-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HISBTrNYqZd6te2HyEDmdfNyJJQp9GRagFgsf9aMB0XnTWBhzONx8K3S1h+Pmjv1 DdEFMCOf8FxsHAQlHlzQdw== 0000950123-02-011651.txt : 20021209 0000950123-02-011651.hdr.sgml : 20021209 20021209160008 ACCESSION NUMBER: 0000950123-02-011651 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021209 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20021209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERCK & CO INC CENTRAL INDEX KEY: 0000064978 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 221109110 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03305 FILM NUMBER: 02852375 BUSINESS ADDRESS: STREET 1: ONE MERCK DR STREET 2: P O BOX 100 CITY: WHITEHOUSE STATION STATE: NJ ZIP: 08889-0100 BUSINESS PHONE: 9084234044 MAIL ADDRESS: STREET 1: ONE MERCK DR STREET 2: PO BOX 100 WS3AB-05 CITY: WHITEHOUSE STATION STATE: NJ ZIP: 08889-0100 8-K 1 y66562e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) December 9, 2002 ------------------------- MERCK & CO., Inc. - ------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) New Jersey - ------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-3305 22-1109110 - ------------------------------- ------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) One Merck Drive, PO Box 100, Whitehouse Station, NJ 08889-0100 - ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (908) 423-1000 ------------------------- Item 7. Financial Statements and Exhibits - ----------------------------------------- (c) Exhibits -------- Exhibit 99 Press release issued December 9, 2002 Filed with by Medco Health Solutions, Inc., a this document wholly-owned subsidiary of the Registrant Item 9. Regulation FD Disclosure - -------------------------------- Incorporated by reference is a press release issued by Medco Health Solutions, Inc., a wholly-owned subsidiary of the Registrant on December 9, 2002, attached as Exhibit 99. This information is not "filed" pursuant to the Securities Exchange Act and is not incorporated by reference into any Securities Act registration statements. Additionally, the submission of this report on Form 8-K is not an admission as to the materiality of any information in this report that is required to be disclosed solely by Regulation FD. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MERCK & CO., Inc. Date: December 9, 2002 By: /s/ Debra A. Bollwage -------------------------- DEBRA A. BOLLWAGE Assistant Secretary EXHIBIT INDEX ------------- Exhibit Number Description - ------- ----------- 99 Press release issued December 9, 2002 by Medco Health Solutions, Inc., a wholly-owned subsidiary of the Registrant EX-99 3 y66562exv99.txt PRESS RELEASE [MEDCOHEALTH LOGO] Exhibit 99 NEWS RELEASE - ------------------------------------------------------------------------------- Contact: Jeffrey Simek 201-269-6400 jeffrey_simek@medcohealth.com MEDCO HEALTH PROPOSES SETTLEMENT OF ERISA-RELATED CLASS ACTION CASES FRANKLIN LAKES, N.J., DEC. 9, 2002 - Medco Health Solutions, Inc., the nation's leading provider of prescription healthcare services, has agreed to settle a series of ERISA-related class-action lawsuits, the company announced today. Under the terms of the proposed settlement, which requires the approval of the U.S. District Court for the Southern District of New York, plaintiffs will release various legal claims against Medco Health and Merck & Co., Inc. - without any admission of liability by either company - in return for financial compensation to eligible members of the settlement class. That class includes ERISA plans for which Medco Health has administered a pharmacy benefit at any time since Dec. 17, 1994. "Our primary responsibility is to provide high-quality prescription healthcare services to our 65 million members nationwide. Although we are prepared to proceed with this litigation - and expect that we would prevail -- this proposed settlement enables our employees to remain focused on service to our clients and members, and averts the potential distractions of a protracted lawsuit," said Richard T. Clark, president, chairman and CEO, Medco Health, a wholly owned and independently managed subsidiary of Merck & Co., Inc. (NYSE: MRK). "This is a pragmatic resolution in the best interest of all parties." The settlement, agreed to by plaintiffs in five of the six initial lawsuits filed against Medco Health, was presented today to U.S. District Court Judge Charles Brieant and filed with the court. Medco Health clients and class members affected by the proposed settlement are not required to take any immediate action. If the settlement receives preliminary approval, they will receive further instructions on how they could participate in the settlement or, if they choose, opt out of the settlement. The court will also hold a hearing and consider objections to the settlement. Final resolution of the legal matter is expected to take several months. In addition to cash compensation of $42.5 million, under the proposed settlement Medco Health has voluntarily agreed to modify or continue certain business processes that are designed to ensure clients have an even greater understanding of, and realize maximum value for, their investment in pharmacy healthcare services. The practices include, among other items, keeping clients regularly updated on changes to standard formularies and providing notice when generic equivalents to branded pharmaceuticals become available on the market. They also include affirmatively notifying clients of new proposed therapeutic interchanges when they involve an interchange of a lower-cost drug to a higher-cost drug on an AWP basis. In these situations, Medco Health will provide clients with information on the AWP of each drug and cost of each drug after ingredient cost discounts and formulary rebates. Clients will have the opportunity to decline participation in that particular interchange. "We are optimistic that the court will approve this settlement plan and look forward to the final disposition of these cases," said Clark. Upon final approval, the settlement would resolve nearly all pending and potential litigation by plans against Medco Health and Merck based on ERISA and similar claims, for events occurring up to the date of the settlement. Only those claims by plans that affirmatively opt out of the settlement would survive. The class-action lawsuits challenged Medco Health's position under ERISA, the Employee Retirement Income Security Act. Under ERISA, those with responsibility for overseeing certain benefit plans - such as retirement plans and health insurance plans - are known as "fiduciaries," who are obligated to ensure that decisions are made in the best interest of the plans and plan members. Medco Health has contractual and indirect relationships with many plan fiduciaries or plan sponsors. However, Medco Health believes that it is not a fiduciary under ERISA as the plaintiffs asserted, and this settlement does not change that position. Medco Health has always maintained that the plaintiffs' claims were without merit. ABOUT MEDCO HEALTH Medco Health Solutions, Inc., (www.medcohealth.com) is the nation's leading provider of prescription healthcare services, based on the $29 billion in drug spend the company managed for its clients in 2001. Formerly known as Merck-Medco, Medco Health is a wholly owned and independently managed subsidiary of Merck & Co., Inc., and assists its clients to moderate the cost and enhance the quality of prescription drug benefits provided to 65 million Americans nationwide. This press release 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 obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this document should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the cautionary statements in Item 1 of Merck & Co., Inc.'s Form 10-K for the year ended Dec. 31, 2001, and in its periodic reports on Form 10-Q and Form 8-K (if any) which are incorporated by reference. # # # -----END PRIVACY-ENHANCED MESSAGE-----