<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the fiscal year ended DECEMBER 31, 1996
__________________________________
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from ____________ to ___________
Commission File Number 1-3305 (Merck & Co., Inc.)
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
ASTRA MERCK INC.
EMPLOYEE SAVINGS AND SECURITY PLAN
725 CHESTERBROOK BOULEVARD
WAYNE, PA 19087-5677
B. Name of issuer of the securities held pursuant to the
plan and the address of its principal executive office:
MERCK & CO., INC.
ONE MERCK DRIVE
WHITEHOUSE STATION, NJ 08889-0100
<PAGE> 2
REPORT OF INDEPENDENT ACCOUNTANTS
May 30, 1997
To the Participants and Plan Administrative Committee of the
Astra Merck Inc. Employee Savings and Security Plan
In our opinion, the accompanying Statement of Net Assets Available for Benefits
and the related Statement of Changes in Net Assets Available for Benefits
present fairly, in all material respects, the net assets available for benefits
of the Astra Merck Inc. Employee Savings and Security Plan (the "Plan") at
December 31, 1996 and 1995, and the changes in net assets available for benefits
for the years then ended, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the Plan's
management; our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management and evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for the opinion expressed
above.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I and II is presented for purposes of additional analysis and is not a
required part of the basic financial statements but is additional information
required by ERISA. Schedules I and II have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Price Waterhouse LLP
<PAGE> 3
ASTRA MERCK INC.
EMPLOYEE SAVINGS AND SECURITY PLAN
FINANCIAL STATEMENTS & ADDITIONAL INFORMATION
DECEMBER 31, 1996 AND 1995
<PAGE> 4
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
INDEX TO FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
Page(s)
<S> <C>
Report of Independent Accountants 1
Financial Statements:
Statement of Net Assets Available for Benefits at
December 31, 1996 and 1995 2
Statement of Changes in Net Assets Available for Benefits for the
Years Ended December 31, 1996 and 1995 3
Notes to Financial Statements 4 - 10
Additional Information*:
Schedule I: Schedule of Assets Held for Investment Purposes
at December 31, 1996 11
Schedule II: Schedule of Reportable Transactions for the Year Ended
December 31, 1996 12
*The additional information included is presented for purposes
of additional analysis and is not a required part of the basic
financial statements but is required by the Employee Retirement
Income Security Act of 1974 ("ERISA").
</TABLE>
<PAGE> 5
[ASTRA MERCK LOGO]
- -------------------------------------------------------------------------------
Astra Merck Inc. Employee Savings and Security Plan
Statement of Net Assets Available for Benefits
December 31, 1996 and 1995
<TABLE>
<CAPTION>
December 31, 1996 December 31, 1995
---------------------------------------------
<S> <C> <C>
Assets
Investments at fair value
Common Stocks $32,360,141 $25,988,749
Mutual Funds 24,064,937 13,491,825
Participant Loans 1,634,374 1,383,158
58,059,452 40,863,732
Receivables
Participant contributions 591,516 341,776
Employer contributions 233,055 88,766
Accrued interest and dividends 187,700 142,089
1,012,271 572,631
Net assets available for benefits $59,071,723 $41,436,363
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 2
<PAGE> 6
[ASTRA MERCK LOGO]
- --------------------------------------------------------------------------------
Astra Merck Inc. Employee Savings and Security Plan
Statement of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
For the Years Ended
-------------------------------------
December 31, 1996 December 31, 1995
----------------- -----------------
<S> <C> <C>
Additions to net assets attributed to:
Investment income
Net appreciation in fair value of investments $ 6,140,759 $16,002,760
Dividends and interest 2,478,042 1,154,467
Interest on loans 121,709 87,985
Total Investment Income 8,740,510 17,245,212
Contributions to the Plan
Participant contributions 6,226,794 4,166,589
Employer contributions 2,071,398 1,079,700
Rollovers from other qualified plans 1,389,500 562,358
Total Contributions 9,687,692 5,808,647
Total Additions 18,428,202 23,053,859
Reductions from net assets attributed to:
Withdrawals (792,842) (387,025)
Net Increase 17,635,360 22,666,834
Transfers from Merck's Employee Savings & Security Plan -- 18,769,529
Net assets available for benefits
Beginning of year 41,436,363 --
End of year $59,071,723 $41,436,363
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 3
<PAGE> 7
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
DESCRIPTION OF THE PLAN
The following description of the Astra Merck Inc. (the "Company") Employee
Savings and Security Plan (the "Plan") provides only general information.
