8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 5, 2014

Merck & Co., Inc.

(Exact Name of Registrant as Specified in Its Charter)

New Jersey

(State or Other Jurisdiction of Incorporation)

1-6571	22-1918501
(Commission File Number)	(I.R.S. Employer Identification No.)

One Merck Drive, PO Box 100, Whitehouse Station, NJ	08889-0100
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code (908) 423-1000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

The following information, including the exhibits hereto, is being furnished pursuant to this Item 2.02.

Incorporated by reference is a press release issued by the Registrant on February 5, 2014, regarding earnings for the fourth quarter and full year of 2013, attached as Exhibit 99.1.  Also incorporated by reference is certain supplemental information not included in the press release, attached as Exhibit 99.2.

This information shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and is not incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits

Exhibit 99.1Press release issued February 5, 2014, regarding earnings for the fourth quarter and full year of 2013

Exhibit 99.2Certain supplemental information not included in the press release

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Merck & Co., Inc.
Date: February 5, 2014	By:	/s/ Katie E. Fedosz
		KATIE E. FEDOSZ
		Senior Assistant Secretary

3

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press release issued February 5, 2014, regarding earnings for the fourth quarter and full year of 2013
99.2	Certain supplemental information not included in the press release

4

EX-99.1

Exhibit 99.1

News Release

Media Contacts:	Kelley Dougherty	Investor Contacts:	Carol Ferguson
	(908) 423-4291		(908) 423-4465
	Steve Cragle		Joe Romanelli
	(908) 423-3461		(908) 423-5185

Merck Announces Fourth-Quarter and Full-Year 2013 Financial Results

·Fourth-Quarter 2013 Non-GAAP EPS Increased by 6 Percent Over Prior Year to $0.88, Excluding Certain Items; GAAP EPS Decreased by 13 Percent to $0.26. Full-Year 2013 Non-GAAP EPS of $3.49, Excluding Certain Items; GAAP EPS of $1.47.

·Fourth-Quarter 2013 Worldwide Sales Were $11.3 Billion, a Decrease of 4 Percent Reflecting Unfavorable Impact of Patent Expiries and a 3 Percent Negative Impact from Foreign Exchange.

·Full-Year 2013 Worldwide Sales Were $44.0 Billion, a Decrease of 7 Percent Reflecting Unfavorable Impact of Patent Expiries and a 2 Percent Negative Impact from Foreign Exchange.

·Strong Full-Year Sales Growth for GARDASIL, REMICADE, SIMPONI, ISENTRESS, ZOSTAVAX and the Diabetes Franchise.

·Returned $11 Billion to Shareholders in 2013 Through Dividends and Share Repurchases.

·Accelerated Development Program for MK-3475, Including Announcement of Four Collaborations to Evaluate Novel Combination Regimens, Initiation of a Phase I Study in 20 New Cancer Types and Rolling Submission of a BLA to the FDA.

·2014 Full-Year Non-GAAP EPS Target of $3.35 to $3.53, Excluding Certain Items; GAAP EPS Range of $2.15 to $2.47.

WHITEHOUSE STATION, N.J., Feb. 5, 2014 — Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the fourth quarter and full year of 2013.

$ in millions, except EPS amounts	FourthQuarter2013	FourthQuarter2012	Year Ended Dec. 31, 2013	Year Ended Dec. 31, 2012
Sales	$11,319	$11,738	$44,033	$47,267
GAAP EPS	0.26	0.30	1.47	2.00
Non-GAAP EPS that excludes items listed below1	0.88	0.83	3.49	3.82
GAAP Net Income2	781	908	4,404	6,168
Non-GAAP Net Income that excludes items listed below1,2	2,599	2,540	10,443	11,743

Non-GAAP (generally accepted accounting principles) earnings per share (EPS) for the fourth quarter of $0.88 and $3.49 for the full year of 2013 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.

	Fourth Quarter				Year Ended
$ in millions, except EPS amounts	2013		2012		Dec. 31, 2013		Dec. 31, 2012
EPS
GAAP EPS	$0.26		$0.30		$1.47		$2.00
Difference3	0.62		0.53		2.02		1.82
Non-GAAP EPS that excludes items listed below1	$0.88		$0.83		$3.49		$3.82
Net Income
GAAP net income2	$781		$908		$4,404		$6,168
Difference	1,818		1,632		6,039		5,575
Non-GAAP net income that excludes items listed below1,2	$2,599		$2,540		$10,443		$11,743
Decrease (Increase) in Net Income Due to Excluded Items:
Acquisition-related costs4	$1,348		$1,298		$5,549		$5,344
Restructuring costs	962		254		2,401		999
Other5	—		493		(13	)	493
Net decrease (increase) in income before taxes	2,310		2,045		7,937		6,836
Income tax (benefit) expense6	(492	)	(413	)	(1,898	)	(1,261	)
Decrease (increase) in net income	$1,818		$1,632		$6,039		$5,575

“In 2013 we took decisive action to sharpen our focus, reduce our cost structure and advance our innovative research and development,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “This year we are excited about the potential of our near- and

1Merck 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 a description of the items, see Tables 2a and 2b, including the related footnotes, attached to this release.

