Merck Reaffirms 2011 Non-GAAP EPS Target of $3.64 to $3.76

Following the Merck and Johnson & Johnson settlement announcement today, Merck MRK said that it continues to expect 2011 non-GAAP earnings per share 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.