Merck & Co., Inc. (NYSE: MRK), also known as Merck Sharp & Dohme or MSD outside the United States and Canada, is one of the largest pharmaceutical companies in the world. The headquarters of the company is located in Whitehouse Station, New Jersey, an unincorporated area in Readington Township. The company was established in 1891 as the United States subsidiary of the German company now known as Merck KGaA. In common with many other German assets in the United States, Merck & Co. was confiscated in 1917 during World War I and then set up as an independent company. Currently, it is one of the seven largest pharmaceutical companies in the world both by market capitalization and revenue.
Merck & Co. or MSD describes itself as a "a global research-driven pharmaceutical company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures." The Merck Company Foundation has distributed over $480 million to educational and non-profit organizations since it was founded in 1957.[2]
Merck publishes The Merck Manuals, a series of medical reference books. These include the Merck Manual of Diagnosis and Therapy, the world's best-selling medical textbook, and the Merck Index, a collection of information about chemical compounds.
Merck & Co., Inc. (Merck) is a global health care company. Merck delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly through its joint ventures. The Company’s operations are principally managed on a products basis. Merck’s operates in four segments: the Pharmaceutical, Animal Health, Consumer Care and Alliances segments. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures. Human health pharmaceutical products consist of therapeutic and preventive agents, sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as health maintenance organizations, pharmacy benefit managers and other institutions. Vaccine products consist of preventative pediatric, adolescent and adult vaccines, primarily administered at physician offices. Additionally, the Company has consumer health care operations that develop, manufacture and market Over-the-Counter (OTC), foot care and sun care products, which are sold through wholesale and retail drug, food chain and mass merchandiser outlets in the United States and Canada.
Pharmaceutical
Merck’s pharmaceutical products include therapeutic and preventive agents, sold by prescription, for the treatment of human disorders. The Company’s products in this segment include bone, respiratory, immunology and dermatology, cardiovascular, diabetes and obesity, diversified brands, infectious disease, neurosciences and ophthalmology, oncology, vaccines, and women’s health and endocrine. Bone, respiratory, immunology and dermatology products include Singulair; Remicade; Nasonex; Fosamax; Clarinex; Arcoxia (etoricoxib) for the treatment of arthritis and pain; Asmanex Twisthaler (mometasone furoate inhalation powder), an oral dry-powder corticosteroid inhaler, and Proventil HFA (albuterol sulfate) inhalation aerosol.
Cardiovascular products include Zetia (marketed as Ezetrol outside the United States); Vytorin (marketed as inegy outside the United States), and Integrilin (eptifibatide) Injection, a platelet receptor GP IIb/IIIa inhibitor for the treatment of patients with acute coronary syndrome and those undergoing percutaneous coronary intervention in the United States, as well as for the prevention of early myocardial infarction in patients with acute coronary syndrome. Diabetes and obesity products include Januvia and Janumet for the treatment two type of diabetes. Diversified brands include Cozaar; Hyzaar; Zocor; Propecia (finasteride), a product for the treatment of male pattern hair loss; Claritin Rx; Vasotec (enalapril maleate) and Vaseretic (enalapril maleate-hydrochlorothiazide), hypertension and/or heart failure products; Proscar (finasteride), a urology product for the treatment of symptomatic, and remeron (mirtazapine), an antidepressant.
Infectious disease products include Isentress; PegIntron; Primaxin (imipenem and cilastatin sodium); Cancidas (caspofungin acetate), an anti-fungal product; Invanz (ertapenem sodium) for the treatment of certain infections; Avelox (moxifloxacin), which the Company only markets in the United States, a spectrum fluoroquinolone antibiotic for certain respiratory and skin infections; Rebetol (ribavirin, USP) capsules and oral solution for use in combination with PegIntron or Intron A (interferon alpha-2b, recombinant) for treating chronic hepatitis C, and Crixivan (indinavir sulfate) and stocrin (efavirenz), antiretroviral therapies for the treatment of human immunodeficiency virus (HIV) infection. Neurosciences and ophthalmology products include Maxalt (rizatriptan benzoate), a product for acute treatment of migraine, and cosopt (dorzolamide hydrochloride and timolol maleate ophthalmic solution) and Trusopt (dorzolamide hydrochloride ophthalmic solution).
