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Merck Announces Second-Quarter 2013 Financial Results

  Merck Announces Second-Quarter 2013 Financial Results

  *2013 Second-Quarter Non-GAAP EPS of $0.84, Excluding Certain Items; GAAP
    EPS of $0.30
  *Worldwide Sales were $11.0 Billion, a Decrease of 11 Percent Reflecting
    the Unfavorable Impact of Patent Expiries and a 3 Percent Negative Impact
    from Foreign Exchange Partially Offset by Global Performance of Human
    Health Products
  *Growth in Key Franchises Including Vaccines, Diabetes and Immunology
  *Continued Return of Cash to Shareholders, Including $5 Billion Accelerated
    Share Repurchase Announced in May
  *Reaffirmed Full-Year Non-GAAP EPS Target of $3.45 to $3.55, Excluding
    Certain Items; Revised GAAP EPS Range to $1.84 to $2.05

Business Wire

WHITEHOUSE STATION, N.J. -- July 30, 2013

Merck (NYSE: MRK), known as MSD outside the United States and Canada, today
announced financial results for the second quarter of 2013.

                                                          
                                                           Second    Second
$ in millions, except EPS amounts                         Quarter  Quarter
                                                           2013      2012
Sales                                                     $11,010  $12,311
GAAP EPS                                                  0.30     0.58
Non-GAAP EPS that excludes items listed below^1           0.84     1.05
GAAP Net Income^2                                         906      1,793
Non-GAAP Net Income that excludes items listed below^1,2  2,530    3,227

Non-GAAP (generally accepted accounting principles) earnings per share (EPS)
for the second quarter of $0.84 exclude acquisition-related costs,
restructuring costs and certain other items.

A reconciliation of GAAP to non-GAAP net income and EPS is provided in the
tables that follow. Year-to-date results can be found in the attached tables.

                                                          
$ in millions, except EPS amounts                          Second Quarter
                                                           2013    2012
EPS                                                              
GAAP EPS                                                  $0.30   $0.58
Difference^3                                              0.54    0.47
Non-GAAP EPS that excludes items listed below^1           $0.84   $1.05
                                                                  
Net Income                                                       
GAAP net income^2                                         $906    $1,793
Difference                                                1,624   1,434
Non-GAAP net income that excludes items listed below^1,2  $2,530  $3,227
                                                                    
Decrease (Increase) in Net Income Due to Excluded Items:         
Acquisition-related costs^4                               $1,768  $1,417
Restructuring costs                                       278     289
Other                                                     (13)    -
Net decrease (increase) in income before taxes            2,033   1,706
Estimated income tax (benefit) expense                    (409)   (272)
Decrease (increase) in net income                         $1,624  $1,434

“With seven of our top 10 products growing in the second quarter and solid
performance overall, we continue to navigate significant patent expiries and
adapt to the evolving global healthcare environment,” said Kenneth C. Frazier,
chairman and chief executive officer, Merck. “We remain committed to pursuing
innovative, best-in-class science that translates into medically important
products, such as our PD-1 inhibitor for oncology. To enable further
investment in promising growth opportunities, we continue to manage costs
effectively, as reflected in our results for the quarter.”

Select Revenue Highlights

Worldwide sales were $11.0 billion for the second quarter of 2013, a decrease
of 11 percent compared with the second quarter of 2012, including a 3 percent
negative effect from foreign exchange.

The following table reflects sales of the company's top pharmaceutical
products, as well as total sales of animal health and consumer care products.

                                                        
                                Second    Second                 Change
$ in millions                  Quarter  Quarter  Change       Ex-
                                2013      2012                   exchange
Total Sales                    $11,010  $12,311  -11%         -8%
Pharmaceutical                 9,310    10,560   -12%         -9%
JANUVIA                        1,072    1,058    1%           7%
ZETIA                          650      632      3%           6%
REMICADE                       527      518      2%           3%
JANUMET                        474      411      16%          17%
VYTORIN                        417      445      -6%          -5%
ISENTRESS                      412      398      4%           5%
GARDASIL                       383      324      18%          19%
PROQUAD, M-M-R II and VARIVAX  339      316      7%           7%
NASONEX                        325      293      11%          13%
SINGULAIR                      281      1,431    -80%         -79%
Animal Health                  851      865      -2%          1%
Consumer Care                  490      552      -11%         -10%
Other Revenues                 359      333      8%           2%

Pharmaceutical Revenue Performance

Second-quarter pharmaceutical sales declined 12 percent to $9.3 billion,
including a 3 percent negative impact due to foreign exchange. Declines of
SINGULAIR (montelukast sodium), MAXALT (rizatriptan benzoate), COZAAR
(losartan potassium)/HYZAAR (losartan potassium/hydrochlorothiazide) and
CLARINEX (desloratadine) following loss of market exclusivity were partially
offset by growth of JANUVIA (sitagliptin)/JANUMET (sitagliptin/metformin HCI),
GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16 and 18) Vaccine,
Recombinant] and SIMPONI (golimumab).

