Merck Announces First Quarter 2011 Financial Results

  • Double-Digit EPS Growth in First Quarter 2011: Non-GAAP EPS of $0.92; GAAP EPS of $0.34
  • Double-Digit Global Growth for JANUVIA, JANUMET, SINGULAIR, REMICADE, NASONEX and ISENTRESS; Key Product Launches Underway
  • Pharmaceutical, Animal Health and Consumer Care Divisions All Contributed Solid Revenue Growth
  • Company Updates Full-Year 2011 EPS Targets: Non-GAAP EPS Range of $3.66 to $3.76; GAAP EPS Range of $2.04 to $2.39

Category:

Friday, April 29, 2011 7:00 am EDT

Dateline:

WHITEHOUSE STATION, N.J.

Public Company Information:

NYSE:
MRK
"Merck's first quarter performance underscores that we are successfully delivering on our intent to grow both the top line and the bottom line"

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the first quarter of 2011.

   

$ in millions, except EPS amounts

 

First
Quarter
2011

 

First
Quarter
2010

Sales  

$

11,580

 

 

$

11,422

 

GAAP EPS     0.34       0.09  

Non-GAAP EPS that excludes items listed below 1

    0.92       0.83  

GAAP Net Income 2

    1,043       299  

Non-GAAP Net Income that excludes items listed below 1, 2

    2,861       2,608  
 

Non-GAAP (generally accepted accounting principles) earnings per share (EPS) for the first quarter of $0.92 excludes purchase accounting adjustments, restructuring costs, merger-related expenses, a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson, and certain other items.

A reconciliation of GAAP to non-GAAP net income and EPS is provided in the tables that follow.

       

First
Quarter
2011

 

First
Quarter
2010

$ in millions, except EPS amounts  

Net
Income2

  EPS  

Net
Income2

  EPS
GAAP   $ 1,043   $ 0.34     $ 299   $ 0.09  
Difference     1,818    

0.58

3

    2,309    

0.74

3

Non-GAAP that excludes items listed below   $ 2,861   $ 0.92     $ 2,608   $ 0.83  
     
       
$ in millions  

First
Quarter
2011

 

First
Quarter
2010

Purchase accounting adjustments4

  $ 1,580     $ 2,374  
Costs related to restructuring programs     126       351  
Merger-related costs     77       87  
Arbitration settlement charge     500       --  

Other5

    (134 )     --  
Net decrease (increase) in income before taxes     2,149       2,812  

Estimated income tax (benefit) expense 6

    (331 )     (503 )
Decrease (increase) in net income   $ 1,818     $ 2,309  
 

"Merck's first quarter performance underscores that we are successfully delivering on our intent to grow both the top line and the bottom line," said Kenneth C. Frazier, president and chief executive officer. "Our strong results were largely driven by double-digit growth of key products combined with deliberate cost control measures across all areas of the company as we continue to create a more effective and efficient operating model.

"It is clear that Merck's business momentum is building, and we continue to demonstrate the ongoing value of the merger. We're making progress in our robust late-stage pipeline, and leveraging the benefits of our expanded pharmaceutical and vaccine, animal health and consumer portfolio."

Select Revenue Highlights

Worldwide sales were $11.6 billion for the first quarter of 2011, an increase of 1 percent compared with the first quarter of 2010. The revenue increase largely reflects strong sales of JANUVIA, JANUMET, SINGULAIR, REMICADE, NASONEX and ISENTRESS, partially offset by lower sales of COZAAR 7 and HYZAAR7. In the first quarter of 2011, 18 percent of pharmaceutical sales were from emerging markets.

The table below reflects sales of the company's top Pharmaceutical products, as well as total sales of Animal Health and Consumer Care products.

                   

$ in millions

         

First
Quarter
2011

 

First
Quarter
2010

 

Change

Total Sales           $ 11,580   $ 11,422   1 %

Pharmaceutical 8

            9,820     9,665   2 %
SINGULAIR             1,328     1,165   14 %
REMICADE             753     674   12 %
JANUVIA             739     511   45 %
ZETIA             582     534   9 %
VYTORIN             480     477   1 %
COZAAR/HYZAAR             426     782   -46 %
NASONEX             373     320   17 %
JANUMET             305     201   52 %
ISENTRESS             292     232   26 %
TEMODAR             248     274   -10 %
GARDASIL             214     233   -8 %
Animal Health             758     709   7 %

Consumer Care 8

            517     489   6 %

Other Revenues 9

            486     559   -13 %
   

The combined diabetes franchise for JANUVIA (sitagliptin)/JANUMET (sitagliptin/metformin hydrochloride) continued its strong performance across all geographic regions during the first quarter of 2011, reaching quarterly combined sales of more than $1 billion for the first time – a 47 percent increase compared to the same period last year.

