EX-99.B 4 y82807exv99wb.txt CERTAIN SUPPLEMENTAL INFORMATION Exhibit 99(b) MERCK & CO., INC. CONSOLIDATED FOURTH QUARTER
4Q `02 4Q `01 % CHG. ----------- ----------- ------ TOTAL SALES $ 13,918.4 $ 12,558.0 11% ----------- ----------- TOTAL COSTS, EXPENSES, & OTHER $ 11,218.6 $ 9,899.5 ----------- --------- Materials & Production 8,700.1 7,642.4 Marketing & Administrative 1,681.5 1,555.4 Research & Development 838.8 716.4 Equity Income From Affiliates (94.0) (128.2) Other (Income)/Expense, Net 92.2 113.5 PRE-TAX INCOME $ 2,699.8 $ 2,658.5 TAXES $ 810.0 $ 797.6 TAX RATE 30.0% 30.0% NET INCOME $ 1,889.8 $ 1,860.9 2% EPS - ASSUMING DILUTION $ 0.83 $ 0.81 2% AVG. # SHARES - ASSUMING DILUTION 2,264.1 2,301.0
4Q `02 % CHG. VOL PX FX ------ ------- --- -- -- TOTAL SALES $13,918 11% 5 5 1 -------- --- -- -- - Total Pharmaceutical Sales 6,058 8% 9 -2 1 ------ -- -- --- - U.S. 3,652 5% 6 -1 0 Foreign 2,406 14% 14 -3 3 Other Medco Sales 7,860 13%
Exhibit 99(b) MERCK & CO., INC. CONSOLIDATED FULL YEAR
2002 2001 % CHG. ----------- ------------ ------ TOTAL SALES $ 51,790.3 $ 47,715.7 9% ----------- ----------- TOTAL COSTS, EXPENSES, & OTHER $ 41,576.7 $ 37,313.1 ----------- ---------- Materials & Production 33,053.6 28,976.5 Marketing & Administrative 6,186.8 6,224.4 Research & Development 2,677.2 2,456.4 Equity Income From Affiliates (644.7) (685.9) Other (Income)/Expense, Net 303.8 341.7 PRE-TAX INCOME $ 10,213.6 $ 10,402.6 TAXES $ 3,064.1 $ 3,120.8 TAX RATE 30.0% 30.0% NET INCOME $ 7,149.5 $ 7,281.8 -2% EPS - ASSUMING DILUTION $ 3.14 $ 3.14 0% AVG. # SHARES - ASSUMING DILUTION 2,277.0 2,322.3
2002 % CHG. VOL PX FX ---- ------ --- -- -- TOTAL SALES $ 51,790 9% 3 6 0 -------- -- -- -- - Total Pharmaceutical Sales 21,631 1% 2 -1 0 ------- -- -- --- - U.S. 13,342 -2% -3 1 0 Foreign 8,289 7% 11 -3 -1 Other Medco Sales 30,159 14%
Exhibit 99(b) MERCK & CO., INC. OTHER FINANCIAL DISCLOSURES FOURTH QUARTER 2002 OTHER (INCOME)/EXPENSE, NET
4Q `02 4Q `01 YTD 2002 YTD 2001 ------ ------ -------- -------- INTEREST INCOME $ (108.1) $ (109.8) $ (419.3) $ (490.1) INTEREST EXPENSE 98.1 109.5 390.8 464.7 EXCHANGE (GAINS)/LOSSES (18.7) 15.1 (7.8) (3.5) MINORITY INTERESTS 44.5 72.3 214.2 290.6 AMORTIZATION OF GOODWILL AND INTANGIBLES 51.3 85.3 204.9 330.1 Other, net 25.1 (58.9) (79.0) (250.1) -------- -------- --------- -------- TOTAL $ 92.2 $ 113.5 $ 303.8 $ 341.7
JOINT VENTURE SALES DETAIL All sales reported here are end-market JV sales, presented on a "NET" basis, rounded to the nearest $5 million.
