Merck & Co. 8K Schering-plough Reports Financial Results for 2009 Third Quarter | MRK 22 Oct 09

Exhibit 99.2

SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(U.S. GAAP and As Reconciled)
(Amounts in Millions, except per share figures)
(Unaudited)


	2009			2008			2009			2008						2009			2008			2009			2008
	3rd Qtr			3rd Qtr			3rd Qtr			3rd Qtr			3rd Qtr vs.			Nine Months			Nine Months			Nine Months			Nine Months			9 Mos. vs.
	U.S.			U.S.			* As			* As			3rd Qtr			U.S.			U.S.			* As			* As			9 Mos.
	GAAP			GAAP			Reconciled			Reconciled			As			GAAP			GAAP			Reconciled			Reconciled			As
	$			$			$			$			Reconciled			$			$			$			$			Reconciled
Net sales		4,499			4,576			4,499			4,576			(2	%)		13,539			14,154			13,539			14,154			(4	%)

Cost of sales		1,719			1,737			1,533			1,516			1	%		4,738			5,782			4,289			4,518			(5	%)

Gross profit		2,780			2,839			2,966			3,060			(3	%)		8,801			8,372			9,250			9,636			(4	%)

Selling, general and administrative		1,511			1,660			1,510			1,659			(9	%)		4,629			5,208			4,625			5,205			(11	%)
Research and development		913			893			909			890			2	%		2,580			2,679			2,569			2,672			(4	%)
Other expense/(income), net		102			(39	)		102			121			(16	%)		297			189			297			366			(19	%)
Special, merger and acquisition-related charges		29			101			—			—			—			133			218			—			—			—
Equity income		(387	)		(434	)		(387	)		(415	)		(7	%)		(1,157	)		(1,444	)		(1,157	)		(1,361	)		(15	%)

Income before income taxes		612			658			832			805			3	%		2,319			1,522			2,916			2,754			6	%

Income tax expense		97			44			124			128			(3	%)		328			133			427			408			5	%


Net income		515			614			708			677			5	%		1,991			1,389			2,489			2,346			6	%

Preferred stock dividends		38			38			38			38			—			113			113			113			113			—

Net income available to common shareholders		477			576			670			639			5	%		1,878			1,276			2,376			2,233			6	%


Diluted earnings per common share		0.29			0.35			0.40			0.39			3	%		1.13			0.78			1.43			1.37			4	%


Avg. shares outstanding — common and participating — diluted		1,667			1,636			1,667			1,636						1,658			1,635			1,658			1,635

Ratios to net sales

Net sales		100.0	%		100.0	%		100.0	%		100.0	%					100.0	%		100.0	%		100.0	%		100.0	%

Cost of sales		38.2	%		38.0	%		34.1	%		33.1	%					35.0	%		40.9	%		31.7	%		31.9	%

Gross margin		61.8	%		62.0	%		65.9	%		66.9	%					65.0	%		59.1	%		68.3	%		68.1	%

Selling, general and administrative		33.6	%		36.3	%		33.6	%		36.3	%					34.2	%		36.8	%		34.2	%		36.8	%

Research and development		20.3	%		19.5	%		20.2	%		19.4	%					19.1	%		18.9	%		19.0	%		18.9	%

Income before income taxes		13.6	%		14.4	%		18.5	%		17.6	%					17.1	%		10.8	%		21.5	%		19.5	%

Net income		11.4	%		13.4	%		15.7	%		14.8	%					14.7	%		9.8	%		18.4	%		16.6	%


*		“As Reconciled” to exclude purchase accounting adjustments, special, merger and acquisition-related items and other specified items. See Non-GAAP Reconciliation tables posted on the Schering-Plough website at www.Schering-Plough.com under “Investor Relations/Financial Highlights.”

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(U.S. GAAP)
(Amounts in Millions, except per share figures)
(Unaudited)


	2009														2008
	1st			2nd			3rd			9			4th	Full	1st			2nd			3rd			9			4th			Full			3rd Qtr			9 Mos.
	Qtr.			Qtr.			Qtr.			Mos.			Qtr.	Year	Qtr.			Qtr.			Qtr.			Mos.			Qtr.			Year			vs			vs
	$			$			$			$			$	$	$			$			$			$			$			$			3rd Qtr			9 Mos.
Net sales		4,393			4,647			4,499			13,539					4,657			4,921			4,576			14,154			4,348			18,502			(2	%)		(4	%)

Cost of sales 1/		1,399			1,620			1,719			4,738					2,137			1,908			1,737			5,782			1,525			7,307			(1	%)		(18	%)

Gross profit		2,994			3,027			2,780			8,801					2,520			3,013			2,839			8,372			2,823			11,195			(2	%)		5	%

Selling, general and administrative		1,493			1,626			1,511			4,629					1,676			1,870			1,660			5,208			1,615			6,823			(9	%)		(11	%)
Research and development		804			863			913			2,580					880			906			893			2,679			850			3,529			2	%		(4	%)
Other expense/(income), net 2/		88			106			102			297					95			134			(39	)		189			146			335			N/M			57	%
Special, merger and acquisition-related charges 3/		75			29			29			133					23			94			101			218			111			329			(71	%)		(39	%)
Equity income 4/		(400	)		(370	)		(387	)		(1,157	)				(517	)		(493	)		(434	)		(1,444	)		(426	)		(1,870	)		(11	%)		(20	%)

Income before income taxes		934			773			612			2,319					363			502			658			1,522			527			2,049			(7	%)		52	%

Income tax expense		129			102			97			328					49			40			44			133			13			146			N/M			N/M


Net income		805			671			515			1,991					314			462			614			1,389			514			1,903			(16	%)		43	%

Preferred stock dividends		38			38			38			113					38			38			38			113			38			150			—			—

Net income available to common shareholders		767			633			477			1,878					276			424			576			1,276			476			1,753			(17	%)		47	%


Diluted earnings per common share		0.46			0.38			0.29			1.13					0.17			0.26			0.35			0.78			0.29			1.07			(17	%)		45	%

Avg. shares outstanding — common and participating — diluted		1,739			1,658			1,667			1,658					1,637			1,632			1,636			1,635			1,634			1,635
Actual common shares outstanding		1,628			1,634			1,639			1,639					1,621			1,624			1,626			1,626			1,626			1,626

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		31.8	%		34.9	%		38.2	%		35.0	%				45.9	%		38.8	%		38.0	%		40.9	%		35.1	%		39.5	%

Gross margin		68.2	%		65.1	%		61.8	%		65.0	%				54.1	%		61.2	%		62.0	%		59.1	%		64.9	%		60.5	%

Selling, general and administrative		34.0	%		35.0	%		33.6	%		34.2	%				36.0	%		38.0	%		36.3	%		36.8	%		37.1	%		36.9	%

Research and development		18.3	%		18.6	%		20.3	%		19.1	%				18.9	%		18.4	%		19.5	%		18.9	%		19.5	%		19.1	%

Income before income taxes		21.3	%		16.6	%		13.6	%		17.1	%				7.8	%		10.2	%		14.4	%		10.8	%		12.1	%		11.1	%

Net income		18.3	%		14.4	%		11.4	%		14.7	%				6.7	%		9.4	%		13.4	%		9.8	%		11.8	%		10.3	%


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

1/		Cost of sales for the three months ended September 30, 2009 and 2008 include purchase accounting adjustments of $138 million and $221 million, respectively. For the nine months ended September 30, 2009 and 2008, cost of sales includes purchase accounting adjustments and special items of $394 million and $1.3 billion, respectively. Special items included in cost of sales of $48 million and $55 million for the three and nine months ended September 30, 2009, relates to the closure of certain global supply chain operations.

2/		For the three and nine months ended September 30, 2008, Other expense/(income), net includes $160 million of gain on sale of certain divested animal health products associated with the OBS acquisition.

3/		Special, merger and acquisition-related charges relate to the Productivity Transformation Program (PTP) and costs incurred related to the proposed merger with Merck. For the three months ended September 30, 2009 and 2008 these charges were $29 million ($24 million for severance costs and $5 million for merger costs) and $101 million ($93 million for severance costs and $8 million for integration-related costs), respectively. For the nine months ended September 30, 2009 and 2008 these charges were $133 million ($98 million for severance costs and $35 million for merger costs) and $218 million ($178 million for severance costs and $40 million for integration-related costs), respectively.

4/		Included in Equity income for the second, third and fourth quarter of 2008 were $64 million, $19 million and $22 million, respectively, of income related to the termination of a respiratory joint venture with Merck.

N/M — Not a meaningful percentage

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

SCHERING-PLOUGH CORPORATION
ANALYSIS OF NET SALES AND ADJUSTED NET SALES
(Dollars in Millions)


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full		3rd Qtr			9 Mos.
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$		$	$	$		$		$		$		$		$		3rd Qtr			9 Mos.
*Cholesterol Joint Venture:*		*931*		*1,019*		*1,011*		*2,961*				*1,216*		*1,133*		*1,089*		*3,438*		*1,062*		*4,499*		(7	%)		*(14*	%)
U.S.		596		638		619		1,853				851		710		688		2,249		695		2,943		(10	%)		(18	%)
International		335		381		392		1,108				365		423		401		1,189		367		1,556		(2	%)		(7	%)

*50% of Cholesterol Joint Venture:*		466		509		506		1,481				607		566		545		1,719		531		2,250		(7	%)		(14	%)

