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

EXHIBIT 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

THIRD QUARTER 2009

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

	GAAP			Restructuring Costs(1)			Merger-Related Costs(2)			Certain Other Items(3)			Adjustment Subtotal			Non-GAAP
Sales	$	6,049.7											$	—		$	6,049.7
Materials and production		1,430.3			26.8									26.8			1,403.5
Marketing and administrative		1,725.5						55.5						55.5			1,670.0
Research and development		1,254.0			48.2									48.2			1,205.8
Restructuring costs		42.4			42.4									42.4			—
Equity income from affiliates		(688.2	)											—			(688.2	)
Other (income) expense, net		(2,791.1	)					88.1			(2,762.5	)		(2,674.4	)		(116.7	)
Income Before Taxes		5,076.8			(117.4	)		(143.6	)		2,762.5			2,501.5			2,575.3
Taxes on Income		1,621.5												985.1	(4)		636.4
Net Income		3,455.3												1,516.4			1,938.9
Less: Net Income Attributable to Noncontrolling Interests		31.0												—			31.0
Net Income Attributable to Merck & Co., Inc.	$	3,424.3											$	1,516.4		$	1,907.9
Earnings per Common Share Assuming Dilution	$	1.61											$	0.71		$	0.90	(5)
Average Shares Outstanding Assuming Dilution		2,113.7															2,113.7
Tax Rate		31.9	%														24.7	%

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 and accelerated depreciation associated with facilities to be sold or closed.

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

(3) Included in other (income) expense, net is a $2.8 billion gain on the sale of Merck’s interest in Merial Limited.

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

(5) 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 $1,901.4 million for the third quarter of 2009.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

NINE MONTHS ENDED SEPTEMBER 30, 2009

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d

	GAAP			Restructuring Costs(1)			Merger-Related Costs(2)			Certain Other Items(3)			Adjustment Subtotal			Non-GAAP
Sales	$	17,334.8											$	—		$	17,334.8
Materials and production		4,118.0			96.1									96.1			4,021.9
Marketing and administrative		5,088.0						105.7						105.7			4,982.3
Research and development		3,873.5			244.1									244.1			3,629.4
Restructuring costs		144.1			144.1									144.1			—
Equity income from affiliates		(1,861.2	)											—			(1,861.2	)
Other (income) expense, net		(2,854.7	)					150.8			(2,762.5	)		(2,611.7	)		(243.0	)
Income Before Taxes		8,827.1			(484.3	)		(256.5	)		2,762.5			2,021.7			6,805.4
Taxes on Income		2,327.7												848.0	(4)		1,479.7
Net Income		6,499.4												1,173.7			5,325.7
Less: Net Income Attributable to Noncontrolling Interests		93.8												—			93.8
Net Income Attributable to Merck & Co., Inc.	$	6,405.6											$	1,173.7		$	5,231.9
Earnings per Common Share Assuming Dilution	$	3.03											$	0.56		$	2.47	(5)
Average Shares Outstanding Assuming Dilution		2,110.6															2,110.6
Tax Rate		26.4	%														21.7	%

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 and accelerated depreciation associated with facilities to be sold or closed.

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

(3) Included in other (income) expense, net is a $2.8 billion gain on the sale of Merck’s interest in Merial Limited.

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

(5) 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 $5,215.5 million for the nine months ended September 30, 2009.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

THIRD QUARTER 2010

(AMOUNTS IN MILLIONS)