Participants should refer to the Plan document for complete information.
The Plan, established January 1, 1995, was designed to provide employees a
systematic means of saving and investing for the future. Prior to July 1,
1996, regular full-time, part-time, and temporary employees of the Company,
as defined by the Plan, who had completed at least one year of employment
were eligible to participate in the Plan on the next enrollment date (the
first day of each January and each July). Effective July 1, 1996, the
Company amended the Plan so regular full-time and part-time employees of
the Company, as defined by the Plan, are eligible to participate in the
Plan as of the first day of the month following their date of hire.
The Plan is administered by the Plan Administrative Committee. All costs of
administering the Plan are borne by the Company. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
Contributions. Participants may contribute from 2% to 15% of their base pay
and can designate contributions as pre-tax, after-tax or a combination of
both. Prior to July 1, 1996, the Company matched 50% of employee
contributions up to 5% of base pay per pay period. Effective July 1, 1996,
the Plan was amended to state that the Company will match 66 2/3% of
employee contributions up to 6% of base pay per pay period. Company
matching contributions are invested in the same investments that
participants designate for their own contributions. Both employee and
employer contributions to the Plan are limited to maximum amounts
established under the Internal Revenue Code.
In addition, participants may transfer assets that are held for their
benefit by qualified benefit plans of former employers (rollover
contributions) into the Plan.
Investment Options. Participants direct the investment of their
contributions into any of the following investment options, including Merck
& Co., Inc. ("Merck") Common Stock:
MERCK COMMON STOCK
This portfolio consists of shares of Merck Common Stock.
FIDELITY MAGELLAN FUND
The Magellan Fund invests primarily in common stock and securities
convertible to common stock issued by companies operating in the
U.S. and/or abroad as well as foreign companies. The fund seeks
investment growth by making a profit on invested capital over the
long term.
Page 4
<PAGE> 8
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
FIDELITY EQUITY-INCOME FUND
The Equity-Income Fund invests in income-producing equity
securities and seeks a dividend yield that exceeds the composite
yield of the S&P 500 Index; at the same time, it considers the
potential for capital growth.
FIDELITY GROWTH COMPANY FUND
The Growth Company Fund seeks capital appreciation mainly through
investment in common stocks and securities convertible into common
stocks with an emphasis on capital gains rather than on dividend
income.
FIDELITY GROWTH & INCOME PORTFOLIO
The Growth & Income Portfolio seeks a combination of capital
growth and current income consistent with reasonable investment
risk. It seeks securities of companies with potential for earnings
growth while paying current dividends.
FIDELITY INTERMEDIATE BOND FUND
The Intermediate Bond Fund invests in domestic and foreign
investment-grade securities with intermediate maturities. The
dollar-weighted average maturity of its obligations ranges between
three and ten years.
FIDELITY RETIREMENT GROWTH FUND
The Retirement Growth Fund seeks capital appreciation by investing
primarily in common stocks issued by companies operating in the
U.S. and/or abroad. Investments are diversified among a variety of
industries and sectors within the market.
FIDELITY OTC PORTFOLIO
The OTC Portfolio seeks capital appreciation through investment in
securities that are traded in the over-the-counter ("OTC")
securities market. Though this portfolio invests mainly in common
stocks, it can also invest in preferred stocks and debt
obligations as well as all other securities offered by the OTC
market.
FIDELITY OVERSEAS FUND
The Overseas Fund seeks capital appreciation, primarily through
investments in foreign securities. Normally, at least 65% of its
total assets are invested in securities of companies from at least
three countries outside of North America (generally these
countries are located in Central and South America, the Far East
and Pacific basin, and Western Europe).