*Prescription Pharmaceuticals :*		*3,379*		*3,589*		*3,548*		*10,515*				*3,557*		*3,702*		*3,539*		*10,798*		*3,455*		*14,253*		—			(3	%)
U.S.		951		969		923		2,843				975		926		932		2,831		981		3,812		(1	%)		—
International		2,428		2,620		2,625		7,672				2,582		2,776		2,607		7,967		2,474		10,441		1	%		(4	%)

*Animal Health :*		*630*		*677*		*669*		*1,976*				*723*		*818*		*759*		*2,299*		*674*		*2,973*		*(12*	%)		*(14*	%)
U.S.		146		148		143		437				131		138		160		429		135		564		(10	%)		2	%
International		484		529		526		1,539				592		680		599		1,870		539		2,409		(12	%)		(18	%)

*Consumer Health Care*		*384*		*381*		*282*		*1,048*				*377*		*401*		*278*		*1,057*		*219*		*1,276*		2	%		(1	%)

*Consolidated GAAP Net Sales:*		*4,393*		*4,647*		*4,499*		*13,539*				*4,657*		*4,921*		*4,576*		*14,154*		*4,348*		*18,502*		(2	%)		(4	%)

U.S.		1,450		1,464		1,328		4,242				1,453		1,434		1,350		4,236		1,320		5,556		(2	%)		—
International		2,943		3,183		3,171		9,297				3,204		3,487		3,226		9,918		3,028		12,946		(2	%)		(6	%)

*Adjusted Net Sales:*		*4,859*		*5,156*		*5,005*		*15,020*				*5,264*		*5,487*		*5,121*		*15,873*		*4,879*		*20,752*		(2	%)		(5	%)

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

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


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full		3rd Qtr			9 Mos.
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$		$	$	$		$		$		$		$		$		3rd Qtr			9 Mos.
*GlobalZetia (1):*		*509*		*555*		*562*		*1,626*				*588*		*578*		*558*		*1,723*		*556*		*2,279*		1	%		(6	%)
U.S.		310		324		320		953				395		349		333		1,078		338		1,415		(4	%)		(12	%)
International		199		231		242		673				193		229		225		645		218		864		8	%		4	%

*GlobalVytorin (1):*		*464*		*519*		*510*		*1,493*				*647*		*586*		*570*		*1,804*		*548*		*2,352*		*(10*	%)		*(17*	%)
U.S.		286		314		299		900				456		361		355		1,171		357		1,528		(16	%)		(23	%)
International		178		205		211		593				191		225		215		633		191		824		(2	%)		(6	%)

*Global Cholesterol (1):*		*973*		*1,074*		*1,072*		*3,119*				*1,235*		*1,164*		*1,128*		*3,527*		*1,104*		*4,631*		(5	%)		*(12*	%)
U.S.		596		638		619		1,853				851		710		688		2,249		695		2,943		(10	%)		(18	%)
International		377		436		453		1,266				384		454		440		1,278		409		1,688		3	%		(1	%)


(1)		Substantially all sales of cholesterol products are not included in Schering-Plough’s Net sales. Global franchise sales include sales under the Merck/Schering-Plough joint venture, plus any sales that are not part of the joint venture, such as Schering-Plough sales of cholesterol products in Japan and Latin America. In Japan, Schering-Plough co-markets ZETIA with Bayer HealthCare. For the three months ended September 30, 2009 and 2008 sales in non-joint venture territories of the cholesterol franchise totaled $61 million ($47 million in Japan) and $39 million ($24 million in Japan), respectively. For the nine months ended September 30, 2009 and 2008 sales in non-joint venture territories of the cholesterol franchise totaled $158 million ($118 million in Japan) and $89 million ($47 million in Japan), respectively

The results of the operation of the joint venture are reflected in Equity income. As a result, Schering-Plough’s Gross margin and ratios of Selling, general and administrative expenses and R&D expenses as a percentage of sales do not reflect the benefit of the impact of the cholesterol joint venture’s operating results.

Schering-Plough utilizes the equity method of accounting in recording its share of activity from the Merck/Schering-Plough cholesterol joint venture. Schering-Plough’s Net sales do not include the sales of the joint venture. The cholesterol joint venture agreements provide for the sharing of operating income generated by the joint venture based upon percentages that vary by product, sales level and country. Equity income also includes milestone and other payments. Either company’s share of the joint venture’s income from operations is subject to a reduction if that company fails to perform a specified minimum number of physician details in a particular country. The companies agree annually to the minimum number of physician details by country.

In the U.S. market, Schering-Plough receives a greater share of profits on the first $300 million of annual ZETIA sales. As such, Schering-Plough’s share of operating income from the joint venture in the first fiscal quarter is generally higher than subsequent quarters.

