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

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2013									2012																		% Change
	1Q			2Q			YTD			1Q			2Q			YTD			3Q			4Q			Full Year			2Q		YTD
Sales	$	10,671		$	11,010		$	21,681		$	11,731		$	12,311		$	24,041		$	11,488		$	11,738		$	47,267		-11	%	-10	%
Costs, Expenses and Other
Materials and production	3,959			4,284			8,243			4,037			4,112			8,150			4,137			4,160			16,446			4	%	1	%
Marketing and administrative	2,987			3,140			6,126			3,074			3,249			6,322			3,063			3,390			12,776			-3	%	-3	%
Research and development	1,907			2,101			4,008			1,862			2,165			4,026			1,918			2,224			8,168			-3	%	—
Restructuring costs	119			155			274			219			144			363			110			191			664			8	%	-25	%
Equity income from affiliates	(133		)	(116		)	(249		)	(110		)	(142		)	(253		)	(158		)	(231		)	(642		)	-18	%	-2	%
Other (income) expense, net	282			201			484			142			103			247			200			669			1,116			95	%	96	%
Income Before Taxes	1,550			1,245			2,795			2,507			2,680			5,186			2,218			1,335			8,739			-54	%	-46	%
Income Tax Provision (Benefit)	(66		)	310			244			740			860			1,599			455			385			2,440
Net Income	1,616			935			2,551			1,767			1,820			3,587			1,763			950			6,299			-49	%	-29	%
Less: Net Income Attributable to Noncontrolling Interests	23			29			52			29			27			56			34			42			131
Net Income Attributable to Merck & Co., Inc.	$	1,593		$	906		$	2,499		$	1,738		$	1,793		$	3,531		$	1,729		$	908		$	6,168		-49	%	-29	%
Earnings per Common Share Assuming Dilution	$	0.52		$	0.30		$	0.82		$	0.56		$	0.58		$	1.15		$	0.56		$	0.30		$	2.00		-48	%	-29	%
Average Shares Outstanding Assuming Dilution	3,053			3,010			3,030			3,074			3,072			3,074			3,079			3,074			3,076
Tax Rate	-4.3		%	24.9		%	8.7		%	29.5		%	32.1		%	30.8		%	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 OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

SECOND QUARTER 2012

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Adjustment Subtotal			Non-GAAP
Sales	$	12,311									$	12,311
Costs, Expenses and Other
Materials and production	4,112			1,226		83		1,309			2,803
Marketing and administrative	3,249			64		21		85			3,164
Research and development	2,165			127		41		168			1,997
Restructuring costs	144					144		144			—
Equity income from affiliates	(142		)					—			(142		)
Other (income) expense, net	103							—			103
Income Before Taxes	2,680			(1,417	)	(289	)	(1,706		)	4,386
Taxes on Income	860							(272		)(3)	1,132
Net Income	1,820							(1,434		)	3,254
Less: Net Income Attributable to Noncontrolling Interests	27							—			27
Net Income Attributable to Merck & Co., Inc.	$	1,793						$	(1,434	)	$	3,227
Earnings per Common Share Assuming Dilution	$	0.58									$	1.05
Average Shares Outstanding Assuming Dilution	3,072										3,072
Tax Rate	32.1		%								25.8		%

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.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

SIX MONTHS ENDED JUNE 30, 2012

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Adjustment Subtotal			Non-GAAP
Sales	$	24,041									$	24,041
Costs, Expenses and Other
Materials and production	8,150			2,455		88		2,543			5,607
Marketing and administrative	6,322			115		45		160			6,162
Research and development	4,026			136		86		222			3,804
Restructuring costs	363					363		363			—
Equity income from affiliates	(253		)					—			(253		)
Other (income) expense, net	247							—			247
Income Before Taxes	5,186			(2,706	)	(582	)	(3,288		)	8,474
Taxes on Income	1,599							(548		)(3)	2,147
Net Income	3,587							(2,740		)	6,327
Less: Net Income Attributable to Noncontrolling Interests	56							—			56
Net Income Attributable to Merck & Co., Inc.	$	3,531						$	(2,740	)	$	6,271
Earnings per Common Share Assuming Dilution	$	1.15									$	2.04
Average Shares Outstanding Assuming Dilution	3,074										3,074
Tax Rate	30.8		%								25.3		%

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

SECOND QUARTER 2013

(AMOUNTS IN MILLIONS)

Table 3a

	Global					U.S.					International
	2Q13		2Q12		% Change	2Q13		2Q12		% Change	2Q13			2Q12		% Change
TOTAL SALES (1)	$	11,010	$	12,311	-11	$	4,608	$	5,555	-17	$	6,402		$	6,756	-5
PHARMACEUTICAL	9,310		10,560		-12	3,689		4,633		-20	5,622			5,927		-5
Primary Care and Women’s Health
Cardiovascular
Zetia	650		632		3	351		330		6	299			301		-1
Vytorin	417		445		-6	170		195		-13	247			250		-1
Diabetes & Obesity
Januvia	1,072		1,058		1	571		532		7	501			525		-5
Janumet	474		411		16	235		210		12	239			201		19
Respiratory
Nasonex	325		293		11	177		141		25	148			152		-3
Singulair	281		1,431		-80	15		1,002		-99	266			429		-38
Dulera	79		50		57	75		48		57	4			3		62
Asmanex	49		51		-3	44		46		-4	5			5		4
Women’s Health & Endocrine
NuvaRing	171		157		9	107		92		17	64			65		-2
Fosamax	144		186		-22	4		9		-49	140			177		-21
Follistim AQ	134		125		8	62		47		32	73			78		-7
Implanon	102		85		20	51		39		31	51			46		10
Cerazette	48		72		-34						48			72		-34
Other
Arcoxia	121		117		4						121			117		4
Avelox	29		44		-34	27		42		-37	2			2		43
Hospital and Specialty
Immunology
Remicade	527		518		2						527			518		2
Simponi	120		76		59						120			76		59
Infectious Disease
Isentress	412		398		4	218		203		7	195			195
Cancidas	163		166		-1	8		7		27	155			159		-3
PegIntron	142		183		-22	13		24		-44	129			159		-19
Invanz	120		110		9	61		55		11	59			55		6
Victrelis	116		126		-8	52		68		-24	64			58		11
Noxafil	71		66		7	22		21		4	49			45		9
Oncology
Temodar	219		225		-3	108		106		1	111			119		-6
Emend	135		145		-7	74		73		2	61			73		-17
Other
Cosopt / Trusopt	103		105		-2	5		4		30	98			101		-3
Bridion	69		60		14						69			60		14
Integrilin	48		60		-20	44		54		-20	4			5		-17
Diversified Brands
Cozaar / Hyzaar	255		337		-24	5		9		-45	250			329		-24
Primaxin	85		104		-19	4		7		-43	81			97		-17
Zocor	74		96		-23	6		7		-13	68			89		-24
Propecia	67		100		-33	5		33		-84	62			68		-8
Clarinex	64		140		-54	2		54		-97	63			86		-27
Proscar	58		55		7	1		1		-45	58			53		8
Remeron	53		66		-19	1		1		-23	52			64		-19
Maxalt	43		154		-72	14		115		-88	29			38		-26
Claritin Rx	40		48		-17						40			48		-17
Vaccines
Gardasil	383		324		18	252		224		13	131			101		30
ProQuad, M-M-R II and Varivax	339		316		7	301		285		6	38			31		23
RotaTeq	144		142		1	98		102		-4	46			40		14
Zostavax	141		148		-5	122		137		-11	19			11		77
Pneumovax 23	108		101		7	80		85		-6	28			16		77
Other Pharmaceutical (2)	1,115		1,034		8	304		225		35	808			809		—
ANIMAL HEALTH	851		865		-2	219		238		-8	632			628		1
CONSUMER CARE (3)	490		552		-11	390		383		2	99			169		-41
Claritin OTC	78		145		-46	108		101		7	(29		)	45		*
Other Revenues (4)	359		333		8	310		301		3	48			32		52
Astra	245		223		10	245		223		10

* 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 $86 million and $75 million on a global basis for second quarter 2013 and 2012, respectively.