MERIAL 4Q `02 4Q `01 YTD 2002 YTD 2001 ------ --------- --------- ---------- -------- IVOMEC, HEARTGARD, other avermectins $ 115 $ 130 $ 465 $ 495 FRONTLINE 75 70 485 410 Biologicals 100 100 375 355 Other Animal Health 50 45 180 190 Poultry Genetics 55 55 220 210 --------- --------- ---------- -------- TOTAL MERIAL SALES $ 395 $ 400 $ 1,725 $ 1,660 Aventis Pasteur-MSD 4Q `02 4Q `01 YTD 2002 YTD 2001 ------------------- --------- --------- ---------- -------- HEPATITIS VACCINES $ 20 $ 20 $ 70 $ 90 VIRAL VACCINES 10 5 35 40 Other Vaccines 115 105 440 370 --------- --------- ---------- -------- TOTAL AP-MSD SALES $ 145 $ 130 $ 545 $ 500
Merck / Schering-Plough Collaboration 4Q `02 4Q `01 YTD 2002 YTD 2001 ------------------------------------- ------ ------ -------- -------- Zetia (Worldwide) $ 25 N/M $ 25 N/M TOTAL $ 25 N/M $ 25 N/M
TOTAL MEDCO PRESCRIPTION/CLAIMS VOLUME (IN MILLIONS) 2002
MAIL RETAIL TOTAL ---- ------ ----- FIRST QUARTER 20 121 141 SECOND QUARTER 21 119 140 THIRD QUARTER 20 110 130 FOURTH QUARTER 21 117 138 ---- ------ ----- YEAR TO DATE 82 467 549
2001
MAIL RETAIL TOTAL FIRST QUARTER 18 120 138 SECOND QUARTER 19 115 134 THIRD QUARTER 18 110 128 FOURTH QUARTER 20 117 137 ---- ------ ----- YEAR TO DATE 75 462 537
Exhibit 99(b) MERCK & CO., INC. ADDITIONAL DISCLOSURE MERCK CORE PHARMACEUTICALS BUSINESS ON A STAND-ALONE BASIS FOURTH QUARTER
4Q `02 4Q `01 % CHG. -------- -------- -------- TOTAL SALES $6,057.7 $5,571.6 9% -------- -------- TOTAL COSTS, EXPENSES, & OTHER $3,479.2 $3,034.6 -------- -------- Materials & Production 1,125.7 958.7 Marketing & Administrative 1,538.4 1,421.1 Research & Development 838.8 716.4 Equity Income From Affiliates (94.0) (128.2) Other (Income)/Expense, Net 70.3 66.6 PRE-TAX INCOME $2,578.5 $2,537.0 TAXES $ 763.3 $ 738.3 TAX RATE 29.6% 29.1% NET INCOME $1,815.2 $1,798.7 1%
The above table reflects financial results for Merck & Co., Inc. on a stand-alone basis, excluding the results of Medco Health Solutions operations. Included in the above amounts are the necessary adjustments relating to transactions between Merck and Medco to put Merck on a stand-alone basis. Accordingly, the stand-alone financial results of Merck (excluding Medco) and Medco Health Solutions, when combined, are not reflective of Merck's consolidated financial results. Exhibit 99(b) MERCK & CO., INC. ADDITIONAL DISCLOSURE MERCK CORE PHARMACEUTICALS BUSINESS ON A STAND-ALONE BASIS FULL YEAR
2002 2001 % CHG. --------- --------- --------- TOTAL SALES $21,445.8 $21,199.0 1% --------- --------- TOTAL COSTS, EXPENSES, & OTHER $11,794.1 $11,250.9 --------- --------- Materials & Production 3,907.1 3,624.8 Marketing & Administrative 5,652.2 5,700.6 Research & Development 2,677.2 2,456.4 Equity Income From Affiliates (644.7) (685.9) Other (Income)/Expense, Net 202.3 155.0 PRE-TAX INCOME $ 9,651.7 $ 9,948.1 TAXES $ 2,856.9 $ 2,894.9 TAX RATE 29.6% 29.1% NET INCOME $ 6,794.8 $ 7,053.2 -4%