Oncology product includes Temodar; Emend (aprepitant) for the prevention of chemotherapy-induced and post-operative nausea and vomiting, and Intron A for Injection, marketed for chronic hepatitis B and C and numerous anticancer indications worldwide, including as adjuvant therapy for malignant melanoma. Vaccines include ProQuad (Measles, Mumps, Rubella and Varicella Virus Vaccine Live), a pediatric combination vaccine to help prevent measles, mumps, rubella and varicella; M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live), a vaccine to help prevent measles, mumps and rubella; Varivax (Varicella Virus Vaccine Live), a vaccine to help prevent chickenpox (varicella); Gardasil; RotaTeq (Rotavirus Vaccine, Live, Oral, Pentavalent), a vaccine to help protect against rotavirus gastroenteritis in infants and children; Pneumovax (pneumococcal vaccine polyvalent), a vaccine to help prevent pneumococcal disease, and Zostavax (Zoster Vaccine Live), a vaccine to help prevent shingles (herpes zoster). Women’s health and endocrine includes NuvaRing (etonogestrel/ethinyl estradiol vaginal ring), a vaginal contraceptive ring; follistim AQ (follitropin beta injection), a fertility treatment; implanon (etonogestrel implant), a single-rod subdermal contraceptive implant, and cerazette, a progestin only oral contraceptive.
Animal Health
The Company’s Animal Health segment discovers, develops, manufactures and markets animal health products, including vaccines. Principal marketed products in this segment include livestock products, poultry products, companion animal products, and aquaculture products. Livestock products include Nuflor antibiotic range for use in cattle and swine; Bovilis/Vista vaccine lines for infectious diseases in cattle; Banamine bovine and swine anti-inflammatory; Estrumate for treatment of fertility disorders in cattle; Regumate/Matrix fertility management for swine and horses; Resflor combination broad-spectrum antibiotic and non-steroidal anti-inflammatory drug for bovine respiratory disease; Zilmax and Revalor to improve production efficiencies in beef cattle, M+Pac swine pneumonia vaccine, and Porcilis vaccine line for infectious diseases in swine.
Poultry products include Nobilis/Innovax, vaccine lines for poultry, and Paracox and Coccivac coccidiosis vaccines. Companion animal products include Nobivac/Continuum vaccine lines for flexible dog and cat vaccination; Otomax/Mometamax/Posatex ear ointments for acute and chronic otitis; Caninsulin/Vetsulin diabetes mellitus treatment for dogs and cats; Panacur/Safeguard broad-spectrum anthelmintic (de-wormer) for use in many animals, and Scalibor/Exspot for protecting against bites from fleas, ticks, mosquitoes and sandflies. Aquaculture products include Slice parasiticide for sea lice in salmon; Aquavac/Norvax vaccines against bacterial and viral disease in fish; Compact PD vaccine for salmon, and aquaflor antibiotic for farm-raised fish.
Consumer Care
The Company’s Consumer Care segment develops, manufactures and markets OTC, foot care and sun care products. Principal products in consumer care segment segment include OTC products, which include Claritin non-drowsy antihistamines, MiraLAX treatment for occasional constipation, Coricidin HBP decongestant-free cold/flu medicine, Afrin nasal decongestant spray, and Zegerid OTC treatment for frequent heartburn; foot care, which include Dr. Scholl’s foot care products, lotrimin topical antifungal products, and tinactin topical antifungal products and foot and sneaker odor/wetness products, and sun care, which include coppertone sun care lotions, sprays and dry oils and Solarcaine sunburn relief products.
As the 1990s continued, Merck faced the specter of the expiration of patent protection for some of its biggest-selling products--Vasotec and Pepcid were slated to expire in 2000, Mevacor and Prilosec in 2001. These five drugs generated $5.2 billion in U.S. sales in 1997. Under intense pressure to replace this--at least potentially--lost revenue, Merck continued its torrid pace of product debuts. In 1998 the company introduced a record five drugs: Singulair for asthma, Maxalt for migraine headaches, Aggrastat for acute coronary syndrome, Propecia for hair loss, and Cosopt for glaucoma. Merck managed only one drug introduction in 1999, but it was a blockbuster. Making its U.S. debut in May 1999, Vioxx was part of a new category of pain drugs, dubbed Cox-2 inhibitors. Cox-2, an enzyme present in various diseases, was blocked by the new drugs. As a treatment for arthritis, Vioxx was noteworthy for being effective while not irritating the stomach. Despite being second to market behind G.D. Searle & Co.'s Celebrex, Vioxx had a remarkable first seven months in which U.S. physicians wrote more than five million prescriptions. The new medication was expected to have sales in 2000 of more than $1 billion, a rapid rise to that level.
