Merck & Co. (MRK) 8-K Schering-plough Reports Financial Results

EXHIBIT 99.2

SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(Dollars in Millions, except EPS)
(Unaudited)

	2005													2004
	1st			2nd			6			3rd	9	4th		1st			2nd			6			3rd			9			4th						2nd Qtr.			6 Mos.
	Qtr.			Qtr.			Mos.			Qtr.	Mos.	Qtr.	Year	Qtr.			Qtr.			Mos.			Qtr.			Mos.			Qtr.			Year			vs			vs
	$			$			$			$	$	$	$	$			$			$			$			$			$			$			2nd Qtr.			6 Mos.
Net Sales		2,369			2,532			4,900							1,963			2,147			4,110			1,978			6,088			2,184			8,272			18	%		19	%
Cost of Sales		889			867			1,756							740			790			1,530			711			2,241			829			3,070			10	%		15	%
Gross Margin		1,480			1,665			3,144							1,223			1,357			2,580			1,267			3,847			1,355			5,202			23	%		22	%
Total SG&A		1,081			1,116			2,197							914			979			1,893			892			2,785			1,026			3,811			14	%		16	%
Research & Development 1/		384			442			825							372			451			824			378			1,201			406			1,607			(2	%)		0	%
Other, Net		17			(8	)		9							36			43			78			34			112			33			146			N/M			(88	%)
Special Charges 2/		27			259			286							70			42			112			26			138			15			153			N/M			N/M
Equity Income from Cholesterol Joint Venture		(220	)		(170	)		(389	)						(78	)		(77	)		(154	)		(95	)		(249	)		(98	)		(347	)		N/M			N/M
Income/(Loss) before Income Taxes		191			26			216							(91	)		(81	)		(173	)		32			(140	)		(27	)		(168	)		N/M			N/M
Income Tax Expense/(Benefit) 3/		64			74			138							(18	)		(16	)		(35	)		6			(28	)		807			779			N/M			N/M
Net Income/(Loss)		127			(48	)		78							(73	)		(65	)		(138	)		26			(112	)		(834	)		(947	)		N/M			N/M
Preferred Stock Dividends		22			22			43							—			—			—			12			12			22			34			N/M			N/M
Net Income/(Loss) Available to Common Shareholders		105			(70	)		35							(73	)		(65	)		(138	)		14			(124	)		(856	)		(981	)		N/M			N/M
Diluted Earnings/(Loss) per Common Share		0.07			(0.05	)		0.02							(0.05	)		(0.04	)		(0.09	)		0.01			(0.08	)		(0.58	)		(0.67	)		N/M			N/M
Avg. Shares Outstanding- Diluted		1,480			1,476			1,482							1,471			1,472			1,471			1,475			1,472			1,473			1,472
Actual Shares Outstanding		1,475			1,476			1,476							1,472			1,472			1,472			1,472			1,472			1,474			1,474
Ratios To Net Sales
Net Sales		100.0	%		100.0	%		100.0	%						100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of Sales		37.5	%		34.2	%		35.8	%						37.7	%		36.8	%		37.2	%		35.9	%		36.8	%		37.9	%		37.1	%
Gross Margin		62.5	%		65.8	%		64.2	%						62.3	%		63.2	%		62.8	%		64.1	%		63.2	%		62.1	%		62.9	%
Total SG&A		45.6	%		44.1	%		44.8	%						46.6	%		45.6	%		46.1	%		45.1	%		45.7	%		47.0	%		46.1	%
Research & Development		16.2	%		17.4	%		16.8	%						19.0	%		21.0	%		20.0	%		19.1	%		19.7	%		18.6	%		19.4	%
Income/(Loss) Before Income Taxes		8.0	%		1.0	%		4.4	%						(4.6	%)		(3.8	%)		(4.2	%)		1.6	%		(2.3	%)		(1.3	%)		(2.0	%)
Income Taxes Expense/(Benefit)		2.7	%		2.9	%		2.8	%						(0.9	%)		(0.8	%)		(0.8	%)		0.3	%		(0.5	%)		37.0	%		9.4	%
Net Income/(Loss)		5.3	%		(1.9	%)		1.6	%						(3.7	%)		(3.0	%)		(3.4	%)		1.3	%		(1.8	%)		(38.2	%)		(11.4	%)

Note: The Company noted that it incurs substantial costs, such as selling, general and administrative costs, that are not reflected in the “Equity income from cholesterol joint venture” and are borne by the overall cost structure of Schering-Plough.

