In the developing world, Merck offers ROTATEQ^® (rotavirus vaccine, live, oral, pentavalent) and GARDASIL^® [Human Papillomavirus Quadrivalent (Types 6, 11, 16, and 18) Vaccine, Recombinant] at an access price that is significantly less than the price of these vaccines in developed markets.

The access price is exclusive to the public sectors of GAVI-eligible countries, and meets the needs of the developing world by facilitating access to these innovative vaccines in the poorest countries, and is affordable and sustainable in the long term.

We chose to prioritize access to these vaccines based on a comprehensive evaluation of our vaccine portfolio and on the developing world's needs, and after review of the public health priorities of international agencies such as the World Health Organization (WHO). We believe that our pricing approach will contribute to wider access to our vaccines, while taking into account Merck's need to continue to invest in vaccine research, development and production. For more developed middle-income countries, Merck will provide our vaccines at tiered prices based on countries' ability to pay.

Merck continues to seek novel ways to reduce the cost of its vaccines further in developing countries. One way is to partner with licensors to reduce or waive the royalty on vaccine doses sold in developing countries. In 2008, CSL Limited agreed to waive Merck's royalties for sales of GARDASIL in the developing world to help expand access. Merck believes that the decision of CSL to waive the royalties will result in lower prices and is an example of how industry partners can work together to develop sustainable solutions for vaccine access.

We are also pursuing manufacturing efficiencies and exploring potential partnerships with low-cost manufacturers to bring down the cost of manufacturing our vaccines.