FIDELITY BALANCED FUND
The emphasis of the Balanced Fund is income with investments in
both stocks and bonds. At least 25% of its total assets will
always be invested in fixed-income senior securities to primarily
preserve principal.
Page 5
<PAGE> 9
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
FIDELITY RETIREMENT MONEY MARKET PORTFOLIO
The Money Market Portfolio invests in high quality, U.S.
dollar-denominated money market instruments of U.S. and foreign
issuers. Investments include short-term corporate obligations,
U.S. government obligations and certificates of deposit.
FIDELITY RETIREMENT GOVERNMENT MONEY MARKET PORTFOLIO The
Government Money Market Portfolio invests in obligations issued or
guaranteed as to principal and interest by the U.S. Government,
its agencies or instrumentalities.
FIDELITY U.S. EQUITY INDEX PORTFOLIO
The U.S. Equity Index Portfolio seeks investment results that
correspond to the total return performance of United States'
publicly traded stocks. Total return performance is the
combination of capital changes and income. Many investments made
by this portfolio offer the potential for both dividend income and
capital appreciation over the long term.
PARTICIPANT LOAN FUND
The Loan Fund is comprised of amounts transferred from other funds
and represents the balance of outstanding participant loans.
Vesting. Participants are immediately vested in their contributions, all
Company matching contributions, plus actual earnings thereon.
Participants' Loans. Participants may borrow from their account balances.
The minimum loan is $500 and the maximum loan is the lesser of $50,000 less
the highest outstanding loan balance, if any, during the one year period
prior to the new loan application date, or 50% of the participant's account
balance less any current outstanding loan balance. Participant investments
are liquidated on a pro rata basis to fund the loan. The interest rate is
the rate in effect the month the loan is made and is based on the prime
rate of the Morgan Guaranty Trust Company of New York, plus one percent per
annum. Activity related to these borrowings is reflected in the Participant
Loan Fund.
1. SUMMARY OF ACCOUNTING POLICIES
The financial statements of the Plan have been prepared using the accrual
basis of accounting. Investments in mutual funds and Merck Common Stock are
stated at quoted market value. Participant loans are valued at cost which
approximates fair value. Dividend income is recorded on the ex-dividend
date. The appreciation in market value of investments is based on the
beginning of the year market value or value at the time of purchase during
the year and is included in the Statement of Changes in Net Assets
Available for Benefits.
Page 6
<PAGE> 10
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
Use of Estimates. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements. Actual results could differ from those
estimates.
2. INCOME TAX STATUS
The Plan received a favorable determination letter from the Internal
Revenue Service for the Plan and its amendments through February 1, 1996
dated March 4, 1997. The Plan has been amended subsequent to February 1,
1996. However, the Plan Administrators and the Plan's tax counsel believe
that the Plan is currently designed and being operated in compliance with
the applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
3. PARTY-IN-INTEREST TRANSACTIONS
On January 1, 1995, in connection with the transfer of assets to the
Company on November 1, 1994 to effect a joint venture between Astra AB and
Merck, certain employees of Merck became employees of the Company. In
accordance with the terms of the agreements governing the formation of the
joint venture, account balances of these employees who were participants in
Merck's Employee Savings and Security Plan, totaling $18,769,529 were
transferred to the Plan, effective January 1, 1995.
The mutual funds in which the Plan holds investments are managed by an
affiliate of the trustee.
