Merck & Company, Inc. · NYSE:MRK
Merck & — Investor Presentation (October 2001)
20 slides from Merck &'s investor presentation, Oct 24, 2001
Slide 1: Merck
¢@ MERCK
Slide 2: Our Strategy
Merck & Co., Inc. Our Strategy + Discover new medicines through breakthrough research « Demonstrate their value to physicians, payors and patients « Achieve top tier growth company status
Slide 3: 9 Months YTD 2001 Results
Merck & Co., Inc. 9 Months YTD 2001 Results ($ Billions except EPS) Worldwide Sales Materials and Production Research and Development Marketing and Administrative Other Income Taxes Net Income Earnings per Share Sales Components: Volume: 17% 2001 % Change $ 35.1 22% 21.3 17 47 (3) 2.3 $5.4 7% $ 2.33
Slide 4: What Will Drive Merck's Future Growth
What Will Drive Merck’s Future Growth Productive research Innovative and targeted marketing programs will allow us to capture the value of our research Strong ongoing performance of our major key franchises Strong earnings growth — reflecting strong revenue growth derived from targeted marketing pro
Slide 5: Demonstrated Research Productivity
Demonstrated Research Productivity CRIXIVAN FOSAMAX FIT Study ZOCOR4S Study VAQTA 1994 1996 | | 1995 1997 COZAARIHYZAAR COMVAX FOSAMAX VARIVAX TRUSOPT PEPCID AC SINGULAIR PROPECIA COSOPT AGGRASTAT MAXALT VIOXX VIGOR Study 1998 2000 1999 2661 VIOXX CANCIDAS STOCRIN
Slide 6: Demonstrated Research Productivity
Demonstrated Research Productivity SINGULAIR PROPECIA CRIXIVAN COSOPT FOSAMAX FIT Study = AGGRASTAT ZOCOR AS Study = VAQTA MAXALT VIOXX VIGOR Study 1994 1996 1998 2000 L dos 1997 1999 2601 COZAARIHYZAAR COMVAX VIOXX CANCIDAS FOSAMAX STOCRIN VARIVAX TRUSOPT PEPCID AC Il Five product franchises are ke
Slide 7: Five Key Growth Drivers - Over 65% of Product Sales
Five Key Growth Drivers - Over 65% of Product Sales , — Cl | SINGULAIR ll FOSAMAX VIOXX i COZAAR/HYZAAR ZOCOR MOTHER
Slide 8: Five Key Growth Drivers
Five Key Growth Drivers Product 2001 Sales Range Zocor $6.5 - 6.7 billion Vioxx $2.5 - 2.7 billion Cozaar & $1.8 - 2.0 billion Hyzaar Fosamax $1.5 - 1.7 billion Singulair $1.2 - 1.4 billion 5 key products grew nearly 30% over 9 months YTD 2000 sales
Slide 9: Five Key Growth Drivers - Significant Market Potential
Five Key Growth Drivers - Significant Market Potential Zocor Merck's largest selling product - a cholesterol modifying agent U.S. patient population 40 million Vioxx World's fastest growing arthritis medicine U.S. patient population 86 million Cozaar & World’s most widely prescribed AIlAs for hypert
Slide 10: Marketing Efforts
Marketing Efforts * 12 products with sales > $500 million in 2000 — Nearly twice the industry average « Large opportunities in under-treated and dissatisfied markets — Double digit growth in markets where Merck drugs compete « US sales force size has more than tripled since 1996 — Hired 1000 new sal
Slide 11: Research & Development
Research & Development + Invested more than $15 billion in R&D over the past 10 years « Estimated 2001 expense of $2.5 billion « New or expanded facilities at 7 global sites — Ongoing development of new site in Boston « Number of employees involved in R&D has grown 65% since 1995 — Over 10,000 R&D e
Slide 12: Disclosed Development Pipeline
Disclosed Development Pipeline NDA Submitted Field USS. Market Size INVANZ Injectable Antibiotic $3 billion Pipeline Field USS. Patient Population MK-663 (etoricoxib) Arthritis and Pain 86,000,000 Ezetimibe* Cholesterol 40,000,000 MK-869 Emesis 200,000 ZOCOR ezetimibe* Cholesterol 40,000,000 SINGULA
Slide 13: Successful Experience in Partnering
Successful Experience in Partnering COZAARIHYZAAR FOSAMAX NOROXIN PRILOSEC VARIVAX PEPCID comvax —-RECOMBVAN. NEXIUM Over 1/3 of current human health sales are from external research efforts
Slide 14: Continued Strength of Partnerships in Key Areas of Science
Continued Strength of Partnerships in Key Areas of Science CSL Schering-Plough CHOPMistar Institute Enabling/Platfort Technologies DoubleTwist Aurora OGS Celiomics incyte Proteome Array BioPharma Crucell
Slide 15: Innovative Alliances
Innovative Alliances Pharmaceuticals Pharmaceuticals * Three late-stage products: ezetimibe, ZOCOR/ezetimibe, SINGULAIR/Claritin + Co-promotion of new medicines resulting from partnership + Equal ownership and independent management
Slide 16: Continuing to Lead in Cutting Edge Science
Continuing to Lead in Cutting Edge Science Sibia Neurosciences * $90 million acquisition * Strengthens CNS drug discovery research capability Rosetta Inpharmatics * $540 million acquisition * Enhances drug discovery research capabilities in genomics Growth through cutting edge scientific partnership
Slide 17: Merck-Medco: Innovative Programs to Assist in Managing Pharmaceutical Costs
Merck-Medco: Innovative Programs to Assist in Managing Pharmaceutical Costs + GenericsFirst - nationwide sampling/education program to promote the use of generic drugs + The Internet - use of technology to improve safety and service for patients and reduce costs for payors — > 8,000 physicians conne
Slide 18: Financial Attributes
Financial Attributes + > 90% of Net Income has been returned to shareholders through Treasury Stock purchases and dividends since 1991 + Purchases continue under the February 2000 $10 billion Treasury stock buyback program — $3.6 billion year to date purchases through September 2001 — $4.0 billion r
Slide 19: Summary
Summary * Committed to delivering growth through innovative research « Marketing — Five key growth franchises with unique-in-class attributes — Large opportunities in under-treated and dissatisfied markets « Research & Development — Demonstrated product discovery and development capability — Continu
Slide 20: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligatio