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Merck 2Q

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By: Tim Wright

Editor-in-Chief, Contract Pharma

Merck

2Q Revenues: $6.1 billion (+12%)

2Q Earnings: $1.7 billion (+6%)

YTD Revenues: $11.9 billion (+6%)

YTD Earnings: $3.4 billion (+12%)

Comments: Led by Gardasil, vaccine sales reached $1.0 billion in 2Q, up from $349 million. Singular sales rose 15% to $1.1 billion. Combined Vytorin/Zetia sales were $1.3 billion. R&D costs dropped 12% to $1.0 billion for the quarter. Higher costs in 2Q2006 reflected R&D costs from the GlycoFi acquisition. FY2007 restructuring costs are projected to reach $500-$700 million.

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