Page 7
<PAGE> 11
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
5. FUND INFORMATION
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------
Merck Fidelity Fidelity Fidelity Fidelity
Common Magellan Equity- Growth Growth &
Stock* Fund* Income Company Income
Fund Fund* Portfolio*
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Common stock $32,360,141
Mutual funds $ 5,977,849 $ 1,522,514 $ 2,925,653 $ 4,384,329
Participant loans
------------------------------------------------------------------------------------
32,360,141 5,977,849 1,522,514 2,925,653 4,384,329
Receivables:
Participant contributions 175,619 68,551 24,975 72,047 98,075
Employer contributions 68,496 28,192 9,692 27,437 38,278
Accrued interest and dividends 166,230 1,664 315 5,724 534
------------------------------------------------------------------------------------
Net assets available for benefits,
December 31, 1996 $32,770,486 $ 6,076,256 $ 1,557,496 $ 3,030,861 $ 4,521,216
====================================================================================
Assets:
Investments at fair value:
Common stock $25,988,749
Mutual funds $ 5,164,399 $ 602,373 $ 1,377,699 $ 1,622,359
Participant loans
------------------------------------------------------------------------------------
25,988,749 5,164,399 602,373 1,377,699 1,622,359
Receivables:
Participant contributions 119,104 68,437 9,480 29,685 30,675
Employer contributions 30,827 17,976 2,412 7,478 7,798
Accrued interest and dividends 137,298 2,102 334 391 331
------------------------------------------------------------------------------------
Net assets available for benefits,
December 31, 1995 $26,275,978 $ 5,252,914 $ 614,599 $ 1,415,253 $ 1,661,163
====================================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Fidelity
Intermediate Retirement OTC Overseas Balanced
Bond Fund Growth Fund Portfolio Fund Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Common stock
Mutual funds $ 598,476 $ 761,397 $1,728,342 $1,577,744 $1,569,462
Participant loans
------------------------------------------------------------------------
598,476 761,397 1,728,342 1,577,744 1,569,462
Receivables:
Participant contributions 12,547 16,570 39,490 27,116 20,782
Employer contributions 5,402 6,579 15,144 10,179 8,943
Accrued interest and dividends 3,182 188 374 204 485
------------------------------------------------------------------------
Net assets available for benefits,
December 31, 1996 $ 619,607 $ 784,734 $1,783,350 $1,615,243 $1,599,672
========================================================================
Assets:
Investments at fair value:
Common stock
Mutual funds $ 277,322 $ 460,464 $ 740,392 $ 764,220 $1,372,258
Participant loans
------------------------------------------------------------------------
277,322 460,464 740,392 764,220 1,372,258
Receivables:
Participant contributions 5,624 10,966 17,639 17,427 16,633
Employer contributions 1,778 2,834 4,400 4,104 4,763
Accrued interest and dividends 3 100 293 289 446
------------------------------------------------------------------------
Net assets available for benefits,
December 31, 1995 $ 284,727 $ 474,364 $ 762,724 $ 786,040 $1,394,100
========================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------
Fidelity Fidelity Fidelity Participant Total
Retirement Retirement U.S. Loan Fund
Money Govt. Money Equity
Market Market Index
Portfolio Portfolio Portfolio
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Common stock $32,360,141
Mutual funds $ 912,857 $ 924,520 $1,181,794 24,064,937
Participant loans $ 1,634,374 1,634,374
-------------------------------------------------------------------------
912,857 924,520 1,181,794 1,634,374 58,059,452
Receivables:
Participant contributions 5,943 2,967 26,834 591,516
Employer contributions 2,645 1,257 10,811 233,055
Accrued interest and dividends 4,207 4,444 149 187,700
-------------------------------------------------------------------------
Net assets available for benefits,
December 31, 1996 $ 925,652 $ 933,188 $1,219,588 $ 1,634,374 $59,071,723
=========================================================================
Assets:
Investments at fair value:
Common stock $25,988,749
Mutual funds $ 396,282 $ 348,764 $ 365,293 13,491,825
Participant loans $ 1,383,158 1,383,158
-------------------------------------------------------------------------
396,282 348,764 365,293 1,383,158 40,863,732
Receivables:
Participant contributions 5,062 2,351 8,693 341,776
Employer contributions 1,425 680 2,291 88,766
Accrued interest and dividends 94 324 84 142,089
-------------------------------------------------------------------------
Net assets available for benefits,
December 31, 1995 $ 402,863 $ 352,119 $ 376,361 $ 1,383,158 $41,436,363
=========================================================================
</TABLE>
*Represents 5% or more of the Plan investments as of December 31, 1996.
