DEAR SHAREHOLDERS:

More innovative. More customer-focused. Leaner and more agile. These are the defining characteristics of the new Merck we are continuing to build. This past year has underscored the importance of our ongoing work to emerge as a leader in the pharmaceutical industry of the future. It has also both tested — and proven — Merck's resilience. To achieve our mission of discovering and developing medicines and vaccines that improve the lives of people around the world, we are fundamentally changing this company.

We continue to transform every aspect of our business, guided by the strategy we first laid out in 2005. As we move ahead, we have the market insight and financial strength to drive our business growth by investing in strategic internal as well as external opportunities when they make sense for our shareholders.