On October 2, 2007, Merck completed the sale of the Generics division to Mylan Inc., Canonsburg, PA (United States) for €4.9 billion (for details, see Consolidated Financial Statements). The results of this division are therefore reported under “Discontinued Operations”.

Total revenues up until the beginning of October 2007 were €1,395 million in comparison with €1,824 million for the full year 2006. The operating result of Generics declined to €189 million owing to weak business in North America in 2007. Return on sales (ROS) was 13.5%.

Compared with the first nine months of 2006, total revenues of the Generics division in the first nine months of 2007 increased slightly by 3.3% to €1,387 million. During this period, the division generated approximately one-half of sales in Europe, where good business developments were responsible for a 23% increase in sales to €672 million. The largest market was France, where sales totaled €280 million, equivalent to a 26% increase over 2006. In Germany, the Generics division benefited from renewed changes in health care policy framework conditions, which led to a 61% increase in sales to €86 million. Sales declined in North America by 18% to €380 million and in the United States by 16% to €323 million. Sales in Latin America increased by 15% to €28 million, whereas the region Asia, Africa, Australasia maintained the year-earlier level of sales of €305 million.