

 

*

 

14

 

7

 

*

 

Invanz

 

144

 

139

 

4

 

87

 

70

 

24

 

57

 

69

 

-17

 

Cancidas

 

137

 

175

 

-22

 

5

 

8

 

-29

 

132

 

168

 

-21

 

Noxafil

 

128

 

122

 

4

 

56

 

54

 

4

 

72

 

69

 

4

 

Bridion

 

92

 

95

 

-3

 

 

 

 

 

 

 

92

 

95

 

-3

 

Primaxin

 

86

 

86

 

 

 

3

 

2

 

50

 

83

 

84

 

-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remicade

 

396

 

557

 

-29

 

 

 

 

 

 

 

396

 

557

 

-29

 

Simponi

 

185

 

188

 

-2

 

 

 

 

 

 

 

185

 

188

 

-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keytruda

 

214

 

50

 

*

 

132

 

44

 

*

 

82

 

6

 

*

 

Emend

 

139

 

151

 

-8

 

80

 

84

 

-4

 

59

 

67

 

-11

 

Temodar

 

75

 

86

 

-14

 

1

 

3

 

-81

 

74

 

83

 

-11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respiratory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulair

 

273

 

319

 

-14

 

14

 

21

 

-37

 

259

 

298

 

-13

 

Nasonex

 

231

 

268

 

-14

 

140

 

148

 

-5

 

91

 

120

 

-24

 

Clarinex

 

42

 

52

 

-20

 

5

 

6

 

-22

 

37

 

46

 

-19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cozaar / Hyzaar

 

143

 

192

 

-25

 

6

 

8

 

-18

 

137

 

184

 

-26

 

Arcoxia

 

110

 

118

 

-7

 

 

 

 

 

 

 

110

 

118

 

-7

 

Fosamax

 

82

 

112

 

-27

 

2

 

4

 

-32

 

80

 

108

 

-26

 

Propecia

 

50

 

67

 

-26

 

4

 

5

 

-18

 

46

 

62

 

-26

 

Zocor

 

49

 

64

 

-22

 

5

 

6

 

-15

 

44

 

58

 

-25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vaccines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil / Gardasil 9

 

497

 

356

 

40

 

361

 

244

 

48

 

136

 

112

 

21

 

ProQuad, M-M-R II and Varivax

 

409

 

366

 

12

 

354

 

296

 

19

 

55

 

70

 

-21

 

Zostavax

 

246

 

285

 

-14

 

190

 

225

 

-16

 

56

 

60

 

-6

 

Pneumovax 23

 

188

 

346

 

-46

 

128

 

199

 

-36

 

60

 

148

 

-59

 

RotaTeq

 

169

 

169

 

 

 

126

 

119

 

6

 

43

 

51

 

-14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Pharmaceutical (3)

 

1,174

 

1,269

 

-7

 

370

 

307

 

21

 

804

 

959

 

-16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANIMAL HEALTH

 

830

 

885

 

-6

 

237

 

211

 

12

 

593

 

674

 

-12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER CARE (4)

 

 

 

16

 

*

 

 

 

 

 

 

 

 

 

16

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Revenues (5)

 

358

 

211

 

69

 

90

 

92

 

-2

 

267

 

119

 

*

 

 

* 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 $148 million and $88 million on a global basis for fourth quarter 2015 and 2014, respectively.

 

(4) On October 1, 2014, the company divested the Consumer Care business.

 

(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

DECEMBER YEAR-TO-DATE 2015

(AMOUNTS IN MILLIONS)

Table 3b

 

 

 

Global

 

U.S.

 

International

 

 

 

Full Year 2015

 

Full Year 2014

 

% Change

 

Full Year 2015

 

Full Year 2014

 

% Change

 

Full Year 2015

 

Full Year 2014

 

% Change

 

TOTAL SALES (1)

 

$

39,498

 

$

42,237

 

-6

 

$

17,519

 

$

17,071

 

3

 

$

21,979

 

$

25,166

 

-13

 

PHARMACEUTICAL

 

34,782

 

36,042

 

-3

 

16,238

 

14,214

 

14

 

18,544

 

21,827

 

-15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Care and Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

2,526

 

2,650

 

-5

 

1,612

 

1,475

 

9

 

914

 

1,175

 

-22

 

Vytorin

 

1,251

 

1,516

 

-17

 

479

 

555

 

-14

 

771

 

961

 

-20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diabetes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia

 

3,863

 

3,931

 

-2

 

2,263

 

2,123

 

7

 

1,601

 

1,809

 

-12

 

Janumet

 

2,151

 

2,071

 

4

 

976

 

931

 

5

 

1,175

 

