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Exhibit 99(a)
Press Contact: Greg Reaves Investor Contact: Laura Jordan
(908) 423-6022 (908) 423-5185
MERCK'S EARNINGS PER SHARE INCREASED 22% FOR THE THIRD QUARTER 2000,
DRIVEN BY RECORD SALES OF MORE THAN $10 BILLION
WHITEHOUSE STATION, N.J., October 20, 2000 -- Merck & Co., Inc. today announced
that earnings per share for the third quarter of 2000 were $0.78, up 22% over
the third quarter of 1999. For the quarter, net income increased 19% to $1,835.9
million driven by sales of $10.6 billion, up 29% over the same period last year.
For the first nine months, earnings per share were $2.15, an increase
of 20% over 1999. Net income grew 17% to $5,057.3 million fueled by a 22% sales
increase to $28.9 billion, for the first nine months of 2000.
"Income growth for the quarter and first nine months reflects strong
sales volume gains in the U.S. and international markets, as well as
manufacturing productivity improvements," said Raymond V. Gilmartin, chairman,
president and chief executive officer. "These gains helped fund research and
development and promotion programs in support of our key products."
Sales volume growth was driven by the Company's human health products,
which increased 19% and 18% for the third quarter and nine months, respectively,
and the Merck-Medco Managed Care business. Sales outside of the United States
accounted for 37% of the Company's human health sales for the first nine months.
Foreign exchange reduced the human health sales growth for both the third
quarter and first nine months by one percentage point.
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"We are proud of the achievements of our newest medicine VIOXX which,
together with ZOCOR, COZAAR/HYZAAR*, FOSAMAX, and SINGULAIR are driving Merck's
strong performance," Mr. Gilmartin said. These products accounted for 55% of
Merck's worldwide human health sales for the first nine months.
"Not only are Merck's medicines achieving success in markets in the
United States and abroad, they are also improving the lives of millions of
patients worldwide," Mr. Gilmartin said. "More than 15 million prescriptions in
the United States alone have been written for VIOXX, our new medicine for
osteoarthritis, since its extraordinarily successful launch last year, and it
continues as the world's fastest growing prescription arthritis medicine. VIOXX
has now achieved nearly $1.5 billion in sales so far this year - more than $600
million in this quarter alone. A key reason for its success is that VIOXX is the
only COX-2 inhibitor approved by the U.S. Food and Drug Administration (FDA)
both for osteoarthritis and acute pain."
A pilot study in osteoarthritis comparing VIOXX and celecoxib, a
competitive product, presented at the European League Against Rheumatism in
June, showed that VIOXX reduced osteoarthritis pain at night and at rest to a
greater degree than either celecoxib 200 mg or acetaminophen 4,000 mg.
In June, Merck submitted a Supplemental New Drug Application for VIOXX
to the FDA to request labeling changes based on the results of the 8,000-patient
VIOXX Gastrointestinal Outcomes Research (VIGOR) study. In this study, VIOXX
reduced the incidence of serious gastrointestinal side effects, such as ulcers
and bleeding, by more than 50% compared to the nonsteroidal anti-inflammatory
drug naproxen.
Clinical programs are underway to explore other potential benefits for
VIOXX, including the treatment of chronic pain, rheumatoid arthritis and in the
prevention and treatment of Alzheimer's disease. Merck has also begun studies to
investigate whether VIOXX can reduce the number of colon polyps in patients who
suffer from them - a broad population at risk of developing colon cancer.
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*COZAAR and HYZAAR are registered trademarks of E.I. DuPont de Nemours &
Company, Wilmington, DE, USA.
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Global sales of ZOCOR, Merck's cholesterol-modifying medicine, continue
to show strong growth. Worldwide sales reached nearly $1.4 billion for the third
quarter, up 18% over the same period in 1999. This performance continues to
reflect physician confidence in the product's ability to manage all key lipids
to save the lives of people with heart disease and high cholesterol.
In the United States, the market for "statin" medicines continues to
expand at about 20% a year. Opportunities for growth still remain because only
about 40% of Americans with heart disease take a prescription
cholesterol-lowering medicine.
COZAAR and HYZAAR for high blood pressure are the world's most widely
prescribed medicines in the angiotensin II antagonist class. Growth continues as
physicians recognize the excellent efficacy and tolerability of these two
products. That fact is reflected in $405 million in sales for this quarter, a
16% increase over 1999 third quarter sales. The Company has a number of trials
underway to evaluate the medicines' effectiveness in improving survival and
reducing disability associated with hypertension, diabetic kidney disease and
recent heart attacks.
FOSAMAX, the leading product worldwide for treatment of postmenopausal
osteoporosis, is available in more than 100 countries and continues to show
outstanding growth. Sales totaled $360 million this quarter, 29% over the same
quarter in 1999. The Company has submitted applications to regulatory agencies
worldwide, including the United States, for approval of an innovative
once-weekly formulation. This novel dosage form already has been approved and
launched in a number of smaller markets around the world and has been rapidly
accepted by patients and physicians. The Company also received FDA approval in
September to market FOSAMAX to increase bone mass in men with osteoporosis.