(3)  The decrease in Consumer Care sales resulted from the ongoing termination in China of certain Consumer Care distribution arrangements and a reversal of sales previously made to those distributors, together with associated termination costs.

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

JUNE YEAR-TO-DATE 2013

(AMOUNTS IN MILLIONS)

Table 3b

	Global					U.S.					International
	Jun YTD 13		Jun YTD 12		% Change	Jun YTD 13		Jun YTD 12		% Change	Jun YTD 13		Jun YTD 12		% Change
TOTAL SALES (1)	$	21,681	$	24,041	-10	$	8,823	$	10,565	-16	$	12,858	$	13,477	-5
PHARMACEUTICAL	18,201		20,642		-12	6,945		8,823		-21	11,257		11,819		-5
Primary Care and Women’s Health
Cardiovascular
Zetia	1,279		1,246		3	685		639		7	594		607		-2
Vytorin	810		889		-9	326		384		-15	484		505		-4
Diabetes & Obesity
Januvia	1,956		1,977		-1	1,033		1,025		1	923		952		-3
Janumet	883		802		10	432		412		5	451		391		15
Respiratory
Nasonex	711		668		6	327		303		8	383		365		5
Singulair	618		2,771		-78	16		1,878		-99	601		892		-33
Dulera	147		89		66	140		85		65	7		4		91
Asmanex	89		99		-9	78		89		-12	11		10		17
Women’s Health & Endocrine
NuvaRing	322		303		6	197		175		12	125		128		-2
Fosamax	281		370		-24	9		16		-41	271		354		-23
Follistim AQ	257		241		6	103		85		21	154		156		-1
Implanon	187		161		16	94		70		34	93		91		2
Cerazette	108		139		-22						108		139		-22
Other
Arcoxia	242		229		6						242		229		6
Avelox	65		117		-45	60		112		-46	5		5		2
Hospital and Specialty
Immunology
Remicade	1,076		1,037		4						1,076		1,037		4
Simponi	228		150		52						228		150		52
Infectious Disease
Isentress	775		735		5	405		389		4	370		345		7
Cancidas	326		311		5	15		15		2	311		296		5
PegIntron	268		345		-22	23		56		-60	245		289		-15
Invanz	230		211		9	115		106		8	115		105		10
Victrelis	226		238		-5	88		136		-35	138		102		35
Noxafil	136		125		9	40		36		12	97		89		8
Oncology
Temodar	434		461		-6	215		211		2	219		251		-13
Emend	250		247		1	140		135		4	110		112		-1
Other
Cosopt / Trusopt	209		229		-9	9		7		22	200		222		-10
Bridion	131		118		11						131		118		11
Integrilin	95		113		-15	87		103		-16	8		9		-13
Diversified Brands
Cozaar / Hyzaar	522		674		-23	16		13		16	506		660		-23
Primaxin	168		192		-12	7		11		-33	161		181		-11
Zocor	156		199		-22	12		13		-11	144		186		-22
Propecia	135		208		-35	12		64		-82	124		144		-14
Clarinex	125		273		-54	7		105		-93	118		168		-30
Claritin Rx	115		134		-14						115		134		-14
Remeron	106		123		-14	2		3		-13	103		120		-14
Proscar	98		106		-8	2		2		20	95		104		-8
Maxalt	83		310		-73	23		227		-90	60		82		-26
Vaccines
Gardasil	773		608		27	499		397		26	273		211		30
ProQuad, M-M-R II and Varivax	611		571		7	547		514		7	64		58		12
Zostavax	309		224		38	274		204		34	35		20		77
RotaTeq	306		284		8	228		209		9	78		74		5
Pneumovax 23	219		213		3	166		158		6	53		55		-4
Other Pharmaceutical (2)	2,136		2,102		2	513		436		18	1,625		1,669		-3
ANIMAL HEALTH	1,691		1,686		—	450		431		4	1,241		1,255		-1
CONSUMER CARE (3)	1,061		1,106		-4	790		766		3	271		340		-20
Claritin OTC	256		314		-19	254		237		7	2		77		-97
Other Revenues (4)	727		608		20	638		545		17	89		63		42
Astra	507		409		24	507		409		24

* 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 $140 million and $134 million on a global basis for June YTD 2013 and 2012, respectively.

