MRK
$65.54
Merck &
($.38)
(.58%)
Earnings Details
1st Quarter March 2017
Tuesday, May 02, 2017 6:45:02 AM
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Summary

Merck & Beats

Merck & (MRK) reported 1st Quarter March 2017 earnings of $0.88 per share on revenue of $9.4 billion. The consensus earnings estimate was $0.83 per share on revenue of $9.3 billion. The Earnings Whisper number was $0.85 per share. Revenue grew 1.3% on a year-over-year basis.

The company said it continues to expect 2017 earnings of $3.76 to $3.88 per share on revenue of $39.10 billion to $40.30 billion. The company's previous guidance was earnings of $3.72 to $3.87 per share on revenue of $38.60 billion to $40.10 billion and the current consensus earnings estimate is $3.83 per share on revenue of $39.75 billion for the year ending December 31, 2017.

Merck & Co Inc is a health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products.

Results
Reported Earnings
$0.88
Earnings Whisper
$0.85
Consensus Estimate
$0.83
Reported Revenue
$9.43 Bil
Revenue Estimate
$9.26 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Merck Announces First-Quarter 2017 Financial Results

First-Quarter 2017 GAAP EPS Was $0.56; First-Quarter Non-GAAP EPS Was $0.88

Company Narrows and Raises 2017 Full-Year Revenue Range to be Between $39.1 Billion and $40.3 Billion, Including an Approximately 1.5 Percent Negative Impact from Foreign Exchange

Company Narrows and Raises 2017 Full-Year GAAP EPS Range to be Between $2.51 and $2.63; Narrows and Raises 2017 Full-Year Non-GAAP EPS Range to be Between $3.76 and $3.88, Including an Approximately 1.5 Percent Negative Impact from Foreign Exchange

KEYTRUDA Development Program Advances with Two Additional Regulatory Approvals and CHMP Positive Opinion; Four sBLAs Currently Under Priority Review with PDUFA Action Dates in Second Quarter

Merck (MRK), known as MSD outside the United States and Canada, today announced financial results for the first quarter of 2017.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170502005767/en/

"Merck delivered solid performance across our broad range of products that address major disease categories and the needs of global health," said Kenneth C. Frazier, chairman and chief executive officer, Merck. "The continued momentum of KEYTRUDA in oncology, along with the strength of the vaccine and other franchises and animal health, helped to drive revenue growth in the quarter."

Financial Summary

$ in millions, except EPS amounts
First Quarter
2017
2016
Sales
$9,434
$9,312
GAAP EPS
0.56
0.40
Non-GAAP EPS that excludes certain items(1)*
0.88
0.89
GAAP net income(2)
1,551
1,125
Non-GAAP net income that excludes certain items(1,2)*
2,437
2,492
*Refer to table on page 7.

Worldwide sales were $9.4 billion for the first quarter of 2017, an increase of 1 percent compared with the first quarter of 2016, including a 2 percent negative impact from foreign exchange.

GAAP (generally accepted accounting principles) earnings per share assuming dilution (EPS) were $0.56 for the first quarter of 2017. Non-GAAP EPS of $0.88 for the first quarter of 2017 excludes acquisition- and divestiture-related costs, restructuring costs and certain other items.

Pipeline Highlights

Merck continued to deliver significant progress in the development program for KEYTRUDA (pembrolizumab), an anti-PD-1 therapy, receiving key regulatory approvals or opinions and supplemental Biologics License Application (sBLA) acceptances.

The U.S. Food and Drug Administration (FDA) approved under its Accelerated Approval program KEYTRUDAfor the treatment of patients with refractory classical Hodgkin lymphoma (cHL) or for patients with cHL who have relapsed after three or more prior lines of therapy.

The European Commission approved KEYTRUDA for the first-line treatment of non-small cell lung cancer (NSCLC) in adults whose tumors have high PD-L1 expression (tumor proportion score of 50 percent or more) with no EGFR or ALK positive tumor mutations.