1/	Research and development in 2004 includes an $80 million upfront payment in conjunction with the licensing from Toyama Chemical Company LTD. of garenoxacin, a quinolone antibiotic in development.
2/	Special Charges for the second quarter of 2005 includes an addition of $250 million to the Company’s litigation reserves relating to the investigation by the U.S. Attorney’s Office for the District of Massachusetts into the Company’s marketing, sales, pricing and clinical trial practices, as well as previously disclosed litigation relating to company practices regarding average wholesale price by the Department of Justice and certain states. While no agreement has been reached, the increase in litigation reserves reflects the Company’s current estimate to resolve these matters. With this increase, a total of $500 million has been reserved for these matters. The majority of the remaining amount of the Special Charges in the second quarter related to the consolidation of the Company’s U.S. biotechnology organizations. Special Charges for the second quarter ended June 30, 2004 included $42 million of employee termination costs.
	Special Charges for the twelve months ended December 31, 2004 included $119 million of employee termination costs, as well as $27 million of asset impairment charges and $7 million of closure costs primarily related to the aforementioned research-and-development facility.
3/	Tax expense during the second quarter and first six months of 2005 primarily related to foreign tax expense as the Company did not recognize the benefit of U.S. tax operating losses. In the fourth quarter ended December 31, 2004, the Company recorded the impact of the intended repatriation of funds under the American Jobs Creation Act of 2004.

All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 1

SCHERING-PLOUGH CORPORATION
CONSOLIDATED SALES
(Dollars in Millions)

	2005										2004
	1st		2nd		6		3rd	9	4th		1st		2nd		6		3rd		9		4th				2nd Qtr.			6 Mos.
	Qtr.		Qtr.		Mos.		Qtr.	Mos.	Qtr.	Year	Qtr.		Qtr.		Mos.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$	$	$	$	$		$		$		$		$		$		$		2nd Qtr.			6 Mos.
Prescription Pharm:		1,846		1,975		3,820						1,481		1,644		3,125		1,556		4,681		1,737		6,417		20	%		22	%
U.S.		549		609		1,157						411		495		906		518		1,424		584		2,007		23	%		28	%
International		1,297		1,366		2,663						1,070		1,150		2,220		1,037		3,257		1,153		4,410		19	%		20	%
Consumer Health Care:		330		330		660						312		317		629		239		868		217		1,085		4	%		5	%
OTC:		162		162		324						157		150		306		150		456		121		578		8	%		6	%
OTC Claritin *		116		133		248						117		117		234		110		344		75		419		13	%		6	%
Other OTC		46		29		76						40		32		72		41		112		46		159		(10	%)		5	%
Foot Care:		84		89		173						76		89		166		86		252		79		331		0	%		5	%
Sun Care:		84		79		163						79		78		157		3		160		17		176		2	%		4	%
Animal Health:		193		227		420						170		186		356		183		539		230		770		22	%		18	%
U.S.		44		54		98						41		36		77		56		133		61		194		51	%		28	%
International		149		173		322						129		150		279		127		406		169		575		15	%		15	%
Total Consolidated:		2,369		2,532		4,900						1,963		2,147		4,110		1,978		6,088		2,184		8,272		18	%		19	%
U.S.		897		970		1,866						738		827		1,565		800		2,365		854		3,219		17	%		19	%
International		1,472		1,562		3,034						1,225		1,320		2,545		1,178		3,723		1,330		5,053		18	%		19	%

* Includes net sales of Claritin in Canada.

