Merck & Co. (MRK) 8-K Results of Operations and Financial Condition

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2013			2012															% Change
	1Q			1Q			2Q			3Q			4Q			Full Year			1Q
Sales	$	10,671		$	11,731		$	12,311		$	11,488		$	11,738		$	47,267		-9	%
Costs, Expenses and Other
Materials and production	3,959			4,037			4,112			4,137			4,160			16,446			-2	%
Marketing and administrative	2,987			3,074			3,249			3,063			3,390			12,776			-3	%
Research and development	1,907			1,862			2,165			1,918			2,224			8,168			2	%
Restructuring costs	119			219			144			110			191			664			-46	%
Equity income from affiliates	(133		)	(110		)	(142		)	(158		)	(231		)	(642		)	21	%
Other (income) expense, net	282			142			103			200			669			1,116			99	%
Income Before Taxes	1,550			2,507			2,680			2,218			1,335			8,739			-38	%
Income Tax (Benefit) Provision	(66		)	740			860			455			385			2,440
Net Income	1,616			1,767			1,820			1,763			950			6,299			-9	%
Less: Net Income Attributable to Noncontrolling Interests	23			29			27			34			42			131
Net Income Attributable to Merck & Co., Inc.	$	1,593		$	1,738		$	1,793		$	1,729		$	908		$	6,168		-8	%
Earnings per Common Share Assuming Dilution	$	0.52		$	0.56		$	0.58		$	0.56		$	0.30		$	2.00		-7	%
Average Shares Outstanding Assuming Dilution	3,053			3,074			3,072			3,079			3,074			3,076
Tax Rate	-4.3%			29.5%			32.1%			20.5%			28.8%			27.9%

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME

GAAP TO NON-GAAP RECONCILIATION

FIRST QUARTER 2012

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Adjustment Subtotal			Non-GAAP
Sales	$	11,731									$	11,731
Costs, Expenses and Other
Materials and production	4,037			1,229		5		1,234			2,803
Marketing and administrative	3,074			51		24		75			2,999
Research and development	1,862			9		45		54			1,808
Restructuring costs	219					219		219			—
Equity income from affiliates	(110		)								(110		)
Other (income) expense, net	142										142
Income Before Taxes	2,507			(1,289	)	(293	)	(1,582		)	4,089
Taxes on Income	740							(276		)(3)	1,016
Net Income	1,767							(1,306		)	3,073
Less: Net Income Attributable to Noncontrolling Interests	29										29
Net Income Attributable to Merck & Co., Inc.	$	1,738							(1,306	)	$	3,044
Earnings per Common Share Assuming Dilution	$	0.56									$	0.99
Average Shares Outstanding Assuming Dilution	3,074										3,074
Tax Rate	29.5		%								24.8		%

Merck is providing non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends.  Management believes that providing this information enhances investors’ understanding of the company’s performance.  This information should be considered in addition to, but not in lieu of, information prepared in accordance with GAAP.

(1) Amounts included in materials and production costs reflect expenses for the amortization of intangible assets recognized as a result of mergers and acquisitions.  Amounts included in marketing and administrative expenses reflect merger integration costs.  Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges.

(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to actions under the company’s formal restructuring programs.

(3) Represents the estimated tax impact on the reconciling items.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FIRST QUARTER 2013

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3a

	Global					U.S.					International
	1Q13		1Q12		% Change	1Q13		1Q12		% Change	1Q13		1Q12		% Change
TOTAL SALES (1)	$	10,671	$	11,731	-9	$	4,215	$	5,009	-16	$	6,457	$	6,721	-4
PHARMACEUTICAL	8,891		10,082		-12	3,256		4,189		-22	5,635		5,892		-4
Primary Care and Women’s Health
Cardiovascular
Zetia	629		614		2	334		309		8	295		305		-3
Vytorin	394		444		-11	156		189		-17	238		255		-7
Diabetes & Obesity
Januvia	884		919		-4	462		493		-6	422		427		-1
Janumet	409		392		4	197		202		-2	212		190		11
Respiratory
Nasonex	385		375		3	150		161		-7	235		213		10
Singulair	337		1,340		-75	1		876		*	336		464		-28
Dulera	68		39		76	66		38		74	3		1		*
Asmanex	40		48		-16	34		44		-21	6		5		31
Women’s Health & Endocrine
NuvaRing	151		146		4	89		83		8	62		63		-2
Fosamax	137		184		-26	5		7		-32	132		177		-26
Follistim AQ	122		116		5	41		38		7	81		78		4
Implanon	84		76		12	42		31		37	42		45		-6
Cerazette	61		67		-9						61		67		-9
Other
Arcoxia	121		112		8						121		112		8
Avelox	36		73		-51	33		70		-52	2		3		-21
Hospital and Specialty
Immunology
Remicade	549		519		6						549		519		6
Simponi	108		74		46						108		74		46
Infectious Disease
Isentress	362		337		8	187		186		1	175		150		16
Cancidas	162		145		12	7		8		-18	156		137		13
PegIntron	126		162		-23	9		32		-72	117		130		-10
Victrelis	110		111		-1	37		67		-46	73		44		67
Invanz	110		101		9	54		51		6	57		50		13
Noxafil	65		59		11	18		15		22	47		44		7
Oncology
Temodar	216		237		-9	108		105		3	108		132		-18
Emend	116		102		14	66		63		5	50		39		28
Other
Cosopt / Trusopt	105		124		-15	4		3		14	102		120		-16
Bridion	63		58		8						63		58		8
Integrilin	47		53		-11	43		49		-11	4		4		-8
Diversified Brands
Cozaar / Hyzaar	267		336		-21	11		5		*	256		332		-23
Primaxin	84		88		-5	4		4		-19	80		84		-4
Zocor	82		103		-20	6		6		-8	76		96		-21
Claritin Rx	76		87		-13						76		87		-13
Propecia	68		108		-37	6		32		-80	62		76		-19
Clarinex	61		134		-55	6		51		-89	55		82		-33
Remeron	52		57		-8	1		1		-4	51		56		-8
Maxalt	40		156		-74	9		112		-92	32		44		-27
Proscar	39		51		-23	1		1		*	38		51		-25
Vaccines
Gardasil	390		284		37	247		174		42	142		110		29
ProQuad, M-M-R II and Varivax	272		255		7	246		228		8	26		27		-1
Zostavax	168		76		*	152		67		*	16		9		76
RotaTeq	162		142		14	130		108		21	32		34		-6
Pneumovax 23	111		112		-1	86		73		19	25		39		-37
Other Pharmaceutical (2)	1,022		1,066		-4	208		207			811		859		-6
ANIMAL HEALTH	840		821		2	231		193		19	609		627		-3
CONSUMER CARE	571		554		3	400		383		4	171		171		--
Claritin OTC	177		169		5	146		137		7	31		33		-4
Other Revenues (3)	369		274		34	328		243		35	41		31		31
Astra	262		186		41	262		186		41