Merck headed into the uncertainty of the early 21st century riding a triumphant 1999 wave. In addition to its successful introduction of Vioxx, the company was heartened by the continued strength of its top-selling drug, Zocor, which was gaining market share despite intense competition, particularly from Warner-Lambert Company's Lipitor. Zocor was likely to have worldwide sales of more than $5 billion in 2000. Overall sales in 1999 increased 22 percent, reaching $32.71 billion, while net income increased 12 percent to $5.89 billion. Merck's worldwide pharmaceutical sales totaled $12.55 billion in 1999, placing the company in the number one position. This ranking was unlikely to last, however, thanks to two proposed mergers expected to close in 2000: the U.K. marriage of Glaxo Wellcome plc and SmithKline Beecham plc, and the U.S. coupling of Pfizer Inc. and Warner-Lambert. Merck's Gilmartin stated that he had no interest in such a merger, despite the looming patent expirations. One apparent reason for Gilmartin's go-it-alone approach was the company's rapidly growing Merck-Medco unit, which achieved 1999 sales of $15.23 billion. The unit had established the world's biggest Internet-based pharmacy, merckmedco.com, and formed an alliance with CVS Corporation in 1999 to sell OTC medicines and general health products through this site. Merck-Medco also was helping enhance the sales of Merck drugs, although the FDA launched an investigation in the late 1990s into the practices of pharmacy-benefit management (PBM) firms, including whether any illegalities were taking place in regard to the PBMs steering patients to drugs made by a particular firm. Another reason for optimism about the future of Merck was its continued R & D commitment, represented in 2000 by a $2.4 billion budget. The company's pipeline included a potential blockbuster drug for the treatment of depression and anxiety, which could reach the market by 2001, in addition to several others in various stages of testing.
Principal Subsidiaries: Chibret A/S (Denmark); Hangzhou MSD Pharmaceutical Company Limited (China); International Indemnity Ltd. (Bermuda); Johnson & Johnson-Merck Consumer Pharmaceuticals Company; Laboratorios Prosalud S.A. (Peru); MCM Vaccine Co.; Merck and Company, Incorporated; Merck Capital Investments, Inc.; Merck Capital Resources, Inc.; Merck Enterprises Canada, Ltd.; Merck Foreign Sales Corporation Ltd. (Bermuda); Merck Hamilton, Inc.; Merck Holdings, Inc.; Merck Investment Co., Inc.; Merck Liability Management Company; Merck-Medco Managed Care, L.L.C.; Merck Resource Management, Inc.; Merck Sharp & Dohme (Europe) Inc.; Merck Sharp & Dohme Industria Quimica e Veterinaria Limitada (Brazil); Merck Sharp & Dohme (New Zealand) Limited; Merck Sharp & Dohme Overseas Finance N.V. (Netherland Antilles); Merck Sharp & Dohme (Panama) S.A.; Merck Sharp & Dohme Peru S.C.; Merck Sharp & Dohme (Philippines) Inc.; Merial Limited; MSD International Holdings, Inc.; MSD (Japan) Co., Ltd.; SIBIA Neurosciences, Inc.; The O'Hare Group, Inc.
Principal Competitors: Abbott Laboratories; American Home Products Corporation; Amgen Inc.; Baxter International Inc.; Bayer AG; Boehringer Ingelheim; Bristol-Myers Squibb Company; Eli Lilly and Company; Express Scripts, Inc.; Glaxo Wellcome plc; Monsanto Company; Novartis AG; Pfizer Inc.; Pharmacia & Upjohn, Inc.; The Procter & Gamble Company; Roche Holding Ltd.; Schering-Plough Corporation; SmithKline Beecham plc; Warner-Lambert Company.
OVERALL
Beta: 0.70
Market Cap (Mil.): $113,493.70
Shares Outstanding (Mil.): 3,086.58
Annual Dividend: 1.52
Yield (%): 4.13
FINANCIALS
MRK Industry Sector
P/E (TTM): 71.64 20.95 39.56
EPS (TTM): -89.31 -- --
ROI: 1.91 6.42 4.17
ROE: 2.85 8.03 5.16
Statistics:
Public Company
Incorporated: 1927
Employees: 62,300
Sales: $32.71 billion (1999)
Stock Exchanges: New York Boston Cincinnati Philadelphia Pacific
Ticker Symbol: MRK
NAIC: 325412 Pharmaceutical Preparation Manufacturing; 325199 All Other Basic Organic Chemical Manufacturing; 325411 Medicinal and Botanical Manufacturing; 325413 In-Vitro Diagnostic Substance Manufacturing; 325414 Biological Product (except Diagnostic) Manufacturing; 422210 Drugs and Druggists' Sundries Wholesalers; 454110 Electronic Shopping and Mail-Order Houses; 541710 Research and Development in the Physical, Engineering, and Life Sciences
Key Dates:
1668: Friedrich Jacob Merck purchases an apothecary in Darmstadt, Germany.