Sales from emerging markets increased 7 percent, including a 3 percent
negative impact from foreign exchange. Emerging market sales accounted for
approximately 22 percent of pharmaceutical sales in the second quarter of
2013. China continues to be a key driver of growth in the emerging markets
with sales increasing 13 percent for the second quarter, including a 3 percent
benefit from foreign exchange.

Worldwide sales of the combined diabetes franchise of JANUVIA/JANUMET
increased 5 percent to $1.5 billion in the second quarter, including a 5
percent negative impact from foreign exchange. Sales growth in all regions was
partially offset by a decline in Japan due to foreign exchange.

Sales of ZETIA (ezetimibe) and VYTORIN (ezetimibe/simvastatin), medicines for
lowering LDL cholesterol, decreased 1 percent to $1.1 billion in the second
quarter, including a 2 percent negative impact from foreign exchange. The
decrease reflects lower sales of VYTORIN, partially offset by growth of ZETIA
mainly in the United States.

Combined sales of REMICADE (infliximab) and SIMPONI, treatments for
inflammatory diseases, increased 9 percent, including a 2 percent negative
impact from foreign exchange, to $647 million in the second quarter of 2013
primarily reflecting growth of SIMPONI in Europe. Sales of SIMPONI grew 59
percent to $120 million in the quarter.

ISENTRESS (raltegravir), an HIV integrase inhibitor for use in combination
with other antiretroviral agents for the treatment of HIV-1 infection, grew 4
percent to $412 million in the second quarter driven by growth in the United
States and Europe, partially offset by tenders in Brazil in 2012.

Merck’s sales of GARDASIL, a vaccine to help prevent certain diseases caused
by four types of human papillomavirus (HPV), were $383 million, an increase of
18 percent for the quarter. The increase was driven by higher sales in the
United States, which reflects continued strong uptake in males, as well as
tenders in Latin America in 2013.

Worldwide sales of SINGULAIR, a once-a-day oral medicine for the chronic
treatment of asthma and the relief of symptoms of allergic rhinitis, declined
80 percent to $281 million in the second quarter. The patents for SINGULAIR
expired in the United States in August 2012 and expired in major European
markets in February 2013. The company experienced a significant and rapid
reduction in sales in the United States and is now also experiencing a
substantial decline in Europe.

Animal Health Revenue Performance

Animal Health sales totaled $851 million for the second quarter of 2013, a 2
percent decline compared with the second quarter of 2012, including a 3
percent negative impact due to foreign exchange. Growth in poultry and
companion animal products was partially offset by lower sales of swine
products.

Consumer Care Revenue Performance

Second-quarter global sales of Consumer Care were $490 million, a decrease of
11 percent compared to the second quarter of 2012, including a 1 percent
negative impact due to foreign exchange. The sales decrease 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. Excluding those actions, Consumer
Care global sales would have increased by 2 percent, including the 1 percent
negative impact due to foreign exchange.

Other Revenue Performance

Other revenues – primarily comprising alliance revenue, miscellaneous
corporate revenues and third-party manufacturing sales – increased 8 percent
to $359 million compared to the second quarter of 2012. The increase was
primarily driven by higher revenue from AstraZeneca LP (AZLP) recorded by
Merck, which increased 10 percent to $245 million as compared with atypically
lower second quarter 2012 AZLP revenues.

Second-Quarter Expense and Other Information

The costs detailed below totaled $9.7 billion on a GAAP basis during the
second quarter of 2013 and include $2.0 billion of acquisition-related costs
and restructuring costs.

                           
$ in millions               Included in expenses for the period
Second Quarter                       Acquisition-   Restructuring
2013                       GAAP    Related       Costs          Non-GAAP^1
                                     Costs^4
Materials and production   $4,284  $1,515        $93            $2,676
Marketing and              3,140   19            16             3,105
administrative
Research and development   2,101   234           14             1,853
Restructuring costs        155     –-            155            –-
                                                                
Second Quarter                                               
2012
Materials and production   $4,112  $1,226        $83            $2,803
Marketing and              3,249   64            21             3,164
administrative
Research and development   2,165   127           41             1,997
Restructuring costs        144     –-            144            –-

The gross margin was 61.1 percent for the second quarter of 2013 and 66.6
percent for the second quarter of 2012, reflecting 14.6 and 10.6 percentage
point unfavorable impacts, respectively, from the acquisition-related costs
and restructuring costs noted above. The gross margin decline, on a non-GAAP
basis, primarily reflects the impact of the SINGULAIR patent expiries.

