[Ip-health] Merck is profoundly disappointed…

Gaelle Krikorian gaelle.krikorian@gmail.com
Fri May 4 14:51:02 2007


Merck & Co., Inc. Statement on Brazilian Government's Decision To
Issue Compulsory License for Stocrin

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--May 4, 2007 - Merck & Co.,
Inc. issued the following statement today on the Government of
Brazil's decision to issue a compulsory license for STOCRIN(TM)
(efavirenz):

"Merck is profoundly disappointed by the decision of the Government
of Brazil (GOB) to issue a compulsory license for STOCRIN(TM)
(efavirenz), which would break Merck & Co., Inc.'s patent and make it
possible for efavirenz to be produced by a generic manufacturer.

"Merck has attempted to negotiate in good faith with the GOB, but a
fair offer on STOCRIN has been rejected. While we remain flexible and
committed to exploring a mutually acceptable agreement with the
Brazilian government to help the country achieve its objective of
universal access to treatment, we believe their action is not in the
best interests of patients in Brazil and around the world.

"Merck continues to share with the GOB the common objective of
improving the health and welfare of those living with HIV/AIDS. In
fact, Merck's global HIV pricing policy offers Brazil access to both
STOCRIN(TM) and CRIXIVAN(R) at the lowest price of any country with a
comparable wealth and disease burden.

"This expropriation of intellectual property sends a chilling signal
to research-based companies about the attractiveness of undertaking
risky research on diseases that affect the developing world,
potentially hurting patients who may require new and innovative life-
saving therapies.

"Research and development-based pharmaceutical companies like Merck
simply cannot sustain a situation in which the developed countries
alone are expected to bear the cost for essential drugs in both least-
developed countries and emerging markets. As such, we believe it is
essential to price our medicines according to a country's level of
development and HIV burden, thereby ensuring equitable access as well
as our ability to invest in future innovative medicines. As the
world's 12th largest economy, Brazil has a greater capacity to pay
for HIV medicines than countries that are poorer or harder hit by the
disease.

"This decision by the GOB will have a negative impact on Brazil's
reputation as an industrialized country seeking to attract inward
investment, and thus its ability to build world-class research and
development.

"Merck hopes the government of Brazil will reconsider its stance in
the interests of HIV patients around the world."

About Merck

Merck & Co., Inc. is a global research-driven pharmaceutical company
dedicated to putting patients first. Established in 1891, Merck
currently discovers, develops, manufactures and markets vaccines and
medicines to address unmet medical needs. The Company devotes
extensive efforts to increase access to medicines through far-
reaching programs that not only donate Merck medicines but help
deliver them to the people who need them. Merck also publishes
unbiased health information as a not-for-profit service. For more
information, visit www.merck.com.

Forward-Looking Statement

This statement contains "forward-looking statements" as that term is
defined in the Private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations and
involve risks and uncertainties, which may cause results to differ
materially from those set forth in the statements. The forward-
looking statements may include statements regarding product
development, product potential or financial performance. No forward-
looking statement can be guaranteed and actual results may differ
materially from those projected. Merck undertakes no obligation to
publicly update any forward-looking statement, whether as a result of
new information, future events, or otherwise. Forward-looking
statements in this statement should be evaluated together with the
many uncertainties that affect Merck's business, particularly those
mentioned in the risk factors and cautionary statements in Item 1A of
Merck's Form 10-K for the year ended Dec. 31, 2006, and in its
periodic reports on Form 10-Q and Form 8-K, which the Company
incorporates by reference.

Contact

For Merck & Co., Inc.
U.S. and Ex-Brazil Media:
Amy Rose, 908-423-6537
Or
Investors:
Graeme Bell, 908-423-5185
Or
Local (Brazil) Media:
Joao Sanches, (55) 11-5189-7840