Merck & Co. (MRK) 8-K Merck Announces First-Quarter 2010 Financial Results

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FIRST QUARTER 2009

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a

	GAAP			Restructuring Costs(1)		Merger-Related Costs(2)		Adjustment Subtotal			Non-GAAP
Sales	$	5,385.2						$	—		$	5,385.2
Materials and production		1,333.8		22.2					22.2			1,311.6
Marketing and administrative		1,632.9				6.6			6.6			1,626.3
Research and development		1,224.2		88.1					88.1			1,136.1
Restructuring costs		64.3		64.3					64.3			—
Equity income from affiliates		(585.8	)						—			(585.8	)
Other (income) expense, net		(67.2	)			12.5			12.5			(79.7	)
Income Before Taxes		1,783.0		(174.6	)	(19.1	)		(193.7	)		1,976.7
Taxes on Income		327.2							(57.0	)(3)		384.2
Net Income		1,455.8							(136.7	)		1,592.5
Less: Net Income Attributable to Noncontrolling Interests		30.8							—			30.8
Net Income Attributable to Merck & Co., Inc.	$	1,425.0						$	(136.7	)	$	1,561.7
Earnings per Common Share Assuming Dilution	$	0.67						$	(0.07	)	$	0.74	(4)
Average Shares Outstanding Assuming Dilution		2,109.2										2,109.2
Tax Rate		18.4	%									19.4	%

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 primarily include employee separation costs, as well as accelerated depreciation associated with facilities to be sold or closed.

(2) Merger-related costs include transaction and integration costs associated with the merger.

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

(4) The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $1,557.3 million for the first quarter of 2009.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FIRST QUARTER 2010

(AMOUNTS IN MILLIONS)

Table 3a

The following Table reflects Supplemental Combined Non-GAAP sales which are adjusted to reflect a full quarter of Merck and Schering-Plough combined results as if the merger closed as of January 1, 2009.

	Global					U.S.					International
	1Q10		Supp. Comb. Non-GAAP 1Q09		% Change	1Q10		Supp. Comb. Non-GAAP 1Q09		% Change	1Q10		Supp. Comb. Non-GAAP 1Q09		% Change
TOTAL SALES(1)	$	11,422	$	10,683	7	$	4,998	$	4,945	1	$	6,424	$	5,737	12
HUMAN HEALTH(2)		9,793		9,235	6		4,090		4,036	1		5,704		5,198	10
Bone, Resp., Imm., & Dermatology
Singulair		1,165		1,057	10		728		682	7		437		375	17
Remicade		674		518	30							674		518	30
Nasonex		320		306	4		155		158	-1		164		148	11
Fosamax		230		261	-12		25		41	-38		205		220	-7
Clarinex		174		174			49		59	-17		125		114	9
Propecia		100		103	-3		35		36	-2		64		67	-4
Arcoxia		95		81	17							95		81	17
Asmanex		51		49	4		49		46	5		2		3	-24
Cardiovascular
Zetia		534		510	5		281		310	-9		253		201	26
Vytorin		477		477			254		287	-11		222		191	17
Integrilin		70		76	-8		65		71	-9		5		5	5
Diabetes & Obesity
Januvia		511		411	24		354		313	13		157		98	60
Janumet		201		128	56		125		100	25		76		28	*
Infectious Disease
Isentress		232		148	57		111		75	48		121		73	65
PegIntron		186		216	-14		26		29	-11		161		187	-14
Primaxin		159		165	-3		35		30	16		124		134	-8
Cancidas		153		139	10		15		19	-19		138		120	15
Avelox		106		109	-3		101		105	-3		4		4	8
Invanz		75		62	21		38		33	15		37		29	29
Rebetol		56		66	-15							56		66	-15
Crixivan / Stocrin		52		49	5		3		3	-13		49		46	6
Mature Brands
Cozaar / Hyzaar		782		839	-7		291		304	-4		490		535	-8
Claritin Rx		124		132	-6							124		132	-6
Zocor		116		137	-16		10		8	19		106		129	-18
Vasotec / Vaseretic		59		77	-23							59		77	-23
Proscar		58		72	-19		2		1	14		57		71	-20
Proventil		57		54	6		56		53	5		1		1	*
Neurosciences & Ophthalmology
Maxalt		135		133	1		83		92	-10		52		41	27
Cosopt / Trusopt		115		121	-5		5		14	-61		109		107	2
Subutex / Suboxone		52		50	5							52		50	5
Remeron		51		50	2		1		2	-34		49		48	3
Oncology
Temodar		274		247	11		92		92			182		155	17
Emend		82		68	21		50		43	17		32		25	28
Caelyx		74		61	21							74		61	21
Intron A		54		54	1		30		27	13		24		27	-11
Vaccines
ProQuad, M-M-R II and Varivax		319		252	27		296		235	26		23		17	34
Gardasil		233		262	-11		156		179	-13		77		83	-8
Zostavax		95		75	27		95		75	27
RotaTeq		93		134	-31		74		124	-41		19		10	88
Pneumovax		51		41	25		40		30	35		11		11	-3
Women’s Health & Endocrine
Nuvaring		135		115	17		83		72	16		52		43	20
Follistim / Puregon		134		131	2		41		43	-4		93		88	5
Cerazette		55		39	39							55		39	39
Implanon		51		37	36		19		13	46		31		24	30
Other Human Health (3)		975		946	3		214		230	-7		761		716	6
ANIMAL HEALTH		709		621	14		140		145	-4		569		476	20
CONSUMER CARE(2)		379		384	-2		338		353	-4		41		31	30
Claritin OTC		110		149	-26		102		144	-29		8		5	51
Other Revenues(4)		542		443	22		431		411	5		110		32	*
Astra		364		356	2		364		356	2

