DELIVERING GREATER VALUE GLOBALLY

In 2008, we began rolling out new commercial models in the United States, the European Union, Japan and Canada that are fundamentally changing the way we interact with our customers. Our new models are designed to build strong partnerships that demonstrate greater customer value and increase the level of trust our customers have in Merck, while helping us control costs. In a major pilot of our U.S. model, we achieved comparable sales performance with 20 percent fewer professional representatives – and improved the ratings our customers gave us for value and trust.

Emerging markets will continue to provide significant growth opportunities for Merck. We are on track to achieve our goal of $2 billion in sales from emerging markets by 2010.

We are determined to be among the top five pharmaceutical companies in the markets we are focusing on, which include China, India, Korea, Russia, Turkey, Poland and Brazil. To support this goal, we are building a significant local presence in these markets and shifting investments from developed markets commensurate with the size and strategic importance of the new opportunity.

We are already seeing success in markets like Korea, where Singulair leads the market, and in Russia, Poland and Turkey, where Gardasil is No. 1. We have also been first to market with new products across nearly all major emerging markets.