Page 8
<PAGE> 12
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
5. FUND INFORMATION (CONTINUED)
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND
INFORMATION - FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------
Merck Fidelity Fidelity Fidelity Fidelity
Common Magellan Equity- Growth Growth &
Stock Fund Income Company Income
Fund Fund Portfolio
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $5,554,329 ($305,679) $97,534 $182,360 $348,878
Dividends and interest 602,023 943,430 77,511 129,585 162,881
Interest on loans 60,406 23,531 3,990 6,656 5,061
------------------------------------------------------------------------
Total income on investments 6,216,758 661,282 179,035 318,601 516,820
------------------------------------------------------------------------
Contributions to the Plan:
Participant contributions 1,960,208 978,499 226,706 660,779 823,014
Employer contributions 632,454 318,907 76,117 220,703 285,143
Rollovers from other qualified plans 222,539 223,404 61,829 161,244 156,210
------------------------------------------------------------------------
Total contributions 2,815,201 1,520,810 364,652 1,042,726 1,264,367
------------------------------------------------------------------------
Total additions 9,031,959 2,182,092 543,687 1,361,327 1,781,187
------------------------------------------------------------------------
Reductions from net assets attributed to:
Withdrawals (415,106) (227,981) (19,335) (3,945) (5,386)
------------------------------------------------------------------------
Transfers among funds:
Net reallocations (1,947,659) (1,117,277) 425,466 290,421 1,084,032
Loans to participants, principal (404,862) (111,970) (21,510) (62,268) (34,593)
Loan principal repayments from participants 230,176 98,478 14,589 30,073 34,813
------------------------------------------------------------------------
Net transfers among funds (2,122,345) (1,130,769) 418,545 258,226 1,084,252
------------------------------------------------------------------------
Total deductions and net transfers
among funds (2,537,451) (1,358,750) 399,210 254,281 1,078,866
------------------------------------------------------------------------
Net increase 6,494,508 823,342 942,897 1,615,608 2,860,053
Net assets available for benefits:
Beginning of year 26,275,978 5,252,914 614,599 1,415,253 1,661,163
========================================================================
End of year $32,770,486 $6,076,256 $1,557,496 $3,030,861 $4,521,216
========================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Fidelity
Intermediate Retirement OTC Overseas Balanced
Bond Growth Portfolio Fund Fund
Fund Fund
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments ($8,358) ($43,712) $68,082 $49,400 $72,295
Dividends and interest 30,031 93,217 184,817 96,704 75,016
Interest on loans 185 1,713 4,463 3,232 5,272
-------------------------------------------------------------------------
Total income on investments 21,858 51,218 257,362 149,336 152,583
-------------------------------------------------------------------------
Contributions to the Plan:
Participant contributions 123,486 192,674 365,417 312,367 264,177
Employer contributions 46,631 63,859 122,534 96,997 92,665
Rollovers from other qualified plans 82,639 76,703 37,828 27,299 150,627
-------------------------------------------------------------------------
Total contributions 252,756 333,236 525,779 436,663 507,469
-------------------------------------------------------------------------
Total additions 274,614 384,454 783,141 585,999 660,052
-------------------------------------------------------------------------
Reductions from net assets attributed to:
Withdrawals (5,997) (1,992) (1,424) (2,335) (13,507)
-------------------------------------------------------------------------
Transfers among funds:
Net reallocations 72,655 (60,941) 243,213 240,135 (425,938)
Loans to participants, principal (7,245) (17,137) (25,495) (11,784) (34,539)
Loan principal repayments from participants 853 5,986 21,191 17,188 19,504
-------------------------------------------------------------------------
Net transfers among funds 66,263 (72,092) 238,909 245,539 (440,973)
-------------------------------------------------------------------------
Total deductions and net transfers
among funds 60,266 (74,084) 237,485 243,204 (454,480)