* ³ 100%

⁽¹⁾ Individual products with first quarter 2010 sales of >$50M are shown. Supplemental combined 1Q09 sales reflect the then current foreign exchange rates.

⁽²⁾ Human Health includes worldwide prescription pharmaceutical sales and consumer product sales excluding the US and Canada. Consumer Care includes US and Canada consumer product sales.

⁽³⁾ Includes Human Health products with first quarter 2010 sales of <$50M. Other Vaccine sales included in Other Human Health were $55 million and $50 million on a global basis for first quarter 2010 and 2009, respectively.

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

Note: The Company is providing Supplemental Combined Non-GAAP sales to reflect the revenues of the company’s product sales on a comparable basis to periods prior to the merger. Merck has defined Supplemental Combined Non-GAAP sales as GAAP sales adjusted to reflect a full quarter of Merck and Schering-Plough performance as if the merger closed at the beginning of the periods indicated in this table. This supplemental information is provided to enhance investors’ understanding of the company’s sales performance. This information should be considered in addition to, but not in lieu of, sales reported in accordance with GAAP.

MERCK & CO., INC.

HUMAN HEALTH GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

Table 3b

	1Q10
TOTAL HUMAN HEALTH	$	9,793
United States		4,090
Europe(1)		2,831
Japan		811
Latin America		694
Asia Pacific		587
Eastern Europe/Middle East Africa		404
Canada		337
Other		39

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES - SUPPLEMENTAL COMBINED NON-GAAP

FULL YEAR 2009

(AMOUNTS IN MILLIONS)

Table 3c

The following Table reflects Supplemental Combined Non-GAAP sales which are adjusted to reflect full quarters and a full year of Merck and Schering-Plough combined results as if the merger closed as of January 1, 2009.