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

3Represents 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.

4Includes expenses for the amortization of intangible assets recognized as a result of mergers and acquisitions, as well as intangible asset impairment charges.  Also includes integration and other costs associated with mergers and acquisitions.

5Amount for 2012 represents a net charge related to the settlement of certain shareholder litigation.

6Includes an estimated income tax (benefit) expense on the reconciling items.  In addition, the full year amount for 2013 includes net benefits of approximately $325 million related to the settlements of certain federal income tax issues.

Page 2

long-term pipeline, poised for long-term growth and committed to providing continued value to patients, customers and our shareholders.”

Select Revenue Highlights

Worldwide sales were $11.3 billion for the fourth quarter of 2013, a decrease of 4 percent, which includes a 3 percent negative impact from foreign exchange compared with the fourth quarter of 2012. Full-year 2013 worldwide sales were $44.0 billion, a decrease of 7 percent, which includes a 2 percent negative impact from foreign exchange, compared to full-year 2012.

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

$ in millions	Fourth Quarter 2013	Fourth Quarter 2012	Change		Change Ex- Exchange		Year Ended Dec. 31, 2013	Year Ended Dec. 31, 2012	Change		Change Ex- Exchange
Total Sales	$11,319	$11,738	-4	%	-1	%	$44,033	$47,267	-7	%	-5	%
Pharmaceutical	9,760	10,085	-3	%	0	%	37,437	40,601	-8	%	-5	%
JANUVIA	1,121	1,134	-1	%	4	%	4,004	4,086	-2	%	3	%
ZETIA	716	676	6	%	9	%	2,658	2,567	4	%	6	%
REMICADE	620	549	13	%	9	%	2,271	2,076	9	%	7	%
GARDASIL	394	442	-11	%	-9	%	1,831	1,631	12	%	14	%
JANUMET	503	452	11	%	11	%	1,829	1,659	10	%	10	%
ISENTRESS	442	381	16	%	16	%	1,643	1,515	8	%	9	%
VYTORIN	436	435	0	%	-1	%	1,643	1,747	-6	%	-6	%
NASONEX	327	308	6	%	10	%	1,335	1,268	5	%	8	%
PROQUAD, M-M-R II and VARIVAX	273	306	-11	%	-10	%	1,306	1,273	3	%	3	%
SINGULAIR	298	480	-38	%	-31	%	1,196	3,853	-69	%	-66	%
Animal Health	871	898	-3	%	-1	%	3,362	3,399	-1	%	1	%
Consumer Care	390	395	-1	%	1	%	1,894	1,952	-3	%	-2	%
Other Revenues	298	360	-17	%	-19	%	1,340	1,315	2	%	-1	%

Pharmaceutical Revenue Performance

Fourth-quarter pharmaceutical sales declined 3 percent to $9.8 billion, including a 3 percent negative impact due to foreign exchange. Strong sales growth for REMICADE (infliximab), ISENTRESS (raltegravir), SIMPONI (golimumab), JANUMET (sitagliptin and metformin HCI) and ZOSTAVAX (zoster vaccine live) offset the expected declines in sales of SINGULAIR (montelukast sodium), MAXALT (rizatriptan benzoate) and TEMODAR (temozolomide) following loss of market exclusivity. Full-year pharmaceutical sales declined 8 percent to $37.4 billion, including a 3 percent negative impact due to foreign exchange.

Sales from emerging markets grew 2 percent, including a 6 percent negative impact due to foreign exchange, and accounted for approximately 21 percent of pharmaceutical sales in the

Page 3

fourth quarter. Sales growth in the emerging markets was driven by vaccines, acute care and diabetes products. Full-year sales from emerging markets grew 3 percent, including a 4 percent negative impact due to foreign exchange.

Worldwide sales of the combined diabetes franchise of JANUVIA (sitagliptin)/JANUMET, medicines that help lower blood sugar levels in adults with type-2 diabetes, were $1.6 billion in the fourth quarter of 2013, growing 2 percent compared to the prior year quarter, including a negative 4 percent impact from foreign exchange, primarily driven by growth in Europe and the emerging markets. The combined franchise had sales of $5.8 billion for the full year of 2013, an increase of 2 percent compared with the prior year, including a negative 3 percent impact from foreign exchange.

Sales of ZETIA (ezetimibe) and VYTORIN (ezetimibe/simvastatin), medicines for lowering LDL cholesterol, were $1.2 billion in the fourth quarter, growing 4 percent compared to the prior year quarter, including a 1 percent negative impact from foreign exchange. The combined ZETIA/VYTORIN franchise had sales of $4.3 billion for the full year of 2013, comparable to the prior year.