Marketing and administrative expenses, on a non-GAAP basis, were $3.1 billion
in the second quarter of 2013, a decrease from $3.2 billion in the second
quarter of 2012 due to targeted reductions in spending and productivity
improvements.

Research and development (R&D) expenses, on a non-GAAP basis, were $1.9
billion in the second quarter of 2013, a decrease from $2.0 billion in the
second quarter of 2012 reflecting lower upfront payments from external
licensing activity.

Equity income from affiliates was $116 million for the second quarter,
primarily reflecting the performance of partnerships with AZLP and Sanofi
Pasteur MSD.

Other (income) expense, net was $201 million of expense in the second quarter
of 2013, compared to $103 million of expense in the second quarter of 2012.

The company noted the following developments:

  *Presented at the American Society of Clinical Oncology in Chicago
    preliminary results from an ongoing Phase IB expansion study evaluating
    the safety and efficacy of MK-3475, Merck’s investigational antibody
    therapy targeting PD-1, in patients with advanced (inoperable and
    metastatic) melanoma.
  *Announced an accelerated share repurchase agreement (ASR) to repurchase $5
    billion of Merck’s common stock, which is part of Merck’s previously
    announced $15 billion share repurchase program. Proceeds from the
    company’s $6.5 billion debt offering were used to execute the ASR.
  *Announced that the U.S. Food and Drug Administration (FDA) has approved
    LIPTRUZET (ezetimibe and atorvastatin) tablets for the treatment of
    elevated low-density lipoprotein (LDL) cholesterol in patients with
    primary or mixed hyperlipidemia as adjunctive therapy to diet when diet
    alone is not enough.
  *Advised by the FDA that the agency needs additional time to assess the
    results of a recently completed inspection of a clinical trial site for
    sugammadex, Merck’s investigational medicine for the reversal of
    neuromuscular blockade induced by rocuronium or vecuronium.
  *Received a Complete Response Letter from the FDA regarding the New Drug
    Application for suvorexant, Merck’s investigational medicine for the
    treatment of insomnia. The company isevaluating the requests outlined in
    the Complete Response Letter, and plans to submit definitive data in
    response to the FDA in the first half of 2014.

Financial Targets

Merck reiterated that it expects full-year 2013 non-GAAP EPS to be between
$3.45 and $3.55, and revised 2013 GAAP EPS to be between $1.84 and $2.05. The
2013 non-GAAP range excludes acquisition-related costs, costs related to
restructuring programs and certain other items.

At current exchange rates, Merck now expects full-year 2013 sales to be
approximately 5 to 6 percent below prior year levels with foreign exchange
accounting for approximately 3 percentage points of the decline.

In addition, the company now expects full-year 2013 non-GAAP R&D expense to be
below 2012 levels. The company continues to expect its full-year 2013 non-GAAP
tax rate to be in the range of 22 to 23 percent.

A reconciliation of anticipated 2013 EPS, as reported in accordance with GAAP
to non-GAAP EPS that excludes certain items, is provided in the table below.

                                                 
$ in millions, except EPS amounts                Full Year 2013
GAAP EPS                                         $1.84 to $2.05
Difference^3                                     1.61 to 1.50
Non-GAAP EPS that excludes items listed below    $3.45 to $3.55
                                                   
                                                
Acquisition-related costs                        $5,400 to $5,200
Restructuring costs                              700 to 500
Net decrease (increase) in income before taxes   6,100 to 5,700
Estimated income tax (benefit) expense           (1,275) to (1,195)
Decrease (increase) in net income                $4,825 to $4,505

Total Employees

As of June 30, 2013, Merck had approximately 81,000 employees worldwide. In
addition, the company’s joint ventures in China and Brazil, which are included
in the consolidated results of Merck, had about 1,300 employees.

Earnings Conference Call

Investors, journalists and the general public may access a live audio webcast
of the call today at 8:00 a.m. EDT on Merck’s website at
http://www.merck.com/investors/events-and-presentations/home.html.
Institutional investors and analysts can participate in the call by dialing
(706) 758-9927 or (877) 381-5782 and using ID code number 77194196. Members of
the media are invited to monitor the call by dialing (706) 758-9928 or (800)
399-7917 and using ID code number 77194196. Journalists who wish to ask
questions are requested to contact a member of Merck's Media Relations team at
the conclusion of the call.

