4Q Revenues: $11.3 billion (-4%)
4Q Earnings: $781 million (-14%)
FY Revenues: $44.0 billion (-7%)
FY Earnings: $4.4 billion (-26%)
Comments: Foreign exchange rates contribute three points to Merck's 4Q13 revenue drop of 4%, and two points to the 7% revenue shortfall for FY13. Pharma sales dropped 8% to $37.4 billion. Singulair's patent expiration -- August 2012 in the U.S. and February 2013 in Europe -- outweighed new product growth, with FY revenues falling 69% from $3.9 billion to $1.2 billion. Temodar sales fell 23% to $708 million for FY13. Cozaar/Hyzaar sales dropped 22% to $1.0 billion during the year. The biggest drop came from Maxalt, sales of which fell 77% to $183 million in FY13. Among non-expiring drugs, Januvia sales fell slightly to $1.1 billion in 4Q13, but Janumet sales rose 11% to $503 million. Remicade sales were up 13% to $620 million in the quarter, while Isentress revenues were up 16% to $442 million. Zostavax sales grew 18% in 4Q13 to $264 million and 16% to $758 million in FY13. Merck's Animal Health division fell 3% in 4Q to $871 million and 1% in FY to $3.4 billion. Consumer Health revenues were $390 million (-1%) in 4Q and $1.9 billion (-3%) in FY; Merck is currently exploring options for both units and plans to take action on them during the year. Restructuring costs in the quarter were $565 million, compared to $191 million in 4Q12; for the year, restructuring costs ran $1.7 billion, compared to $664 million in 2012.