Table 3b

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
	3Q10		Supp. Comb. Non-GAAP 3Q09		% Change		3Q10		Supp. Comb. Non-GAAP 3Q09		% Change		3Q10		Supp. Comb. Non-GAAP 3Q09		% Change
TOTAL SALES(1)	$	11,125	$	11,531		-4	$	5,139	$	5,343		-4	$	5,985	$	6,189		-3
HUMAN HEALTH(2)		9,660		10,101		-4		4,281		4,509		-5		5,379		5,593		-4
Bone, Resp., Imm., & Dermatology
Singulair		1,215		1,085		12		823		729		13		393		356		10
Remicade		661		608		9								661		608	��	9
Nasonex		259		266		-3		142		151		-6		118		115		2
Fosamax		220		276		-20		21		39		-45		198		237		-16
Clarinex		137		164		-17		47		60		-23		90		104		-13
Arcoxia		94		90		3								94		90		3
Asmanex		48		53		-9		45		49		-8		3		4		-24
Proventil		43		59		-27		41		59		-31		2				*
Cardiovascular
Zetia		571		563		1		310		320		-3		261		243		7
Vytorin		485		525		-8		263		299		-12		222		226		-1
Integrilin		63		74		-15		57		69		-17		6		5		6
Diabetes & Obesity
Januvia		600		491		22		405		354		14		195		137		42
Janumet		247		173		43		151		122		23		97		51		90
Infectious Disease
Isentress		278		197		41		149		95		57		129		102		26
PegIntron		168		198		-15		12		28		-58		157		170		-8
Primaxin		135		168		-20		27		33		-17		108		135		-20
Cancidas		135		155		-13		15		18		-17		120		137		-12
Invanz		91		73		25		48		39		24		43		34		26
Avelox		59		70		-15		54		70		-22		5				*
Rebetol		55		64		-14		1						54		64		-14
Crixivan / Stocrin		49		49		-2		2		2		-21		47		47		-1
Diversified Brands
Cozaar / Hyzaar		423		861		-51		37		322		-88		386		539		-28
Zocor		114		141		-19		11		17		-39		103		124		-16
Propecia		109		109		—		37		37		1		72		72		—
Claritin Rx		81		95		-14								81		95		-14
Vasotec / Vaseretic		69		73		-4								69		73		-4
Proscar		58		67		-14		2		2		9		56		66		-15
Remeron		50		74		-32		2		2		-21		49		72		-32
Neurosciences & Ophthalmology
Maxalt		133		144		-8		95		100		-5		38		44		-14
Cosopt / Trusopt		114		123		-7		5		7		-34		110		116		-6
Subutex / Suboxone		7		53		-88								7		53		-88
Oncology
Temodar		254		278		-9		98		100		-2		156		178		-13
Emend		91		82		11		60		51		17		31		31		1
Caelyx		70		67		4								70		67		4
Intron A		50		56		-10		26		31		-16		24		25		-5
Vaccines
ProQuad, M-M-R II and Varivax		434		462		-6		414		440		-6		21		22		-6
Gardasil		316		311		2		247		220		12		70		91		-24
RotaTeq		119		127		-7		99		113		-13		20		13		47
Pneumovax		110		130		-15		92		102		-10		18		28		-34
Zostavax		23		84		-73		23		84		-73
Women’s Health & Endocrine
NuvaRing		134		131		2		84		82		3		50		49		1
Follistim / Puregon		119		122		-2		43		42		1		76		80		-4
Implanon		64		45		41		24		17		45		39		28		39
Cerazette		56		49		14								56		49		14
Other Human Health (3)		1,049		1,016		3		271		203		33		778		812		-4
ANIMAL HEALTH		687		664		3		154		143		7		533		521		2
CONSUMER CARE(2)		291		283		3		263		262				28		21		35
Claritin OTC		92		85		8		87		82		6		5		4		34
Other Revenues(4)		487		483		1		442		429		3		45		54		-15
Astra		345		340		2		345		340		2

⁽¹⁾ Only select products are shown.

⁽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 Vaccine sales included in Other Human Health were $94 millionand $53 million on a global basis for third 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.

* 100% or over

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

SEPTEMBER YEAR-TO-DATE 2010

(AMOUNTS IN MILLIONS)

