Bakry Al-kafMatteo Nebiolo Vietti

IndexAbout Merck.

Merck’s Programs.

Today’s Merck.

The Global Pharmaceutical Industry.

Financial information.

About Merckglobal research-driven pharmaceutical

company

Originally founded in 1668 in Germany.

Established in 1891 in U.S.A.

Its commitment to help all patients obtain access to the Merck medicines they need.

Merck ProgramsMerck Patient Assistance Program.

Free medicines.1.5 million prescriptions.Medicines for chronic conditions.

Merck Prescription Discount Program. For the uninsured. Saving of 15% to 20% off. Easy to access.

Merck's HIV research Program.

Merck Medical Outreach Program.

Merck's Contributionin Haiti Relief Efforts

In response to this disaster.

Initial contribution.

Donating needed medicines.

Participation on the ground.

Our Products

Vaccines Prescription Products

Animal HealthConsumer Products

From Laboratoryto Pharmacy ShelfDrug Discovery

Preclinical Testing

Investigational New Drug (IND) Application

Clinical TrialsPhase IPhase IIPhase IIIPhase IV

Approval Review

The Pharmaceutical Industry

Value Chain

Current StrategiesMerger with Schering-Plough.

Job cuts follows the merger.

Biotech medications.

acquisition. ( Merck buys Avecia)

Diversification.

Innovation.

Risks

Vioxx lawsuits issue.Withdrawn in 2004.4 billion Settlement agreement charge.

Certain of the Company’s products are going to lose patent protection.

Competitors COMPANY COUNTRY TOTAL REV M USD % R&D

Switzerland 53,324 - 13%

USA 48,371 – 1 6%

Bayer Germany 44,2 - 4%

GlaxoSmithKline United Kingdom - 42,813 - 15%

Johnson and Johnson USA 37,02 - 14%

Sanofi-Aventis France 35,645 - 16%

Switzerland 33,547 - 16%

AstraZeneca UK/Sweden 26,475 - 15%

Merck & Co. USA 22,636 - 21%

Competitors

Novar

tis

Pfize

r

Bayer

Glaxo

Smith

Kline

John

son

and

John

son

Sano

fi-Ave

ntis

Hoffm

ann–

La R

oche

Astra

Zenec

a

Merck

& C

o.

53.324

48.371

44.242.813

37.0235.645

33.547

26.475

22.636

Total Revenues (USD millions)

Total Revenues (USD millions)

Competitors

Novar

tis

Pfize

r

Bayer

Glaxo

Smith

Kline

John

son

and

John

son

Sano

fi-Ave

ntis

Hoffm

ann–

La R

oche

Astra

Zenec

a

Merck

& C

o.

0%

5%

10%

15%

20%

25%

% of revenues

Financial InformationAnnual Sales ($m)

2004 2005 2006 2007 2008 200920,500.00

21,000.00

21,500.00

22,000.00

22,500.00

23,000.00

23,500.00

24,000.00

24,500.00

22,972.80

22,011.90

22,636.00

24,197.70

23,850.30

Financial InformationMaterial and Production Cost ($m)

2004 2005 2006 2007 2008 20090.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

4,965.70

5,149.60

6,001.10 6,140.70

5,582.50

Financial InformationNet income as a % of sales

2004 2005 2006 2007 2008 20090.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

25.38%

21.04%19.59%

13.54%

32.74%

Current StrategiesHIV chronological disease

Despite critics referring to Robert Gallo.

We won’t follow Italian/European HIV strategy even if we could (2007).Don’t create definitive vaccine with

stem cellsWe make more money using Protease

Inhibitors

FDA faster than EU bureacracy

Same for cancer

Current Strategies

Thank youand

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