Worldwide sales of SINGULAIR (montelukast sodium), a once-a-day oral medicine indicated for the chronic treatment of asthma and the relief of symptoms of allergic rhinitis, grew 14 percent from the first quarter of 2010 to $1.3 billion, driven by gains in the United States, emerging markets and Japan.

Global sales grew in the quarter for REMICADE (infliximab), a treatment for inflammatory diseases, led by increases in gastrointestinal indications for the treatment of ulcerative colitis and Crohn's disease as well as emerging market gains.

ISENTRESS (raltegravir), an HIV integrase inhibitor for use in combination with other antiretroviral agents for the treatment of HIV-1 infection, continued strong growth in the quarter driven by demand in the United States and Europe.

As expected, global sales of Merck's antihypertensive medicines COZAAR (losartan potassium) and HYZAAR (losartan potassium and hydrochlorothiazide) continue to decline following loss of marketing exclusivity for these products in the United States and in major European markets. Sales of TEMODAR (temozolomide), a treatment for certain types of brain tumors, declined due to generic competition in Europe.

Sales of ZOSTAVAX (zoster vaccine live) declined due to continued intermittent supply issues.

Product Performance – Animal Health

The company drove solid first-quarter performance in the Animal Health business across all regions, with a 7 percent sales increase over the same period last year. The growth was led by increased sales of cattle, swine and aquaculture products. The division's products include pharmaceutical and vaccine products for the prevention, treatment and control of disease in all major farm and companion animal species. In addition, in March of 2011, Merck and sanofi-aventis announced the termination of their agreement to form a new animal health joint venture.

Product Performance – Consumer Care

Merck Consumer Care delivered a first-quarter sales increase of 6 percent compared to the first quarter of 2010, with strong performance across several key brands including CLARITIN and COPPERTONE. Consumer Care includes footcare and suncare consumer products, and a variety of over-the-counter medicines.

First Quarter Expense and Other Information

The costs detailed below on a GAAP basis during the first quarter of 2011 totaled

$9.4 billion and include $1.8 billion of purchase accounting adjustments, restructuring costs and merger-related costs.

       
 

 

Included in expenses for the period

$ in millions

First Quarter 2011

   

GAAP

   

Purchase
Accounting
Adjustments4

 

Restructuring
Costs

 

Merger-
Related
Costs

 

Non-
GAAP 1

Materials and production     $ 4,059       $ 1,278   $ 72     $ 19   $ 2,690
Marketing and administrative       3,164         -     23       58     3,083
Research and development       2,158         302     45       -     1,811
Restructuring costs       (14 )       -     (14 )     -     -
                         
First Quarter 2010                        
Materials and production     $ 5,216       $ 2,347   $ 57     $ -   $ 2,812
Marketing and administrative       3,222         -     -       80     3,142
Research and development       2,051         27     6       -     2,018
Restructuring costs       288         -     288       -     -

The gross margin was 64.9 percent for the first quarter of 2011 and 54.3 percent for the first quarter of 2010, reflecting 11.9 and 21.1 percentage point unfavorable impacts, respectively, from the purchase accounting adjustments, restructuring and merger-related costs noted above.

Equity income from affiliates was $138 million in the first quarter. Equity income from affiliates primarily includes the AstraZeneca LP, Johnson & Johnson Merck Consumer Pharmaceuticals Company and Sanofi Pasteur MSD partnerships.

Other (income) expense, net was $622 million of expense in the first quarter of 2011 which includes a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson. Other (income) expense, net for the first quarter of 2010 was $167 million of expense.

The GAAP effective tax rate was 38.1 percent for the first quarter of 2011. The non-GAAP effective tax rate, which excludes the impact of purchase accounting adjustments, restructuring costs, merger-related expenses, a $500 million charge related to the resolution of the arbitration proceeding, and certain other items, was 25.5 percent for the quarter.