About Merck

Today's Merck is a global healthcare leader working to help the world be well.
Merck is known as MSD outside the United States and Canada. Through our
prescription medicines, vaccines, biologic therapies, and consumer care and
animal health products, we work with customers and operate in more than 140
countries to deliver innovative health solutions. We also demonstrate our
commitment to increasing access to healthcare through far-reaching policies,
programs and partnerships. For more information, visit www.merck.com and
connect with us on Twitter, Facebook and YouTube.

Forward-Looking Statement

This news release includes “forward-looking statements” within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. These statements are based upon the current beliefs and
expectations of Merck’s management and are subject to significant risks and
uncertainties. There can be no guarantees with respect to pipeline products
that the products will receive the necessary regulatory approvals or that they
will prove to be commercially successful. If underlying assumptions prove
inaccurate or risks or uncertainties materialize, actual results may differ
materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry
conditions and competition; general economic factors, including interest rate
and currency exchange rate fluctuations; the impact of pharmaceutical industry
regulation and health care legislation in the United States and
internationally; global trends toward health care cost containment;
technological advances, new products and patents attained by competitors;
challenges inherent in new product development, including obtaining regulatory
approval; Merck’s ability to accurately predict future market conditions;
manufacturing difficulties or delays; financial instability of international
economies and sovereign risk; dependence on the effectiveness of Merck’s
patents and other protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory actions.

Merck undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or otherwise.
Additional factors that could cause results to differ materially from those
described in the forward-looking statements can be found in Merck’s 2012
Annual Report on Form 10-K and the company’s other filings with the Securities
and Exchange Commission (SEC) available at the SEC’s Internet site
(www.sec.gov).

^1 Merck is providing certain 2013 and 2012 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. For
description of the items, see Table 2a, including the related footnotes,
attached to this release.

^2 Net income attributable to Merck & Co., Inc.

^3 Represents the difference between calculated GAAP EPS and calculated
non-GAAP EPS, which may be different than the amount calculated by dividing
the impact of the excluded items by the weighted-average shares for the
period.

^4 Includes expenses for the amortization of intangible assets recognized as a
result of mergers and acquisitions of $1.2 billion in both the second quarter
of 2013 and the second quarter of 2012, as well as intangible asset impairment
charges of $564 million and $127 million in the second quarter of 2013 and
2012, respectively. Also includes integration and other costs associated with
mergers and acquisitions.

MERCK & CO., INC.
CONSOLIDATED STATEMENT OF OPERATIONS - GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 1
                                                                       
                 GAAP                      %        GAAP                      %
                 2Q13        2Q12         Change   YTD 2013    YTD 2012     Change
Sales            $ 11,010     $ 12,311     -11  %   $ 21,681     $ 24,041     -10  %
                                                                              
Costs,
Expenses and
Other
Materials and
production         4,284        4,112      4    %     8,243        8,150      1    %
^(1)
Marketing and
administrative     3,140        3,249      -3   %     6,126        6,322      -3   %
^(1)
Research and
development        2,101        2,165      -3   %     4,008        4,026      -
^(1)
Restructuring      155          144        8    %     274          363        -25  %
costs ^(2)
Equity income
from               (116   )     (142   )   -18  %     (249   )     (253   )   -2   %
affiliates
^(3)
Other (income)
expense, net       201          103        95   %     484          247        96   %
^(1) / ^(4)
                                                                              
Income Before      1,245        2,680      -54  %     2,795        5,186      -46  %
Taxes
Income Tax         310          860                   244          1,599
Provision
Net Income         935          1,820      -49  %     2,551        3,587      -29  %
Less: Net
Income
Attributable       29           27                    52           56
to
Noncontrolling
Interests
Net Income
Attributable     $ 906        $ 1,793      -49  %   $ 2,499      $ 3,531      -29  %
to Merck &
Co., Inc.
Earnings per
Common Share     $ 0.30     $ 0.58      -48  %   $ 0.82     $ 1.15      -29  %
Assuming
Dilution
                                                            
Average Shares
Outstanding        3,010        3,072                 3,030        3,074
Assuming
Dilution
Tax Rate ^(5)     24.9   %   32.1   %             8.7    %   30.8   %

(1) Amounts include the impact of acquisition-related costs, restructuring
costs and certain other items. See accompanying tables for details.

(2) Represents separation and other related costs associated with
restructuring activities under the company's formal restructuring programs.

(3) Primarily reflects equity income from the AstraZeneca LP and Sanofi
Pasteur MSD partnerships.

(4) Other (income) expense, net in the second quarter and first six months of
2013 reflects higher exchange losses, which for the first six months of 2013
includes approximately $140 million as a result of a Venezuelan currency
devaluation.