The Committee for Medicinal Products for Human Use of the European Medicines Agency (EMA) adopted a positive opinion recommending approval of KEYTRUDA for the treatment of adult patients with relapsed or refractory cHL who have failed autologous stem cell transplant and brentuximab vedotin (BV), or who are transplant-ineligible and have failed BV.

The FDA accepted for review under its Accelerated Approval program the sBLA for KEYTRUDA in combination with pemetrexed and carboplatin for the treatment of patients with metastatic or advanced NSCLC regardless of PD-L1 expression. This is the first application for regulatory approval of KEYTRUDA in combination with another treatment. The FDA granted Priority Review with a PDUFA action date of May 10, 2017.

The FDA accepted and granted Priority Review for the sBLA for the treatment of patients with locally advanced or metastatic urothelial cancer, a type of bladder cancer, for first-line use in patients who are ineligible for cisplatin-containing therapy. The application for second-line use was also accepted for Priority Review. The PDUFA action date for both applications is June 14, 2017.

The company recently submitted additional data and analyses to the FDA for the pending sBLA application for the treatment of previously treated patients with advanced microsatellite instability-high cancer. The PDUFA action date for this Priority Review has been extended to June 9, 2017.

The FDA and EMA accepted for review three New Drug Applications (NDAs) in the company’s diabetes franchise for medicines containing ertugliflozin, an investigational SGLT2 inhibitor in development to help improve glycemic control in adults with type 2 diabetes as part of Merck’s collaboration with Pfizer Inc. The PDUFA action date from the FDA is in December 2017 for the three NDAs.

Merck presented phase 3 data across our late-stage pipeline in studies that met their primary endpoints.

At the Conference on Retroviruses and Opportunistic Infections in February, data were presented from the ongoing "DRIVE-FORWARD" phase 3 clinical trial evaluating the safety and efficacy of doravirine (MK-1439), an investigational non-nucleoside reverse transcriptase inhibitor for previously untreated adults with HIV-1 infection. The study met its primary efficacy endpoint, demonstrating the non-inferiority of once-daily doravirine to once-daily ritonavir-boosted darunavir.

Positive results from a study of letermovir, an investigational antiviral medicine for the prevention of cytomegalovirus infection in high-risk bone marrow transplant patients, were presented at the BMT Tandem Meetings in February.

Merck presented data from a trial for V212, an investigational inactivated varicella zoster virus vaccine for the prevention of herpes zoster or HZ, also known as shingles. The data demonstrated a reduction in the incidence of confirmed HZ cases by an estimated 64 percent in immunocompromised patients and also were presented at the BMT Tandem Meetings.

First-Quarter Revenue Performance

The following table reflects sales of the company’s top pharmaceutical products, as well as total sales of Animal Health products.

$ in millions
First Quarter
Change
2017
2016
Change
Ex-Exchange
Total Sales
$9,434
$9,312
1%
3%
Pharmaceutical
8,185
8,104
1%
2%
JANUVIA / JANUMET
1,335
1,412
-5%
-5%
KEYTRUDA
584
249
134%
137%
ZETIA / VYTORIN
575
889
-35%
-35%
GARDASIL / GARDASIL 9
532
378
41%
41%
ZEPATIER
378
50
*
*
355
357
0%
1%
PROQUAD, M-M-R II and VARIVAX
ISENTRESS
305
340
-10%
-10%
REMICADE
229
349
-34%
-31%
ROTATEQ
224
188
19%
19%
Animal Health
939
829
13%
14%
Other Revenues
310
379
-18%
-5%
*Growth comparison not meaningful due to ongoing product launch.

Pharmaceutical Revenue

First-quarter pharmaceutical sales increased 1 percent to $8.2 billion, including a 1 percent negative impact from foreign exchange. The growth was driven by oncology, hepatitis C and vaccines, largely offset by the loss of market exclusivity for several products, as well as lower sales in the diabetes franchise.

Growth in oncology was due to higher sales of KEYTRUDA as the company continues to launch the product with new indications globally.