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

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


	Global							U.S.							International
	2009		2008					2009		2008					2009		2008
	3rd		3rd		3rd Qtr			3rd		3rd		3rd Qtr			3rd		3rd		3rd Qtr
	Qtr.		Qtr.		vs			Qtr.		Qtr.		vs			Qtr.		Qtr.		vs
	$		$		3rd Qtr			$		$		3rd Qtr			$		$		3rd Qtr
*Prescription Pharmaceuticals :*		*3,548*		*3,539*		—			*923*		*932*		(1	%)		*2,625*		*2,607*		1	%

Remicade		608		564		8	%		—		—		—			608		564		8	%
Nasonex		266		258		3	%		151		141		7	%		115		117		(1	%)
Temodar		278		273		2	%		100		96		3	%		178		177		1	%
Pegintron		198		235		(16	%)		28		40		(29	%)		170		195		(13	%)
Clarinex/Aerius		164		176		(7	%)		60		71		(15	%)		104		105		(2	%)
Follistim /Puregon		122		142		(14	%)		42		49		(14	%)		80		93		(15	%)
Nuvaring		131		118		11	%		82		67		22	%		49		51		(3	%)
Claritin Rx		95		87		9	%		—		—		—			95		87		9	%
Avelox		70		65		7	%		70		65		7	%		—		—		—
Integrilin		74		84		(12	%)		69		78		(12	%)		5		6		(9	%)
Rebetol		64		63		1	%		—		—		—			64		63		1	%
Caelyx		67		80		(16	%)		—		—		—			67		80		(16	%)
Intron A		56		61		(8	%)		31		30		—			25		31		(17	%)
Remeron		74		61		21	%		2		3		(17	%)		72		58		22	%
Proventil / Albuterol		59		38		53	%		59		38		53	%		—		—		—
Asmanex		53		40		31	%		49		38		31	%		4		2		42	%
Subutex / Suboxone		53		63		(16	%)		—		—		—			53		63		(16	%)
Cerazette		49		49		1	%		—		—		—			49		49		1	%
Elocon		45		45		1	%		—		—		—			45		45		1	%
Noxafil		47		40		20	%		13		11		22	%		34		29		19	%
Implanon		45		37		20	%		17		9		80	%		28		28		—
Livial		38		48		(21	%)		—		—		—			38		48		(21	%)
Marvelon		34		37		(7	%)		1		—		N/M			33		37		(15	%)
Mercilon		33		38		(12	%)		—		—		—			33		38		(12	%)
Zemuron		30		72		(59	%)		3		38		(91	%)		27		34		(22	%)
Foradil		24		25		(5	%)		23		24		(5	%)		1		1		(5	%)

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
N/M not a meaningful percentage

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


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full		3rd Qtr			9 Mos.
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$		$	$	$		$		$		$		$		$		3rd Qtr			9 Mos.
*Prescription Pharmaceuticals :*		*3,379*		*3,589*		*3,548*		*10,515*				*3,557*		*3,702*		*3,539*		*10,798*		*3,455*		*14,253*		—			(3	%)

Remicade		518		565		608		1,691				507		557		564		1,627		491		2,118		8	%		4	%
Nasonex		306		321		266		893				307		311		258		876		280		1,155		3	%		2	%
Temodar		247		256		278		781				236		251		273		760		242		1,002		2	%		3	%
Pegintron		216		215		198		629				225		229		235		689		225		914		(16	%)		(9	%)
Clarinex / Aerius		174		226		164		564				213		240		176		630		160		790		(7	%)		(10	%)
Follistim / Puregon		131		145		122		397				145		162		142		450		127		577		(14	%)		(12	%)
Nuvaring		115		129		131		375				96		116		118		330		110		440		11	%		14	%
Claritin Rx		132		96		95		323				128		111		87		326		99		425		9	%		(1	%)
Avelox		109		71		70		250				142		67		65		274		102		376		7	%		(9	%)
Integrilin		76		73		74		223				74		78		84		236		78		314		(12	%)		(5	%)
Rebetol		66		67		64		197				59		70		63		193		67		260		1	%		2	%
Caelyx		61		68		67		195				74		78		80		232		64		297		(16	%)		(16	%)
Intron A		54		67		56		177				55		61		61		177		57		234		(8	%)		—
Remeron		50		50		74		174				68		61		61		190		48		239		21	%		(8	%)
Proventil / Albuterol		54		56		59		169				50		38		38		127		63		190		53	%		33	%
Asmanex		49		54		53		156				42		48		40		131		49		180		31	%		19	%
Subutex / Suboxone		50		52		53		155				54		62		63		178		52		230		(16	%)		(13	%)
Cerazette		39		46		49		134				44		49		49		142		44		185		1	%		(5	%)
Elocon		41		45		45		132				45		47		45		137		39		176		1	%		(3	%)
Noxafil		39		43		47		129				34		38		40		111		38		149		20	%		16	%
Implanon		37		43		45		125				38		44		37		119		32		151		20	%		5	%
Livial		33		39		38		110				45		50		48		143		40		183		(21	%)		(23	%)
Marvelon		31		36		34		102				37		40		37		114		33		147		(7	%)		(11	%)
Mercilon		35		33		33		101				43		47		38		128		31		159		(12	%)		(21	%)
Zemuron		32		33		30		95				63		67		72		202		51		253		(59	%)		(53	%)
Foradil		23		25		24		72				25		25		25		76		27		102		(5	%)		(4	%)