Combined sales of REMICADE and SIMPONI, treatments for inflammatory diseases, increased 19 percent to $766 million for the fourth quarter of 2013, including a 4 percent benefit from foreign exchange. Global combined sales for the full year increased to $2.8 billion, 15 percent over the prior year, including a 2 percent benefit from foreign exchange. These increases were driven by market growth trends and continued launch activities for SIMPONI. SIMPONI sales were $500 million for the full year of 2013.

Sales recorded by Merck for GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16, and 18) Vaccine, Recombinant], a vaccine to help prevent certain diseases caused by four types of human papillomavirus (HPV), decreased 11 percent to $394 million for the fourth quarter, including a 2 percent negative impact from foreign exchange. This decrease was driven by lower sales in the United States as a result of the timing of public sector purchases and in Japan reflecting the government’s decision to suspend active promotion of HPV vaccines. These declines were partially offset by growth in the emerging markets. Worldwide sales of GARDASIL recorded by Merck for the full year were $1.8 billion, a 12 percent increase compared to the prior year, including a 2 percent unfavorable impact from foreign exchange.

Sales of ISENTRESS, an HIV integrase inhibitor for use in combination with other antiretroviral agents for the treatment of HIV-1 infection, increased 16 percent to $442 million in the fourth quarter driven by growth in most markets. Global sales of ISENTRESS for the full year of 2013 were $1.6 billion, an 8 percent increase compared to 2012.

Page 4

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 38 percent to $298 million in the fourth quarter. Full-year 2013 worldwide sales for SINGULAIR were $1.2 billion, a 69 percent decrease compared to the prior year. The patent for SINGULAIR expired in the United States in August 2012 and in major European markets in February 2013.

Sales recorded by Merck for ZOSTAVAX, a vaccine for the prevention of herpes zoster, grew 18 percent to $264 million in the fourth quarter compared to the prior year quarter, driven by new launches, primarily in Asia. Global sales of ZOSTAVAX recorded by Merck for the full year of 2013 grew 16 percent to $758 million.

Animal Health Revenue Performance

Global sales of Animal Health products totaled $871 million for the fourth quarter of 2013, a 3 percent decline compared with the same period last year, including a 2 percent negative impact due to foreign exchange. Revenue performance in the quarter reflects lower sales of ruminant products, which were partially offset by growth in poultry and aqua products. Global sales for the full year of 2013 were $3.4 billion, a decline of 1 percent, including a 2 percent negative impact from foreign exchange, when compared with 2012. Lower sales of ruminant products were partially offset by growth in companion animal and poultry products. During the third quarter of 2013, Merck Animal Health voluntarily suspended the sale of ZILMAX (zilpaterol hydrochloride), a feed supplement for beef cattle, in the United States and Canada.

Consumer Care Revenue Performance

Fourth-quarter global sales of Consumer Care were $390 million, a decrease of 1 percent, including a 2 percent negative impact from foreign exchange, compared to the fourth quarter of 2012. Full-year 2013 global sales were $1.9 billion, a 3 percent decrease compared to full-year 2012, including a 1 percent negative impact due to foreign exchange.

Other Revenue Performance

Other revenues — primarily comprised of alliance revenue, miscellaneous corporate revenues and third-party manufacturing sales — decreased 17 percent to $298 million in the fourth quarter driven by lower revenue from AstraZeneca (AZ) recorded by Merck as well as by lower third-party manufacturing sales. Other revenues increased 2 percent to $1.3 billion for the full year of 2013. Merck anticipates that AZ will exercise its option to buy Merck’s interest in a subsidiary and, through it, Merck’s interest in Nexium and Prilosec.  If AZ does so, as of July 1,

Page 5

2014, Merck will no longer record equity income from AZ and supply sales to AZ are expected to terminate. The company recorded $920 million of revenue and $352 million of equity income from AZ for the full year of 2013.

Fourth-Quarter and Full-Year Expense and Other Information

The costs detailed below totaled $10.0 billion on a GAAP basis for the fourth quarter of 2013 and include $2.3 billion of acquisition-related costs and restructuring costs.

$ in millions	GAAP	Acquisition-RelatedCosts4	Restructuring Costs	Non-GAAP1
Fourth Quarter 2013
Materials and production	$4,607	$1,301	$253	$3,053
Marketing and administrative	2,982	32	81	2,869
Research and development	1,836	15	63	1,758
Restructuring costs	565	—	565	—
Fourth Quarter 2012
Materials and production	$4,160	$1,185	$40	$2,935
Marketing and administrative	3,390	89	20	3,281
Research and development	2,224	24	3	2,197
Restructuring costs	191	—	191	—

The costs detailed below totaled $38.1 billion on a GAAP basis for full-year 2013 and include $8.0 billion of acquisition-related costs and restructuring costs.

