• Grow our pipeline with a focus on researching and developing first-in-class or best-in-class medicines and vaccines.
• Expand our interactions with public and private entities to understand and support key research priorities and opportunities, including for developing world diseases.
• Initiate development of a formal policy on post trial drug access in 2008.
• Finalize principles for business practices involving the medical and scientific community.

• Advanced 31 candidates to the next clinical development stage in 2008; as of July 15, 2009, had 47 candidates in Phase I-III development.
• Provided financial support to the WHO/TDR Partnership Network for research in tropical diseases
• Granted the International Partnership for Microbicides (IPM) a royalty-free license to develop, manufacture and distribute a novel ARV compound for use in developing countries.
• Granted an exclusive, royalty-free licensing agreement with Medicines for Malaria for an investigational drug candidate for use in the developing world.
• Entered into collaborative agreement with DNDi to support discovery and development of improved treatments for neglected tropical diseases.
• Developed a new procedure for a compassionate use program.
• Finalized a set of Guiding Principles for Business Practices Involving the Medical and Scientific Community, and implemented guidance on interactions between MRL staff and external scientists.

• Continue to grow our pipeline with a focus researching and developing first-in-class or best-in-class medicines and vaccines in targeted areas according to our R&D agenda.
• Through Merck BioVentures, further diversify Merck's scientific portfolio with a view to creating value and improving access to  novel biologics and biosimilars; we are committed to having at least five biosimilars in late-stage development in 2012, and to launching at least six of these products between 2012 and 2017.
• Continue to expand our engagement with public and private entities such as academic institutions and NGOs to understand and support research priorities and opportunities in support of global public health needs. 
• Deliver 25 percent of early pipeline from external sources of science within three to five years.

• Continue to work with international groups such as the GAVI Alliance¹ to facilitate introduction of vaccines in the world's poorest countries.
• Continue to investigate opportunities to reduce the cost of our ARVs for people living in the world’s poorest countries and those hardest hit by the pandemic, including through working with external manufacturers and suppliers to achieve incremental efficiencies.
• Expand our presence in emerging markets and explore business models for all our products to reach new populations. Report on developments in future reports.

• Obtained WHO prequalification for ROTATEQ, MMRII and GARDASIL. By the end of 2008, ROTATEQ was approved in 87 countries, 15 of which are GAVI eligible; GARDASIL was approved in 109 countries, 23 of which are GAVI-eligible. 
• To help expand access to GARDASIL in developing world, worked out agreement with CSL Limited to waive royalties for sales in those countries.
• As of December 31, 2008, 653,867 patients in 131 countries and territories, including an estimated 111,471 children, were being treated with regimens containing at least one of Merck's ARVs
• Through China–MSD HIV/AIDS Partnership, expanded access to prevention, testing, monitoring and treatment in Sichuan Province.
• In connection with the MECTIZAN Donation Program, 31 percent of the formerly at-risk population in the Americas is no longer at risk of contracting river blindness.

• Continue to work with international groups to facilitate introduction of our rotavirus and human papillomavirus vaccines in the world's poorest countries.
• Begin reporting in 2010 the number of doses shipped through GARDASIL Access Program
• Achieve 82-84 percent vaccination rate for rotavirus with ROTATEQ in Nicaragua by the end of 2009.
• Continue to pursue partnerships with others to improve access to medicines and care in resource-constrained settings.
• Continue to support actively health system reform worldwide to help improve and accelerate access to medicines and vaccines.
• We are on track to achieve our goal of $2 billion in sales from emerging markets by 2010, and we plan to be among the top five pharmaceutical companies in the markets we are focusing on.

• Continue to register at trial initiation all clinical trials in patients that the Company sponsors worldwide, at www.ClinicalTrials.gov.
• Continue to disclose results from all registered trials of marketed products regardless of outcome at www.ClinicalStudyResults.org in a timely manner.
• Continue to work to enhance and integrate our systems to identify, measure, control and sustain quality excellence in our products.

• Posted the results of our trials on ClinicalTrials.gov since October, 2008; through December 2008, posted the results of over 290 trials on www.ClinicalStudyResults.org.
• Of 42 inspections for Good Clinical Practices or pharmacovigilance conducted by regulatory agencies worldwide in 2008, none resulted in critical observations and none resulted in the rejection of any clinical study or regulatory filing.
• Established an Anti-Counterfeiting Steering Committee to oversee our global strategy, and worked with other companies to strengthen efforts against counterfeits worldwide.
  calStudyResults.org in a timely manner.