(5) The effective tax rates for the second quarter and first six months of
2013 reflect benefits from reductions in tax reserves upon expiration of
applicable statute of limitations. In addition, the effective tax rate for the
first six months of 2013 reflects the favorable impact of tax legislation
enacted in the first quarter of 2013, as well as a benefit of approximately
$160 million associated with the resolution of a previously disclosed legacy
Schering-Plough federal income tax issue.



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      3,959        4,284        8,243        4,037        4,112        8,150        4,137        4,160        16,446     4   %   1   %
production
Marketing and      2,987        3,140        6,126        3,074        3,249        6,322        3,063        3,390        12,776     -3  %   -3  %
administrative
Research and       1,907        2,101        4,008        1,862        2,165        4,026        1,918        2,224        8,168      -3  %   -
development
Restructuring      119          155          274          219          144          363          110          191          664        8   %   -25 %
costs
Equity income
from               (133   )     (116   )     (249   )     (110   )     (142   )     (253   )     (158   )     (231   )     (642   )   -18 %   -2  %
affiliates
Other (income)     282          201          484          142          103          247          200          669          1,116      95  %   96  %
expense, net
                                                                                                                                              
Income Before      1,550        1,245        2,795        2,507        2,680        5,186        2,218        1,335        8,739      -54 %   -46 %
Taxes
Income Tax
Provision          (66    )     310          244          740          860          1,599        455          385          2,440
(Benefit)
Net Income         1,616        935          2,551        1,767        1,820        3,587        1,763        950          6,299      -49 %   -29 %
Less: Net
Income
Attributable       23           29           52           29           27           56           34           42           131
to
Noncontrolling
Interests
Net Income
Attributable     $ 1,593      $ 906        $ 2,499      $ 1,738      $ 1,793      $ 3,531      $ 1,729      $ 908        $ 6,168      -49 %   -29 %
to Merck &
Co., Inc.
Earnings per
Common Share     $ 0.52     $ 0.30     $ 0.82      $ 0.56     $ 0.58     $ 1.15     $ 0.56     $ 0.30     $ 2.00      -48 %  -29 %
Assuming
Dilution
                                                       
Average Shares
Outstanding        3,053        3,010        3,030        3,074        3,072        3,074        3,079        3,074        3,076
Assuming
Dilution
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 2013
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2a
                                                                             
                              Acquisition-   Restructuring   Certain   Adjustment
                 GAAP         Related        Costs ^(2)      Other     Subtotal         Non-GAAP
                              Costs ^(1)                     Items
                                                                                       
Sales            $ 11,010                                                               $ 11,010
                                                                                        
Costs,
Expenses and
Other
Materials and      4,284      1,515          93                          1,608            2,676
production
Marketing and      3,140      19             16                          35               3,105
administrative
Research and       2,101      234            14                          248              1,853
development
Restructuring      155                       155                         155              -
costs
Equity income
from               (116   )                                              -                (116   )
affiliates
Other (income)     201                                       (13  )      (13    )         214
expense, net
Income Before      1,245      (1,768   )     (278     )      13          (2,033 )         3,278
Taxes
Taxes on           310                                                   (409   )^(3)     719
Income
Net Income         935                                                   (1,624 )         2,559
Less: Net
Income
Attributable       29                                                    -                29
to
Noncontrolling
Interests
Net Income
Attributable     $ 906                                                 $ (1,624 )       $ 2,530
to Merck &
Co., Inc.
Earnings per
Common Share     $ 0.30                                                                $ 0.84   
Assuming
Dilution
                                                                                       
Average Shares
Outstanding        3,010                                                                  3,010
Assuming
Dilution
Tax Rate          24.9   %                                                              21.9   %

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 of
$1.2 billion for the amortization of intangible assets recognized as a result
of mergers and acquisitions, as well as $330 million of impairment charges on
product intangibles. 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, 2013
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2b
                                                                             
                              Acquisition-   Restructuring   Certain   Adjustment
                 GAAP         Related        Costs ^(2)      Other     Subtotal         Non-GAAP
                              Costs ^(1)                     Items
                                                                                       
Sales            $ 21,681                                                               $ 21,681
                                                                                        