1,140

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Medicine & Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

732

 

723

 

1

 

515

 

461

 

12

 

216

 

262

 

-17

 

Implanon / Nexplanon

 

588

 

502

 

17

 

367

 

291

 

26

 

221

 

211

 

5

 

Dulera

 

536

 

460

 

16

 

515

 

437

 

18

 

21

 

24

 

-10

 

Follistim AQ

 

383

 

412

 

-7

 

160

 

142

 

13

 

223

 

270

 

-17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital and Specialty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hepatitis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PegIntron

 

182

 

381

 

-52

 

(4

)

18

 

*

 

186

 

363

 

-49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HIV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress

 

1,511

 

1,673

 

-10

 

797

 

843

 

-5

 

714

 

830

 

-14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cubicin(2)

 

1,127

 

25

 

*

 

1,030

 

 

 

 

 

97

 

25

 

*

 

Cancidas

 

573

 

681

 

-16

 

24

 

22

 

8

 

548

 

659

 

-17

 

Invanz

 

569

 

529

 

8

 

322

 

265

 

21

 

247

 

263

 

-6

 

Noxafil

 

487

 

402

 

21

 

212

 

148

 

43

 

275

 

254

 

9

 

Bridion

 

353

 

340

 

4

 

 

 

 

 

 

 

353

 

340

 

4

 

Primaxin

 

313

 

329

 

-5

 

8

 

6

 

46

 

305

 

323

 

-6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remicade

 

1,794

 

2,372

 

-24

 

 

 

 

 

 

 

1,794

 

2,372

 

-24

 

Simponi

 

690

 

689

 

 

 

 

 

 

 

 

 

690

 

689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keytruda

 

566

 

55

 

*

 

393

 

48

 

*

 

173

 

7

 

*

 

Emend

 

535

 

553

 

-3

 

326

 

312

 

4

 

209

 

240

 

-13

 

Temodar

 

312

 

350

 

-11

 

7

 

8

 

-17

 

306

 

342

 

-11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respiratory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulair

 

931

 

1,092

 

-15

 

39

 

39

 

 

 

892

 

1,053

 

-15

 

Nasonex

 

858

 

1,099

 

-22

 

449

 

577

 

-22

 

409

 

522

 

-22

 

Clarinex

 

187

 

232

 

-20

 

22

 

24

 

-11

 

165

 

208

 

-21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cozaar / Hyzaar

 

667

 

806

 

-17

 

30

 

28

 

5

 

637

 

778

 

-18

 

Arcoxia

 

471

 

519

 

-9

 

 

 

 

 

 

 

471

 

519

 

-9

 

Fosamax

 

359

 

470

 

-24

 

12

 

16

 

-25

 

347

 

454

 

-24

 

Zocor

 

217

 

258

 

-16

 

20

 

21

 

-3

 

197

 

237

 

-17

 

Propecia

 

183

 

264

 

-31

 

15

 

19

 

-18

 

168

 

245

 

-32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vaccines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil / Gardasil 9

 

1,908

 

1,738

 

10

 

1,520

 

1,319

 

15

 

388

 

419

 

-7

 

ProQuad, M-M-R II and Varivax

 

1,505

 

1,394

 

8

 

1,290

 

1,191

 

8

 

214

 

203

 

6

 

Zostavax

 

749

 

765

 

-2

 

592

 

619

 

-4

 

157

 

146

 

8

 

RotaTeq

 

610

 

659

 

-7

 

447

 

476

 

-6

 

163

 

183

 

-11

 

Pneumovax 23

 

542

 

746

 

-27

 

378

 

516

 

-27

 

164

 

230

 

-29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Pharmaceutical (3)

 

4,553

 

5,356

 

-15

 

1,422

 

1,284

 

11

 

3,133

 

4,071

 

-23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANIMAL HEALTH

 

3,324

 

3,454

 

-4

 

880

 

788

 

12

 

2,444

 

2,666

 

-8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER CARE (4)

 

3

 

1,547

 

*

 

0

 

1,058

 

*

 

3

 

489

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Revenues (5)

 

1,389

 

1,194

 

16

 

401

 

1,011

 

-60

 

988

 

183

 

*

 

 

* 100% or greater

 

(1) Only select products are shown.

 

(2) Cubicin results for the December YTD 2015 period represent sales for the eleven 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 $401 million and $379 million on a global basis for December YTD 2015 and 2014, respectively.

 

(4) On October 1, 2014, the company divested the Consumer Care business.