* 100% or greater

(1)Only select products are shown.

(2)Includes Pharmaceutical products not individually shown above.  Other Vaccines sales included in Other Pharmaceutical were $53 million and $60 million on a global basis for first quarter 2013 and 2012, respectively.

(3)Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

																			% Change
	1Q13			1Q12			2Q12			3Q12			4Q12			Full Year			1Q
TOTAL PHARMACEUTICAL	$	8,891		$	10,082		$	10,560		$	9,875		$	10,085		$	40,601		-12
United States	3,256			4,189			4,633			4,304			3,915			17,041			-22
% Pharmaceutical Sales	36.6		%	41.6		%	43.9		%	43.6		%	38.8		%	42.0		%
Europe (1)	2,465			2,558			2,540			2,210			2,441			9,750			-4
% Pharmaceutical Sales	27.7		%	25.4		%	24.1		%	22.4		%	24.2		%	24.0		%
Japan	1,034			1,267			1,199			1,124			1,388			4,978			-18
% Pharmaceutical Sales	11.6		%	12.6		%	11.4		%	11.4		%	13.8		%	12.3		%
Latin America	596			627			668			715			742			2,752			-5
% Pharmaceutical Sales	6.7		%	6.2		%	6.3		%	7.2		%	7.4		%	6.8		%
Asia Pacific	822			762			787			846			864			3,259			8
% Pharmaceutical Sales	9.2		%	7.6		%	7.4		%	8.6		%	8.6		%	8.0		%
China	271			221			262			262			298			1,044			23
Eastern Europe/Middle East Africa	439			361			441			366			416			1,584			21
% Pharmaceutical Sales	4.9		%	3.6		%	4.2		%	3.7		%	4.1		%	3.9		%
Canada	245			264			236			257			276			1,034			-7
% Pharmaceutical Sales	2.8		%	2.6		%	2.2		%	2.6		%	2.7		%	2.5		%
Other	34			53			56			52			42			203			-35
% Pharmaceutical Sales	0.4		%	0.5		%	0.5		%	0.5		%	0.4		%	0.5		%

(1)Europe primarily represents all European Union countries and the European Union accession markets.

MERCK & CO., INC.

FIRST QUARTER 2013

EQUITY INCOME / JV SALES / OTHER (INCOME) EXPENSE - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

EQUITY INCOME FROM AFFILIATES

	1Q13		1Q12
ASTRAZENECA LP	$	125	$	113
Other (1)	8		(3		)
TOTAL	$	133	$	110

(1) Includes results for Sanofi Pasteur MSD.

SANOFI PASTEUR MSD JOINT VENTURE SALES DETAIL

All sales reported here are end-market JV sales, presented on a “NET” basis.

	1Q13		1Q12
GARDASIL	$	73	$	55
OTHER VIRAL VACCINES	29		25
ROTATEQ	14		11
HEPATITIS VACCINES	8		9
Other Vaccines	106		106
TOTAL SANOFI PASTEUR MSD SALES	$	230	$	206

OTHER (INCOME) EXPENSE, NET

	1Q13			1Q12
INTEREST INCOME (1)	$	(57	)	$	(55	)
INTEREST EXPENSE (1)	184			175
EXCHANGE LOSSES	212			67
Other, net	(57		)	(45		)
TOTAL	$	282		$	142

(1) Prior period amounts reflect reclassifications to conform to the current period presentation.