The above table reflects financial results for Merck & Co., Inc. on a stand-alone basis, excluding the results of Medco Health Solutions operations. Included in the above amounts are the necessary adjustments relating to transactions between Merck and Medco to put Merck on a stand-alone basis. Accordingly, the stand-alone financial results of Merck (excluding Medco) and Medco Health Solutions, when combined, are not reflective of Merck's consolidated financial results. Exhibit 99(b) MERCK & CO., INC. ADDITIONAL DISCLOSURE MEDCO HEALTH SOLUTIONS, INC. FOURTH QUARTER
4Q `02 4Q `01 % CHG. -------- -------- -------- NET REVENUES $8,539.6 $7,675.1 11% -------- -------- Product Net Revenues 8,440.6 7,579.8 Service Revenues 99.0 95.3 COST OF OPERATIONS $8,356.6 $7,535.7 -------- -------- Cost of Product Net Revenues 8,132.8 7,295.6 Cost of Service Revenues 46.2 46.7 -------- -------- Cost of Revenues 8,179.0 7,342.3 Selling, General and Admin 156.9 146.5 Amortization of Goodwill & Intangibles 21.2 47.9 Other (Income)/Expense, Net (0.5) (1.0) PRE-TAX INCOME $ 183.0 $ 139.4 TAXES $ 75.8 $ 70.4 TAX RATE 41.4% 50.5% NET INCOME $ 107.2 $ 69.0 55%
NOTE 1: Included in product net revenues and cost of product net revenues are retail copayments of approximately $1,652.4 million and $1,455.4 million for the fourth quarter of 2002 and 2001, respectively. The retail copayments are recorded as revenue because under Medco Health's contracts with its clients and affiliated retail pharmacies, Medco Health is principally responsible for managing the entire drug transaction, including the copayment. It is also important to note that for each copayment included in Medco Health's revenues there is a corresponding offset as a cost of revenues, so net income is not affected by this accounting. NOTE 2: Included in cost of operations is depreciation of $55.6 million and $32.5 million for the fourth quarter 2002 and 2001, respectively. Exhibit 99(b) MERCK & CO., INC. ADDITIONAL DISCLOSURE MEDCO HEALTH SOLUTIONS, INC. FULL YEAR
2002 2001 % CHG. --------- --------- --------- NET REVENUES $32,958.5 $29,070.6 13% --------- --------- Product Net Revenues 32,573.0 28,709.3 Service Revenues 385.5 361.3 TOTAL COSTS, EXPENSES, & OTHER $32,338.2 $28,552.3 --------- --------- Cost of Product Net Revenues 31,483.9 27,601.2 Cost of Service Revenues 173.8 185.5 --------- --------- Cost of Revenues 31,657.7 27,786.7 Selling, General and Admin 587.7 578.4 Amortization of Goodwill & Intangibles 84.9 191.8 Other (Income)/Expense, Net 7.9 (4.6) PRE-TAX INCOME $ 620.3 $ 518.3 TAXES $ 258.7 $ 261.8 TAX RATE 41.7% 50.5% NET INCOME $ 361.6 $ 256.5 41%
