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Exhibit Al
Return on Assets for Merck and Merck’s 10 Largest Competitors, 1970-1984
21.0% –
20.0% –
19.0% –
18.0%
Return on Assets
17.0%-
16.0% –
15.0% –
14.0% –
13.0% –
12.0% –
11.0% –
10.0% –
1970
1971 –
1972 –
1973
1974 –
1975 –
1976 –
1977 –
1978 –
1979
1980 –
1981 –
1982
1983 –
1984
Year
Note: Return on assets, defined as after-tax income plus interest divided by assets, obtained from Compustat. The list of Merck’s 10
largest competitors (as measured by sales, SIC code 2834) has generally varied from year to year, due to takeovers, acquisitions,
and different rates of growth. The companies depicted in the graph (and the years during which they were one of Merck’s 10
largest competitors) are Abbott Laboratories (70-73, 75-84), American Home Products (70-84), Baxter International (85-84),
Bristol-Myers (70-84), International Minerals amp; Chemicals (70, 71, 74-81), Johnson amp; Johnson (70-84), Eli Lilly amp; Co (70-84),
Pfizer Inc (70-84), Schering-Plough (82), Smithkline Beckman Corp (80-84), Squibb (70-78, 84), Sterling Drugs (70-79, 83),
Upjohn (72-74, 78-84), and Warner-Lambert (70-84).Management