Growth in hepatitis C was driven by ZEPATIER (elbasvir and grazoprevir), a medicine for the treatment of chronic hepatitis C virus genotypes 1 or 4 infection, due to ongoing launches globally. Sales in the United States also reflect an approximately $40 million favorable adjustment to rebate accruals due to mix of business.

Growth in vaccines was primarily driven by higher sales of GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16 and 18) Vaccine, Recombinant] and GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant), vaccines to prevent certain cancers and other diseases caused by HPV, in the United States reflecting the timing of public sector purchases, underlying demand and increased price, as well as higher sales of PNEUMOVAX 23 (pneumococcal vaccine polyvalent) largely driven by demand in the United States. Growth in vaccines also reflects incremental sales of approximately $65 million, of which approximately $50 million relates to GARDASIL and GARDASIL 9, due to Merck now recording vaccine sales in the 19 European countries previously part of the Sanofi Pasteur MSD vaccines joint venture, which was terminated on Dec. 31, 2016.

Pharmaceutical sales reflect a decrease in the diabetes franchise of JANUVIA (sitagliptin) and JANUMET (sitagliptin and metformin HCl), medicines that help lower blood sugar in adults with type 2 diabetes, primarily due to the timing of customer purchases in the United States as anticipated for the quarter.

Sales growth also was offset by the loss of U.S. market exclusivity in 2016 for ZETIA (ezetimibe), a medicine for lowering LDL cholesterol; CUBICIN (daptomycin for injection), an I.V. antibiotic; and NASONEX (mometasone furoate monohydrate), an inhaled nasal corticosteroid for the treatment of nasal allergy symptoms; as well as by the ongoing impact of biosimilar competition in the company’s marketing territories in Europe for REMICADE (infliximab), a treatment for inflammatory diseases. In the aggregate, sales of these products declined $686 million during the first quarter of 2017 compared to the first quarter of 2016.

Animal Health Revenue

Animal Health sales totaled $939 million for the first quarter of 2017, an increase of 13 percent compared with the first quarter of 2016, including a 1 percent negative impact from foreign exchange. Growth was primarily due to sales increases in companion animal products, driven by the BRAVECTO (fluralaner) line of products that kill fleas and ticks in dogs and cats for up to 12 weeks, as well as in ruminants, poultry and swine products. In March, Animal Health completed the acquisition of Vallee S.A., a leading privately held producer of animal health products in Brazil.

First-Quarter Expense, EPS and Related Information

The table below presents selected expense information.

$ in millions
Acquisition- and
Divestiture-
Restructuring
Certain Other
First-Quarter 2017
GAAP
Related Costs(3)
Costs
Items
Non-GAAP(1)
Materials and production
$3,015
$855
$63
$--
$2,097
Marketing and administrative
2,411
20
1
--
2,390
Research and development
1,796
11
--
--
1,785
Restructuring costs
151
--
151
--
--
Other (income) expense, net
58
(3)
--
(9)
70
First-Quarter 2016
Materials and production
$3,572
$1,386
$47
$--
$2,139
Marketing and administrative
2,318
2
3
--
2,313
Research and development
1,659
35
55
--
1,569
Restructuring costs
91
--
91
--
--
Other (income) expense, net
48
--
--
--
48

GAAP Expense, EPS and Related Information

On a GAAP basis, the gross margin was 68.0 percent for the first quarter of 2017 compared to 61.6 percent for the first quarter of 2016. The increase in gross margin for the first quarter of 2017 was primarily driven by a lower net impact from acquisition- and divestiture-related costs and restructuring costs which reduced gross margin by 9.8 percentage points in the first quarter of 2017 as compared with 15.4 percentage points in the first quarter of 2016. The increase in gross margin also reflects the favorable effects of foreign exchange and lower inventory write-offs.

Marketing and administrative expenses were $2.4 billion in the first quarter of 2017, a 4 percent increase compared to the first quarter of 2016. The increase primarily reflects higher health care reform fee expenses, administrative costs, and promotion and direct selling expenses.

