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Press release from Business Wire

Merck Announces $5 Billion Accelerated Share Repurchase

Tuesday, May 21, 2013

Merck Announces $5 Billion Accelerated Share Repurchase

17:00 EDT Tuesday, May 21, 2013

WHITEHOUSE STATION, N.J. (Business Wire) -- Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced that it has entered into an accelerated share repurchase agreement (ASR) with Goldman, Sachs & Co. to repurchase $5 billion of Merck's common stock. Proceeds from the company's recently concluded debt offering were used to execute the ASR, which is part of Merck's previously announced $15 billion share repurchase program.

“This accelerated share repurchase demonstrates our commitment to delivering increased value to shareholders in the short term, while continuing to invest in the important opportunities that will drive our long-term growth,” said Kenneth C. Frazier, chairman and chief executive officer, Merck.

Under the terms of the ASR, Merck has agreed to repurchase $5 billion of its common stock from Goldman, Sachs & Co., in total, with an initial delivery of approximately 99.5 million shares based on current market prices. The final number of shares to be repurchased will be based on Merck's volume-weighted average stock price during the term of the transaction, which is expected to be completed no later than November 25, 2013.

In the first four months of 2013, Merck repurchased approximately 17.8 million shares for a total of $772 million. As of April 30, 2013, the company's total outstanding share repurchase authorization was $16.1 billion, which included $1.1 billion in authorized repurchases remaining under the program previously announced on April 27, 2011.

About Merck

Today's Merck is a global healthcare leader working to help the world be well. 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 and connect with us on Twitter, Facebook and YouTube.

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. These statements are based upon the current beliefs and expectations of Merck's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; Merck's ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of Merck's patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck's 2012 Annual Report on Form 10-K and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov).

Merck
Media Contact:
Steven Cragle, 908-423-3461
or
Investor Contact:
Carol Ferguson, 908-423-5185

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