(3)  The decrease in Consumer Care sales resulted from the ongoing termination in China of certain Consumer Care distribution arrangements and a reversal of sales previously made to those distributors, together with associated termination costs.

(4)  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 3c

	1Q13			2Q13			Jun YTD			1Q12			2Q12			Jun YTD			3Q12			4Q12			Full Year			% Change 2Q	% Change Jun YTD
TOTAL PHARMACEUTICAL	$	8,891		$	9,310		$	18,201		$	10,082		$	10,560		$	20,642		$	9,875		$	10,085		$	40,601		-12	-12
United States	3,256			3,689			6,945			4,189			4,633			8,823			4,304			3,915			17,041			-20	-21
% Pharmaceutical Sales	36.6		%	39.6		%	38.2		%	41.6		%	43.9		%	42.7		%	43.6		%	38.8		%	42.0		%
Europe (1)	2,465			2,343			4,808			2,558			2,540			5,099			2,210			2,441			9,750			-8	-6
% Pharmaceutical Sales	27.7		%	25.2		%	26.4		%	25.4		%	24.1		%	24.7		%	22.4		%	24.2		%	24.0		%
Japan	1,034			948			1,982			1,267			1,199			2,466			1,124			1,388			4,978			-21	-20
% Pharmaceutical Sales	11.6		%	10.2		%	10.9		%	12.6		%	11.4		%	11.9		%	11.4		%	13.8		%	12.3		%
Latin America	596			676			1,272			627			668			1,295			715			742			2,752			1	-2
% Pharmaceutical Sales	6.7		%	7.3		%	7.0		%	6.2		%	6.3		%	6.3		%	7.2		%	7.4		%	6.8		%
Asia Pacific	822			874			1,696			762			787			1,548			846			864			3,259			11	10
% Pharmaceutical Sales	9.2		%	9.4		%	9.3		%	7.6		%	7.4		%	7.5		%	8.6		%	8.6		%	8.0		%
China	271			297			568			221			262			484			262			298			1,044			13	17
Eastern Europe/Middle East Africa	439			479			917			361			441			803			366			416			1,584			8	14
% Pharmaceutical Sales	4.9		%	5.1		%	5.0		%	3.6		%	4.2		%	3.9		%	3.7		%	4.1		%	3.9		%
Canada	245			257			502			264			236			500			257			276			1,034			9	—
% Pharmaceutical Sales	2.8		%	2.8		%	2.8		%	2.6		%	2.2		%	2.4		%	2.6		%	2.7		%	2.5		%
Other	34			45			79			53			56			109			52			42			203			-20	-27
% Pharmaceutical Sales	0.4		%	0.5		%	0.4		%	0.5		%	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.

SECOND QUARTER 2013

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

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

EQUITY INCOME FROM AFFILIATES

	2Q13		2Q12		YTD 2013		YTD 2012
ASTRAZENECA LP	$	105	$	140	$	230	$	253
Other (1)	11		2		19		—
TOTAL	$	116	$	142	$	249	$	253

(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.

	2Q13		2Q12		YTD 2013		YTD 2012
GARDASIL	$	61	$	60	$	134	$	115
OTHER VIRAL VACCINES	27		30		56		55
ROTATEQ	13		12		27		23
HEPATITIS VACCINES	7		8		15		17
Other Vaccines	99		119		205		225
TOTAL SANOFI PASTEUR MSD SALES	$	207	$	229	$	437	$	435

OTHER (INCOME) EXPENSE, NET

	2Q13			2Q12			YTD 2013			YTD 2012
INTEREST INCOME	$	(65	)	$	(76	)	$	(122	)	$	(129	)
INTEREST EXPENSE	201			172			385			346
EXCHANGE LOSSES	55			13			267			80
Other, net	10			(6		)	(46		)	(50		)
TOTAL	$	201		$	103		$	484		$	247