| Merck & Co., Inc. today announced that it has successfully completed the spin-off of 100 percent of the outstanding shares of Medco Health Solutions, Inc. common stock to Merck stockholders. Shares of Medco Health common stock have been distributed to Merck stockholders on the basis of 0.1206 Medco Health common shares for each Merck common share held on the record date, Aug. 12, 2003. As previously announced, the spin-off is structured as a tax-free distribution to Merck stockholders for U.S. federal tax purposes, except to the extent cash is received in lieu of fractional shares.
"Together, Merck and Medco Health have enjoyed 10 years of growth and success. As a subsidiary of Merck, Medco Health grew to become the nation's leading pharmacy benefits management (PBM) company, providing integrated prescription health care to 62 million Americans. Medco Health increased revenues from $2.2 billion in 1992 to $33 billion in 2002, and last year, filled or processed approximately 548 million prescriptions. By all measures, the acquisition of Medco Health by Merck has been highly successful,” said Merck Chairman, President and Chief Executive Officer Raymond V. Gilmartin. “With the spin-off, the market now has the ability to value each entity as 'pure plays' in their respective industries. We believe that by establishing Merck and Medco Health as two separate companies, we will enhance the potential for success of both businesses and, as a result, increase shareholder value."
About Merck & Co., Inc.
Merck is a global research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures. More information about Merck is available at www.merck.com.
About Medco Health Solutions, Inc.
Medco Health is the nation's leading provider of prescription healthcare services, based on $33 billion in sales in 2002. Medco Health had been a wholly owned and independently managed subsidiary of Merck and assists its clients to moderate the cost and enhance the quality of prescription drug benefits provided to about 62 million Americans. More information about Medco Health is available at www.medcohealth.com.
Forward-Looking Statement
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake 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 press release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the cautionary statements in Item 1 of our Form 10-K for the year ended Dec. 31, 2002, and in our periodic reports on Form 10-Q and Form 8-K (if any) which we incorporate by reference.
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