MSD positions for long-term growth

MANILA, Philippines - MSD, known as Merck in the United States and Canada, held its research and development (R&D) and business briefing at its global headquarters, highlighting the company’s research strategy, including candidates from its R&D pipeline, and providing an update on its plans for growth.

“Early in the year, we said 2011 would be all about executing our growth plans,” said Kenneth C. Frazier, president and chief executive officer, “and there can be no mistaking that MSD is doing just that. We are implementing a four-part strategy to drive top-line and bottom line performance with the aim of realizing superior shareholder returns over the longer term.

“We are focused on making the right investment decisions across our business while continuing to advance and augment our late-stage pipeline. Fundamentally, MSD is about translating cutting-edge science into medically important medicines and vaccines that save, extend and improve lives throughout the world. Our strategy is based on innovation being the single biggest driver of value over the long term for patients, customers and shareholders.”

As MSD entered 2011, the company focused on accelerating top-line growth, reducing costs, allocating resources to drive growth and advancing and augmenting its pipeline.

“Three consecutive quarters of top and bottom-line growth, coupled with strong expense management, demonstrate MSD’s ability to consistently perform, while at the same time make the strategic investments necessary for the future,” said Frazier.

Through Sept. 30, 2011, MSD delivered five-percent top-line growth, increasing sales by nearly $2 billion. MSD grew its non-GAAP EPS by 10 percent year to date, even after reinvesting more than $500 million in growth opportunities and new product launches. Since the merger with Schering-Plough, MSD achieved $2.8 billion in net synergies.