Merck and Safe Water Network Launch Initiative to Improve Water Access and Help Reduce the Impact of Water-Borne Disease in India

Collaboration advances Merck's commitment to fighting disease to help the world be well

Tuesday, March 20, 2012 8:08 am EDT

Dateline:

WHITEHOUSE STATION, N.J.

Public Company Information:

NYSE:
MRK
"Clean water is fundamental to the world's health and to Merck's mission of fighting disease and helping the world be well. No where is this more true than in India, which faces a significant challenge related to clean water"

Merck (NYSE: MRK), known as MSD outside the United States and Canada, and Safe Water Network, announced today the launch of a three-year, $1.5M partnership to increase access to safe water and reduce the impact of water-borne disease among impoverished communities in Andhra Pradesh, India. Safe Water Network is a not-for-profit organization committed to developing locally owned and operated water-purification systems that achieve lasting health impact.

This initiative addresses a critical need in India where an estimated 70 – 80 percent of the total burden of disease is related to water contamination and poor sanitation, and where more than 120,000 children under the age of five die each year from rotavirus diarrhea alone¹.

"Clean water is fundamental to the world's health and to Merck's mission of fighting disease and helping the world be well. No where is this more true than in India, which faces a significant challenge related to clean water," said K. G. Ananthakrishnan, managing director, MSD India. "Our partnership with Safe Water Network is a testament of our commitment to help reduce the impact of water-related illness in India and of Merck's overall efforts to improve health globally."

Building on Safe Water Network's field activities in the area, this collaboration will provide clean water to additional villages in Andhra Pradesh and develop demand generation programs that seek to increase household usage. Together, Merck and Safe Water Network will also work to increase awareness of the importance of clean water and hygiene to drive behavior change.

The campaigns will be assessed to measure the impact on safe water usage and improved health.

"This partnership aims to expand the impact of our safe-water projects," said Kurt Soderlund, chief executive officer, Safe Water Network. "It will accelerate our work to develop solutions that can be broadly replicated. The initiative demonstrates how companies like Merck can play an important role in developing solutions to global water challenges."

This collaboration is aligned with Merck's commitment to addressing access to clean water, a key component of the company's corporate responsibility approach. A signatory to the UN's CEO Water Mandate, Merck will apply its core business expertise, advocacy efforts and employee social responsibility programs to address access to clean water in India.

About India's Water Challenge

India faces significant water and sanitation challenges. Seventy-five percent of the country's surface water is contaminated by human, agricultural and industrial waste², while half of the country's population lacks access to basic sanitation³. Those living in urban slums and rural environments are most affected. In many areas of the country, a growing dependence on groundwater for drinking is associated with a rise in health problems due to fluoride, salinity, water-borne pathogens, nitrate and other contaminants found in the water. In Andhra Pradesh, only 31 percent4 of households treat their water before use, and 43 percent5 of children under the age of five are stunted, a common result of frequent episodes of diarrhea.

About the Initiative

This joint effort draws on Safe Water Network's field experience in India, Ghana and Kenya to address the operating, economic, cultural and environmental challenges to safe water access. The team will apply a rigorous method to data collection and analysis to produce effective demand generation and education methods that can be replicated at scale throughout India.

The initiative will add a dozen sites to Safe Water Network's existing field projects in Andhra Pradesh, which already provide nearly 40,000 people access to clean water. The additional sites will provide safe water access to another 20,000 - 30,000 people. Each phase of the initiative will be documented, including the data on health outcomes. Key findings will be shared with the water and sanitation sector as well as other organizations to help raise awareness to address the global water crisis.

Merck and Safe Water Network are also exploring employee volunteer opportunities as part of the partnership in the areas of health, behavior change and quality assurance. Merck's commitment complements the work of other global organizations that already bring expertise to various Safe Water Network field projects.

About Merck

Today's Merck is a global healthcare leader working to help the world be well. Merck is known as MSD outside the United States and Canada. Through our prescription medicines, vaccines, biologic therapies, and consumer care and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to healthcare through far-reaching policies, programs and partnerships. For more information, visit www.merck.com and connect on Twitter, Facebook and YouTube.

The Merck Company Foundation is a U.S.-based, private charitable foundation. Established in 1957 by Merck & Co., Inc., Whitehouse Station, N.J., USA, the Foundation is funded entirely by the company and is its chief source of funding support to qualified non-profit, charitable organizations. Since its inception, The Merck Company Foundation has contributed more than $600 million to support important initiatives that address societal needs and are consistent with the company's overall mission to help the world be well.

About Safe Water Network

Co-founded in 2007 by actor and philanthropist Paul Newman along with prominent civic and business leaders, Safe Water Network's mission is to develop new solutions that provide safe, affordable water to those in need. Through our field initiatives in India, Ghana and Kenya, we work with the private and public sectors, not for profits, and universities, to develop locally owned and managed water systems that can be broadly replicated. We bring sustained commitment to solving the operating, economic, cultural and environmental challenges to local ownership and management. We also document and share this work through reports, forums and publications. For more information, visit www.safewaternetwork.org and connect on Twitter, Facebook and YouTube.

Forward-Looking Statement

This news release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about company's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck's 2011 Annual Report on Form 10-K and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov).

(1) Tate et al. (2009). “Disease and economic burden of rotavirus diarrhoea in India.” Vaccine. Vol. 27, supplement 5.

(2) “India Failing to Control Open Defecation Blunts Nation’s Growth,” Bloomberg, March 3, 2009.

(3) UNICEF and World Health Organization Joint Monitoring Programme.

(4) National Family Health Survey 2005‐2006 state report for Andhra Pradesh.

(5) National Family Health Survey 2005‐2006 state report for Andhra Pradesh.

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