Table 3c

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

	Global						U.S.						International
	Sep YTD 2010		Supp. Comb. Non-GAAP Sep YTD 2009		% Change		Sep YTD 2010		Supp. Comb. Non-GAAP Sep YTD 2009		% Change		Sep YTD 2010		Supp. Comb. Non-GAAP Sep YTD 2009		% Change
TOTAL SALES(1)	$	33,893	$	33,748		—	$	15,001	$	15,586		-4	$	18,892	$	18,162		4
HUMAN HEALTH(2)		29,230		29,293		—		12,410		12,877		-4		16,819		16,415		2
Bone, Resp., Imm., & Dermatology
Singulair		3,638		3,400		7		2,381		2,234		7		1,257		1,165		8
Remicade		2,004		1,691		18								2,004		1,691		18
Nasonex		917		893		3		493		491				424		402		6
Fosamax		692		815		-15		68		122		-44		623		693		-10
Clarinex		513		564		-9		155		194		-20		358		370		-3
Arcoxia		284		260		9								284		260		9
Asmanex		155		156		-1		148		148				7		8		-12
Proventil		155		169		-8		149		169		-12		6				*
Cardiovascular
Zetia		1,668		1,630		2		898		953		-6		770		677		14
Vytorin		1,452		1,534		-5		781		900		-13		671		634		6
Integrilin		203		223		-9		188		208		-10		15		15		3
Diabetes & Obesity
Januvia		1,710		1,364		25		1,138		1,014		12		572		350		63
Janumet		666		456		46		412		336		23		255		120		*
Infectious Disease
Isentress		777		518		50		391		257		52		386		260		48
PegIntron		539		629		-14		63		87		-28		477		542		-12
Primaxin		452		493		-8		95		95				357		398		-10
Cancidas		437		442		-1		44		55		-19		393		388		1
Invanz		249		205		21		130		109		19		119		96		24
Avelox		224		250		-10		210		250		-16		14				*
Rebetol		166		197		-16								166		197		-16
Crixivan / Stocrin		148		154		-4		6		8		-25		142		146		-3
Diversified Brands
Cozaar / Hyzaar		1,690		2,606		-35		391		958		-59		1,298		1,648		-21
Zocor		347		419		-17		30		35		-15		318		384		-17
Propecia		322		318		1		109		109				213		208		2
Claritin Rx		298		323		-8								298		323		-8
Vasotec / Vaseretic		191		226		-15								191		226		-15
Proscar		172		219		-21		5		4		13		167		214		-22
Remeron		160		174		-8		5		7		-21		155		167		-7
Neurosciences & Ophthalmology
Maxalt		401		418		-4		271		291		-7		130		127		2
Cosopt / Trusopt		353		370		-5		15		33		-55		338		337		—
Subutex / Suboxone		110		155		-29								110		155		-29
Oncology
Temodar		799		781		2		293		285		3		505		496		2
Emend		268		228		18		166		147		13		102		81		25
Caelyx		209		195		7								209		195		7
Intron A		155		177		-12		86		92		-7		70		85		-17
Vaccines
ProQuad, M-M-R II and Varivax		1,093		1,036		6		1,033		977		6		61		59		4
Gardasil		768		841		-9		565		584		-3		202		258		-22
RotaTeq		350		387		-10		290		345		-16		60		42		43
Pneumovax		220		218		1		181		171		6		40		47		-15
Zostavax		136		202		-32		136		202		-32
Women’s Health & Endocrine
NuvaRing		414		375		10		255		232		10		159		143		10
Follistim / Puregon		389		397		-2		127		134		-5		263		263		—
Implanon		165		125		31		62		45		38		103		80		27
Cerazette		160		134		19								160		134		19
Other Human Health (3)		3,009		2,926		3		641		597		7		2,368		2,329		2
ANIMAL HEALTH		2,126		1,957		9		446		437		2		1,680		1,520		11
CONSUMER CARE(2)		1,091		1,048		4		981		962		2		110		86		27
Claritin OTC		334		342		-2		313		328		-5		21		14		44
Other Revenues(4)		1,446		1,450		—		1,163		1,309		-11		283		141		*
Astra		950		1,082		-12		950		1,082		-12

⁽¹⁾ Only select products are shown.

⁽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 Vaccine sales included in Other Human Health were $207 million and$137 million on a global basis for third 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.

* 100% or over

MERCK & CO., INC.

HUMAN HEALTH GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

Table 3d

	1Q10			2Q10			3Q10			Sep YTD
TOTAL HUMAN HEALTH	$	9,793		$	9,776		$	9,660		$	29,230
United States		4,090			4,041			4,281			12,411
% Human Health Sales		41.8	%		41.3	%		44.3	%		42.5	%
Europe(1)		2,831			2,660			2,360			7,851
% Human Health Sales		28.9	%		27.2	%		24.4	%		26.9	%
Japan		811			902			855			2,568
% Human Health Sales		8.3	%		9.2	%		8.9	%		8.8	%
Latin America		694			728			742			2,165
% Human Health Sales		7.1	%		7.4	%		7.7	%		7.4	%
Asia Pacific		587			659			659			1,905
% Human Health Sales		6.0	%		6.7	%		6.8	%		6.5	%
Eastern Europe/Middle East Africa		404			422			371			1,197
% Human Health Sales		4.1	%		4.3	%		3.8	%		4.1	%
Canada		337			328			374			1,039
% Human Health Sales		3.4	%		3.4	%		3.9	%		3.6	%
Other		39			37			17			94
% Human Health Sales		0.4	%		0.4	%		0.2	%		0.3	%

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

SEPTEMBER 2010

(AMOUNTS IN MILLIONS)