     All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 2

SCHERING-PLOUGH CORPORATION
PRESCRIPTION PHARMACEUTICAL SALES — KEY PRODUCT SALES
(Dollars in Millions)

	Global Prescription Pharm							U.S.							International
	2005		2004					2005		2004					2005		2004
	2nd		2nd		2nd Qtr.			2nd		2nd		2nd Qtr.			2nd		2nd		2nd Qtr.
	Qtr.		Qtr.		vs			Qtr.		Qtr.		vs			Qtr.		Qtr.		vs
	$		$		2nd Qtr.			$		$		2nd Qtr.			$		$		2nd Qtr.
Prescription Pharm:		1,975		1,644		20	%		609		495		23	%		1,366		1,150		19	%
Remicade		234		182		29	%		—		—		—			234		182		29	%
Nasonex		199		156		28	%		115		85		35	%		84		71		19	%
PEG-Intron		182		144		26	%		38		50		(24	%)		144		94		52	%
Clarinex / Aerius		207		226		(8	%)		90		126		(28	%)		117		100		16	%
Temodar		145		102		42	%		65		45		45	%		80		57		40	%
Claritin Rx 1/		100		82		22	%		—		—		—			100		82		22	%
Integrilin		82		78		6	%		78		72		9	%		4		6		(34	%)
Intron A		75		89		(15	%)		36		33		11	%		39		56		(31	%)
Avelox 2/		46		—		N/M			46		—		N/M			—		—		N/M
Rebetol		91		88		3	%		1		23		N/M			90		65		37	%
Subutex		53		47		13	%		—		—		—			53		47		13	%
Caelyx		46		35		30	%		—		—		—			46		35		30	%
Elocon		38		46		(18	%)		2		12		(85	%)		36		34		6	%
Cipro 2/		36		—		N/M			36		—		N/M			—		—		N/M

1/	Includes international net sales of Claritin Rx only. Canadian net sales of Claritin are reported in the OTC Claritin line within Consumer Health Care.
2/	Includes net sales in Puerto Rico

     All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 3

SCHERING-PLOUGH CORPORATION
GLOBAL PRESCRIPTION PHARMACEUTICAL SALES — KEY PRODUCT SALES
(Dollars in Millions)

	2005										2004
	1st		2nd		6		3rd	9	4th		1st		2nd		6		3rd		9		4th				2nd Qtr.			6 Mos.
	Qtr.		Qtr.		Mos.		Qtr.	Mos.	Qtr.	Year	Qtr.		Qtr.		Mos.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$	$	$	$	$		$		$		$		$		$		$		2nd Qtr.			6 Mos.
Global Prescription Pharm:		1,846		1,975		3,820						1,481		1,644		3,125		1,556		4,681		1,737		6,417		20	%		22	%
Remicade		220		234		454						165		182		347		188		535		212		746		29	%		31	%
Nasonex		183		199		382						140		156		296		153		449		145		594		28	%		29	%
PEG-Intron		170		182		352						148		144		293		132		425		138		563		26	%		20	%
Clarinex / Aerius		144		207		351						130		226		356		175		530		162		692		(8	%)		(1	%)
Temodar		131		145		276						86		102		188		121		309		150		459		42	%		47	%
Claritin Rx 1/		111		100		211						91		82		173		67		240		80		321		22	%		22	%
Integrilin		75		82		158						73		78		151		94		245		81		325		6	%		5	%
Intron A		73		75		148						69		89		158		81		239		79		318		(15	%)		(6	%)
Avelox 2/		73		46		119						—		—		—		—		—		44		44		N/M			N/M
Rebetol		64		91		155						99		88		187		52		239		49		287		3	%		(17	%)
Subutex		51		53		104						44		47		91		45		136		50		185		13	%		14	%
Caelyx		43		46		89						34		35		70		39		109		40		150		30	%		28	%
Elocon		41		38		79						38		46		84		42		127		42		168		(18	%)		(7	%)
Cipro 2/		37		36		72						—		—		—		—		—		43		43		N/M			N/M

1/	Includes international net sales of Claritin Rx only. Canadian net sales of Claritin are reported in the OTC Claritin line within Consumer Health Care.
2/	Includes net sales in Puerto Rico
	All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 4

SCHERING-PLOUGH CORPORATION
U.S. PHARMACEUTICAL SALES — KEY PRODUCT SALES
(Dollars in Millions)