Research and development (R&D) expenses were $1.8 billion in the first quarter of 2017, an 8 percent increase compared to the first quarter of 2016. The increase reflects higher clinical development spending, partially offset by lower restructuring costs.

GAAP EPS was $0.56 for the first quarter of 2017 compared with $0.40 for the first quarter of 2016.

Non-GAAP Expense, EPS and Related Information

The non-GAAP gross margin was 77.8 percent for the first quarter of 2017 compared to 77.0 percent for the first quarter of 2016. The increase in non-GAAP gross margin was largely driven by the favorable effects of foreign exchange and lower inventory write-offs.

Non-GAAP marketing and administrative expenses were $2.4 billion in the first quarter of 2017, an increase of 3 percent compared to the first quarter of 2016. The increase was driven primarily by higher health care reform fee expenses, administrative costs, and promotion and direct selling expenses.

Non-GAAP R&D expenses were $1.8 billion in the first quarter of 2017, a 14 percent increase compared to the first quarter of 2016. The increase primarily reflects higher clinical development spending.

Non-GAAP EPS was $0.88 for the first quarter of 2017 compared with $0.89 for the first quarter of 2016.

A reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows.

$ in millions, except EPS amounts
First Quarter
2017
2016
EPS
GAAP EPS
$0.56
$0.40
Difference(4)
0.32
0.49
Non-GAAP EPS that excludes items listed below(1)
$0.88
$0.89
Net Income
GAAP net income(2)
$1,551
$1,125
Difference
886
1,367
Non-GAAP net income that excludes items listed below(1,2)
$2,437
$2,492
Decrease (Increase) in Net Income Due to Excluded Items:
Acquisition- and divestiture-related costs(3)
$883
$1,423
Restructuring costs
215
196
Other
(9)
--
Net decrease (increase) in income before taxes
1,089
1,619
Estimated income tax (benefit) expense
(203)
(252)
Decrease (increase) in net income
$886
$1,367

Financial Outlook

Merck has narrowed and raised its full-year 2017 GAAP EPS range to be between $2.51 and $2.63. Merck has narrowed and raised its full-year 2017 non-GAAP EPS range to be between $3.76 and $3.88, including an approximately 1.5 percent negative impact from foreign exchange at mid-April 2017 exchange rates. The non-GAAP range excludes acquisition- and divestiture-related costs, costs related to restructuring programs and certain other items.

Merck has narrowed and raised its full-year 2017 revenue range to be between $39.1 billion and $40.3 billion, including an approximately 1.5 percent negative impact from foreign exchange at mid-April 2017 exchange rates.

The following table summarizes the company’s 2017 financial guidance.

GAAP
Non-GAAP(1)
Revenue
$39.1 to $40.3 billion
$39.1 to $40.3 billion**
Operating expenses
Lower than 2016
Higher than 2016 by a low-single digit rate
Effective tax rate
22.0% to 23.0%
21.0% to 22.0%
EPS
$2.51 to $2.63
$3.76 to $3.88
**The company does not have any non-GAAP adjustments to revenue.

A reconciliation of anticipated 2017 GAAP EPS to non-GAAP EPS and the items excluded from non-GAAP EPS are provided in the table below.

$ in millions, except EPS amounts
Full-Year 2017
GAAP EPS
$2.51 to $2.63
Difference(4)
1.25
Non-GAAP EPS that excludes items listed below(1)
$3.76 to $3.88
Acquisition- and divestiture-related costs
$3,600
Restructuring costs
600
Net decrease (increase) in income before taxes
4,200
Estimated income tax (benefit) expense
(750)
Decrease (increase) in net income
$3,450

The expected full-year 2017 GAAP effective tax rate of 22.0 to 23.0 percent reflects an unfavorable impact of approximately 1 percentage point from the above items.

Total Employees

As of March 31, 2017, Merck had approximately 69,000 employees worldwide.

