Merck & Co.
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Merck & Co., Inc.
(Merck Sharp & Dohme (MSD) outside the United States and Canada)
Type Public
NYSE: MRK
Traded as Dow Jones Industrial Average
Component
Industry Pharmaceuticals
1891 as a subsidiary of Merck KGaA
Founded
1917 as an independent company
Whitehouse Station, New Jersey, United
Headquarters
States
Richard T. Clark
(Chairman)
Key people
Kenneth Frazier
(President and CEO)
Gardasil
Products
Singulair
Propecia/Proscar
Zocor Vioxx Fosamax
See more complete products listing.
Revenue US$ 45.987 billion (2010)[1]
Operating income US$ 1.653 billion (2010)[1]
Net income US$ 861 million (2010)[1]
Total assets US$ 105.781 billion (2010)[1]
Total equity US$ 56.805 billion (2010)[1]
Employees 94,000 (2010)[1]
Website [Link]
Merck & Co., Inc. (NYSE: MRK), also known as Merck Sharp & Dohme or MSD outside the
United States and Canada, is one of the largest pharmaceutical companies in the world. The
headquarters of the company is located in Whitehouse Station, New Jersey, an unincorporated
area in Readington Township. The company was established in 1891 as the United States
subsidiary of the German company now known as Merck KGaA. In common with many other
German assets in the United States, Merck & Co. was confiscated in 1917 during World War I
and then set up as an independent company. Currently, it is one of the seven largest
pharmaceutical companies in the world both by market capitalization and revenue.
Merck & Co. or MSD describes itself as a "a global research-driven pharmaceutical company.
Merck discovers, develops, manufactures and markets a broad range of innovative products to
improve human and animal health, directly and through its joint ventures." The Merck Company
Foundation has distributed over $480 million to educational and non-profit organizations since it
was founded in 1957.[2]
Merck publishes The Merck Manuals, a series of medical reference books. These include the
Merck Manual of Diagnosis and Therapy, the world's best-selling medical textbook, and the
Merck Index, a collection of information about chemical compounds.
History
Merck & Co. traces its origins to Friedrich Jacob Merck who purchased a drug store in
Darmstadt, Germany in 1668 and also to Emanuel Merck, who took over the store several
generations later, in 1816. Emanuel and his successors gradually built up a chemical-
pharmaceutical factory that produced—in addition to raw materials for pharmaceutical
preparations—a multitude of other chemicals.
In 1891, George Merck established his roots in the United States and set up Merck & Co. in NY
as the US arm of the family partnership, E. Merck (named for Emanuel Merck), which is now
Merck KGaA. Merck & Co. was confiscated in 1917 during World War I and set up as an
independent company in the United States. Between the wars and during World War II, the
company was led by George W. Merck, who oversaw America's germ-warfare research at Fort
Detrick. Today, the US company has about 51,000 (S&P NetAdvantage) employees in 120
countries and 31 factories worldwide. It is one of the top 7 pharmaceutical companies
worldwide, larger than its German ancestor, which currently employs around 41,000 people in 67
countries.
In 1965 Merck acquired Charles E. Frosst Ltd. of Montreal (founded 1899) and created Merck-
Frosst Canada Inc. as its Canadian subsidiary and pharmaceutical research facility. (In July 2010,
Merck announced that this would be one of several operations to be closed.)[3]
In 2005, CEO Raymond Gilmartin retired at the age of 64 following Merck's voluntary
worldwide withdrawal of Vioxx. Former president of manufacturing Richard Clark was named
CEO and President of the company.
On December 10, 2007, the company's share price reached a five-year high of $60.77. However,
the share price of Merck since trended down, reaching an intraday low of $20.05 per share on
March 9, 2009.
In November 2009, Merck announced that it would merge with competitor Schering-Plough in a
US$41 billion deal.[4][5][6][7] The purchase was a "reverse merger" in which Schering-Plough
would be renamed Merck and continue as the surviving public corporation. The new company
would operated under the trade name Merck in the United States and Canada and elsewhere
under the trade name MSD.