1827: Heinrich Emmanuel Merck transforms the pharmacy into a drug manufactory.
1887: The German firm, E. Merck AG, sets up a sales office in the United States.
1891: George Merck, grandson of Heinrich Merck, joins the U.S. branch, known as Merck & Company.
1899: The Merck Manual of Diagnosis and Therapy is first published.
1903: U.S. production begins at a site in Rahway, New Jersey.
1917: Entrance of United States into World War I leads to severing of relationship between Merck & Co. and E. Merck AG.
1925: George W. Merck takes over as president, succeeding his father.
1927: Company merges with Powers-Weightman-Rosengarten and is incorporated as Merck & Co., Inc.
1940s:Merck's laboratories make a series of discoveries: vitamin B12, cortisone, streptomycin.
1953: Company merges with Sharp & Dohme, Incorporated.
1965: Henry W. Gadsen is named CEO and launches an ill-advised diversification program.
1976: John J. Honran succeeds Gadsen and reemphasizes drug research.
1979: Company begins marketing Enalapril, a high-blood-pressure inhibitor whose annual sales eventually reach $550 million.
1982: Merck enters into a partnership with Astra AB to sell that company's products in the United States.
1985: Dr. P. Roy Vagelos takes over as CEO; Vasotec, a treatment for congestive heart failure, is introduced.
1988: Vasotec becomes Merck's first billion-dollar-a-year drug.
1989: Over-the-counter medication joint venture is created with Johnson & Johnson.
1992: Zocor, a cholesterol-fighter, is introduced and eventually becomes a blockbuster.
1993: Medco Containment Services Inc., a drug distributor, is acquired for $6.6 billion.
1994: Raymond V. Gilmartin is named chairman and CEO, becoming the first outsider so named.
1995: Company divests its specialty chemicals businesses.
1999: Astra pays Merck $1.8 billion stemming from a joint venture between the companies and from Astra's merger with Zeneca; arthritis medication Vioxx makes its debut.
Name Age Since Current Position
Clark, Richard 64 2010 Chairman of the Board
Frazier, Kenneth 56 2011 President, Chief Executive Officer, Director
Kellogg, Peter 55 2007 Chief Financial Officer, Executive Vice President
Scalet, J. Chris 52 2009 Executive Vice President - Global Services, Chief Information Officer
Bowles, Richards 59 2009 Executive Vice President, Chief Compliance Officer
Kuhlik, Bruce 54 2008 Executive Vice President, General Counsel
Graddick-Weir, Mirian 56 2009 Executive Vice President - Human Resources
Kim, Peter 52 2008 Executive Vice President and President - Merck Research Laboratories
Deese, Willie 55 2008 Executive Vice President and President - Merck Manufacturing Division
Schechter, Adam 46 2010 Executive Vice President, President - Global Human Health
Rosenblatt, Michael 63 2009 Executive Vice President, Chief Medical Officer
Heller, Bridgette 49 2010 Executive Vice President and President - Merck Consumer Care
Kohan, Raul 58 2009 Executive Vice President and President - Animal Health
Canan, John 54 2009 Senior Vice President - Finance, Global Controller
Ambrose, Adele 54 2009 Senior Vice President, Chief Communications Officer
Turner, Mervyn 64 2010 SVP - Merck Research Laboratories, Chief Strategy Officer
Harrison, William 67 2009 Lead Independent Director
Kelley, William 71 1992 Independent Director
Tatlock, Anne 71 2000 Independent Director
Shenk, Thomas 64 2001 Independent Director
Wendell, Peter 60 2003 Independent Director
Weeks, Wendell 51 2004 Independent Director
Lazarus, Rochelle 63 2004 Independent Director
Goldstone, Steven 65 2007 Independent Director
Glocer, Thomas 51 2007 Independent Director
Jacobson, Harry 63 2007 Independent Director
Brun, Leslie 58 2008 Independent Director
Represas, Carlos 66 2009 Independent Director
Cech, Thomas 63 2009 Independent Director
Kidder, C. Robert 66 2005 Independent Director
Russo, Patricia 58 1995 Independent Director
Thompson, Craig 57 2008 Independent Director
Address:
One Merck Drive
P.O. Box 100
White House Station, New Jersey 08889-0100
U.S.A.