• Continue to implement our vaccine supply manufacturing strategy as part of our commitment to restore Merck's reputation as a reliable global supplier of quality vaccines
• Continue to maintain strict product quality standards and multiple supply chain safeguards to ensure the safety and supply of our products no matter where our medicines and vaccines are manufactured internally or externally. 
• Continue to implement our corporate, proactive worldwide anti-counterfeiting strategy, focused on securing the supply chain, detecting and responding to counterfeit events, and raising awareness of the risks of counterfeit pharmaceutical products.

• Achieve 95 percent completion rate of new ethics training courses by required employee populations, including Know the Code, by end of 2009.
• Disclose over time our financial support to medical, scientific and patient organizations globally.  In 2009, expand reporting on grants/payments to U.S. organizations and begin reporting on grants made in Europe and Canada; continue to expand disclosure into other regions as we work to build infrastructure and systems necessary to allow global reporting.
• Disclose in 2009 all payments to physicians in the United States who speak on behalf of Merck or our products.
• Update our policies and practices in the U.S. by January 2009 to ensure compliance with revised PhRMA Code on Interactions with Health Care Professionals.

• In October 2008, began reporting grants over $500 made by Merck's Global Human Health division to U.S. organizations in support of independent accredited educational programs for health care professionals.
• Endorsed U.S. Physicians Payment Sunshine Act of 2008, which would have mandated disclosure of financial relationships between physicians and the pharmaceutical industry.
• Began disclosing support to patient organizations in Europe, Middle East and Africa made by Merck offices  in those regions since 2008
• Implemented new Guiding Principles for Ethical Business Practices with the Medical and Scientific Community.
• Adopted a policy requiring a minimum six-month time period following the approval of a new product before launching DTC broadcast advertising in the U.S., formalizing our historical practice,
• Updated our policies and practices in the U.S. to ensure compliance with revised PhRMA Code

• Achieve our planned 2009 goals regarding ethics training; achieve a 100 percent response rate to the disclosure statement on conflicts of interest by 2010.
• Report on results of new program on escalation, investigation, remediation and recognition of non-compliance events in 2009 CR Report.
• Begin disclosing in 4Q2009 all payments to U.S.-based healthcare professionals who speak on behalf of Merck or our products; in second half of 2009, begin reporting certain other U.S. third party grants and payments made to patient organizations in Canada. and grants to other third party institutions in Europe, Middle East, Africa and Canada.
• Develop a global training program based on Merck's Guiding Principles for Business Practices involving the Medical and Scientific Community.
• Finalize development of global labor relations guidelines and monitoring tools.
• Implement human rights risk assessment tool.

• Reduce energy intensity by 25 percent per unit area (MMBTU/ft2) and reduce water use by 15 percent by the end of 20008 from a 2004 baseline
• Reduce the Company's total global greenhouse gas emissions by 12 percent by the end of 2012, from a 2004 baseline.
• Zero significant safety or environmental events
• Continue to work with stakeholders on the issue of Pharmaceuticals in the Environment to identify additional data needs and to conduct our own environmental risk assessments based upon the best available science.

• Achieved and exceeded our goal to  reduce energy demand by 25 percent from a 2004 baseline; achieved and exceeded our water-use goal of 15 percent reduction between 2004 and 2008.
• Inaugurated a 1.6 megawatt ground-mounted photovoltaic energy array at our corporate headquarters.
• Adopted a corporate commitment to build all new laboratories and offices to achieve LEED® Silver Certification or its equivalent globally.
• Through our membership in the PhRMA PIE Task Force, contributed to the research that supports the SMARxT Disposal Program, designed to provide the general public with information on proper disposal of medication.

• Zero significant safety or environmental events.
• Continue to reduce the Company's total global greenhouse gas emissions to reach by 12 percent by the end of 2012 from a 2004 baseline, including offsetting emissions from new facilities currently under construction.
• Establish appropriate reduction goals in line with the global desire among nations and regions to commit to significance reductions through 2020 and 2050.
• Continue to identify opportunities for water use improvements.
• Continue to monitor Toxic Release Inventory (TRI) and Volatile Organic Compounds (VOC) emissions to ensure that we maintain reductions gains from past initiatives.
• Continue to work with stakeholders and the scientific community on the evolving issue of pharmaceuticals in the environment (PIE).