-------------------------------------------------------------------------
Net increase 334,880 310,370 1,020,626 829,203 205,572
Net assets available for benefits:
Beginning of year 284,727 474,364 762,724 786,040 1,394,100
=========================================================================
End of year $619,607 $784,734 $1,783,350 $1,615,243 $1,599,672
=========================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------
Fidelity Fidelity Fidelity Participant Total
Retirement Retirement U.S. Loan Fund
Money Govt. Money Equity
Market Market Index
Portfolio Portfolio Portfolio
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $125,630 $6,140,759
Dividends and interest $32,025 $29,557 21,245 2,478,042
Interest on loans 1,516 4,336 1,348 121,709
------------------------------------------------------------------
Total income on investments 33,541 33,893 148,223 8,740,510
------------------------------------------------------------------
Contributions to the Plan:
Participant contributions 75,251 28,234 215,982 6,226,794
Employer contributions 26,177 11,560 77,651 2,071,398
Rollovers from other qualified plans 49,394 59,007 80,777 1,389,500
------------------------------------------------------------------
Total contributions 150,822 98,801 374,410 9,687,692
------------------------------------------------------------------
Total additions 184,363 132,694 522,633 18,428,202
------------------------------------------------------------------
Reductions from net assets attributed to:
Withdrawals (52,395) (5,099) (4,713) ($33,627) (792,842)
------------------------------------------------------------------
Transfers among funds:
Net reallocations 401,502 469,787 324,604
Loans to participants, principal (18,822) (26,233) (5,643) 782,101
Loan principal repayments from participants 8,141 9,920 6,346 (497,258)
------------------------------------------------------------------
Net transfers among funds 390,821 453,474 325,307 284,843
------------------------------------------------------------------
Total deductions and net transfers
among funds 338,426 448,375 320,594 251,216 (792,842)
------------------------------------------------------------------
Net increase 522,789 581,069 843,227 251,216 17,635,360
Net assets available for benefits:
Beginning of year 402,863 352,119 376,361 1,383,158 41,436,363
==================================================================
End of year $925,652 $933,188 $1,219,588 $1,634,374 $59,071,723
==================================================================
</TABLE>
Page 9
<PAGE> 13
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
5. FUND INFORMATION (CONTINUED)
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND
INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------
Merck Fidelity Fidelity Fidelity Fidelity
Common Magellan Equity- Growth Growth &
Stock Fund Income Company Income
Fund Fund Portfolio
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $14,207,844 $933,666 $76,368 $203,118 $270,041
Dividends and interest 483,982 296,006 30,600 64,762 71,179
Interest on loans 45,362 19,061 2,611 3,402 2,943
-----------------------------------------------------------------------
Total income on investments 14,737,188 1,248,733 109,579 271,282 344,163
-----------------------------------------------------------------------
Contributions to the Plan:
Participant contributions 1,437,895 819,707 119,301 313,533 367,984
Employer contributions 374,702 213,385 29,285 80,776 95,492
Rollovers from other qualified plans 110,201 111,685 13,870 53,052 88,170
-----------------------------------------------------------------------
Total contributions 1,922,798 1,144,777 162,456 447,361 551,646
-----------------------------------------------------------------------
Total additions 16,659,986 2,393,510 272,035 718,643 895,809
-----------------------------------------------------------------------
Reductions from net assets attributed to:
Withdrawals (261,124) (11,491) (2,346) (4,073)
-----------------------------------------------------------------------
Transfers among funds:
Net reallocations (546,629) 152,156 125,509 160,078 54,868
Loans to participants, principal (357,377) (136,168) (34,514) (27,166) (23,156)
Loan principal repayments from participants 152,460 52,369 7,456 20,002 20,306
-----------------------------------------------------------------------