Merck & Co. or MSD describes itself as a "a global research-driven pharmaceutical company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures." The Merck Company Foundation has distributed over $480 million to educational and non-profit organizations since it was founded in 1957.[2]
Merck publishes The Merck Manuals, a series of medical reference books. These include the Merck Manual of Diagnosis and Therapy, the world's best-selling medical textbook, and the Merck Index, a collection of information about chemical compounds.
Merck & Co., Inc. (Merck) is a global health care company. Merck delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly through its joint ventures. The Company’s operations are principally managed on a products basis. Merck’s operates in four segments: the Pharmaceutical, Animal Health, Consumer Care and Alliances segments. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures. Human health pharmaceutical products consist of therapeutic and preventive agents, sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as health maintenance organizations, pharmacy benefit managers and other institutions. Vaccine products consist of preventative pediatric, adolescent and adult vaccines, primarily administered at physician offices. Additionally, the Company has consumer health care operations that develop, manufacture and market Over-the-Counter (OTC), foot care and sun care products, which are sold through wholesale and retail drug, food chain and mass merchandiser outlets in the United States and Canada.
Pharmaceutical
Merck’s pharmaceutical products include therapeutic and preventive agents, sold by prescription, for the treatment of human disorders. The Company’s products in this segment include bone, respiratory, immunology and dermatology, cardiovascular, diabetes and obesity, diversified brands, infectious disease, neurosciences and ophthalmology, oncology, vaccines, and women’s health and endocrine. Bone, respiratory, immunology and dermatology products include Singulair; Remicade; Nasonex; Fosamax; Clarinex; Arcoxia (etoricoxib) for the treatment of arthritis and pain; Asmanex Twisthaler (mometasone furoate inhalation powder), an oral dry-powder corticosteroid inhaler, and Proventil HFA (albuterol sulfate) inhalation aerosol.
Cardiovascular products include Zetia (marketed as Ezetrol outside the United States); Vytorin (marketed as inegy outside the United States), and Integrilin (eptifibatide) Injection, a platelet receptor GP IIb/IIIa inhibitor for the treatment of patients with acute coronary syndrome and those undergoing percutaneous coronary intervention in the United States, as well as for the prevention of early myocardial infarction in patients with acute coronary syndrome. Diabetes and obesity products include Januvia and Janumet for the treatment two type of diabetes. Diversified brands include Cozaar; Hyzaar; Zocor; Propecia (finasteride), a product for the treatment of male pattern hair loss; Claritin Rx; Vasotec (enalapril maleate) and Vaseretic (enalapril maleate-hydrochlorothiazide), hypertension and/or heart failure products; Proscar (finasteride), a urology product for the treatment of symptomatic, and remeron (mirtazapine), an antidepressant.
Infectious disease products include Isentress; PegIntron; Primaxin (imipenem and cilastatin sodium); Cancidas (caspofungin acetate), an anti-fungal product; Invanz (ertapenem sodium) for the treatment of certain infections; Avelox (moxifloxacin), which the Company only markets in the United States, a spectrum fluoroquinolone antibiotic for certain respiratory and skin infections; Rebetol (ribavirin, USP) capsules and oral solution for use in combination with PegIntron or Intron A (interferon alpha-2b, recombinant) for treating chronic hepatitis C, and Crixivan (indinavir sulfate) and stocrin (efavirenz), antiretroviral therapies for the treatment of human immunodeficiency virus (HIV) infection. Neurosciences and ophthalmology products include Maxalt (rizatriptan benzoate), a product for acute treatment of migraine, and cosopt (dorzolamide hydrochloride and timolol maleate ophthalmic solution) and Trusopt (dorzolamide hydrochloride ophthalmic solution).