Costs,
Expenses and
Other
Materials and      8,243      2,699          136                         2,835            5,408
production
Marketing and      6,126      42             33                          75               6,051
administrative
Research and       4,008      264            29                          293              3,715
development
Restructuring      274                       274                         274              -
costs
Equity income
from               (249   )                                              -                (249   )
affiliates
Other (income)     484                                       (13  )      (13    )         497
expense, net
Income Before      2,795      (3,005   )     (472     )      13          (3,464 )         6,259
Taxes
Taxes on           244                                                   (848   )^(3)     1,092
Income
Net Income         2,551                                                 (2,616 )         5,167
Less: Net
Income
Attributable       52                                                    -                52
to
Noncontrolling
Interests
Net Income
Attributable     $ 2,499                                               $ (2,616 )       $ 5,115
to Merck &
Co., Inc.
Earnings per
Common Share     $ 0.82                                                                $ 1.69   
Assuming
Dilution
                                                                                       
Average Shares
Outstanding        3,030                                                                  3,030
Assuming
Dilution
Tax Rate          8.7    %                                                              17.4   %

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 included in materials and production costs reflect expenses of
$2.4 billion for the amortization of intangible assets recognized as a result
of mergers and acquisitions, as well as $330 million of impairment charges on
product intangibles. 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, as well as a
benefit of approximately $160 million associated with the resolution of a
previously disclosed legacy Schering-Plough federal income tax issue.



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
                                                                     
                              Acquisition-   Restructuring   Adjustment
                 GAAP         Related        Costs ^(2)      Subtotal         Non-GAAP
                              Costs ^(1)
                                                                             
Sales            $ 12,311                                                     $ 12,311
                                                                              
Costs,
Expenses and
Other
Materials and      4,112      1,226          83                1,309            2,803
production
Marketing and      3,249      64             21                85               3,164
administrative
Research and       2,165      127            41                168              1,997
development
Restructuring      144                       144               144              -
costs
Equity income
from               (142   )                                    -                (142   )
affiliates
Other (income)     103                                         -                103
expense, net
Income Before      2,680      (1,417   )     (289     )        (1,706 )         4,386
Taxes
Taxes on           860                                         (272   )^(3)     1,132
Income
Net Income         1,820                                       (1,434 )         3,254
Less: Net
Income
Attributable       27                                          -                27
to
Noncontrolling
Interests
Net Income
Attributable     $ 1,793                                     $ (1,434 )       $ 3,227
to Merck &
Co., Inc.
Earnings per
Common Share     $ 0.58                                                      $ 1.05   
Assuming
Dilution
                                                                             
Average Shares
Outstanding        3,072                                                        3,072
Assuming
Dilution
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
                                                                     
                              Acquisition-   Restructuring   Adjustment
                 GAAP         Related        Costs ^(2)      Subtotal         Non-GAAP
                              Costs ^(1)
                                                                             
Sales            $ 24,041                                                     $ 24,041
                                                                              
Costs,
Expenses and
Other
Materials and      8,150      2,455          88                2,543            5,607
production
Marketing and      6,322      115            45                160              6,162
administrative
Research and       4,026      136            86                222              3,804
development
Restructuring      363                       363               363              -
costs
Equity income
from               (253   )                                    -                (253   )
affiliates
Other (income)     247                                         -                247
expense, net
Income Before      5,186      (2,706   )     (582     )        (3,288 )         8,474
Taxes
Taxes on           1,599                                       (548   )^(3)     2,147
Income
Net Income         3,587                                       (2,740 )         6,327
Less: Net
Income
Attributable       56                                          -                56
to
Noncontrolling
Interests
Net Income
Attributable     $ 3,531                                     $ (2,740 )       $ 6,271
to Merck &
Co., Inc.
Earnings per
Common Share     $ 1.15                                                      $ 2.04   
Assuming
Dilution
                                                                             
Average Shares
Outstanding        3,074                                                        3,074
Assuming
Dilution
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
(AMOUNTS IN MILLIONS)
Table 3
                                                                                                              
                 2013                          2012                                                        %       %
                                                                                          Full      Change  Change
                 1Q       2Q       Jun YTD   1Q       2Q       Jun YTD  3Q       4Q       Year      2Q      Jun
                                                                                                                    YTD
                                                                                                                    
TOTAL SALES      $10,671  $11,010  $21,681   $11,731  $12,311  $24,041  $11,488  $11,738  $47,267   -11      -10
^(1)
PHARMACEUTICAL   8,891     9,310     18,201    10,082    10,560    20,642    9,875     10,085    40,601    -12      -12
                                                                                                                    
Primary Care
and Women's
Health
Cardiovascular
Zetia            629       650       1,279     614       632       1,246     645       676       2,567     3        3
Vytorin          394       417       810       444       445       889       423       435       1,747     -6       -9
                                                                                                                    
Diabetes &
Obesity
Januvia          884       1,072     1,956     919       1,058     1,977     975       1,134     4,086     1        -1
Janumet          409       474       883       392       411       802       405       452       1,659     16       10
                                                                                                                    