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

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


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full		3rd Qtr			9 Mos.
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$		$	$	$		$		$		$		$		$		3rd Qtr			9 Mos.
*Total Prescription Pharmaceuticals (U.S.) :*		*951*		*969*		*923*		*2,843*				*975*		*926*		*932*		*2,831*		*981*		*3,812*		(1	%)		—

Nasonex		158		183		151		491				172		166		141		479		166		644		7	%		3	%
Temodar		92		93		100		285				80		82		96		258		90		348		3	%		10	%
Pegintron		29		30		28		87				39		40		40		119		34		153		(29	%)		(27	%)
Clarinex / Aerius		59		74		60		194				76		79		71		227		68		295		(15	%)		(14	%)
Follistim / Puregon		43		49		42		134				44		45		49		138		40		178		(14	%)		(3	%)
Nuvaring		72		79		82		232				54		68		67		189		65		253		22	%		23	%
Avelox		109		71		70		250				142		67		65		274		102		376		7	%		(9	%)
Integrilin		71		68		69		208				69		73		78		220		73		292		(12	%)		(5	%)
Intron A		27		35		31		92				27		29		30		86		32		118		—			6	%
Remeron		2		2		2		7				4		2		3		9		2		11		(17	%)		(23	%)
Proventil / Albuterol		54		56		59		169				50		38		38		126		63		190		53	%		33	%
Asmanex		46		52		49		148				39		45		38		123		46		169		31	%		21	%
Noxafil		11		13		13		37				9		10		11		31		12		43		22	%		21	%
Implanon		13		15		17		45				11		14		9		35		10		45		80	%		28	%
Marvelon		1		2		1		5				2		3		—		5		2		5		N/M			50	%
Zemuron		7		3		3		13				34		33		38		105		20		125		(91	%)		(88	%)
Foradil		22		25		23		70				24		24		24		74		26		99		(5	%)		(4	%)

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

SCHERING-PLOUGH CORPORATION
PRESCRIPTION PHARMACEUTICALS (INTERNATIONAL) SALES — KEY PRODUCT NET SALES
(Dollars in Millions)


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full		3rd Qtr			9 Mos.
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$		$	$	$		$		$		$		$		$		3rd Qtr			9 Mos.
*Total Prescription Pharmaceuticals (International) :*		*2,428*		*2,620*		*2,625*		*7,672*				*2,582*		*2,776*		*2,607*		*7,967*		*2,474*		*10,441*		1	%		(4	%)

Remicade		518		565		608		1,691				507		557		564		1,627		491		2,118		8	%		4	%
Nasonex		148		138		115		402				135		145		117		397		114		511		(1	%)		1	%
Temodar		155		163		178		496				156		169		177		502		152		654		1	%		(1	%)
Pegintron		187		185		170		542				186		189		195		570		191		761		(13	%)		(5	%)
Clarinex / Aerius		115		152		104		370				137		161		105		403		92		495		(2	%)		(8	%)
Follistim / Puregon		88		96		80		263				101		117		93		312		87		399		(15	%)		(16	%)
Nuvaring		43		50		49		143				42		48		51		141		45		187		(3	%)		1	%
Claritin Rx		132		96		95		323				128		111		87		326		99		425		9	%		(1	%)
Integrilin		5		5		5		15				5		5		6		16		5		22		(9	%)		(9	%)
Rebetol		66		67		64		197				59		70		63		193		66		258		1	%		2	%
Caelyx		61		68		67		195				74		78		80		232		64		297		(16	%)		(16	%)
Intron A		27		32		25		85				28		32		31		91		25		116		(17	%)		(6	%)
Remeron		48		48		72		167				64		59		58		181		46		228		22	%		(8	%)
Asmanex		3		2		4		8				3		3		2		8		3		11		42	%		(2	%)
Subutex / Suboxone		50		52		53		155				54		62		63		178		52		230		(16	%)		(13	%)
Cerazette		39		46		49		134				44		49		49		142		44		185		1	%		(5	%)
Elocon		41		45		45		132				45		47		45		136		39		176		1	%		(3	%)
Noxafil		28		30		34		92				25		28		29		80		26		106		19	%		15	%
Implanon		24		28		28		80				27		30		28		84		22		106		—			(4	%)
Livial		33		39		38		110				45		50		48		143		40		183		(21	%)		(23	%)
Marvelon		30		34		33		97				35		37		37		109		31		142		(15	%)		(13	%)
Mercilon		35		33		33		101				42		47		38		128		31		159		(12	%)		(21	%)
Zemuron		25		30		27		82				29		34		34		98		31		128		(22	%)		(16	%)
Foradil		1		—		1		2				1		1		1		2		1		3		(5	%)		(22	%)