Oncology product includes Temodar; Emend (aprepitant) for the prevention of chemotherapy-induced and post-operative nausea and vomiting, and Intron A for Injection, marketed for chronic hepatitis B and C and numerous anticancer indications worldwide, including as adjuvant therapy for malignant melanoma. Vaccines include ProQuad (Measles, Mumps, Rubella and Varicella Virus Vaccine Live), a pediatric combination vaccine to help prevent measles, mumps, rubella and varicella; M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live), a vaccine to help prevent measles, mumps and rubella; Varivax (Varicella Virus Vaccine Live), a vaccine to help prevent chickenpox (varicella); Gardasil; RotaTeq (Rotavirus Vaccine, Live, Oral, Pentavalent), a vaccine to help protect against rotavirus gastroenteritis in infants and children; Pneumovax (pneumococcal vaccine polyvalent), a vaccine to help prevent pneumococcal disease, and Zostavax (Zoster Vaccine Live), a vaccine to help prevent shingles (herpes zoster). Women’s health and endocrine includes NuvaRing (etonogestrel/ethinyl estradiol vaginal ring), a vaginal contraceptive ring; follistim AQ (follitropin beta injection), a fertility treatment; implanon (etonogestrel implant), a single-rod subdermal contraceptive implant, and cerazette, a progestin only oral contraceptive.
Animal Health
The Company’s Animal Health segment discovers, develops, manufactures and markets animal health products, including vaccines. Principal marketed products in this segment include livestock products, poultry products, companion animal products, and aquaculture products. Livestock products include Nuflor antibiotic range for use in cattle and swine; Bovilis/Vista vaccine lines for infectious diseases in cattle; Banamine bovine and swine anti-inflammatory; Estrumate for treatment of fertility disorders in cattle; Regumate/Matrix fertility management for swine and horses; Resflor combination broad-spectrum antibiotic and non-steroidal anti-inflammatory drug for bovine respiratory disease; Zilmax and Revalor to improve production efficiencies in beef cattle, M+Pac swine pneumonia vaccine, and Porcilis vaccine line for infectious diseases in swine.
Poultry products include Nobilis/Innovax, vaccine lines for poultry, and Paracox and Coccivac coccidiosis vaccines. Companion animal products include Nobivac/Continuum vaccine lines for flexible dog and cat vaccination; Otomax/Mometamax/Posatex ear ointments for acute and chronic otitis; Caninsulin/Vetsulin diabetes mellitus treatment for dogs and cats; Panacur/Safeguard broad-spectrum anthelmintic (de-wormer) for use in many animals, and Scalibor/Exspot for protecting against bites from fleas, ticks, mosquitoes and sandflies. Aquaculture products include Slice parasiticide for sea lice in salmon; Aquavac/Norvax vaccines against bacterial and viral disease in fish; Compact PD vaccine for salmon, and aquaflor antibiotic for farm-raised fish.
Consumer Care
The Company’s Consumer Care segment develops, manufactures and markets OTC, foot care and sun care products. Principal products in consumer care segment segment include OTC products, which include Claritin non-drowsy antihistamines, MiraLAX treatment for occasional constipation, Coricidin HBP decongestant-free cold/flu medicine, Afrin nasal decongestant spray, and Zegerid OTC treatment for frequent heartburn; foot care, which include Dr. Scholl’s foot care products, lotrimin topical antifungal products, and tinactin topical antifungal products and foot and sneaker odor/wetness products, and sun care, which include coppertone sun care lotions, sprays and dry oils and Solarcaine sunburn relief products.
As the 1990s continued, Merck faced the specter of the expiration of patent protection for some of its biggest-selling products--Vasotec and Pepcid were slated to expire in 2000, Mevacor and Prilosec in 2001. These five drugs generated $5.2 billion in U.S. sales in 1997. Under intense pressure to replace this--at least potentially--lost revenue, Merck continued its torrid pace of product debuts. In 1998 the company introduced a record five drugs: Singulair for asthma, Maxalt for migraine headaches, Aggrastat for acute coronary syndrome, Propecia for hair loss, and Cosopt for glaucoma. Merck managed only one drug introduction in 1999, but it was a blockbuster. Making its U.S. debut in May 1999, Vioxx was part of a new category of pain drugs, dubbed Cox-2 inhibitors. Cox-2, an enzyme present in various diseases, was blocked by the new drugs. As a treatment for arthritis, Vioxx was noteworthy for being effective while not irritating the stomach. Despite being second to market behind G.D. Searle & Co.'s Celebrex, Vioxx had a remarkable first seven months in which U.S. physicians wrote more than five million prescriptions. The new medication was expected to have sales in 2000 of more than $1 billion, a rapid rise to that level.