$ in millions	GAAP	Acquisition-RelatedCosts4	Restructuring Costs	Non-GAAP1
Year EndedDec. 31, 2013
Materials and production	$16,954	$5,176	$446	$11,332
Marketing and administrative	11,911	94	145	11,672
Research and development	7,503	279	101	7,123
Restructuring costs	1,709	—	1,709	—
Year EndedDec. 31, 2012
Materials and production	$16,446	$4,872	$188	$11,386
Marketing and administrative	12,776	272	90	12,414
Research and development	8,168	200	57	7,911
Restructuring costs	664	—	664	—

Page 6

The gross margin was 59.3 percent for the fourth quarter of 2013 compared to 64.6 percent for last year’s fourth quarter, reflecting unfavorable impacts of 13.7 and 10.4 percentage points, respectively, from the acquisition-related and restructuring costs noted above. The gross margin was 61.5 percent for the full year of 2013 compared to 65.2 percent for the full year of 2012, reflecting unfavorable impacts of 12.8 and 10.7 percentage points, respectively, from the acquisition-related and restructuring costs noted above. The non-GAAP gross margin declines in the fourth quarter and full year of 2013 reflect the unfavorable impacts of recent patent expiries, product mix and continued pricing pressure in mature markets.

Marketing and administrative expenses, on a non-GAAP basis, were $2.9 billion in the fourth quarter of 2013, a decrease from $3.3 billion in last year’s fourth quarter.  Full-year marketing and administrative expenses in 2013, on a non-GAAP basis, were $11.7 billion, a decrease from $12.4 billion in 2012. The declines were primarily due to productivity measures and the beneficial impact of foreign exchange.

Research and development (R&D) expenses, on a non-GAAP basis, were $1.8 billion in the fourth quarter of 2013, a decrease from $2.2 billion in the fourth quarter of 2012. For full-year 2013, these expenses, on a non-GAAP basis, were $7.1 billion, a decrease from $7.9 billion in 2012. The declines reflect targeted reductions and lower clinical development spend as a result of portfolio prioritization and increased focus on the company’s key therapeutic opportunities, as well as lower payments for licensing activity.

Equity income from affiliates was $53 million for the fourth quarter and $404 million for the full year, which primarily reflects partnerships with AZ and Sanofi Pasteur.

Other (income) expense, net, was $157 million of expense in the fourth quarter of 2013 compared with $669 million of expense in last year’s fourth quarter, and for the full-year 2013 was $815 million of expense compared with $1.1 billion of expense in 2012. The fourth quarter of 2012 includes a $493 million net charge related to the settlement of certain shareholder litigation.

Key Developments

Clinical

·Accelerated development program for MK-3475, the company’s anti-PD-1 immunotherapy, including announcement of four collaborations to evaluate novel combination regimens and initiation of a Phase I study in 20 new cancer types;

Page 7

·Interim data for MK-5172/MK-8742, the company’s investigational oral combination regimen for treatment of chronic hepatitis C virus (HCV), presented at the 2013 American Association for the Study of Liver Diseases Annual Meeting showed sustained virologic response in 100 percent of patients reaching post-treatment follow-up week 12 in two of the three combination arms studied;

·MK-5172/MK-8742 advanced into Phase IIB in a diverse range of chronic HCV patients;

·Interim data for MK-3475, presented at the 10th International Congress of the Society for Melanoma Research, showed an estimated survival rate of 81 percent at one year in patients with advanced melanoma;

·Phase III data on V503, the company’s 9-valent HPV vaccine candidate, showed prevention of 97 percent of cervical, vaginal and vulvar pre-cancers caused by five additional HPV types;

·Phase III trials for MK-8931, the company’s investigational BACE inhibitor for Alzheimer’s disease, were initiated; and

·BACE inhibitor dosing in Phase III study of prodromal disease patients is planned.

Regulatory

·Breakthrough Therapy designation was granted by U.S. Food and Drug Administration (FDA) for MK-5172/MK-8742;

·FDA advisory committee recommended approval of vorapaxar, Merck’s investigational antiplatelet medicine; and

·FDA advisory committee discussed GRASTEK (Timothy Grass Pollen Allergen Extract) and RAGWITEK (Short Ragweed Pollen Allergen Extract), Merck’s investigational sublingual allergy immunotherapy tablets.

Business

·$11 billion returned to shareholders in 2013 through dividends and share repurchases;

·Divested a portion of the company’s U.S. ophthalmics business; and

·In January 2014, sold the U.S. marketing rights for SAPHRIS; announced plans to divest Sirna Therapeutics, Inc. to Alnylam Pharmaceuticals, Inc.

Page 8

Looking Ahead

·Rolling submission for MK-3475 in patients with advanced melanoma who have previously been treated with ipilimumab to be completed in first half of 2014; and

·New Drug Applications anticipated to the FDA for odanacatib for osteoporosis, suvorexant for insomnia and sugammadex sodium injection for reversal of neuromuscular blockade induced by rocuronium or vecuronium.