Earnings Conference Call

Investors, journalists and the general public may access a live audio webcast of the call today at 8:00 a.m. EDT on Merck’s website at http://investors.merck.com/events-and-presentations/default.aspx. Institutional investors and analysts can participate in the call by dialing (706) 758-9927 or (877) 381-5782 and using ID code number 91134398. Members of the media are invited to monitor the call by dialing (706) 758-9928 or (800) 399-7917 and using ID code number 91134398. Journalists who wish to ask questions are requested to contact a member of Merck’s Media Relations team at the conclusion of the call.

About Merck

For more than a century, Merck, a leading global biopharmaceutical company known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the world’s most challenging diseases. Through our prescription medicines, vaccines, biologic therapies and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to health care through far-reaching policies, programs and partnerships. Today, Merck continues to be at the forefront of research to advance the prevention and treatment of diseases that threaten people and communities around the world - including cancer, cardio-metabolic diseases, emerging animal diseases, Alzheimer’s disease and infectious diseases including HIV and Ebola. For more information, visit www.merck.com and connect with us on Twitter, Facebook, YouTube and LinkedIn. You can also follow our Twitter conversation at $MRK.

Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA

This news release of Merck & Co., Inc., Kenilworth, N.J., USA (the "company") includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline products that the products will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s 2016 Annual Report on Form 10-K and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).

###

(1) Merck is providing certain 2017 and 2016 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the items, see Table 2a attached to this release.

(2) Net income attributable to Merck & Co., Inc.

(3) Includes expenses for the amortization of intangible assets and purchase accounting adjustments to inventories recognized as a result of acquisitions, intangible asset impairment charges and expense or income related to changes in the estimated fair value measurement of contingent consideration. Also includes integration, transaction and certain other costs related to business acquisitions and divestitures.

(4) Represents the difference between calculated GAAP EPS and calculated non-GAAP EPS, which may be different than the amount calculated by dividing the impact of the excluded items by the weighted-average shares for the period.

MERCK & CO., INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 1
GAAP
1Q17
1Q16
% Change
Sales
$
9,434
$
9,312
1%
Costs, Expenses and Other
Materials and production (1)
3,015
3,572
-16%
Marketing and administrative (1)
2,411
2,318
4%
Research and development (1)
1,796
1,659
8%
Restructuring costs (2)
151
91
66%
Other (income) expense, net (1)
58
48
21%
Income Before Taxes
2,003
1,624
23%
Taxes on Income
447
494
Net Income
1,556
1,130
38%
Less: Net Income Attributable to Noncontrolling Interests
5
5
Net Income Attributable to Merck & Co., Inc.
$
1,551
$
1,125
38%
Earnings per Common Share Assuming Dilution
$
0.56
$
0.40
40%
Average Shares Outstanding Assuming Dilution
2,766
2,795
Tax Rate
22.3%
30.4%

(1) Amounts include the impact of acquisition and divestiture-related costs, restructuring costs and certain other items. See accompanying tables for details.

(2) Represents separation and other related costs associated with restructuring activities under the company’s formal restructuring programs.

MERCK & CO., INC.
GAAP TO NON-GAAP RECONCILIATION
FIRST QUARTER 2017
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2a
GAAP
Acquisition and
Restructuring
Certain Other
Adjustment
Non-GAAP
Divestiture-
Costs (2)
Items
Subtotal
Related
Costs (1)
Materials and production
$
3,015
855
63
918
$
2,097
Marketing and administrative
2,411
20
1
21
2,390
Research and development
1,796
11
11
1,785
Restructuring costs
151
151
151
-
Other (income) expense, net
58
(3 )
(9 )
(12 )
70
Income Before Taxes
2,003
(883 )
(215 )
9
(1,089 )
3,092
Income Tax Provision (Benefit)
447
(158 ) (3)
(48 ) (3)
3
(3)
(203 )
650
Net Income
1,556
(725 )
(167 )
6
(886 )
2,442
Net Income Attributable to Merck & Co., Inc.
1,551
(725 )
(167 )
6
(886 )
2,437
Earnings per Common Share Assuming Dilution
$
0.56
(0.26 )
(0.06 )
-
(0.32 )
$
0.88
Tax Rate
22.3 %
21.0 %

Only the line items that are affected by non-GAAP adjustments are shown.