Merck headed into the uncertainty of the early 21st century riding a triumphant 1999 wave. In addition to its successful introduction of Vioxx, the company was heartened by the continued strength of its top-selling drug, Zocor, which was gaining market share despite intense competition, particularly from Warner-Lambert Company's Lipitor. Zocor was likely to have worldwide sales of more than $5 billion in 2000. Overall sales in 1999 increased 22 percent, reaching $32.71 billion, while net income increased 12 percent to $5.89 billion. Merck's worldwide pharmaceutical sales totaled $12.55 billion in 1999, placing the company in the number one position. This ranking was unlikely to last, however, thanks to two proposed mergers expected to close in 2000: the U.K. marriage of Glaxo Wellcome plc and SmithKline Beecham plc, and the U.S. coupling of Pfizer Inc. and Warner-Lambert. Merck's Gilmartin stated that he had no interest in such a merger, despite the looming patent expirations. One apparent reason for Gilmartin's go-it-alone approach was the company's rapidly growing Merck-Medco unit, which achieved 1999 sales of $15.23 billion. The unit had established the world's biggest Internet-based pharmacy, merckmedco.com, and formed an alliance with CVS Corporation in 1999 to sell OTC medicines and general health products through this site. Merck-Medco also was helping enhance the sales of Merck drugs, although the FDA launched an investigation in the late 1990s into the practices of pharmacy-benefit management (PBM) firms, including whether any illegalities were taking place in regard to the PBMs steering patients to drugs made by a particular firm. Another reason for optimism about the future of Merck was its continued R & D commitment, represented in 2000 by a $2.4 billion budget. The company's pipeline included a potential blockbuster drug for the treatment of depression and anxiety, which could reach the market by 2001, in addition to several others in various stages of testing.
Principal Subsidiaries: Chibret A/S (Denmark); Hangzhou MSD Pharmaceutical Company Limited (China); International Indemnity Ltd. (Bermuda); Johnson & Johnson-Merck Consumer Pharmaceuticals Company; Laboratorios Prosalud S.A. (Peru); MCM Vaccine Co.; Merck and Company, Incorporated; Merck Capital Investments, Inc.; Merck Capital Resources, Inc.; Merck Enterprises Canada, Ltd.; Merck Foreign Sales Corporation Ltd. (Bermuda); Merck Hamilton, Inc.; Merck Holdings, Inc.; Merck Investment Co., Inc.; Merck Liability Management Company; Merck-Medco Managed Care, L.L.C.; Merck Resource Management, Inc.; Merck Sharp & Dohme (Europe) Inc.; Merck Sharp & Dohme Industria Quimica e Veterinaria Limitada (Brazil); Merck Sharp & Dohme (New Zealand) Limited; Merck Sharp & Dohme Overseas Finance N.V. (Netherland Antilles); Merck Sharp & Dohme (Panama) S.A.; Merck Sharp & Dohme Peru S.C.; Merck Sharp & Dohme (Philippines) Inc.; Merial Limited; MSD International Holdings, Inc.; MSD (Japan) Co., Ltd.; SIBIA Neurosciences, Inc.; The O'Hare Group, Inc.
Principal Competitors: Abbott Laboratories; American Home Products Corporation; Amgen Inc.; Baxter International Inc.; Bayer AG; Boehringer Ingelheim; Bristol-Myers Squibb Company; Eli Lilly and Company; Express Scripts, Inc.; Glaxo Wellcome plc; Monsanto Company; Novartis AG; Pfizer Inc.; Pharmacia & Upjohn, Inc.; The Procter & Gamble Company; Roche Holding Ltd.; Schering-Plough Corporation; SmithKline Beecham plc; Warner-Lambert Company.
OVERALL
Beta: 0.70
Market Cap (Mil.): $113,493.70
Shares Outstanding (Mil.): 3,086.58
Annual Dividend: 1.52
Yield (%): 4.13
FINANCIALS
MRK Industry Sector
P/E (TTM): 71.64 20.95 39.56
EPS (TTM): -89.31 -- --
ROI: 1.91 6.42 4.17
ROE: 2.85 8.03 5.16
Statistics:
Public Company
Incorporated: 1927
Employees: 62,300
Sales: $32.71 billion (1999)
Stock Exchanges: New York Boston Cincinnati Philadelphia Pacific
Ticker Symbol: MRK
NAIC: 325412 Pharmaceutical Preparation Manufacturing; 325199 All Other Basic Organic Chemical Manufacturing; 325411 Medicinal and Botanical Manufacturing; 325413 In-Vitro Diagnostic Substance Manufacturing; 325414 Biological Product (except Diagnostic) Manufacturing; 422210 Drugs and Druggists' Sundries Wholesalers; 454110 Electronic Shopping and Mail-Order Houses; 541710 Research and Development in the Physical, Engineering, and Life Sciences
Key Dates:
1668: Friedrich Jacob Merck purchases an apothecary in Darmstadt, Germany.