Net transfers among funds (751,546) 68,357 98,451 152,914 52,018
-----------------------------------------------------------------------
Total deductions and net transfers
among funds (1,012,670) 56,866 98,451 150,568 47,945
-----------------------------------------------------------------------
Net increase 15,647,316 2,450,376 370,486 869,211 943,754
Transfers from Merck's
Employee Savings and Security Plan 10,628,662 2,802,538 244,113 546,042 717,409
Net assets available for benefits:
Beginning of year
-----------------------------------------------------------------------
End of year $26,275,978 $5,252,914 $614,599 $1,415,253 $1,661,163
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
--------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Fidelity
Intermediate Retirement OTC Overseas Balanced
Bond Growth Portfolio Fund Fund
Fund Fund
------------------------------------------------------------------------
<S> <S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $5,042 $8,765 $99,302 $29,885 $97,692
Dividends and interest 13,032 40,559 40,263 16,962 49,758
Interest on loans 73 953 2,245 3,055 4,792
------------------------------------------------------------------------
Total income on investments 18,147 50,277 141,810 49,902 152,242
------------------------------------------------------------------------
Contributions to the Plan:
Participant contributions 102,383 128,914 179,563 229,782 234,600
Employer contributions 29,453 31,658 44,614 52,426 64,806
Rollovers from other qualified plans 12,704 37,356 25,017 42,652 21,842
------------------------------------------------------------------------
Total contributions 144,540 197,928 249,194 324,860 321,248
------------------------------------------------------------------------
Total additions 162,687 248,205 391,004 374,762 473,490
------------------------------------------------------------------------
Reductions from net assets attributed to:
Withdrawals (7,350) (7,687) (940) (53,328)
------------------------------------------------------------------------
Transfers among funds:
Net reallocations (54,274) 12,964 94,759 27,111 45,920
Loans to participants, principal (440) (10,883) (23,495) (14,664) (33,215)
Loan principal repayments from participants 697 4,265 7,268 9,433 21,361
------------------------------------------------------------------------
Net transfers among funds (54,017) 6,346 78,532 21,880 34,066
------------------------------------------------------------------------
Total deductions and net transfers
among funds (61,367) 6,346 70,845 20,940 (19,262)
------------------------------------------------------------------------
Net increase 101,320 254,551 461,849 395,702 454,228
Transfers from Merck's
Employee Savings and Security Plan 183,407 219,813 300,875 390,338 939,872
Net assets available for benefits:
Beginning of year
------------------------------------------------------------------------
End of year $284,727 $474,364 $762,724 $786,040 $1,394,100
========================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------
Fidelity Fidelity Fidelity Participant Total
Retirement Retirement U.S. Loan Fund
Money Govt. Equity
Market Money Index
Portfolio Market Portfolio
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $71,037 $16,002,760
Dividends and interest $22,141 $17,511 7,712 1,154,467
Interest on loans 1,216 1,504 768 87,985
--------------------------------------------------------------------
Total income on investments 23,357 19,015 79,517 17,245,212
--------------------------------------------------------------------
Contributions to the Plan:
Participant contributions 82,672 42,046 108,209 4,166,589
Employer contributions 22,136 12,600 28,367 1,079,700
Rollovers from other qualified plans 18,815 15,687 11,307 562,358
--------------------------------------------------------------------
Total contributions 123,623 70,333 147,883 5,808,647
--------------------------------------------------------------------
Total additions 146,980 89,348 227,400 23,053,859
--------------------------------------------------------------------
Reductions from net assets attributed to:
Withdrawals (28,320) (10,025) (152) ($189) (387,025)
--------------------------------------------------------------------
Transfers among funds:
Net reallocations (83,715) 3,570 7,683
Loans to participants, principal (4,169) (34,317) (4,384) 703,948