 

(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

 

2Q

 

3Q

 

Q4

 

Full Year

 

1Q

 

2Q

 

3Q

 

4Q

 

Full Year

 

4Q

 

Full Year

 

TOTAL PHARMACEUTICAL

 

$

8,266

 

$

8,564

 

$

8,925

 

$

9,027

 

$

34,782

 

$

8,451

 

$

9,087

 

$

9,134

 

$

9,370

 

$

36,042

 

-4

 

-3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

3,637

 

3,934

 

4,382

 

4,285

 

16,238

 

3,130

 

3,462

 

3,837

 

3,786

 

14,214

 

13

 

14

 

% Pharmaceutical Sales

 

44.0

%

45.9

%

49.1

%

47.5

%

46.7

%

37.0

%

38.1

%

42.0

%

40.4

%

39.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe (1)

 

2,024

 

1,896

 

1,920

 

1,873

 

7,714

 

2,478

 

2,537

 

2,297

 

2,269

 

9,581

 

-17

 

-19

 

% Pharmaceutical Sales

 

24.5

%

22.1

%

21.5

%

20.8

%

22.2

%

29.3

%

27.9

%

25.2

%

24.2

%

26.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

627

 

629

 

564

 

785

 

2,605

 

835

 

859

 

730

 

965

 

3,389

 

-19

 

-23

 

% Pharmaceutical Sales

 

7.6

%

7.3

%

6.3

%

8.7

%

7.5

%

9.9

%

9.5

%

8.0

%

10.3

%

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

809

 

822

 

854

 

946

 

3,431

 

809

 

840

 

878

 

910

 

3,438

 

4

 

0

 

% Pharmaceutical Sales

 

9.8

%

9.6

%

9.6

%

10.5

%

9.9

%

9.6

%

9.2

%

9.6

%

9.7

%

9.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China

 

318

 

335

 

353

 

339

 

1,344

 

282

 

309

 

318

 

332

 

1,242

 

2

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

630

 

676

 

585

 

512

 

2,403

 

538

 

668

 

673

 

678

 

2,557

 

-24

 

-6

 

% Pharmaceutical Sales

 

7.6

%

7.9

%

6.5

%

5.7

%

6.9

%

6.4

%

7.3

%

7.4

%

7.2

%

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eastern Europe/Middle East Africa

 

321

 

372

 

380

 

402

 

1,476

 

415

 

459

 

443

 

500

 

1,817

 

-19

 

-19

 

% Pharmaceutical Sales

 

3.9

%

4.3

%

4.3

%

4.5

%

4.2

%

4.9

%

5.1

%

4.9

%

5.3

%

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

170

 

167

 

159

 

172

 

668

 

200

 

218

 

218

 

218

 

854

 

-21

 

-22

 

% Pharmaceutical Sales

 

2.1

%

2.0

%

1.8

%

1.9

%

1.9

%

2.4

%

2.4

%

2.4

%

2.3

%

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

48

 

68

 

81

 

52

 

247

 

46

 

44

 

58

 

44

 

192

 

18

 

29

 

% Pharmaceutical Sales

 

0.6

%

0.8

%

0.9

%

0.6

%

0.7

%

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.

FOURTH QUARTER AND FULL YEAR 2015

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

 

 

OTHER (INCOME) EXPENSE, NET

 

 

 

 

 

 

 

Full Year

 

Full Year

 

 

 

4Q15

 

4Q14

 

2015

 

2014

 

INTEREST INCOME

 

$

(75

)

$

(76

)

$

(289

)

$

(266

)

INTEREST EXPENSE

 

169

 

164

 

672

 

732

 

EXCHANGE LOSSES (1)

 

239

 

65

 

1,277

 

180

 

EQUITY LOSS (INCOME) FROM AFFILIATES (2)

 

5

 

(16

)

(205

)

(257

)

Other, net (3)

 

567

 

(10,771

)

72

 

(12,002

)

TOTAL

 

$

905

 

$

(10,634

)

$

1,527

 

$

(11,613

)

 

(1) Fourth quarter and full year of 2015 include foreign exchange losses of $161 million and $876 million, respectively, 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 $192 million in 2014.

 

(3) Other, net in the fourth quarter and full year of 2015 includes a $680 million charge to settle VIOXX shareholder class action litigation, as well as a $147 million gain on the divestiture of the company’s remaining ophthalmics business in international markets. Other, net for the full year of 2015 also includes a $250 million gain on the divestiture of certain migraine clinical development programs. Other, net in the fourth quarter and full year of 2014 includes an $11.2 billion gain on the divestiture of Merck’s Consumer Care business and a $628 million loss on the extinguishment of debt. Other, net for the full year of 2014 also includes a $741 million gain on AstraZeneca’s option exercise and a gain of $480 million on the divestiture of certain ophthalmic products in several international markets.