WHITEHOUSE STATION, N.J.–(BUSINESS WIRE)–April 27, 1999–
“Our 14 new medicines — along with VIOXX and other candidates in our pipeline — will be important drivers of future growth and profitability,” said Merck Chairman, President and CEO Raymond V. Gilmartin at today’s annual meeting of stockholders.
Mr. Gilmartin gave an overview of the results of 1998, calling it a “banner year” in which the Company “launched a record number of new medicines with proven health benefits and significant worldwide market potential.” He said that the Company looks forward “with great confidence to a prosperous 1999 and a healthy future,” because of new products, the drug research pipeline, investments in marketing, and the April 20 recommendation for approval of VIOXX by the Arthritis Advisory Committee of the U.S. Food and Drug Administration (FDA).
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VIOXX
VIOXX, Merck’s once-a-day COX-2 specific inhibitor for osteoarthritis and pain, has been evaluated in 68 clinical studies involving more than 10,000 patients and has demonstrated single-dose relief compared to traditional NSAIDs, like ibuprofen. Traditional NSAIDs inhibit the COX-1 enzyme in the body that protects the stomach lining, as well as the COX-2 enzyme involved in pain and inflammation, and those drugs contribute to severe gastrointestinal bleeding, accounting for 10,000-20,000 deaths and 100,000 hospitalizations annually. COX-2 specific inhibitors, such as VIOXX, are being studied to determine whether the apparent differences in how they work may result in fewer serious gastrointestinal side effects compared to those traditional therapies. zocor. “The enormous worldwide market for pain and for osteoarthritis is largely unsatisfied by existing treatments,” said Mr. Gilmartin. Osteoarthritis afflicts more than 20 million people in the U.S. alone.
Success around the World
In 1998, sales and net income increased 14 percent over 1997, to $26.9 billion and $5.2 billion, respectively. Earnings per share, assuming dilution, increased 15 percent to $2.15.
Merck remained number one in U.S. and in worldwide pharmaceutical sales. The Company’s core pharmaceutical sales grew at 8 percent in the Americas and 15 percent in the Europe–Middle East–Africa region. The growth rate in Europe is nearly twice the industry average, making it the fastest growing pharmaceutical company there. Despite the overall downturn in the Asian pharmaceutical market, highlighted by a 7 percent decline in Japan, Asia Pacific sales increased 1 percent, to $1.6 billion.
Merck recently announced the first quarter results for 1999. Sales were up 24 percent, totaling $7.5 billion. Net income was $1.3 billion, up 12 percent, and earnings per share, assuming dilution, were $0.54, up 15 percent, compared to 1998.
New Products Drive Growth
Mr. Gilmartin said, “Our five newest products, introduced in a six-month time period last year, are improving the quality of life for millions of people around the world.” SINGULAIR, Merck’s once-a-day tablet for the treatment and prevention of chronic asthma in adults and children as young as six–has become the most prescribed member of the leukotriene antagonist class in the U.S. in less than one year on the market. COSOPT, the world’s most successful anti-glaucoma combination product, continues to gain broad acceptance by ophthalmologists because of its effectiveness and ease of use. MAXALT, available in conventional as well as convenient, orally dissolving tablets, is the fastest growing oral migraine medication in the U.S. and other key markets. AGGRASTAT, a platelet blocker for patients with unstable angina (chest pain) and non-Q-wave myocardial infarction (small heart attacks), was recommended for approval by the European Union’s Committee on Proprietary Medicinal Products in March. And more than 590,000 men worldwide have started taking PROPECIA, the first and only tablet for the treatment of male pattern hair loss, since its introduction last year.
1998 sales were increasingly driven by those five medicines as well as nine other medicines introduced since March 1995: COMVAX, COZAAR and HYZAAR, CRIXIVAN, FOSAMAX, PEPCID AC, TRUSOPT, VAQTA, and VARIVAX. Together, the 14 new medicines accounted for 22 percent of Merck’s worldwide human health sales, up from just 2 percent three years earlier. For example, COZAAR and HYZAAR, the world’s fastest growing anti-hypertensive medicines, achieved $1 billion in worldwide sales in 1998. FOSAMAX, the leading worldwide non-hormonal medicine for the prevention and treatment of osteoporosis in postmenopausal women, is the only such drug approved by the FDA to prevent hip and spine fractures. CRIXIVAN, available in more than 80 countries, is the world’s most widely prescribed protease inhibitor for the treatment of HIV/AIDS.
With the recent introductions, Merck’s research pipeline has extended the Company’s marketing presence into 19 therapeutic categories in 1998, up from 11 in 1992. The older products, such as VASOTEC, MEVACOR, and PEPCID, continue to contribute, Mr. Gilmartin said, “But we are well prepared for the U.S. expirations of their patents.” Patent expirations are less of an issue abroad, as their timing is staggered over several years.