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
N/M not a meaningful percentage

SCHERING-PLOUGH CORPORATION
CONSUMER HEALTH CARE
NET SALES ANALYSIS
(Dollars in Millions)


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full		3rd Qtr			9 Mos.
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year		vs			vs
	$		$		$		$		$	$	$		$		$		$		$		$		3rd Qtr			9 Mos.
*Consumer Health Care:*		*384*		*381*		*282*		*1,048*				*377*		*401*		*278*		*1,057*		*219*		*1,276*		2	%		(1	%)

OTC:		232		184		173		590				209		181		160		550		130		680		8	%		7	%
OTC Claritin		149		108		85		342				139		120		92		350		55		405		(7	%)		(2	%)
MiraLAX		37		36		41		114				26		28		31		85		30		115		33	%		35	%
Other OTC		46		40		47		134				44		33		37		115		45		160		26	%		16	%
Foot Care		73		101		92		266				85		105		96		286		71		357		(5	%)		(7	%)
Sun Care		79		96		17		192				83		115		22		221		18		239		*(19*	%)		*(13*	%)

All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.

SCHERING-PLOUGH CORPORATION
CONSOLIDATED OPERATIONS DATA
(Dollars in Millions)
(Unaudited)


	2009										2008
	1st		2nd		3rd		9		4th	Full	1st		2nd		3rd		9		4th		Full
	Qtr.		Qtr.		Qtr.		Mos.		Qtr.	Year	Qtr.		Qtr.		Qtr.		Mos.		Qtr.		Year
	$		$		$		$		$	$	$		$		$		$		$		$
Geographic net sales

U.S.		1,450		1,464		1,328		4,242				1,453		1,434		1,350		4,236		1,320		5,556

Europe and Canada		1,946		2,154		2,094		6,194				2,235		2,449		2,207		6,893		2,009		8,903

Latin America		426		449		453		1,328				482		524		482		1,488		500		1,987

Asia Pacific 1/		571		580		624		1,775				487		514		537		1,537		519		2,056


Consolidated net sales		4,393		4,647		4,499		13,539				4,657		4,921		4,576		14,154		4,348		18,502


1/		The three months ended September 30, 2009 and 2008 include $309 million and $240 million, respectively, of net sales in Japan. The nine months ended September 30, 2009 and 2008 include $938 million and $702 million, respectively, of net sales in Japan.


	2009														2008
	1st			2nd			3rd			9			4th	Full	1st			2nd			3rd			9			4th			Full
	Qtr.			Qtr.			Qtr.			Mos.			Qtr.	Year	Qtr.			Qtr.			Qtr.			Mos.			Qtr.			Year
	$			$			$			$			$	$	$			$			$			$			$			$
Other expense/(income), net
Interest income		(4	)		(7	)		(6	)		(17	)				(22	)		(17	)		(19	)		(58	)		(13	)		(71	)
Interest expense		109			110			113			332					138			140			136			414			122			536
Gain on sale of divestiture of certain Animal Health products		—			—			—			—					—			—			(160	)		(160	)		—			(160	)
Foreign exchange (gains)/losses		(17	)		3			(5	)		(18	)				(4	)		11			4			10			37			47
Other income (1)		—			—			—			—					(17	)		—			—			(17	)		—			(17	)


Total — Other expense/(income), net		88			106			102			297					95			134			(39	)		189			146			335


(1)		Other income for the first quarter of 2008 reflects a $17 million gain on sale of a manufacturing plant.

		All figures rounded. Totals may not add due to rounding.


		Janet Barth		908-298-7011
		Joe Romanelli		908-298-7904

SCHERING-PLOUGH CORPORATION

Reconciliation from Reported Net Income Available to Common Shareholders
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amount in Millions, except per share figures)

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), Schering-Plough is providing the following supplemental financial information to reflect “As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share. “As Reconciled” amounts exclude the effects of purchase accounting adjustments, special, merger and acquisition-related items and other specified items.

“As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share are non-U.S. GAAP measures used by management in evaluating the performance of Schering-Plough’s overall business. The effects of purchase accounting adjustments, special, merger and acquisition-related items and other specified items have been excluded from Net income available to common shareholders and Diluted earnings per common share as management of Schering-Plough does not consider these items to be indicative of continuing operating results. Schering-Plough believes that these “As Reconciled” performance measures contribute to a more complete understanding by investors of the overall results of the company and enhances investor understanding of items that impact the comparability of results between fiscal periods. Net income available to common shareholders and Diluted earnings per common share, as reported, are required to be presented under U.S. GAAP.