On May 4, 2010, Merck announced its 2010 first quarter financial results. The company
reported, among other things, that its financial results were affected both by the merger with
Schering-Plough and tax charges related to the recently enacted health reform legislation. During
the early months of 2010, Merck's stock began a slow slide downward. The stock peaked at
41.03 on January 20, 2010. By April 22, 2010, the stock had fallen to 33.77, a loss of 17.7%.
This loss of stock is almost equal to the loss of 17.6% the American pharmaceutical company
Pfizer had during this same time period. The slide is most likely caused by the declining
productivity and increasing cost of pharmaceutical development.
[edit] Corporate governance
As of February 25, 2011 the members of the board of directors of Merck & Co. are: Richard T.
Clark, Leslie A. Brun, Thomas R. Cech, Ph.D., Kenneth C. Frazier, Thomas H. Glocer, Steven F.
Goldstone, William B. Harrison, Jr., Harry R. Jacobson, M.D., William N. Kelley, M.D., C.
Robert Kidder, Rochelle B. Lazarus, Carlos E. Represas, Patricia F. Russo, Thomas E. Shenk,
Ph.D., Anne M. Tatlock, Craig B. Thompson, M.D., Wendell P. Weeks, and Peter C. Wendell.[8]
[edit] Products
This section does not cite any references or sources.
Please help improve this section by adding citations to reliable sources. Unsourced
material may be challenged and removed. (March 2010)
[edit] Products on the market
• Antivenin – for the treatment of black widow spider (Latrodectus mactans)
bites
• Arcoxia (etoricoxib) – for the symptomatic treatment of osteoarthritis (not
approved in the US, but approved and sold in Europe, Latin America, the Asia-
Pacific region and Middle East/Northern Africa)
• Cancidas (caspofungin) – an echinocandins antifungal drug for treatment of
Aspergillus and Candida.
• Cosopt (dorzolamide and timolol) – reduces intraocular pressure in people
with glaucoma or ocular hypertension.
• Cozaar (losartan) – used to treat hypertension, to reduce the risk of strokes
and to treat diabetic nephropathy.
• Crixivan (indinavir) – a protease inhibitor HIV medication.
• Emend (aprepitant) – treats vomiting and nausea brought about by
chemotherapy.
• Emend Injection (fosaprepitant dimeglumine) – an intravenous drug for
nausea and vomiting caused by chemotherapy
• Emflex (acemetacin) – a non-steroidal anti-inflammatory drug.
• Fosamax (alendronate) – osteoporosis medication.
• Fosamax Plus D (alendronate/vitamin D) – osteoporosis medication.
• Gardasil (HPV vaccine) – a vaccine against human papillomavirus, a sexually
transmitted disease.
• Hyzaar (losartan/hydrochlorothiazide) – used to treat hypertension, to reduce
the risk of strokes and to treat diabetic nephropathy.
• Isentress (raltegravir) – HIV integrase inhibitor.
• Janumet (sitagliptin/metformin) – an oral anti-diabetic drug for the treatment
of type 2 diabetes.
• Januvia (sitagliptin) – a dipeptidyl peptidase-4 inhibitor for the treatment of
diabetes
• Maxalt (rizatriptan) – one of many triptans used to treat migraines.
• M-M-R II (MMR Vaccine) – immunization against measles, mumps and rubella.
• Pneumovax 23 (Pneumococcal polysaccharide vaccine) – a vaccine used to
prevent Streptococcus pneumoniae infections such as pneumonia and
septicaemia.
• Primaxin (imipenem with cilastatin) – a broad spectrum carbapenem
antibiotic.
• Prinzide (lisinopril/hydrochlorothiazide) – anti-hypertensive combination of an
ACE inhibitor and a diuretic.
• Propecia/Proscar (finasteride) – used for alopecia (male pattern baldness) and
prostatic conditions.