Key Developments

  • Merck reached an agreement with Johnson & Johnson that settles the arbitration proceeding about the distribution rights for REMICADE (infliximab) and SIMPONI (golimumab).
  • Merck now has five investigational medicines under regulatory review in the United States and European Union (EU), including two that were accepted for review in the first quarter of 2011.
    • VICTRELIS (boceprevir), the company's investigational oral hepatitis C protease inhibitor currently under Priority Review status by the U.S. Food and Drug Administration (FDA) and accelerated assessment status by the EU, was recommended for approval by unanimous vote by the FDA's Antiviral Drugs Advisory Committee on April 27, 2011.
    • An investigational extended-release formulation of JANUMET (sitagliptin/metformin HCI) for Type 2 diabetes is under standard review by the FDA.
    • The FDA accepted for standard review during the first quarter of 2011 a combination of JANUVIA (sitagliptin) and ZOCOR (simvastatin) for the investigational treatment of diabetes and dyslipidemia.
    • Tafluprost, an investigational prostaglandin analogue ophthalmic solution, was accepted for standard review by the FDA in the first quarter of 2011.
    • NOMAC-E2 (acetate 2.5 mg /17β-estradiol 1.5 mg), an investigational monophasic combined oral contraceptive tablet for the use by women to prevent pregnancy was recommended for approval by the Committee for Medicinal Products for Human Use of the European Medicines Agency.
  • Two medicines received regulatory approval for expanded indications.
    • In the United States, ZOSTAVAX (Zoster Vaccine Live) received an expanded age indication for the prevention of herpes zoster, commonly known as shingles, to include adults 50 to 59 years of age, and
    • In the EU, SIMPONI (golimumab) received approval for use in combination with methotrexate in certain adults with severe, active and progressive rheumatoid arthritis for the reduction in the rate of progression of joint damage as measured by X-ray.
  • In the United States, the FDA approved SYLATRON (peginterferon alfa-2b) for the adjuvant treatment of patients with melanoma with microscopic or gross nodal involvement within 84 days of definitive surgical resection including complete lymphadenectomy.
  • The company formed a new joint venture with Sun Pharmaceutical Industries Ltd., a leading Indian multinational pharmaceutical company, to develop, manufacture and commercialize new combinations and formulations of innovative, branded generics for the emerging markets.
  • Merck agreed to acquire Inspire Pharmaceuticals, Inc., a specialty pharmaceutical company, for approximately $430 million to expand and position its ophthalmology portfolio for future growth. The transaction is expected to close in the second quarter of 2011.

Financial Targets

The company updated its 2011 non-GAAP EPS target range to $3.66 to $3.76 from the previous target range of $3.64 to $3.76. The target range excludes purchase accounting adjustments, restructuring costs, merger-related expenses, the $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson, and certain other items. The 2011 GAAP EPS target range is $2.04 to $2.39.

In addition, the company lowered its non-GAAP R&D expense target to a range of $8.0 billion to $8.4 billion for the full year of 2011. This target excludes restructuring costs and in-process R&D impairment charges.

Merck continues to expect full year 2011 revenue to grow in the low- to mid-single digit percent range from a base of $46.0 billion in 2010.

Merck continues to estimate that its consolidated non-GAAP 2011 tax rate will be approximately 20 percent to 22 percent.

A reconciliation of anticipated 2011 EPS as reported in accordance with GAAP to non-GAAP EPS that excludes certain items is provided in the table below.

       
$ in millions, except EPS amounts      

Full Year 2011

GAAP EPS       $2.04 to $2.39

EPS difference3

      1.62 to 1.37
Non-GAAP EPS that excludes items listed below       $3.66 to $3.76
 
         
Purchase accounting adjustments 4       $5,400 to $5,100
Costs related to restructuring programs       900 to 700
Merger-related costs       200 to 100
Arbitration settlement charge       500
Other 5       (134)
Net decrease (increase) in income before taxes       6,866 to 6,266

Estimated income tax (benefit) expense 10

      (1,840) to (2,000)
Decrease (increase) in net income       $5,026 to $4,266
 

Total Employees

As of March 31, 2011, Merck had approximately 93,000 employees worldwide.

Earnings Conference Call

Investors are invited to a live audio webcast of Merck's first quarter earnings conference call today at 8:00 a.m. EDT by visiting Merck's Web site, www.merck.com/investors/events-and-presentations/home.html. Institutional investors and analysts can participate in the call by dialing (706) 758-9927 or (877) 381-5782. Journalists are invited to monitor the call by dialing (706) 758-9928 or (800) 399-7917. A replay of the call will be available starting at 11 a.m. EDT today for approximately one week. To listen to the replay, dial (706) 645-9291 or (800) 642-1687 and enter ID No. 51049889.

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.

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 the benefits of the merger between Merck and Schering-Plough, including future financial and operating results, the combined 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.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period; the impact of pharmaceutical industry regulation and health care legislation; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions.

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 2010 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 Merck is providing certain 2011 and 2010 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. For a description of the items, see Table 2a, including the related footnotes, attached to this release.

2 Net income attributable to Merck & Co., Inc.

3 Represents the difference between calculated GAAP EPS and calculated non-GAAP EPS which may be different than the amount calculated by dividing the impact of the excluded items by the weighted average shares.