·Anticipate regulatory actions for:

·V503 (submitted Biologics License Application to the FDA in 2013);

·Vintafolide in the European Union for use in platinum-resistant ovarian cancer;

·Vorapaxar for the reduction of atherothrombotic events when added to standard of care in patients with a history of heart attack and no history of stroke or transient ischemic attack;

·NOXAFIL IV for fungal infections;

·Vaniprevir in Japan for the treatment of chronic HCV;

·Allergy immunotherapies GRASTEK and RAGWITEK;

·Exploring strategic options for the company’s Animal Health and Consumer Care businesses to determine the most value-creating option for each and could reach different decisions about the two businesses.  The company expects to complete the process and take action, if any, in 2014; and

·Merck will hold an R&D event for investors and media scheduled for May 6, 2014.

Financial Targets

Merck expects full-year 2014 non-GAAP EPS to be between $3.35 and $3.53, and 2014 GAAP EPS to be between $2.15 and $2.47. The 2014 non-GAAP range excludes acquisition-related costs and costs related to restructuring programs, as well as potential gains associated with the expected termination of the AZ joint venture. The 2014 EPS targets (both non-GAAP and GAAP) include a potential devaluation of the Venezuelan Bolivar.

Merck expects full-year 2014 revenues to be between $42.4 billion and $43.2 billion at today’s currency rates. This includes the expectation that AZ will elect to end the partnership between the companies at mid-year, as well as lost revenue from patent expirations across multiple markets and recently announced product divestitures.

In addition, the company expects full-year 2014 non-GAAP marketing and administrative as well as R&D expenses to be below 2013 levels due to continuing prioritization and focused spending on core product lines and upcoming launches.

Page 9

The company expects its full-year 2014 non-GAAP tax rate to be in the range of 24 to 26 percent; the rate does not include a 2014 benefit of an R&D tax credit.

A reconciliation of anticipated 2014 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 2014
GAAP EPS	$2.15 to $2.47
Difference3	1.20 to 1.06
Non-GAAP EPS that excludes items listed below	$3.35 to $3.53
Acquisition-related costs4	$4,600 to $4,350
Restructuring costs	1,300 to 1,000
Gain on AZ option exercise	(700) to (725)
Net decrease (increase) in income before taxes	5,200 to 4,625
Estimated income tax (benefit) expense	(1,675) to (1,535)
Decrease (increase) in net income	$3,525 to $3,090

Total Employees

As of Dec. 31, 2013, Merck had approximately 76,000 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 are invited to a live audio webcast of Merck’s fourth-quarter earnings conference call today at 8:00 a.m. EST by visiting Merck’s website, 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 26402847. Journalists are invited to monitor the call by dialing (706) 758-9928 or (800) 399-7917 and using ID code number 26402847. 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

Page 10

policies, programs and partnerships. For more information, visit www.merck.com and connect with us on Twitter, Facebook and YouTube.

Merck 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).

# # #

Page 11

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1

	GAAP								GAAP
	4Q13			4Q12			% Change		Full Year 2013			Full Year 2012			% Change
Sales	$	11,319		$	11,738		-4	%	$	44,033		$	47,267		-7	%
Costs, Expenses and Other
Materials and production (1)	4,607			4,160			11	%	16,954			16,446			3	%
Marketing and administrative (1)	2,982			3,390			-12	%	11,911			12,776			-7	%
Research and development (1)	1,836			2,224			-17	%	7,503			8,168			-8	%
Restructuring costs (2)	565			191				*	1,709			664				*
Equity income from affiliates (3)	(53		)	(231		)	-77	%	(404		)	(642		)	-37	%
Other (income) expense, net (1) (4)	157			669			-77	%	815			1,116			-27	%
Income Before Taxes	1,225			1,335			-8	%	5,545			8,739			-37	%
Income Tax Provision	410			385					1,028			2,440
Net Income	815			950			-14	%	4,517			6,299			-28	%
Less: Net Income Attributable to Noncontrolling Interests	34			42					113			131
Net Income Attributable to Merck & Co., Inc.	$	781		$	908		-14	%	$	4,404		$	6,168		-29	%
Earnings per Common Share Assuming Dilution	$	0.26		$	0.30		-13	%	$	1.47		$	2.00		-27	%
Average Shares Outstanding Assuming Dilution	2,959			3,074					2,996			3,076
Tax Rate (5)	33.5		%	28.8		%			18.5		%	27.9		%

* 100% or greater

(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 fourth quarter and full year of 2012 reflect a $493 million net charge related to the settlement of certain shareholder litigation.

