Merck & Co. (MRK) 10-K/A 2007 FY Annual report (amended)

Exhibit 12

SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	2007(1)			2006		2005			2004			2003
	(Dollars in millions)
(Loss)/Income Before Income Taxes	$	(1,215	)	$	1,483	$	497		$	(168	)	$	(46	)
Less: Equity Income		2,049			1,459		873			347			54
(Loss)/Income Before Income Taxes and Equity Income		(3,264	)		24		(376	)		(515	)		(100	)
Add Fixed Charges:
Preference Dividends		118			86		86			34			—
Interest Expense		245			172		163			168			81
One-third of Rental Expense		52			39		37			30			30
Capitalized Interest		18			13		14			20			11
Total Fixed Charges		433			310		300			252			122
Less: Capitalized Interest		18			13		14			20			11
Less: Preference Dividends		118			86		86			34			—
Add: Amortization of Capitalized Interest		15			10		10			9			9
Add: Distributed Income of Equity Investees		1,787			1,332		647			228			32
(Loss)/Earnings Before Income Taxes and Fixed
Charges (other than Capitalized Interest)	$	(1,165	)	$	1,577	$	481		$	(80	)	$	52
Ratio of Earnings to Fixed Charges		(2.7	)*		5.1		1.6			(0.3	)**		0.4	***

(1)	(Loss)/income before income taxes includes the purchase accounting impacts of the OBS acquisition,
*	For the year ended December 31, 2007, earnings were insufficient to cover fixed charges by $1.6 billion.
**	For the year ended December 31, 2004, earnings were insufficient to cover fixed charges by $332 million.
***	For the year ended December 31, 2003, earnings were insufficient to cover fixed charges by $70 million.

“Earnings” consist of income/(loss) before income taxes and equity income, plus fixed charges (other than capitalized interest and preference dividends), amortization of capitalized interest and distributed income of equity investee. Schering-Plough includes interest expense or interest income on unrecognized tax benefits as a component of income tax expense. “Fixed charges” consist of interest expense, capitalized interest, preference dividends and one-third of rentals which Schering-Plough believes to be a reasonable estimate of an interest factor on leases. Total rent expense was $156 million, $118 million, $110 million, $100 million and $91 million for the years ended December 31, 2007, 2006, 2005, 2004 and 2003, respectively.

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