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SINGULAIR, Merck's nonsteroidal oral asthma controller drug, had the
most successful launch of any asthma medicine in history and continues to show
strong growth in all markets in which it has been introduced. Sales for this
quarter were $235 million, up 81% compared to the same quarter in 1999.
SINGULAIR is now the most prescribed asthma controller therapy among
U.S. pediatricians and allergists. SINGULAIR effectively helps control asthma
and is a convenient, nonsteroidal, once-a-day tablet. Regulatory approvals for
use of SINGULAIR in asthmatic children ages 2 to 5 have been received in the
United States and several countries in Latin America and approvals are pending
in countries worldwide. Therapeutic choices to treat asthma in this
difficult-to-treat age group have been limited in the past, due in part to the
difficulty of administering inhaled therapies to young children and parental
concerns about steroidal medications.
Merck-Medco, the nation's largest provider of pharmacy services,
continues to grow rapidly. More clients than ever are ordering prescriptions
through merckmedco.com, the world's leading online pharmacy: the site processed
a record 100,000 prescriptions per week in September. Merckmedco.com now fills
more prescriptions than all of the other online pharmacies combined.
Merck-Medco has grown significantly this year, gaining new clients
from two important sources: 5 million people through the June acquisition of the
pharmacy benefits manager ProVantage, and 9 million out of the 10 million people
served by the UnitedHealth Group. Merck-Medco expects to integrate the remaining
1 million UnitedHealth Group plan members in the near future.
In commenting on its outlook for the remainder of the year, the Company
confirms that it is comfortable with the current analyst range on First Call for
its fourth-quarter 2000 earnings per share of $0.73 to $0.76.
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Merck & Co., Inc. is a leading research-driven pharmaceutical products
and services 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. Merck-Medco Managed Care manages pharmacy
benefits for employers, insurers and other plan sponsors, encouraging the
appropriate use of medicines and providing disease management programs. Through
these complementary capabilities, Merck works to improve quality of life and
contain overall health-care costs.
This press release contains "forward-looking statements" as that term
is defined in the Private Securities Litigation Reform Act of 1995. The
forward-looking statements include statements regarding the Company's expected
growth rates. No forward-looking statement can be guaranteed and actual results
may differ materially from those projected. Additional detailed information
concerning a number of factors that could cause actual results to differ
materially is readily available in Item 1 of the Company's Annual Report on Form
10-K for the year ended December 31, 1999, in its periodic reports on Form 10-Q
and in its reports on Form 8-K (if any).
Copies of these forms are available on request to Merck's Office of
Stockholder Services.
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The following tables show the financial results for Merck & Co., Inc.
and subsidiaries for the quarter and nine months ended September 30, 2000,
compared with the corresponding periods of the prior year.
<TABLE>
<CAPTION>
(In Millions Except Earnings
per Common Share)
Quarter Ended September 30
--------------------------------------------
%
2000 1999 Change
---- ---- ------
<S> <C> <C> <C>
Sales $10,567.5 $8,195.7 +29%
Costs, Expenses and Other
Materials and production 5,952.5 4,365.9 +36%
Marketing and Administrative 1,512.8 1,272.7 +19%
Research and development 609.8 516.0 +18%
Acquired Research -- 51.1
Equity income from affiliates (219.4) (227.1) -3%
Other (income) expense, net 70.2 (17.6)
Income Before Taxes 2,641.6 2,234.7 *
Taxes on Income 805.7 695.1
Net Income 1,835.9 1,539.6 +19%
Basic Earnings per Common Share $0.80 $0.65 +23%
Earnings per Common Share $0.78 $0.64 +22%
Assuming Dilution
Average Shares Outstanding 2,299.4 2,343.0
Average Shares Outstanding 2,342.9 2,394.4
Assuming Dilution
</TABLE>
* Normalized for one-time events occurring in the third quarter 1999, growth
of "Income Before Taxes" for the quarter ended September 30, 2000 was 20%.
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<TABLE>
<CAPTION>
(In Millions Except Earnings per Common Share)
9 Months Ended September 30
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%
2000 1999 Change
---- ---- ------
<S> <C> <C> <C>
Sales $28,895.9 $23,750.6 +22%
Costs, Expenses and Other
Materials and production 15,872.9 12,890.2 +23%
Marketing and administrative 4,393.5 3,611.3 +22%
Research and development 1,681.5 1,440.5 +17%
Acquired Research -- 51.1
Equity income from affiliates (619.5) (581.5) +7%
Other (income) expense, net 254.5 (69.1)
Income Before Taxes 7,313.0 6,408.1 *
Taxes on Income 2,255.7 2,090.8
Net Income 5,057.3 4,317.3 +17%
Basic Earnings per Common Share $2.19 $1.83 +20%
Earnings per Common Share $2.15 $1.79 +20%
Assuming Dilution
Average Shares Outstanding 2,306.7 2,353.6
Average Shares Outstanding 2,351.6 2,410.1
Assuming Dilution
</TABLE>
* Normalized for one-time events occurring in 1999 and 2000, growth of
"Income Before Taxes" for the nine months ended September 30, 2000 was 18%.
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