Following the Merck and Johnson & Johnson settlement announcement today, Merck (NYSE: MRK) said that it continues to expect 2011 non-GAAP earnings per share (EPS) to be in the range of $3.64 to $3.76, excluding certain items. The 2011 non-GAAP EPS target range excludes the $500 million one-time payment to Centocor as well as related tax impacts of the arbitration resolution, purchase accounting adjustments, restructuring costs and merger-related expenses. The 2011 GAAP EPS target range includes the entire impact of the arbitration settlement and is now expected to be in the range of $1.89 to $2.17. A reconciliation of anticipated 2011 EPS as reported in accordance with GAAP to non-GAAP EPS that excludes certain items is provided in the table below.
Merck also continues to expect full year 2011 revenue to grow in the low to mid-single digit percent range from the base of $46.0 billion in the full year of 2010.
"We are pleased that the purposeful and focused steps we have taken in the first half of 2011 will allow us to maintain our prior 2011 non-GAAP financial targets - including revenue and EPS - while absorbing the ongoing impact of the settlement during the remainder of the year," said Kenneth C. Frazier, president and chief executive officer of Merck. "Looking ahead, the ongoing and future launches of Simponi in countries across Europe give us additional opportunities."