Respiratory
Nasonex          385       325       711       375       293       668       292       308       1,268     11       6
Singulair        337       281       618       1,340     1,431     2,771     602       480       3,853     -80      -78
Dulera           68        79        147       39        50        89        52        67        207       57       66
Asmanex          40        49        89        48        51        99        42        44        185       -3       -9
                                                                                                                    
Women's Health
& Endocrine
NuvaRing         151       171       322       146       157       303       156       164       623       9        6
Fosamax          137       144       281       184       186       370       152       154       676       -22      -24
Follistim AQ     122       134       257       116       125       241       111       116       468       8        6
Implanon         84        102       187       76        85        161       93        94        348       20       16
Cerazette        61        48        108       67        72        139       64        68        271       -34      -22
                                                                                                                    
Other
Arcoxia          121       121       242       112       117       229       109       115       453       4        6
Avelox           36        29        65        73        44        117       30        55        201       -34      -45
                                                                                                                    
Hospital and
Specialty
                                                                                                                    
Immunology
Remicade         549       527       1,076     519       518       1,037     490       549       2,076     2        4
Simponi          108       120       228       74        76        150       86        95        331       59       52
                                                                                                                    
Infectious
Disease
Isentress        362       412       775       337       398       735       399       381       1,515     4        5
Cancidas         162       163       326       145       166       311       163       145       619       -1       5
PegIntron        126       142       268       162       183       345       165       143       653       -22      -22
Invanz           110       120       230       101       110       211       118       116       445       9        9
Victrelis        110       116       226       111       126       238       149       115       502       -8       -5
Noxafil          65        71        136       59        66        125       66        68        258       7        9
                                                                                                                    
Oncology
Temodar          216       219       434       237       225       461       227       229       917       -3       -6
Emend            116       135       250       102       145       247       111       131       489       -7       1
                                                                                                                    
Other
Cosopt /         105       103       209       124       105       229       102       113       444       -2       -9
Trusopt
Bridion          63        69        131       58        60        118       68        75        261       14       11
Integrilin       47        48        95        53        60        113       48        51        211       -20      -15
                                                                                                                    
Diversified
Brands
Cozaar /         267       255       522       336       337       674       295       315       1,284     -24      -23
Hyzaar
Primaxin         84        85        168       88        104       192       109       83        384       -19      -12
Zocor            82        74        156       103       96        199       86        98        383       -23      -22
Propecia         68        67        135       108       100       208       104       112       424       -33      -35
Clarinex         61        64        125       134       140       273       64        56        393       -54      -54
Claritin Rx      76        40        115       87        48        134       47        63        244       -17      -14
Remeron          52        53        106       57        66        123       52        57        232       -19      -14
Proscar          39        58        98        51        55        106       55        56        217       7        -8
Maxalt           40        43        83        156       154       310       166       162       638       -72      -73
                                                                                                                    
Vaccines
Gardasil         390       383       773       284       324       608       581       442       1,631     18       27
ProQuad, M-M-R   272       339       611       255       316       571       396       306       1,273     7        7
II and Varivax
Zostavax         168       141       309       76        148       224       202       225       651       -5       38
RotaTeq          162       144       306       142       142       284       150       168       601       1        8
Pneumovax        111       108       219       112       101       213       160       208       580       7        3
                                                                                                                    
Other
Pharmaceutical   1,022     1,115     2,136     1,066     1,034     2,102     1,065     1,161     4,333     8        2
^(2)
                                                                                                                    
ANIMAL HEALTH    840       851       1,691     821       865       1,686     815       898       3,399     -2       -
                                                                                                                    
CONSUMER CARE    571       490       1,061     554       552       1,106     451       395       1,952     -11      -4
^ (3)
Claritin OTC     177       78        256       169       145       314       118       100       532       -46      -19
                                                                                                                    
Other Revenues   369       359       727       274       333       608       347       360       1,315     8        20
^(4)
Astra            262      245      507       186      223      409      255      251      915       10      24
                                                                                                                    
* 100% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.
^(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 $86
million for the first and second quarters of 2013. Other Vaccines sales
included in Other Pharmaceutical were $60 million, $75 million, $116 million,
and $69 million for the first, second, third, and fourth quarters of 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
SECOND QUARTER 2013
(AMOUNTS IN MILLIONS)
Table 3a
                                                                    
                 Global                       U.S.                       International
                 2Q13     2Q12     %        2Q13    2Q12    %        2Q13    2Q12    %
                                     Change                     Change                     Change
                                                                                    
TOTAL SALES      $11,010  $12,311  -11      $4,608  $5,555  -17      $6,402  $6,756  -5
^(1)
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 /         103       105       -2       5        4        30       98       101      -3
Trusopt
Bridion          69        60        14                                  69       60       14
Integrilin       48        60        -20      44       54       -20      4        5        -17
                                                                                           