4 Amounts for the first quarter of 2011 and 2010 reflect $302 million and $27 million, respectively, of in-process research and development impairment charges. The remaining amounts represent expenses for the amortization of intangible assets and amortization of purchase accounting adjustments to inventories recognized as a result of the merger.

5 Represents a gain on the sale of certain manufacturing facilities and related assets reflected in other (income) expense, net.

6 Includes an estimated income tax (benefit) expense on the reconciling items. In addition, amount for the first quarter of 2010 includes a $147 million tax charge related to U.S. healthcare reform legislation.

7 COZAAR and HYZAAR are registered trademarks of E.I. duPont de Nemours and Company, Wilmington, Del.

8 In the first quarter of 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

9 Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales. Revenue from AstraZeneca LP recorded by Merck was $322 million in the first quarter of 2011.

10 Includes an estimated income tax (benefit) expense on the reconciling items as well as a range of estimated tax benefits expected to be recorded in the second quarter as a result of the conclusion of federal tax audits.

 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1

  GAAP  

 

1Q11   1Q10

% Change

Sales $ 11,580 $ 11,422 1%
 
Costs, Expenses and Other
Materials and production (1) 4,059 5,216 -22%
Marketing and administrative (1) / (2) 3,164 3,222 -2%
Research and development (1) / (2) 2,158 2,051 5%
Restructuring costs (3) (14) 288 *
Equity income from affiliates (4) (138) (138) -
Other (income) expense, net (1) / (5) 622 167 *
 
Income Before Taxes 1,729 616 *
Income Tax Provision 658 286
Net Income 1,071 330 *
Less: Net Income Attributable to Noncontrolling Interests 28 31
Net Income Attributable to Merck & Co., Inc. $ 1,043 $ 299 *
Earnings per Common Share Assuming Dilution (6) $ 0.34 $ 0.09 *
   
Average Shares Outstanding Assuming Dilution 3,104 3,141
Tax Rate (7) 38.1% 46.4%
 
*≥ 100%
 
(1) Amounts include the impact of purchase accounting adjustments, restructuring costs, merger-related costs and certain other items. See accompanying tables for details.
 
(2) The first quarter of 2010 includes a $24 million reclassification of certain expenses from marketing and administrative to research and development.
 
(3) Represents separation and other related costs associated with restructuring activities.
 
(4) Primarily reflects equity income from AstraZeneca LP, Johnson & JohnsonºMerck Consumer Pharmaceuticals Company and Sanofi Pasteur MSD partnerships.
 
(5) Other (income) expense, net in the first quarter of 2011 includes a charge of $500 million related to the resolution of the arbitration proceeding with Johnson & Johnson and a $134 million gain on the sale of certain manufacturing facilities and related assets. Other (income) expense, net in the first quarter of 2010 includes $102 million of income on the settlement of certain disputed royalties and $80 million of exchange losses due to a Venezuelan currency devaluation.
 
(6) The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate earnings per common share assuming dilution was $1,040 million and $298 million for the first quarter of 2011 and 2010, respectively.
 
(7) The GAAP effective tax rate for the first quarter of 2011 was 38.1%. Excluding the impact of the non-GAAP items detailed in the accompanying table, the effective tax rate was 25.5% for the first quarter of 2011. The GAAP effective tax rate for the first quarter of 2010 was 46.4%. Excluding the impact of the non-GAAP items detailed in the accompanying table, the effective tax rate was 23.0% for the first quarter of 2010.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FIRST QUARTER 2011

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a

             
GAAP

Purchase Accounting

(1)

Restructuring Costs (2) Merger-Related Costs (3)

Certain Other Items (4)

Adjustment Subtotal Non-GAAP
   
Sales $ 11,580 $ - $ 11,580
 
Materials and production 4,059 1,278 72 19 1,369 2,690
 
Marketing and administrative 3,164 23 58 81 3,083
 
Research and development 2,158 302 45 347 1,811
 
Restructuring costs (14) (14) (14) -
 
Equity income from affiliates (138) - (138)
 
Other (income) expense, net 622 366 366 256
 
Income Before Taxes 1,729 (1,580) (126) (77) (366) (2,149) 3,878
 
Taxes on Income 658 (331) (5) 989
 
Net Income 1,071 (1,818) 2,889
 
Less: Net Income Attributable to Noncontrolling Interests 28 - 28
 
Net Income Attributable to Merck & Co., Inc. $ 1,043 $ (1,818) $ 2,861
 
Earnings per Common Share Assuming Dilution $ 0.34 $ 0.92 (6)
   
   
Average Shares Outstanding Assuming Dilution 3,104 3,104
Tax Rate 38.1% 25.5%
 
 
 
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 and the amortization of purchase accounting adjustments to inventories recognized as a result of the merger. 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.
 