	2009 - Supplemental Combined Non-GAAP
	1Q		2Q		3Q		4Q		Full Year
TOTAL SALES(1)	$	10,683	$	11,534	$	11,531	$	12,216	$	45,964
HUMAN HEALTH(2)		9,235		9,956		10,101		10,805		40,098
Bone, Resp., Imm., & Dermatology
Singulair		1,057		1,257		1,085		1,260		4,660
Remicade		518		565		608		635		2,327
Nasonex		306		321		266		286		1,179
Fosamax		261		277		276		285		1,100
Clarinex		174		226		164		155		719
Propecia		103		106		109		123		440
Arcoxia		81		88		90		98		358
Asmanex		49		54		53		58		214
Cardiovascular
Zetia		510		556		563		614		2,244
Vytorin		477		532		525		577		2,112
Integrilin		76		73		74		72		295
Diabetes & Obesity
Januvia		411		462		491		558		1,922
Janumet		128		155		173		202		658
Infectious Disease
PegIntron		216		215		198		216		844
Isentress		148		172		197		234		752
Primaxin		165		160		168		196		689
Cancidas		139		149		155		175		617
Avelox		109		71		70		118		368
Invanz		62		71		73		88		293
Rebetol		66		67		64		57		254
Crixivan / Stocrin		49		56		49		52		206
Mature Brands
Cozaar / Hyzaar		839		906		861		955		3,561
Zocor		137		141		141		139		558
Claritin Rx		132		96		95		109		433
Vasotec / Vaseretic		77		76		73		85		311
Proscar		72		79		67		72		291
Proventil		54		56		59		56		225
Neurosciences & Ophthalmology
Maxalt		133		141		144		156		575
Cosopt / Trusopt		121		125		123		134		503
Remeron		50		50		74		60		234
Subutex / Suboxone		50		52		53		56		211
Oncology
Temodar		247		256		278		292		1,073
Emend		68		76		81		88		313
Caelyx		61		68		67		70		265
Intron A		54		67		56		54		231
Vaccines
ProQuad, M-M-R II and Varivax		252		322		462		333		1,369
Gardasil		262		268		311		277		1,118
RotaTeq		134		126		127		135		522
Pneumovax		41		47		130		128		346
Zostavax		75		42		84		76		277
Women’s Health & Endocrine
Follistim / Puregon		131		145		122		149		546
Nuvaring		115		129		131		135		511
Cerazette		39		46		49		53		187
Implanon		37		43		45		53		179
Other Human Health(3)		946		966		1,017		1,080		4,010
ANIMAL HEALTH		621		672		664		759		2,716
CONSUMER CARE(2)		384		381		283		232		1,281
Claritin OTC		149		108		85		63		406
Other Revenues(4)		443		524		483		420		1,870
Astra		356		386		340		332		1,414

⁽¹⁾ Only select products are shown. Sales reflect the then current foreign exchange rates.

⁽²⁾ Human Health includes worldwide prescription pharmaceutical sales and consumer product sales excluding the US and Canada. Consumer Care includes US and Canada consumer product sales.

⁽³⁾ Includes Human Health products not individually shown above. Other vaccines sales included in Other Human Health were $50M in 1Q09, $34M in 2Q09, $54M in 3Q09, and $50M in 4Q09, respectively.

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

Note: The Company is providing Supplemental Combined Non-GAAP sales to reflect the revenues of the company’s product sales on a comparable basis to periods prior to the merger. Merck has defined Supplemental Combined Non-GAAP sales as GAAP sales adjusted to reflect a full year of Merck and Schering-Plough performance as if the merger closed at the beginning of the periods indicated in this table. This supplemental information is provided to enhance investors’ understanding of the company’s sales performance. This information should be considered in addition to, but not in lieu of, sales reported in accordance with GAAP.

MERCK & CO., INC.

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

FIRST QUARTER

2010

Table 4

EQUITY INCOME FROM AFFILIATES (millions of dollars)

	1Q10		1Q09
ASTRAZENECA LP	$	124.9	$	168.3
MERCK / SCHERING-PLOUGH(1)		—		290.9
Other(2)		12.6		126.6
TOTAL	$	137.5	$	585.8

⁽¹⁾ Upon completion of the merger with Schering-Plough, the Merck/Schering-Plough partnership became wholly-owned by the Company.

⁽²⁾ Primarily reflects results for Merial Limited (which was disposed of on September 17, 2009), Sanofi Pasteur MSD and Johnson & JohnsonºMerck Consumer Pharmaceuticals.

SANOFI PASTEUR MSD JOINT VENTURE SALES DETAIL (millions of dollars)

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

	1Q10		1Q09
GARDASIL	$	82.2	$	164.1
OTHER VIRAL VACCINES		23.0		25.4
ROTATEQ		11.6		8.7
FLU VACCINES		10.4		—
HEPATITIS VACCINES		5.9		13.4
Other Vaccines		118.0		131.7
TOTAL SANOFI PASTEUR MSD SALES	$	251.1	$	343.3

OTHER (INCOME) EXPENSE, NET (millions of dollars)

	1Q10			1Q09
INTEREST INCOME	$	(12.0	)	$	(96.3	)
INTEREST EXPENSE		181.2			60.7
EXCHANGE LOSSES		80.1			16.5
Other, net		(81.6	)		(48.1	)
TOTAL	$	167.7		$	(67.2	)