Diversified
Brands
Cozaar /         255       337       -24      5        9        -45      250      329      -24
Hyzaar
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   339       316       7        301      285      6        38       31       23
II and Varivax
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   1,115     1,034     8        304      225      35       808      809      -
^(2)
                                                                                           
ANIMAL HEALTH    851       865       -2       219      238      -8       632      628      1
                                                                                           
CONSUMER CARE    490       552       -11      390      383      2        99       169      -41
^(3)
Claritin OTC     78        145       -46      108      101      7        (29)     45       *
                                                                                           
Other Revenues   359       333       8        310      301      3        48       32       52
^(4)
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  Jun YTD  %        Jun     Jun YTD  %        Jun YTD  Jun YTD  %
                 13        12        Change   YTD 13   12        Change   13        12        Change
TOTAL SALES      $21,681  $24,041  -10      $8,823  $10,565  -16      $12,858  $13,477  -5
^(1)
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 /         209       229       -9       9        7         22       200       222       -10
Trusopt
Bridion          131       118       11                                   131       118       11
Integrilin       95        113       -15      87       103       -16      8         9         -13
                                                                                              
Diversified
Brands
Cozaar /         522       674       -23      16       13        16       506       660       -23
Hyzaar
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   611       571       7        547      514       7        64        58        12
II and Varivax
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   2,136     2,102     2        513      436       18       1,625     1,669     -3
^(2)
                                                                                              
ANIMAL HEALTH    1,691     1,686     -        450      431       4        1,241     1,255     -1
                                                                                              
CONSUMER CARE    1,061     1,106     -4       790      766       3        271       340       -20
^ (3)
Claritin OTC     256       314       -19      254      237       7        2         77        -97
                                                                                              
Other Revenues   727       608       20       638      545       17       89        63        42
^(4)
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      Change  Change
                                                                                              Year      2Q       Jun
                                                                                                                 YTD
                                                                                                                 
TOTAL            $8,891  $9,310  $18,201   $10,082  $10,560  $20,642  $9,875  $10,085  $40,601   -12     -12
PHARMACEUTICAL
                                                                                                                 
United States    3,256    3,689    6,945     4,189     4,633     8,823     4,304    3,915     17,041    -20      -21
%
Pharmaceutical   36.6%    39.6%    38.2%     41.6%     43.9%     42.7%     43.6%    38.8%     42.0%
Sales
                                                                                                                 
Europe ^(1)      2,465    2,343    4,808     2,558     2,540     5,099     2,210    2,441     9,750     -8       -6
%
Pharmaceutical   27.7%    25.2%    26.4%     25.4%     24.1%     24.7%     22.4%    24.2%     24.0%
Sales
                                                                                                                 
Japan            1,034    948      1,982     1,267     1,199     2,466     1,124    1,388     4,978     -21      -20
%
Pharmaceutical   11.6%    10.2%    10.9%     12.6%     11.4%     11.9%     11.4%    13.8%     12.3%
Sales
                                                                                                                 
Latin America    596      676      1,272     627       668       1,295     715      742       2,752     1        -2
%
Pharmaceutical   6.7%     7.3%     7.0%      6.2%      6.3%      6.3%      7.2%     7.4%      6.8%
Sales
                                                                                                                 
Asia Pacific     822      874      1,696     762       787       1,548     846      864       3,259     11       10
%
Pharmaceutical   9.2%     9.4%     9.3%      7.6%      7.4%      7.5%      8.6%     8.6%      8.0%
Sales
China            271      297      568       221       262       484       262      298       1,044     13       17
                                                                                                                 
Eastern
Europe/Middle    439      479      917       361       441       803       366      416       1,584     8        14
East Africa
%
Pharmaceutical   4.9%     5.1%     5.0%      3.6%      4.2%      3.9%      3.7%     4.1%      3.9%
Sales
                                                                                                                 
Canada           245      257      502       264       236       500       257      276       1,034     9        -
%
Pharmaceutical   2.8%     2.8%     2.8%      2.6%      2.2%      2.4%      2.6%     2.7%      2.5%
Sales
                                                                                                                 
Other            34       45       79        53        56        109       52       42        203       -20      -27
%
Pharmaceutical   0.4%    0.5%    0.4%      0.5%     0.5%     0.5%     0.5%    0.4%     0.5%             
Sales
                                                                                                                 
(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     YTD
                                                               2013      2012
          ASTRAZENECA LP       $ 105 *Story
                                 too large*

[TRUNCATED]
 
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