1827: Heinrich Emmanuel Merck transforms the pharmacy into a drug manufactory.
1887: The German firm, E. Merck AG, sets up a sales office in the United States.
1891: George Merck, grandson of Heinrich Merck, joins the U.S. branch, known as Merck & Company.
1899: The Merck Manual of Diagnosis and Therapy is first published.
1903: U.S. production begins at a site in Rahway, New Jersey.
1917: Entrance of United States into World War I leads to severing of relationship between Merck & Co. and E. Merck AG.
1925: George W. Merck takes over as president, succeeding his father.
1927: Company merges with Powers-Weightman-Rosengarten and is incorporated as Merck & Co., Inc.
1940s:Merck's laboratories make a series of discoveries: vitamin B12, cortisone, streptomycin.
1953: Company merges with Sharp & Dohme, Incorporated.
1965: Henry W. Gadsen is named CEO and launches an ill-advised diversification program.
1976: John J. Honran succeeds Gadsen and reemphasizes drug research.
1979: Company begins marketing Enalapril, a high-blood-pressure inhibitor whose annual sales eventually reach $550 million.
1982: Merck enters into a partnership with Astra AB to sell that company's products in the United States.
1985: Dr. P. Roy Vagelos takes over as CEO; Vasotec, a treatment for congestive heart failure, is introduced.
1988: Vasotec becomes Merck's first billion-dollar-a-year drug.
1989: Over-the-counter medication joint venture is created with Johnson & Johnson.
1992: Zocor, a cholesterol-fighter, is introduced and eventually becomes a blockbuster.
1993: Medco Containment Services Inc., a drug distributor, is acquired for $6.6 billion.
1994: Raymond V. Gilmartin is named chairman and CEO, becoming the first outsider so named.
1995: Company divests its specialty chemicals businesses.
1999: Astra pays Merck $1.8 billion stemming from a joint venture between the companies and from Astra's merger with Zeneca; arthritis medication Vioxx makes its debut.
Name Age Since Current Position
Clark, Richard 64 2010 Chairman of the Board
Frazier, Kenneth 56 2011 President, Chief Executive Officer, Director
Kellogg, Peter 55 2007 Chief Financial Officer, Executive Vice President
Scalet, J. Chris 52 2009 Executive Vice President - Global Services, Chief Information Officer
Bowles, Richards 59 2009 Executive Vice President, Chief Compliance Officer
Kuhlik, Bruce 54 2008 Executive Vice President, General Counsel
Graddick-Weir, Mirian 56 2009 Executive Vice President - Human Resources
Kim, Peter 52 2008 Executive Vice President and President - Merck Research Laboratories
Deese, Willie 55 2008 Executive Vice President and President - Merck Manufacturing Division
Schechter, Adam 46 2010 Executive Vice President, President - Global Human Health
Rosenblatt, Michael 63 2009 Executive Vice President, Chief Medical Officer
Heller, Bridgette 49 2010 Executive Vice President and President - Merck Consumer Care
Kohan, Raul 58 2009 Executive Vice President and President - Animal Health
Canan, John 54 2009 Senior Vice President - Finance, Global Controller
Ambrose, Adele 54 2009 Senior Vice President, Chief Communications Officer
Turner, Mervyn 64 2010 SVP - Merck Research Laboratories, Chief Strategy Officer
Harrison, William 67 2009 Lead Independent Director
Kelley, William 71 1992 Independent Director
Tatlock, Anne 71 2000 Independent Director
Shenk, Thomas 64 2001 Independent Director
Wendell, Peter 60 2003 Independent Director
Weeks, Wendell 51 2004 Independent Director
Lazarus, Rochelle 63 2004 Independent Director
Goldstone, Steven 65 2007 Independent Director
Glocer, Thomas 51 2007 Independent Director
Jacobson, Harry 63 2007 Independent Director
Brun, Leslie 58 2008 Independent Director
Represas, Carlos 66 2009 Independent Director
Cech, Thomas 63 2009 Independent Director
Kidder, C. Robert 66 2005 Independent Director
Russo, Patricia 58 1995 Independent Director
Thompson, Craig 57 2008 Independent Director
Address:
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P.O. Box 100
White House Station, New Jersey 08889-0100
U.S.A.