	Three months ended September 30, 2009
	(unaudited)
							Special,
				Purchase			Merger and			Other		As
	As			Accounting			Acquisition-			Specified		Reconciled
	Reported			Adjustments			Related Items			Items		(1)
Net sales	$	4,499		$	—		$	—		$	—	$	4,499
Cost of sales		1,719			(138	)		(48	)(2)		—		1,533
Selling, general and administrative		1,511			(1	)		—			—		1,510
Research and development		913			(4	)		—			—		909
Other expense/(income), net		102			—			—			—		102
Special, merger and acquisition-related charges		29			—			(29	)		—		—
Equity income		(387	)		—			—			—		(387	)


Income before income taxes		612			143			77			—		832
Income tax expense/(benefit)		97			(22	)		(5	)		—		124


Net income	$	515		$	121		$	72		$	—	$	708


Preferred stock dividends		38			—			—			—		38


Net income available to common shareholders	$	477		$	121		$	72		$	—	$	670


Diluted earnings per common share	$	0.29										$	0.40


Average shares outstanding — common and participating — diluted		1,667											1,667


(1)		“As Reconciled” to exclude purchase accounting adjustments, special, merger and acquisition-related items and other specified items.
(2)		Relates to the closure of certain global supply chain operations.

SCHERING-PLOUGH CORPORATION

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), Schering-Plough is providing the following supplemental financial information to reflect “As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share. “As Reconciled” amounts exclude the effects of purchase accounting adjustments, special and acquisition-related items and other specified items.

“As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share are non-U.S. GAAP measures used by management in evaluating the performance of Schering-Plough’s overall business. The effects of purchase accounting adjustments, special and acquisition-related items and other specified items have been excluded from Net income available to common shareholders and Diluted earnings per common share as management of Schering-Plough does not consider these charges to be indicative of continuing operating results. Schering-Plough believes that these “As Reconciled” performance measures contribute to a more complete understanding by investors of the overall results of the company and enhances investor understanding of items that impact the comparability of results between fiscal periods. Net income available to common shareholders and Diluted earnings per common share, as reported, are required to be presented under U.S. GAAP.


	Three months ended September 30, 2008
	(unaudited)
				Purchase				Special and			Other			As
	As			Accounting				Acquisition-			Specified			Reconciled
	Reported			Adjustments				Related Items			Items			(1)
Net sales	$	4,576		$	—			$	—		$	—		$	4,576
Cost of sales		1,737			(221	)			—			—			1,516
Selling, general and administrative		1,660			(1	)			—			—			1,659
Research and development		893			(3	)			—			—			890
Other expense/(income), net		(39	)		—				—			160			121
Special and acquisition-related charges		101			—				(101	)		—			—
Equity income		(434	)		—				—			19			(415	)


Income before income taxes		658			225				101			(179	)		805
Income tax expense/(benefit)		44			(79	)			(16	)		11			128


Net income	$	614		$	146			$	85		$	(168	)	$	677


Preferred stock dividends		38			—				—			—			38


Net income available to common shareholders	$	576		$	146			$	85		$	(168	)	$	639


Diluted earnings per common share	$	0.35												$	0.39
							��

Average shares outstanding-common and participating-diluted		1,636													1,636


(1)		“As Reconciled” to exclude purchase accounting adjustments, special and acquisition-related items and other specified items.

SCHERING-PLOUGH CORPORATION

“As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share are non-U.S. GAAP measures used by management in evaluating the performance of Schering-Plough’s overall business. The effects of purchase accounting adjustments, special, merger and acquisition-related items and other specified items have been excluded from Net income available to common shareholders and Diluted earnings per common share as management of Schering-Plough does not consider these charges to be indicative of continuing operating results. Schering-Plough believes that these “As Reconciled” performance measures contribute to a more complete understanding by investors of the overall results of the company and enhances investor understanding of items that impact the comparability of results between fiscal periods. Net income available to common shareholders and Diluted earnings per common share, as reported, are required to be presented under U.S. GAAP.


	Nine months ended September 30, 2009
	(unaudited)
							Special,
				Purchase			Merger and			Other		As
	As			Accounting			Acquisition-			Specified		Reconciled
	Reported			Adjustments			Related Items			Items		(1)
Net sales	$	13,539		$	—		$	—		$	—	$	13,539
Cost of sales		4,738			(394	)		(55	)(2)		—		4,289
Selling, general and administrative		4,629			(4	)		—			—		4,625
Research and development		2,580			(9	)		(2	)		—		2,569
Other expense/(income), net		297			—			—			—		297
Special, merger and acquisition-related charges		133			—			(133	)		—		—
Equity income		(1,157	)		—			—			—		(1,157	)


Income before income taxes		2,319			407			190			—		2,916
Income tax expense/(benefit)		328			(81	)		(18	)		—		427


Net income	$	1,991		$	326		$	172		$	—	$	2,489


Preferred stock dividends		113			—			—			—		113


Net income available to common shareholders	$	1,878		$	326		$	172		$	—	$	2,376


Diluted earnings per common share	$	1.13										$	1.43


Average shares outstanding — common and participating — diluted		1,658											1,658


(1)		“As Reconciled” to exclude purchase accounting adjustments, special, merger and acquisition-related items and other specified items.
(2)		Relates to the closure of certain global supply chain operations.