	2005										2004
	1st		2nd		6		3rd	9	4th		1st		2nd		6		3rd		9		4th				2nd Qtr.			6 Mos.
	Qtr.		Qtr.		Mos.		Qtr.	Mos.	Qtr.	Year	Qtr.		Qtr.		Mos.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$	$	$	$	$		$		$		$		$		$		$		2nd Qtr.			6 Mos.
Total U.S. Pharm:		549		609		1,157						411		495		906		518		1,424		584		2,007		23	%		28	%
Nasonex		109		115		223						82		85		167		104		271		81		353		35	%		34	%
PEG-Intron		52		38		91						63		50		113		49		163		42		205		(24	%)		(20	%)
Clarinex / Aerius		67		90		157						69		126		195		118		313		107		420		(28	%)		(19	%)
Temodar		57		65		122						37		45		82		60		142		79		220		45	%		49	%
Integrilin		71		78		150						68		72		139		88		228		74		301		9	%		7	%
Intron A		32		36		68						18		33		51		30		81		29		109		11	%		35	%
Avelox 1/		73		46		119						—		—		—		—		—		44		44		N/M			N/M
Rebetol		—		1		—						31		23		53		—		54		—		45		N/M			N/M
Elocon		4		2		6						7		12		19		12		31		9		40		(85	%)		(70	%)
Cipro 1/		37		36		72						—		—		—		—		—		43		43		N/M			N/M

1/     Includes net sales in Puerto Rico

     All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 5

SCHERING-PLOUGH CORPORATION
INTERNATIONAL PHARMACEUTICAL SALES — KEY PRODUCT SALES
(Dollars in Millions)

	2005										2004
	1st		2nd		6		3rd	9	4th		1st		2nd		6		3rd		9		4th				2nd Qtr.			6 Mos.
	Qtr.		Qtr.		Mos.		Qtr.	Mos.	Qtr.	Year	Qtr.		Qtr.		Mos.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$	$	$	$	$		$		$		$		$		$		$		2nd Qtr.			6 Mos.
Total International Pharm:		1,297		1,366		2,663						1,070	��	1,150		2,220		1,037		3,257		1,153		4,410		19	%		20	%
Remicade		220		234		454						165		182		347		188		535		212		746		29	%		31	%
Nasonex		74		84		159						58		71		129		48		178		64		242		19	%		23	%
PEG-Intron		118		144		261						85		94		179		83		262		96		358		52	%		46	%
Clarinex / Aerius		77		117		194						61		100		161		57		218		55		272		16	%		20	%
Temodar		74		80		154						49		57		106		61		168		72		239		40	%		45	%
Claritin Rx 1/		111		100		211						91		82		173		67		240		80		321		22	%		22	%
Integrilin		4		4		8						5		6		12		5		17		7		24		(34	%)		(30	%)
Intron A		41		39		80						51		56		107		51		158		50		208		(31	%)		(25	%)
Rebetol		70		90		159						68		65		133		52		185		57		242		37	%		19	%
Subutex		51		53		104						44		47		91		45		136		50		185		13	%		14	%
Caelyx		43		46		89						34		35		70		39		109		40		150		30	%		28	%
Elocon		37		36		73						31		34		65		31		96		32		128		6	%		12	%

1/     Canadian net sales of Claritin are reported in the OTC Claritin line within Consumer Health Care.

     All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 6

SCHERING-PLOUGH CORPORATION
CHOLESTEROL FRANCHISE SALES
(Dollars in Millions)

	2005										2004
	1st		2nd		6		3rd	9	4th		1st		2nd		6		3rd		9		4th				2nd Qtr.			6 Mos.
	Qtr.		Qtr.		Mos.		Qtr.	Mos.	Qtr.	Year	Qtr.		Qtr.		Mos.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$	$	$	$	$		$		$		$		$		$		$		2nd Qtr.			6 Mos.
Global Zetia: 1/		331		317		648						189		242		431		294		725		328		1,052		N/M			N/M
U.S.		269		240		509						169		212		381		256		637		274		910		13	%		34	%
International		62		77		139						20		30		50		38		88		54		142		N/M			N/M
Global Vytorin: 1/ 2/		178		201		379						—		5		5		50		55		75		131		N/M			N/M
U.S.		157		173		330						—		—		—		42		42		59		102		N/M			N/M
International		21		28		49						—		5		5		8		13		16		29		N/M			N/M
Global Cholesterol: 1/		509		518		1,027						189		247		436		344		780		403		1,183		N/M			N/M
U.S.		426		413		839						169		212		381		298		679		333		1,012		N/M			N/M
International		83		105		188						20		35		55		46		101		70		171		N/M			N/M