(3) Merger-related costs include integration costs associated with the merger.
 
(4) Included in other (income) expense, net is a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson and a $134 million gain on the sale of certain manufacturing facilities and related assets.
 
(5) Represents the estimated tax impact on the reconciling items.
 
(6) The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $2,853 million for the first quarter of 2011.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FIRST QUARTER 2011

(AMOUNTS IN MILLIONS)

Table 3

     
2011 2010 % Change
1Q 1Q   2Q   3Q   4Q  

Full Year

1Q

       
TOTAL SALES (1) $11,580 $11,422   $11,346   $11,125   $12,094   $45,987 1
PHARMACEUTICAL (2) 9,820 9,665 9,638 9,523 10,441 39,267 2
 
Cardiovascular
Zetia 582 534 564 571 629 2,297 9
Vytorin 480 477 490 485 562 2,014 1
Integrilin 64 70 70 63 63 266 -9
 
Diabetes & Obesity
Januvia 739 511 600 600 675 2,385 45
Janumet 305 201 218 247 288 954 52
 
Diversified Brands
Cozaar / Hyzaar 426 782 485 423 415 2,104 -46
Zocor 127 116 117 114 121 468 10
Claritin Rx 120 98 58 53 86 296 23
Propecia 106 100 113 109 124 447 7
Proscar 60 58 56 58 44 216 3
Remeron 60 51 59 50 62 223 18
Vasotec / Vaseretic 57 59 63 69 64 255 -4
 
Infectious Disease
Isentress 292 232 267 278 313 1,090 26
PegIntron 166 186 185 168 198 737 -11
Cancidas 158 153 150 135 174 611 3
Primaxin 136 159 158 135 158 610 -14
Avelox 106 106 59 59 92 316 1
Invanz 87 75 83 91 113 362 16
Noxafil 55 49 50 52 48 198 12
Rebetol 53 56 55 55 54 221 -7
Crixivan / Stocrin 45 52 48 49 58 206 -13
 
Neurosciences & Ophthalmology
Maxalt 173 135 133 133 149 550 29
Cosopt / Trusopt 114 115 123 114 131 484 -1
 
Oncology
Temodar 248 274 271 254 266 1,065 -10
Emend 87 84 93 91 110 378 4
Intron A 49 54 51 50 54 209 -11
 
Respiratory & Immunology
Singulair 1,328 1,165 1,258 1,215 1,349 4,987 14
Remicade 753 674 669 661 710 2,714 12
Nasonex 373 320 338 259 303 1,219 17
Clarinex 155 164 191 131 138 623 -5
Arcoxia 114 95 95 94 115 398 19
Asmanex 60 51 56 48 53 208 17
Simponi 54 10 18 27 42 97 *
Proventil 42 57 55 43 55 210 -26
Dulera 13 0 0 2 6 8 *
 
Vaccines
ProQuad, M-M-R II and Varivax 244 319 340 434 285 1,378 -23
Gardasil 214 233 219 316 221 988 -8
RotaTeq 125 93 139 119 169 519 35
Pneumovax 79 51 59 110 156 376 55
Zostavax 24 95 18 23 107 243 -74
 
Women's Health & Endocrine
Fosamax 208 230 241 220 234 926 -10
NuvaRing 142 135 145 134 145 559 5
Follistim AQ 133 134 137 119 138 528 --
Implanon 60 51 51 64 71 236 18
Cerazette 59 55 49 56 49 209 7
 
Other Pharmaceutical (3) 745 946 941 942 1,044 3,879 -21
 
ANIMAL HEALTH 758 709 731 687 815 2,941 7
 
CONSUMER CARE (2) 517 489 544 409 381 1,823 6
Claritin OTC 167 136 167 120 103 526 22
 
Other Revenues (4) 486 559 433 506 457 1,956 -13
Astra 322 364   241   345   302   1,252 -11
 
* 100% or over
 
Sum of quarterly amounts may not equal year-to-date amounts due to rounding.
 
(1) Only select products are shown.
(2) In the first quarter of 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.
(3) Includes pharmaceutical products not individually shown above. Other vaccines sales included in Other Pharmaceutical were $54 million for the first quarter of 2011. Other vaccines sales included in Other Pharmaceutical were $55 million, $57 million, $94 million and $75 million for the first, second, third and fourth quarters of 2010, respectively.
(4) Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

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