...Merck Confident It Can Hold Growth Rates

Merck & Co chairman Raymond Gilmartin has told analysts at a recentmeeting that the company is confident of maintaining growth rates to match other leading pharmaceutical companies through the period of patent expirations (2002-2003) and despite increasing competition. He told the meeting that he felt comfortable with Wall Street's earnings expectations of $3.80-$3.84 per share in 1997 and $4.35-$4.53 in 1998.

Despite fears that earnings might be hit hard by patent expirations and fierce competition, particularly in the cholesterol market, Mr Gilmartin used the example of Zocor (simvastatin) to emphasize Merck's continued growth. He said: "ultimately, success in the cholesterol market (will be determined by) demonstrating long-term safety and survival benefits, where Zocor has the advantage."

Merck noted that it had solid growth in all major geographic areas, notably in Europe, where the company grew 16% during the first nine months of 1997 - outpacing the market by a factor of three. These productivity gains are being invested into R&D and marketing.