SCHERING-PLOUGH CORPORATION

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), Schering-Plough is providing the following supplemental financial information to reflect “As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share. “As Reconciled” amounts exclude the effects of purchase accounting adjustments, special and acquisition-related items and other specified items.

“As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share are non-U.S. GAAP measures used by management in evaluating the performance of Schering-Plough’s overall business. The effects of purchase accounting adjustments, special and acquisition-related items and other specified items have been excluded from Net income available to common shareholders and Diluted earnings per common share as management of Schering-Plough does not consider these charges to be indicative of continuing operating results. Schering-Plough believes that these “As Reconciled” performance measures contribute to a more complete understanding by investors of the overall results of the company and enhances investor understanding of items that impact the comparability of results between fiscal periods. Net income available to common shareholders and Diluted earnings per common share, as reported, are required to be presented under U.S. GAAP.


	Nine months ended September 30, 2008
	(unaudited)
							Special and
				Purchase			Acquisition-			Other			As
	As			Accounting			Related			Specified			Reconciled
	Reported			Adjustments			Items			Items			(1)
Net sales	$	14,154		$	—		$	—		$	—		$	14,154
Cost of sales		5,782			(1,264	)		—			—			4,518
Selling, general and administrative		5,208			(3	)		—			—			5,205
Research and development		2,679			(7	)		—			—			2,672
Other expense/(income), net		189			—			—			177			366
Special and acquisition related charges		218			—			(218	)		—			—
Equity income		(1,444	)		—			—			83			(1,361	)


Income before income taxes		1,522			1,274			218			(260	)		2,754
Income tax expense/(benefit)		133			(266	)		(25	)		16			408

Net income	$	1,389		$	1,008		$	193		$	(244	)	$	2,346


Preferred stock dividends		113			—			—			—			113

Net income available to common shareholders	$	1,276		$	1,008		$	193		$	(244	)	$	2,233


Diluted earnings per common share	$	0.78											$	1.37


Average shares outstanding-common and participating-diluted		1,635												1,635


(1)		“As Reconciled” to exclude purchase accounting adjustments, special and acquisition-related items and other specified items.

SCHERING-PLOUGH CORPORATION

“As Reconciled” amounts related to Net income available to common shareholders and diluted earnings per common share reflect the following adjustments:


	Third Quarter					Nine Months
	(unaudited)					(unaudited)
	2009		2008			2009		2008
Purchase accounting adjustments:
Amortization of intangibles in connection with the acquisition of Organon BioSciences (a)	$	127	$	136		$	368	$	407
Depreciation related to the fair value adjustment of fixed assets related to the acquisition of Organon BioSciences (b)		16		11			39		27
Charge related to the fair value adjustment to inventory related to the acquisition of Organon BioSciences (a)		—		78			—		840

Total purchase accounting adjustments, pre-tax		143		225			407		1,274
Income tax benefit		22		79			81		266

Total purchase accounting adjustments	$	121	$	146		$	326	$	1,008

Special, merger and acquisition-related items:

Accelerated depreciation (a)	$	5	$	—		$	12	$	—
Special, merger and acquisition-related activities (d)/(a)		72		101			178		218

Total special, merger and acquisition-related items, pre-tax		77		101			190		218
Income tax benefit		5		16			18		25

Total special, merger and acquisition-related items	$	72	$	85		$	172	$	193

Other specified items:
Income from respiratory JV termination (e)	$	—	$	(19	)	$	—	$	(83	)
Gain on sale of previously announced divestiture of certain Animal Health products (c)		—		(160	)		—		(160	)
Gain on sale of manufacturing plant (c)		—		—			—		(17	)

Total other specified items, pre-tax		—		(179	)		—		(260	)
Income tax expense		—		(11)			—		(16)

Total other specified items	$	—	$	(168	)	$	—	$	(244	)

Total purchase accounting adjustments, special, merger and acquisition-related items and other specified items	$	193	$	63		$	498	$	957


(a)		Included in cost of sales

(b)		Included in cost of sales, selling, general and administrative and research and development

(c)		Included in other expense/(income), net

(d)		Included in special, merger and acquisition-related charges

(e)		Included in equity income

Merck & Co. (MRK) 8-KSchering-plough Reports Financial Results for 2009 Third Quarter