(5) The effective tax rate for the full year of 2013 reflects net benefits from the settlements of certain federal income tax issues, reductions in tax reserves upon expiration of applicable statute of limitations and the favorable impact of tax legislation enacted in the first quarter of 2013. The effective tax rates for the fourth quarter and full year of 2012 reflect a favorable ruling on a state tax matter. In addition, the effective tax rate for the full year of 2012 reflects the favorable impacts of a settlement with a foreign tax authority and the realization of foreign tax credits.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FOURTH QUARTER 2013

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Adjustment Subtotal			Non-GAAP
Sales	$	11,319									$	11,319
Costs, Expenses and Other
Materials and production	4,607			1,301		253		1,554			3,053
Marketing and administrative	2,982			32		81		113			2,869
Research and development	1,836			15		63		78			1,758
Restructuring costs	565					565		565			—
Equity income from affiliates	(53		)					—			(53		)
Other (income) expense, net	157							—			157
Income Before Taxes	1,225			(1,348	)	(962	)	(2,310		)	3,535
Taxes on Income	410							(492		)(3)	902
Net Income	815							(1,818		)	2,633
Less: Net Income Attributable to Noncontrolling Interests	34							—			34
Net Income Attributable to Merck & Co., Inc.	$	781						$	(1,818	)	$	2,599
Earnings per Common Share Assuming Dilution	$	0.26									$	0.88
Average Shares Outstanding Assuming Dilution	2,959										2,959
Tax Rate	33.5		%								25.5		%

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 $1.1 billion for the amortization of intangible assets recognized as a result of mergers and acquisitions, as well as $156 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

FULL YEAR 2013

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Certain Other Items		Adjustment Subtotal			Non-GAAP
Sales	$	44,033											$	44,033
Costs, Expenses and Other
Materials and production	16,954			5,176		446				5,622			11,332
Marketing and administrative	11,911			94		145				239			11,672
Research and development	7,503			279		101				380			7,123
Restructuring costs	1,709					1,709				1,709			—
Equity income from affiliates	(404		)							—			(404		)
Other (income) expense, net	815							(13	)	(13		)	828
Income Before Taxes	5,545			(5,549	)	(2,401	)	13		(7,937		)	13,482
Taxes on Income	1,028									(1,898		)(3)	2,926
Net Income	4,517									(6,039		)	10,556
Less: Net Income Attributable to Noncontrolling Interests	113									—			113
Net Income Attributable to Merck & Co., Inc.	$	4,404								$	(6,039	)	$	10,443
Earnings per Common Share Assuming Dilution	$	1.47											$	3.49
Average Shares Outstanding Assuming Dilution	2,996												2,996
Tax Rate	18.5		%										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 included in materials and production costs reflect expenses of $4.7 billion for the amortization of intangible assets recognized as a result of mergers and acquisitions, as well as $486 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 net benefits of approximately $325 million related to the settlements of certain federal income tax issues.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

(AMOUNTS IN MILLIONS)

Table 3

	2013										2012										% Change	% Change
	1Q		2Q		3Q		4Q		Full Year		1Q		2Q		3Q		4Q		Full Year		4Q	Full Year
TOTAL SALES (1)	$	10,671	$	11,010	$	11,032	$	11,319	$	44,033	$	11,731	$	12,311	$	11,488	$	11,738	$	47,267	-4	-7
PHARMACEUTICAL	8,891		9,310		9,475		9,760		37,437		10,082		10,560		9,875		10,085		40,601		-3	-8
Primary Care and Women’s Health
Cardiovascular
Zetia	629		650		662		716		2,658		614		632		645		676		2,567		6	4
Vytorin	394		417		396		436		1,643		444		445		423		435		1,747			-6
Diabetes & Obesity
Januvia	884		1,072		927		1,121		4,004		919		1,058		975		1,134		4,086		-1	-2
Janumet	409		474		442		503		1,829		392		411		405		452		1,659		11	10
Respiratory
Nasonex	385		325		297		327		1,335		375		293		292		308		1,268		6	5
Singulair	337		281		280		298		1,196		1,340		1,431		602		480		3,853		-38	-69
Dulera	68		79		82		95		324		39		50		52		67		207		42	56
Asmanex	40		49		43		51		184		48		51		42		44		185		17	-1
Women’s Health & Endocrine
NuvaRing	151		171		170		193		686		146		157		156		164		623		17	10
Fosamax	137		144		140		139		560		184		186		152		154		676		-10	-17
Follistim AQ	122		134		124		101		481		116		125		111		116		468		-13	3
Implanon	84		102		96		120		403		76		85		93		94		348		28	16
Cerazette	61		48		51		50		208		67		72		64		68		271		-28	-23
Other
Arcoxia	121		121		112		131		484		112		117		109		115		453		13	7
Avelox	36		29		38		37		140		73		44		30		55		201		-32	-31
Hospital and Specialty
Immunology
Remicade	549		527		574		620		2,271		519		518		490		549		2,076		13	9
Simponi	108		120		126		146		500		74		76		86		95		331		53	51
Infectious Disease
Isentress	362		412		427		442		1,643		337		398		399		381		1,515		16	8
Cancidas	162		163		151		183		660		145		166		163		145		619		26	7
PegIntron	126		142		104		124		496		162		183		165		143		653		-13	-24
Invanz	110		120		130		128		488		101		110		118		116		445		10	10
Victrelis	110		116		121		81		428		111		126		149		115		502		-29	-15
Noxafil	65		71		75		98		309		59		66		66		68		258		44	20
Oncology
Temodar	216		219		162		111		708		237		225		227		229		917		-51	-23
Emend	116		135		123		134		507		102		145		111		131		489		2	4
Other
Cosopt / Trusopt	105		103		104		103		416		124		105		102		113		444		-9	-6
Bridion	63		69		75		82		288		58		60		68		75		261		10	10
Integrilin	47		48		45		46		186		53		60		48		51		211		-9	-12
Diversified Brands
Cozaar / Hyzaar	267		255		238		246		1,006		336		337		295		315		1,284		-22	-22
Primaxin	84		85		88		79		335		88		104		109		83		384		-5	-13
Zocor	82		74		65		79		301		103		96		86		98		383		-19	-21
Propecia	68		67		71		77		283		108		100		104		112		424		-31	-33
Clarinex	61		64		54		55		235		134		140		64		56		393		-1	-40
Remeron	52		53		44		56		206		57		66		52		57		232		-1	-11
Claritin Rx	76		40		36		52		204		87		48		47		63		244		-16	-16
Proscar	39		58		38		48		183		51		55		55		56		217		-15	-15
Maxalt	40		43		40		25		149		156		154		166		162		638		-85	-77
Vaccines
Gardasil	390		383		665		394		1,831		284		324		581		442		1,631		-11	12
ProQuad, M-M-R II and Varivax	272		339		421		273		1,306		255		316		396		306		1,273		-11	3
Zostavax	168		141		185		264		758		76		148		202		225		651		18	16
Pneumovax 23	111		108		193		241		653		112		101		160		208		580		16	13
RotaTeq	162		144		201		129		636		142		142		150		168		601		-23	6
Other Pharmaceutical (2)	1,022		1,115		1,059		1,126		4,316		1,066		1,034		1,065		1,161		4,333		-3
ANIMAL HEALTH	840		851		800		871		3,362		821		865		815		898		3,399		-3	-1
CONSUMER CARE (3)	571		490		443		390		1,894		554		552		451		395		1,952		-1	-3
Claritin OTC	177		78		123		92		471		169		145		118		100		532		-8	-12
Other Revenues (4)	369		359		314		298		1,340		274		333		347		360		1,315		-17	2
Astra	262		245		220		193		920		186		223		255		251		915		-23	1