Loan principal repayments from participants 4,708 3,839 8,500 (312,664)
--------------------------------------------------------------------
Net transfers among funds (83,176) (26,908) 11,799 391,284
--------------------------------------------------------------------
Total deductions and net transfers
among funds (111,496) (36,933) 11,647 391,095 (387,025)
--------------------------------------------------------------------
Net increase 35,484 52,415 239,047 391,095 22,666,834
Transfers from Merck's
Employee Savings and Security Plan 367,379 299,704 137,314 992,063 18,769,529
Net assets available for benefits:
Beginning of year
--------------------------------------------------------------------
End of year $402,863 $352,119 $376,361 $1,383,158 $41,436,363
====================================================================
</TABLE>
Page 10
<PAGE> 14
SCHEDULE I
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
IDENTITY
OF ISSUER DESCRIPTION CURRENT VALUE COST
- --------- ----------- ------------- -----------
<S> <C> <C> <C>
Merck Merck Common Stock $32,360,141 $17,058,769
Fidelity Fidelity Magellan Fund* 5,977,849 5,468,406
Fidelity Fidelity Equity-Income Fund* 1,522,514 1,371,517
Fidelity Fidelity Growth Company Fund* 2,925,653 2,581,205
Fidelity Fidelity Growth & Income Portfolio* 4,384,329 3,826,859
Fidelity Fidelity Intermediae Bond Fund* 598,476 602,557
Fidelity Fidelity Retirement Growth Fund* 761,397 803,047
Fidelity Fidelity OTC Portfolio* 1,728,342 1,578,079
Fidelity Fidelity Overseas Fund* 1,577,744 1,510,372
Fidelity Fidelity Balanced Fund* 1,569,462 1,440,242
Fidelity Fidelity Retirement Money Market Portfolio* 912,857 912,857
Fidelity Fidelity Retirement Government Money Market Portfolio* 924,520 924,520
Fidelity Fidelity U.S. Equity Index Portfolio* 1,181,794 994,664
Fidelity Participant Loan Account (with interest rates ranging from 7% to 11%) 1,634,374 1,634,374
----------- -----------
Totals $58,059,452 $40,707,468
=========== ===========
</TABLE>
*Party-in-interest
This schedule was derived from data certified as complete and accurate by
Fidelity Management Trust Company
Page 11
<PAGE> 15
SCHEDULE II
ASTRA MERCK INC. EMPLOYEE SAVINGS AND SECURITY PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
SALES
------------------------------------
IDENTITY NUMBER OF NUMBER OF TOTAL
OF ISSUER DESCRIPTION PURCHASES SALES PURCHASES PROCEEDS NET COST GAIN (LOSS)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Merck Merck Common Stock 171 108 $3,560,571 $3,316,124 $1,965,596 $1,350,528
Fidelity Fidelity Magellan Fund 148 100 2,723,188 1,604,058 1,535,618 68,440
Fidelity Fidelity Equity-Income Fund 88 28 930,298 107,691 91,108 16,583
Fidelity Fidelity Growth Company Fund 134 52 1,587,866 222,271 199,407 22,864
Fidelity Fidelity Growth & Income Portfolio 141 52 2,614,565 201,474 176,465 25,009
Fidelity Fidelity Intermediate Bond Fund 76 22 420,959 91,446 91,946 (500)
Fidelity Fidelity Retirement Growth Fund 75 32 460,336 115,689 111,874 3,815
Fidelity Fidelity OTC Portfolio 104 31 1,005,231 85,363 76,870 8,493
Fidelity Fidelity Overseas Fund 100 44 899,728 135,603 127,461 8,142
Fidelity Fidelity Balanced Fund 105 71 735,816 610,906 579,048 31,858
Fidelity Fidelity Retirement Money Market
Portfolio 84 37 895,497 378,922 378,922
Fidelity Fidelity Retirement Government
Money Market Portfolio 55 23 732,113 156,357 156,357
Fidelity Fidelity U.S. Equity Index Portfolio 85 19 724,627 33,755 29,411 4,344
</TABLE>
This schedule was derived from data certified as complete and accurate by
Fidelity Management Trust Company.
Page 12
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized.
ASTRA MERCK INC.
EMPLOYEE SAVINGS AND SECURITY PLAN
(Name of Plan)
By: /s/ Linda E. Robertson
--------------------------------
Linda E. Robertson
Administrative Committee
Dated: June 26, 1997
<PAGE> 17
Exhibit Index
<TABLE>
<CAPTION>
Exhibit Page
<S> <C> <S>
23.1 Consent of Price Waterhouse LLP......................................
</TABLE>
<PAGE> 1
EXHIBIT 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Registration
Statement on Form S-8 of Merck & Co., Inc., of our report dated May 30, 1997
appearing on page 2 of the Report of the Astra Merck Inc. Employee Savings and
Security Plan on Form 11-K for the year ended December 31, 1996.
Price Waterhouse LLP
Philadelphia, PA
June 24, 1997