• Include in 2009 on our website all dollars spent globally on corporate political campaign contributions.
• Report externally in 2009 on adherence to ethical business practices related to corporate political spending.
• Ensure all major public/private partnerships (PPPs) in which we participate have clear annual performance requirements, where possible linked to the Millennium Development Goals. By 2010, work toward reporting on percentage of PPPs that report annually against such requirements.

• Beginning in 2009, expanded disclosure of corporate political contributions to Australia and Canada, the only other countries where Merck provides such contributions
• In 2008, Merck began disclosing on our website the portion of dues that major U.S.-based trade associations report to us as being used for advocacy and/or political activity purposes where dues are greater than $50,000.
• In 2009 we are requiring an annual progress and evaluation report for all PPPs to which we provide financial support.

• In 2010, draft a new model code of conduct for corporate political spending that includes provisions of the Center for Political Accountability Model Code and additional provisions based on policies and practices.
• In 2010, disclose all of our memberships in U.S. state business- related associations, regardless of the size of the dues.
• Provide on our website a list of policy positions being advocated within U.S. state legislatures.
• In 2010, report on the number of PPPs for which Merck has provided support that report annually against program objectives and performance requirements, including a measure of their progress against the U.N. Millennium Development Goals where applicable.

Employee Practices

• Increase female representation at senior manager level to 36 percent, and under-represented ethnic group representation at this level to 18 percent, by 2012.
• Raise awareness of flexible work arrangements policy, increase employee satisfaction with flexible work opportunities and begin tracking global use in 2009.
• Reduce Company-wide and lost-time injury rates by 15 percent each from 2007 baseline by end 2008.

• Increased female representation in executive roles to 28 percent,  and under-represented ethnic group representation on senior management team to 15 percent
• Launched the Global Constituency Groups (GCGs) initiative, to support our global diversity strategy. 
• In 2008, Merck implemented a global flexible work arrangement policy and launched tools to increase access to such arrangements worldwide.
• Decreased lost time  injury rate by 12.5 percent while taking steps that dramatically increased reporting of injuries.

• Continue to increase female and under-represented ethnic group representation at senior manager level in line with 2012 goals.
• Begin to formally track global use of our flexible work arrangements in 2009; by 2010, achieve 80% employee satisfaction with opportunities in this regard. 
• Reduce Company-wide and lost-time injury rates by 15 percent in 2009 versus 2008 performance; reduce the motor vehicle accident rate by 10 percent in 2009 versus 2008 performance.

• Achieve 100 percent completion of Responsible Supply Chain Management Screening Survey by existing external suppliers of pharmaceutical intermediates and compounds by end of 2008.
• Achieve 100 percent completion of Merck's pre-selection Detailed Suppliers Ethical Assessment by potential suppliers of new business globally by 2010.
• Develop formal mitigation plans for those items sourced externally that are critical to ensuring our ability to supply finished product without interruption. Have plans for 20 percent, 60 percent and 100 percent of our suppliers that fit within this category for 2008, 2009 and 2010, respectively.
• Expand our supplier diversity reporting in the United Kingdom and Canada by 2010.

• Provided all existing external manufacturers with our guidelines and expectations, as well as Screening Survey. Achieved  an 81 percent response rate.
• Performed EHS-specific evaluations of approximately 30 potential external manufacturers.
• Worked toward increasing completion of Merck's pre-selection Detailed Suppliers Ethical Assessment by potential suppliers of new business.
• Achieved 2008 supplier diversity goal of 14 percent of total applicable spend.

• By end 2009, achieve 100 percent completion of the Screening Survey by existing external manufacturers of pharmaceutical intermediates and compounds.
• Achieve 100 percent completion of Detailed Ethical Supplier Assessment by potential suppliers by 2010.
• Implement annual supplier supplemental ethics standards training for each procurement employee by 2010, and develop a Supplier Code of Conduct by 2010.
• Develop formal risk mitigation plans where required for external manufacturers who require improvements to meet pharmaceutical industry Principles for Responsible Supply Chain Management.
• Increase supplier diversity to 17 percent of total applicable spend in the U.S. and Puerto Rico by 2010.