• ProQuad (MMRV vaccine) – a vaccine for simultaneous vaccination against
measles, mumps, rubella, and varicella in children.
• Recombivax HB (hepatitis B vaccine) – a vaccine that protects against
hepatitis B.
• Rotateq – a vaccine to prevent rotavirus gastroenteritis, a leading cause of
severe diarrhea in infants and young children ages 0 to 12.
• Singulair (montelukast) – an asthma medication that blocks leukotrienes.
• Timoptic (timolol) – a non-selective beta-adrenergic receptor blocker used to
treat high blood pressure and prevent heart attacks.
• Tredaptive (laropiprant/ER niacin) – a new lipid-modifying therapy for patients
with dyslipidemia and primary hypercholesterolemia (not approved in the US,
but approved in the European Union)
• Trusopt (dorzolamide) – reduces intraocular pressure in people with glaucoma
or ocular hypertension.
• Vaqta (hepatitis A vaccine) – a vaccine that protects against hepatitis A.
• Varivax (Varicella vaccine) – a vaccine that protects against chickenpox.
• Vytorin (ezetimibe/simvastatin) – a combination cholesterol-lowering
preparation marketed in collaboration with Schering-Plough.
• Zetia (ezetimibe) – cholesterol absorption inhibitor which lowers LDL co
marketed by Schering-Plough
• Zocor (simvastatin) – a cholesterol-lowering statin.
• Zolinza (vorinostat) – a histone deacetylase inhibitor for the treatment of
cutaneous T cell lymphoma.
• Zostavax – a vaccine for prevention of shingles in adults older than 50 years
of age.
[edit] Products from Schering-Plough
• Remicade
• Levitra
• Zetia
• Vytorin
• Nasonex
• Asmanex
• Claritin
• Aerius
• Cerazette
• Esmeron
• Zemuron
• Intron A
• Livial
• Marvelon
• Desogen
• Noxafil
• Puregon
• Follistim
• Remeron
• Temodar
• Bridion
• Quazepam
• Afrin
• NuvaRing
• Home Again Pet Recovery System
• Banamine
• Clarinex
• Dr. Scholl's
• Coppertone
• Famvir
• A+D Original Ointment
• A+D Zinc Oxide Cream
• Bain de Soleil
• Coricidin
• Correctol
• Drixoral
• Zinka
• Tinactin
• Lotrimin
• Gyne-Lotrimin
• MiraLAX
[edit] Products under development
• Anacetrapib
• Deforolimus
• Odanacatib
• Rolofylline
• Telcagepant
[9]
• An antidote for Statin toxicity (unnamed)
[edit] Patient assistance programs
In the early 1950s, Merck & Co. was one of the first pharmaceutical companies to provide
patient assistance programs in the U.S. to those unable to afford their medications.[10] Currently,
Merck & Co. offers 7 patient assistance programs, each with specific eligibility requirements.[11]
[12]
[edit] Available programs
• Act Program For Emend
o Emend (aprepitant)
• ACT Program For Zolinza
o Zolinza (vorinostat)
• Merck Anti-Infective Hotline
o Cancidas (caspofungin)
o Invanz (ertapenem)
o Primaxin (imipenem with cilastatin)
• Merck Patient Assistance Program
o Cosopt (dorzolamide and timolol)
o Cozaar/Hyzaar (losartan)
o Fosamax (alendronate
o Fosamax Plus D (alendronate/vitamin D)
o Janumet (sitagliptin/metformin)
o Januvia (sitagliptin)
oMaxalt (rizatriptan)
oSingulair (montelukast)
oTimoptic (timolol)
oTrusopt (dorzolamide)
• Merck Prescription Discount Program
o Cosopt (dorzolamide and timolol)
o Cozaar/Hyzaar (losartan)
o Emend (aprepitant)
o Fosamax (alendronate
o Fosamax Plus D (alendronate/vitamin D)
o Indocin (Indometacin)
o Janumet (metformin)
o Januvia (sitagliptin)
o Maxalt (rizatriptan)
o Singulair (montelukast)
o Timoptic (timolol)
o Trusopt (dorzolamide)
• Merck Vaccine Patient Assistance Program
o Gardasil (HPV vaccine)
o MMR Vaccine
o Pneumovax 23 (Pneumococcal polysaccharide vaccine)
o Recombivax HB (hepatitis B vaccine)
o Vaqta (Hepatitis A vaccine)
o Varivax (Varicella vaccine)
o Zostavax
• SUPPORT Program For Crixivan
o Crixivan (indinavir)
[edit] Vioxx