Table 3e

	2010 - GAAP
	1Q		2Q		3Q		Sep YTD
TOTAL SALES(1)	$	11,422	$	11,346	$	11,125	$	33,893
HUMAN HEALTH(2)		9,793		9,776		9,660		29,230
Bone, Resp., Imm., & Dermatology
Singulair		1,165		1,258		1,215		3,638
Remicade		674		669		661		2,004
Nasonex		320		338		259		917
Fosamax		230		241		220		692
Clarinex		174		202		137		513
Arcoxia		95		95		94		284
Asmanex		51		56		48		155
Proventil		57		55		43		155
Cardiovascular
Zetia		534		564		571		1,668
Vytorin		477		490		485		1,452
Integrilin		70		70		63		203
Diabetes & Obesity
Januvia		511		600		600		1,710
Janumet		201		218		247		666
Infectious Disease
Isentress		232		267		278		777
PegIntron		186		185		168		539
Primaxin		159		158		135		452
Cancidas		153		150		135		437
Invanz		75		83		91		249
Avelox		106		59		59		224
Rebetol		56		55		55		166
Crixivan / Stocrin		52		48		49		148
Diversified Brands
Cozaar / Hyzaar		782		485		423		1,690
Zocor		116		117		114		347
Propecia		100		113		109		322
Claritin Rx		124		93		81		298
Vasotec / Vaseretic		59		63		69		191
Proscar		58		56		58		172
Remeron		51		59		50		160
Neurosciences & Ophthalmology
Maxalt		135		133		133		401
Cosopt / Trusopt		115		123		114		353
Subutex / Suboxone		52		51		7		110
Oncology
Temodar		274		271		254		799
Emend		84		93		91		268
Caelyx		74		66		70		209
Intron A		54		51		50		155
Vaccines
ProQuad, M-M-R II and Varivax		319		340		434		1,093
Gardasil		233		219		316		768
RotaTeq		93		139		119		350
Pneumovax		51		59		110		220
Zostavax		95		18		23		136
Women’s Health & Endocrine
NuvaRing		135		145		134		414
Follistim / Puregon		134		137		119		389
Implanon		51		51		64		165
Cerazette		55		49		56		160
Other Human Health(3)		974		986		1,049		3,009
ANIMAL HEALTH		709		731		687		2,126
CONSUMER CARE(2)		379		422		291		1,091
Claritin OTC		110		132		92		334
Other Revenues(4)		542		417		487		1,446
Astra		364		241		345		950

⁽¹⁾ Only select products are shown.

⁽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 $55 million, $57 million and $94 million for the first, second and third quarters of 2010, respectively.

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES-SUPPLEMENTAL COMBINED NON-GAAP

FULL YEAR 2009

(AMOUNTS IN MILLIONS)

Table 3f

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
Arcoxia		81		88		90		98		358
Proventil		54		56		59		56		225
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
Diversified Brands
Cozaar / Hyzaar		839		906		861		955		3,561
Zocor		137		141		141		139		558
Propecia		103		106		109		123		440
Claritin Rx		132		96		95		109		433
Vasotec / Vaseretic		77		76		73		85		311
Proscar		72		79		67		72		291
Remeron		50		50		74		60		234
Neurosciences & Ophthalmology
Maxalt		133		141		144		156		575
Cosopt / Trusopt		121		125		123		134		503
Subutex / Suboxone		50		52		53		56		211
Oncology
Temodar		247		256		278		292		1,073
Emend		69		77		82		89		317
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)		945		965		1,016		1,079		4,005
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.

⁽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

THIRD QUARTER 2010

Table 4

EQUITY INCOME FROM AFFILIATES (millions of dollars)

	3Q10		3Q09		YTD 2010		YTD 2009
ASTRAZENECA LP	$	191.7	$	191.4	$	356.8	$	482.6
MERCK / SCHERING-PLOUGH(1)		—		391.3		—		1,044.5
Other(2)		44.7		105.5		60.0		334.1
TOTAL	$	236.4	$	688.2	$	416.8	$	1,861.2

⁽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.

	3Q10		3Q09		YTD 2010		YTD 2009
GARDASIL	$	79.9	$	108.1	$	244.4	$	417.1
FLU VACCINES		147.8		167.1		157.8		167.1
OTHER VIRAL VACCINES		19.9		26.6		66.3		78.9
ROTATEQ		7.6		10.7		33.0		29.5
HEPATITIS VACCINES		5.9		10.3		17.5		34.7
Other Vaccines		121.4		173.0		352.0		425.0
TOTAL SANOFI PASTEUR MSD SALES	$	382.5	$	495.8	$	871.0	$	1,152.3

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

	3Q10			3Q09			YTD 2010			YTD 2009
INTEREST INCOME	$	(23.1	)	$	(33.4	)	$	(56.7	)	$	(199.6	)
INTEREST EXPENSE		172.6			130.7			538.6			290.9
EXCHANGE LOSSES (GAINS)		7.9			0.5			83.7			(3.0	)
Other, net(1)		950.9			(2,888.9	)		430.0			(2,943.0	)
TOTAL	$	1,108.3		$	(2,791.1	)	$	995.6		$	(2,854.7	)

⁽¹⁾ Other, net in the third quarter and first nine months of 2010 reflects a $950 million legal reserve. Other, net for the first nine months of 2010 also includes a $443 million gain recognized upon AstraZeneca’s exercise of the asset option. Other, net in the third quarter and first nine months of 2009 primarily reflects a $2.8 billion gain on the sale of Merck’s interest in Merial Limited.