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, $86 million, $127 million, and $101 million for the first, second, third, and fourth 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 in the second quarter and full year of 2013 resulted from the ongoing termination in China of distribution arrangements and a reversal of sales previously made to those distributors, together with associated termination costs.

(4) Other revenues are comprised primarily of alliance revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities. On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales.   In addition, Other revenues in the fourth quarter and full year of 2013 reflect $50 million of revenue for the out-license of a pipeline compound.

EX-99.2

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2013															2012															% Change
	1Q			2Q			3Q			4Q			Full Year			1Q			2Q			3Q			4Q			Full Year			4Q		Full Year
	.
Sales	$	10,671		$	11,010		$	11,032		$	11,319		$	44,033		$	11,731		$	12,311		$	11,488		$	11,738		$	47,267		-4	%	-7	%
Costs, Expenses and Other
Materials and production	3,959			4,284			4,104			4,607			16,954			4,037			4,112			4,137			4,160			16,446			11	%	3	%
Marketing and administrative	2,987			3,140			2,803			2,982			11,911			3,074			3,249			3,063			3,390			12,776			-12	%	-7	%
Research and development	1,907			2,101			1,660			1,836			7,503			1,862			2,165			1,918			2,224			8,168			-17	%	-8	%
Restructuring costs	119			155			870			565			1,709			219			144			110			191			664			*		*
Equity income from affiliates	(133		)	(116		)	(102		)	(53		)	(404		)	(110		)	(142		)	(158		)	(231		)	(642		)	-77	%	-37	%
Other (income) expense, net	282			201			172			157			815			142			103			200			669			1,116			-77	%	-27	%
Income Before Taxes	1,550			1,245			1,525			1,225			5,545			2,507			2,680			2,218			1,335			8,739			-8	%	-37	%
Income Tax (Benefit) Provision	(66		)	310			375			410			1,028			740			860			455			385			2,440
Net Income	1,616			935			1,150			815			4,517			1,767			1,820			1,763			950			6,299			-14	%	-28	%
Less: Net Income Attributable to Noncontrolling Interests	23			29			26			34			113			29			27			34			42			131
Net Income Attributable to Merck & Co., Inc.	$	1,593		$	906		$	1,124		$	781		$	4,404		$	1,738		$	1,793		$	1,729		$	908		$	6,168		-14	%	-29	%
Earnings per Common Share Assuming Dilution	$	0.52		$	0.30		$	0.38		$	0.26		$	1.47		$	0.56		$	0.58		$	0.56		$	0.30		$	2.00		-13	%	-27	%
Average Shares Outstanding Assuming Dilution	3,053			3,010			2,960			2,959			2,996			3,074			3,072			3,079			3,074			3,076
Tax Rate	-4.3		%	24.9		%	24.6		%	33.5		%	18.5		%	29.5		%	32.1		%	20.5		%	28.8		%	27.9		%