In 1999, the U.S. Food and Drug Administration (FDA) approved Vioxx (known generically as
rofecoxib), a Merck product for treating arthritis. Vioxx was stronger than existing medications,
while easier on the stomach than established anti-inflammatory drugs such as naproxen. Vioxx
became one of the most prescribed drugs in history. According to internal e-mail traffic released
at a later lawsuit, Merck had a list of doctors critical of Vioxx to be "neutralised" or
"discredited." "We may need to seek them out and destroy them where they live," wrote an
employee. Also alleged were intimidation of researchers and impingement upon academic
freedom.[13]
Thereafter, studies by Merck and by others found an increased risk of heart attack associated
with Vioxx use when compared with naproxen. There was no indication of this risk in the
original placebo-controlled safety trials, and it was possible that the effect was more related to
naproxen decreasing the risk of heart attacks than one of Vioxx increasing the risk. Merck
adjusted the labeling of Vioxx to reflect possible cardiovascular risks in 2002.
On September 23, 2004, Merck received information about results from a clinical trial it was
conducting that included findings of increased risk of heart attacks among Vioxx users who had
been using the medication for over eighteen months.[14] On September 28, 2004, Merck notified
the FDA that it was voluntarily withdrawing Vioxx from the market, and it publicly announced
the withdrawal on September 30. The FDA has since recommended that Vioxx be put back on
the market, but with a more prominent warning regarding cardiovascular risks on its label.[citation
needed]
On November 5, 2004 the medical journal The Lancet published the results of its analysis of the
available studies. It concluded that "the unacceptable cardiovascular risks of Vioxx (rofecoxib)
were evident as early as 2000..." [15] The journal's editors criticized Merck for having kept the
drug on the market as long as it did before withdrawing it, and also criticized the FDA for its
failure of regulatory oversight.
About 50,000 people have sued Merck claiming that they or their family members have suffered
medical problems such as heart attacks or strokes after taking Vioxx.[16] In 2005, Merck was
found liable in the first case that went to trial and the plaintiff was awarded $253.4 million in
damages; however, the judgement was subsequently reduced to $20 million and then, upon
appeal, the verdict was reversed in 2008.[16] In November 2007, Merck proposed to pay $4.85
billion to settle most of the pending Vioxx lawsuits.[17][18] The settlement will require that
claimants provide medical proof of having suffered a heart attack or a stroke and show they
received at least 30 Vioxx pills. This proposed settlement is generally viewed by industry
analysts and investors as a victory for Merck, considering that original estimates of Merck's
liability reached as high as $50 billion. As of mid-2008, plaintiffs have prevailed in only three of
the twenty cases that have reached juries, all with relatively small awards.[16]
On May 20, 2008, Merck was found liable for using deceptive marketing tactics to promote
Vioxx and 30 states will split the $58 million settlement. The amount is the largest multi-state
settlement against a pharmaceutical company.[19] All its new television pain-advertisements must
be vetted by the Food and Drug Administration and changed or delayed upon request until 2018.
[20]
[edit] Cordaptive
On September 4, 2007, Merck & Co. introduced the experimental drug Cordaptive, which can
both raise HDL and lower LDL (combining an extended-release form of the B vitamin niacin
with laropiprant, a novel compound intended to inhibit flushing or redness of the face).
