Sinopharm and Merck Sign Statement of Mutual Intent

WHITEHOUSE STATION, N.J., and BEIJING, CHINA, July 27, 2010 – Merck, known outside the U.S. and Canada as MSD, and Sinopharm (China National Pharmaceutical Group Corporation) today announced the signing of a statement of mutual intent. Under the statement, Sinopharm and Merck will cooperate on HPV vaccine and other mutually-selected vaccine products in China, and will also discuss the potential for promoting and marketing Merck's pharmaceutical products in China.

“Expanding our business in emerging markets throughout the world is critical to the mission and growth of Merck/MSD and innovative partnerships are a key element of our approach," said Richard T. Clark, chairman and chief executive officer, Merck. "We look forward to furthering our discussions with Sinopharm to establish a joint venture to significantly increase the number of people in China who have access to important vaccines."

Merck and Sinopharm have maintained a good relationship for many years, Sinopharm said. Both Merck and Sinopharm expect the importance of public health will be elevated and the development of the pharmaceutical industry in China will be promoted through this strategic cooperation.

About Merck
Today's Merck is a global healthcare leader. Merck is known as MSD outside the United States and Canada. Through our prescription medicines, vaccines, biologic therapies, and consumer care and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to healthcare through far-reaching policies, programs and partnerships. For more information, visit www.merck.com.

About Sinopharm
Sinopharm is China's largest pharmaceutical and health industrial group under State-Owned Assets Supervision and Administration Commission of the State Council. It has China’s largest bio-pharmaceutical manufacturing company and China's largest (the world’s third largest) pharmaceutical distribution company. For more information, visit www.sinopharm.com.

Forward-Looking Statement
This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about the benefits of the merger between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period; the impact of pharmaceutical industry regulation and health care legislation; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions.

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