1/ Substantially all sales of cholesterol products are not included in the Company’s net sales. Global sales include sales under the Merck/Schering-Plough partnership, plus any sales that are not part of the partnership, such as Schering-Plough sales of cholesterol products in Latin America. In the second quarter of 2005 and 2004, sales in non-joint venture territories of the cholesterol franchise totaled $4 and $3, respectively. For the first six months of 2005 and 2004, sales in non-joint venture territories of the cholesterol franchise totaled $8 and $4, respectively.

2/ Vytorin received first regulatory approval in 2004.

The results of the operation of the joint venture are reflected in equity income and have no impact on the Company’s gross and other operating margins.

The company utilizes the equity method of accounting for the joint venture. The cholesterol agreements provide for the sharing of net income/(loss) based upon percentages that vary by product, sales level and country. In the U.S. market, Schering-Plough receives a greater share of profits on the first $300 of annual ZETIA sales. Above $300 of annual ZETIA sales, the companies share profits equally. Schering-Plough’s allocation of joint venture income is increased by milestones earned. Further, either partner’s share of the joint venture’s net income/(loss) is subject to a reduction if the partner fails to perform a specified minimum number of physician details in a particular country. The partners agree annually to the minimum number of physician details by country.

     All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Page 7

CONSOLIDATED OPERATIONS DATA
(Dollars in Millions)
(Unaudited)

	2005										2004
	1st		2nd		6		3rd	9	4th		1st		2nd		6		3rd		9		4th
	Qtr.		Qtr.		Mos.		Qtr.	Mos.	Qtr.	Year	Qtr.		Qtr.		Mos.		Qtr.		Mos.		Qtr.		Year
	$		$		$		$	$	$	$	$		$		$		$		$		$		$
Geographic Sales
U.S.		897		970		1,866						738		827		1,565		800		2,365		854		3,219
Europe and Canada		1,035		1,102		2,138						874		972		1,846		820		2,666		929		3,595
Latin America		210		218		427						174		182		356		204		560		223		782
Pacific Area and Asia		227		242		469						177		166		343		154		497		178		676
Consolidated Sales		2,369		2,532		4,900						1,963		2,147		4,110		1,978		6,088		2,184		8,272

	2005													2004
	1st			2nd			6			3rd	9	4th		1st			2nd			6			3rd			9			4th
	Qtr.			Qtr.			Mos.			Qtr.	Mos.	Qtr.	Year	Qtr.			Qtr.			Mos.			Qtr.			Mos.			Qtr.			Year
	$			$			$			$	$	$	$	$			$			$			$			$			$			$
Consolidated Sales Growth Rates:
As Reported		21	%		18	%		19	%						(6	%)		(7	%)		(6	%)		(1	%)		(5	%)		12	%		(1	%)
Excluding Exchange		17	%		15	%		16	%						(12	%)		(10	%)		(11	%)		(4	%)		(9	%)		8	%		(5	%)
Other, Net
Interest Income	$	33		$	40		$	74						$	14		$	15		$	29		$	20		$	50		$	31		$	80
Interest Expense		(45	)		(40	)		(86	)						(48	)		(43	)		(91	)		(39	)		(130	)		(38	)		(168	)
FX Gains/(Losses)		(4	)		(1	)		(4	)						(1	)		(4	)		(4	)		0			(4	)		(1	)		(5	)
Other Income/(Expense)		(1	)		9			7							(1	)		(11	)		(12	)		(15	)		(28	)		(25	)		(53	)
Total - Other, Net	($	17	)	$	8		($	9	)					($	36	)	($	43	)	($	78	)	($	34	)	($	112	)	($	33	)	($	146	)

     All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage.

Alex Kelly	908-298-7450
Janet M. Barth	908-298-7417

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