Cordaptive caused 18% drop in levels of LDL-C00, a 26% drop in triglycerides, and a 20%
increase in HDL-C. Merck's cholesterol statin drug Zocor has seen sales plunge since its patent
expired in 2006. In addition, Merck and partner Schering-Plough Corp. jointly market two other
cholesterol drugs, Zetia and Vytorin.[21]
On April 24, 2008, the Committee for Medicinal Products for Human Use (CHMP) of the
European Medicines Agency (EMA) has recommended approval of the combination, to be
marketed in Europe as Tredaptive.[22]
On April 28, 2008, the FDA issued a "not approvable" letter for Cordaptive. In the FDA's letter,
the agency rejected the proposed trade name CORDAPTIVE for MK-0524A.[23][24]
The drug was later approved by the EMA on July 3, 2008.[25][26]
[edit] Phony medical journal
From 2002 through 2005 the Australian affiliate of Merck sponsored the eight issues of a
medical journal, the Australasian Journal of Bone and Joint Medicine, published by Elsevier.
Although it gave the appearance of being an independent peer-reviewed journal, without any
indication that Merck had paid for it, the journal actually reprinted articles that originally
appeared in other publications and that were favorable to Merck. The misleading publication
came to light in 2009 during a personal injury lawsuit filed over Vioxx; 9 of 29 articles in the
journal's second issue referred positively to Vioxx.[27] In 2009, the CEO of Elsevier's Health
Sciences Division, Michael Hansen, admitted that the practice was "unacceptable".[28]
[edit] Medicaid overbilling
A US Justice Department fraud investigation began in 2000 when allegations were brought in
two separate lawsuits filed by whistleblowers under the False Claims Act.[29] They alleged that
Merck failed to pay proper rebates to Medicaid and other health care programs and paid illegal
remuneration to health care providers.[30] On February 7, 2008 Merck agreed to pay more than
$650 million to settle charges that it routinely overbilled Medicaid for its most popular
medicines. The federal government received more than $360 million, and 49 states and
Washington, DC, over $290 million. One whistleblower received a $68 million reward.[29][31]
Merck made the settlement without an admission of liability or wrongdoing.[32]
[edit] Environmental record
Merck & Co. used methylene chloride which is an animal carcinogen and is on the United States
Environmental Protection Agency's list of pollutants. To get rid of this problem Merck chemists
and engineers discovered a new way to manufacture products without using methylene chloride.
The new way of creating chemicals seemed to have fewer negative environmental effects. Merck
has also changed its equipment to protect the environment. Merck installed a computerized
distributed control system that runs chemical reaction steps more effectively and has increased
the process of operations by 50 percent. With the new machines, they have eliminated the need
for the disposal and storage of harmful waste. The biological oxygen demand was reduced by
75% with a new process to help with water waste and other polluting waste.[33] In 1991, Kelco,
owned by Merck, was responsible for 1/3 of the volatile organic compound (VOC) emission
pollution in the San Diego area. The ground level ozone was causing health problems such as
lung tissue damage and making the lungs easily vulnerable to harmful bacteria.[34] In 1996 Merck
paid 1.8 million dollars in a settlement that accused them of polluting the air. In addition, new
machines were installed to cut the air pollution that the company's facilities were giving off. The
new machines reduce the smog level emissions by 680,000 lb (310,000 kg) a year.[35]
[edit] Isentress
Raltegravir (Isentress), Merck's HIV integrase inhibitor was unanimously recommended for
accelerated approval by the FDA's Advisory Committee on September 5, 2007. Isentress works
by acting on a specific enzyme in HIV, integrase, that allows the RNA from HIV to become part
of human DNA in the replication process.[36] Isentress was approved by the FDA on October 12,
2007.[37]
[edit] Singulair
The FDA is looking into a link between the Merck drug Singulair, suicide and other
psychological side effects, and is conducting research to see if Singulair should be reviewed
further. Singulair works on blocking the Leukotriene pathway in both Asthma and Allergic
Rhinitis.[38]
[edit] See also