Merck is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

(1) Amounts included in materials and production costs primarily reflect $773 million of expenses for the amortization of intangible assets recognized as a result of acquisitions, as well as intangible asset impairment charges of $76 million. Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions, including severance costs which are not part of the company’s formal restructuring programs, as well as transaction and certain other costs related to business divestitures. Amounts included in research and development expenses primarily reflect changes in the estimated fair value measurement of liabilities for contingent consideration.

(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company’s formal restructuring programs.

(3) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
(AMOUNTS IN MILLIONS)
Table 3
2017
2016
% Change
1Q
1Q
2Q
3Q
4Q
Full
1Q
Year
TOTAL SALES (1)
$9,434
$9,312
$9,844
$10,536
$10,115
$39,807
1
PHARMACEUTICAL
8,185
8,104
8,700
9,443
8,904
35,151
1
Primary Care and Women’s Health
Cardiovascular
Zetia
334
612
702
671
575
2,560
-46
Vytorin
241
277
293
273
299
1,141
-13
Liptruzet
49
23
33
39
50
146
114
Adempas
84
33
40
48
49
169
158
Diabetes
Januvia
839
906
1,064
1,006
932
3,908
-7
Janumet
496
506
569
548
577
2,201
-2
General Medicine & Women’s Health
Implanon / Nexplanon
170
134
164
148
160
606
27
NuvaRing
160
175
200
195
207
777
-9
Follistim AQ
81
94
73
101
87
355
-14
Hospital and Specialty
Hepatitis
Zepatier
378
50
112
164
229
555
*
HIV
Isentress
305
340
338
372
337
1,387
-10
Hospital Acute Care
Bridion
148
90
113
139
139
482
63
Noxafil
141
145
143
147
161
595
-3
Invanz
136
114
143
152
152
561
20
Cancidas
121
133
131
142
152
558
-9
Cubicin
96
292
357
320
119
1,087
-67
Primaxin
62
73
81
77
66
297
-15
Immunology
Remicade
229
349
339
311
269
1,268
-34
Simponi
184
188
199
193
186
766
-2
Oncology
Keytruda
584
249
314
356
483
1,402
134
Emend
133
126
143
137
144
549
6
Temodar
66
66
73
78
67
283
0
Diversified Brands
Respiratory
Singulair
186
237
229
239
210
915
-22
Nasonex
139
229
101
94
112
537
-40
Dulera
82
113
121
97
105
436
-27
Other
Cozaar / Hyzaar
112
126
132
131
121
511
-11
Arcoxia
103
111
117
114
108
450
-7
Fosamax
61
75
73
68
68
284
-19
Vaccines (2)
Gardasil / Gardasil 9
532
378
393
860
542
2,173
41
ProQuad / M-M-R II / Varivax
355
357
383
496
405
1,640
0
RotaTeq
224
188
130
171
162
652
19
Pneumovax 23
163
107
120
175
238
641
52
Zostavax
154
125
149
190
221
685
23
Other Pharmaceutical (3)
1,037
1,083
1,128
1,191
1,172
4,574
-4
ANIMAL HEALTH
939
829
900
865
884
3,478
13
Other Revenues (4)
310
379
244
228
327
1,178
-18

* 200% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

(1) Only select products are shown.

(2) Vaccine sales in 2017 include sales in the European markets that were previously part of the Sanofi Pasteur MSD (SPMSD) joint venture that was terminated on December 31, 2016. Amounts for 2016 include supply sales to SPMSD.

(3) Includes Pharmaceutical products not individually shown above. Other Vaccines sales included in Other Pharmaceutical were $88 million in the first quarter of 2017 and $103 million, $91 million, $135 million and $126 million for the first, second, third and fourth quarters of 2016, respectively.

(4) Other Revenues are comprised primarily of alliance revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.

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