Major Expansion for Merck Sharp & Dohme in South Tipperary

120 new jobs will include 60 R&D positions

Minister for Enterprise, Trade & Employment Micheál Martin TD today (6^th November, 2006) announced a major new investment for South Tipperary. Merck Sharp & Dohme (Ireland) Ltd, a wholly owned subsidiary of Merck & Co., Inc., New Jersey, USA, is to establish a Formulation R&D and Manufacturing Facility at its plant in Ballydine with the support of IDA Ireland.

Merck Sharp & Dohme’s (MSD) operation at Ballydine was established in 1976 and employs 340 people. It is a large-scale plant producing active pharmaceutical ingredients for use in pharmaceutical manufacturing by Merck & Co., Inc. subsidiaries throughout the world. In recent years, a second affiliate was established in Dublin dedicated to clinical research, regulatory affairs, marketing and sales operations.

The new investment will involve two specific areas of activity. A research and development (R&D) centre will develop innovative platforms for the formulation of products used in late stage clinical trials. The new pharmaceutical manufacturing facility will enable the Ballydine plant to produce tablets and capsules for a number of new products in late stage clinical trials and for new products launched on the market. This investment of €100 million will create 120 new positions over the next three years, including approximately 60 R&D positions.

Minister Martin, welcoming the investment, said: “Today’s announcement is very welcome news for the people of Tipperary and the region. We are delighted that the MSD plant in Ballydine is performing to such a level that it was selected for this cutting-edge R&D and clinical trials manufacturing facility. The number of high level positions which will be created reflects the significant scale of the R&D investment. The new facility will be strategically important to Merck & Co., Inc's worldwide operations and will greatly enhance the company's future in South Tipperary."

Mr Martin continued: “When a company like Merck chooses its Irish-based subsidiary for these key activities, it is a strong endorsement of Ireland’s reputation as a leading global location for life sciences companies carrying out high level research and development. Today’s announcement is an ideal reflection of the ambitions of our Government’s recent €3.8 billion initiative for Science and Technology. This initiative intends to double the number of Ph.D. graduates and attract future generations of our talented young people into careers in knowledge-driven companies like Merck & Co., Inc.”

Dr Michael P Thien, Vice President of Global Pharmaceutical Commercialisation for Merck & Co., Inc., said: “This investment is essential to Merck's commercialisation initiative that will bring new medicines to market more quickly and flexibly. The Company's decision to locate a Formulation R&D and Manufacturing Facility in Ballydine was based on a number of factors such as the consistent support and encouragement we received from the Irish Government, the availability of skills in the industry necessary for an operation of this level and a supportive business environment in which to operate."

“We have had great success with our MSD facility in South Tipperary over the last 30 years, and we are pleased this new investment will bring a totally new business in finished product production and significantly increase the overall level of research and development conducted at the site. We look forward to discussing the project with the local community as the initiative moves forward,” Dr. Thien concluded.

ENDS/ETE 1660

About Merck & Co., Inc.

Merck & Co., Inc., Whitehouse Station, New Jersey, USA is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufacturers 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 people who need them. Merck also publishes unbiased health information as a non-for-profit service. For more information visit www.merck.com.

John F Condon, Director of Public Affairs, Merck Sharp & Dohme (Ireland) Ltd
Tel; 353 51 601000

Brendan Kenny, Press & PR Officer, IDA Ireland, Tel: 01-6034000