NOTE 1: Included in product net revenues and cost of product net revenues are retail copayments of approximately $6,456.8 million and $5,537.5 million for 2002 and 2001, respectively. The retail copayments are recorded as revenue because under Medco Health's contracts with its clients and affiliated retail pharmacies, Medco Health is principally responsible for managing the entire drug transaction, including the copayment. It is also important to note that for each copayment included in Medco Health's revenues there is a corresponding offset as a cost of revenues, so net income is not affected by this accounting. NOTE 2: Included in cost of operations is depreciation of $172.5 million and $132.1 million for 2002 and 2001, respectively. Exhibit 99(b)
MERCK & CO., INC. NET PRODUCT SALES DETAIL ------------------------------------------------------------- 4Q `02 vs. 4Q `01 ------------------------------------------------------------- TOTAL TOTAL U.S. U.S. FOREIGN FOREIGN PRODUCT % CHG $ % CHG $ % CHG $ ------- ------ ----- ------ ------- ------- VIOXX -25% $ 385 -54% $ 150 27% $ 235 ARCOXIA N/M 10 N/M -- N/M 10 VASOTEC/VASERETIC -16% 210 N/M -- -9% 210 PRINIVIL/PRINZIDE -94% 10 -97% 5 -80% 5 COZAAR/HYZAAR 52% 685 122% 300 22% 385 MEVACOR -64% 20 -100% -- -20% 20 ZOCOR 2% 1,740 -5% 1,085 18% 655 AGGRASTAT 14% 40 0% 20 33% 20 SINGULAIR 57% 510 66% 390 33% 120 MAXALT 64% 90 100% 70 0% 20 PROPECIA 20% 60 25% 25 17% 35 PROSCAR 6% 165 0% 85 14% 80 PRIMAXIN 9% 175 40% 70 -5% 105 INVANZ N/M 5 N/M 5 N/M -- CANCIDAS 167% 40 100% 20 N/M 20 PEPCID N/M 15 N/M 10 -50% 5 FOSAMAX 62% 695 54% 455 78% 240 CRIXIVAN/STOCRIN 25% 75 N/M 30 -18% 45 TIMOPTIC/TIMOPTIC XE 0% 40 N/M 5 -13% 35 TRUSOPT/COSOPT 4% 120 0% 50 8% 70 HEPATITIS VACCINES 10% 55 25% 50 -50% 5 VIRAL VACCINES 47% 125 53% 115 0% 10 OTHER VACCINES N/M 80 N/M 70 N/M 10
NOTE: Product sales rounded to the nearest $5 million. N/M - Not Meaningful Exhibit 99(b)
MERCK & CO., INC. NET PRODUCT SALES DETAIL -------------------------------------------------------------------- FULL YEAR 2002 OVER 2001 -------------------------------------------------------------------- TOTAL TOTAL U.S. U.S. FOREIGN FOREIGN PRODUCT % CHG $ % CHG $ % CHG $ ----- ------ ----- ------ ------- ------- VIOXX 8% $2,530 1% $1,705 24% $ 825 ARCOXIA N/M 30 N/M -- N/M 30 VASOTEC/VASERETIC -24% 790 -100% -- -14% 790 PRINIVIL/PRINZIDE -32% 480 -33% 410 -26% 70 COZAAR/HYZAAR 21% 2,190 34% 935 13% 1,255 MEVACOR -60% 110 -76% 45 -24% 65 ZOCOR 6% 5,580 1% 3,325 14% 2,255 AGGRASTAT 0% 115 -21% 55 33% 60 SINGULAIR 19% 1,505 14% 1,090 32% 415 MAXALT 26% 295 26% 220 25% 75 PROPECIA 2% 215 -5% 100 10% 115 PROSCAR 1% 550 -2% 270 4% 280 PRIMAXIN 0% 585 12% 185 -5% 400 INVANZ N/M 15 N/M 10 N/M 5 CANCIDAS 163% 105 100% 60 N/M 45 PEPCID -80% 55 -89% 25 -50% 30 FOSAMAX 38% 2,250 34% 1,530 48% 720 CRIXIVAN/STOCRIN -25% 290 -28% 105 -23% 185 TIMOPTIC/TIMOPTIC XE -18% 165 -38% 25 -13% 140 TRUSOPT/COSOPT 5% 425 0% 185 -23% 170 HEPATITIS VACCINES -12% 225 -11% 195 -14% 30 VIRAL VACCINES 11% 555 15% 530 -38% 25 OTHER VACCINES N/M 245 N/M 205 N/M 40
NOTE: Product sales rounded to the nearest $5 million. N/M - Not Meaningful