* 100% or greater

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

FOURTH QUARTER 2012

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Certain Other Items (3)		Adjustment Subtotal			Non-GAAP
Sales	$	11,738											$	11,738
Costs, Expenses and Other
Materials and production	4,160			1,185		40				1,225			2,935
Marketing and administrative	3,390			89		20				109			3,281
Research and development	2,224			24		3				27			2,197
Restructuring costs	191					191				191			—
Equity income from affiliates	(231		)							—			(231		)
Other (income) expense, net	669							493		493			176
Income Before Taxes	1,335			(1,298	)	(254	)	(493	)	(2,045		)	3,380
Taxes on Income	385									(413		)(4)	798
Net Income	950									(1,632		)	2,582
Less: Net Income Attributable to Noncontrolling Interests	42									—			42
Net Income Attributable to Merck & Co., Inc.	$	908								$	(1,632	)	$	2,540
Earnings per Common Share Assuming Dilution	$	0.30											$	0.83
Average Shares Outstanding Assuming Dilution	3,074												3,074
Tax Rate	28.8		%										23.6		%

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 a net charge related to the settlement of certain shareholder litigation.

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

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FULL YEAR 2012

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d

	GAAP			Acquisition- Related Costs (1)		Restructuring Costs (2)		Certain Other Items (3)		Adjustment Subtotal			Non-GAAP
Sales	$	47,267											$	47,267
Costs, Expenses and Other
Materials and production	16,446			4,872		188				5,060			11,386
Marketing and administrative	12,776			272		90				362			12,414
Research and development	8,168			200		57				257			7,911
Restructuring costs	664					664				664			—
Equity income from affiliates	(642		)							—			(642		)
Other (income) expense, net	1,116							493		493			623
Income Before Taxes	8,739			(5,344	)	(999	)	(493	)	(6,836		)	15,575
Taxes on Income	2,440									(1,261		)(4)	3,701
Net Income	6,299									(5,575		)	11,874
Less: Net Income Attributable to Noncontrolling Interests	131									—			131
Net Income Attributable to Merck & Co., Inc.	$	6,168								$	(5,575	)	$	11,743
Earnings per Common Share Assuming Dilution	$	2.00											$	3.82
Average Shares Outstanding Assuming Dilution	3,076												3,076
Tax Rate	27.9		%										23.8		%

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 a net charge related to the settlement of certain shareholder litigation.

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES 

FOURTH QUARTER 2013

(AMOUNTS IN MILLIONS)

Table 3a

	Global					U.S.					International
	4Q13		4Q12		% Change	4Q13		4Q12		% Change	4Q13			4Q12		% Change
TOTAL SALES (1)	$	11,319	$	11,738	-4	$	4,519	$	4,716	-4	$	6,800		$	7,022	-3
PHARMACEUTICAL	9,760		10,085		-3	3,761		3,915		-4	5,999			6,170		-3
Primary Care and Women’s Health
Cardiovascular
Zetia	716		676		6	400		345		16	317			331		-4
Vytorin	436		435			182		186		-2	253			249		2
Diabetes & Obesity
Januvia	1,121		1,134		-1	552		565		-2	569			568
Janumet	503		452		11	228		237		-4	275			215		28
Respiratory
Nasonex	327		308		6	174		138		26	153			169		-10
Singulair	298		480		-38	16		25		-35	282			456		-38
Dulera	95		67		42	91		64		40	5			2		98
Asmanex	51		44		17	45		38		17	6			5		14
Women’s Health & Endocrine
NuvaRing	193		164		17	123		99		24	70			66		7
Fosamax	139		154		-10	4		6		-29	135			148		-9
Implanon	120		94		28	62		35		78	59			59		-1
Follistim AQ	101		116		-13	23		42		-45	78			75		4
Cerazette	50		68		-28						50			68		-28
Other
Arcoxia	131		115		13						131			115		13
Avelox	37		55		-32	35		52		-32	2			3		-34
Hospital and Specialty
Immunology
Remicade	620		549		13						620			549		13
Simponi	146		95		53						146			95		53
Infectious Disease
Isentress	442		381		16	249		214		16	192			167		15
Cancidas	183		145		26	9		9		-4	175			136		28
Invanz	128		116		10	66		61		8	62			55		12
PegIntron	124		143		-13	11		8		32	113			134		-16
Noxafil	98		68		44	43		20		*	55			47		15
Victrelis	81		115		-29	25		52		-53	57			63		-10
Oncology
Emend	134		131		2	80		74		7	54			57		-6
Temodar	111		229		-51	17		101		-83	95			128		-26
Other
Cosopt / Trusopt	103		113		-9	3		3		-10	100			110		-9
Bridion	82		75		10						82			75		10
Integrilin	46		51		-9	42		46		-9	4			5		-13
Diversified Brands
Cozaar / Hyzaar	246		315		-22	9		12		-28	237			303		-22
Primaxin	79		83		-5	3		4		-22	76			80		-4
Zocor	79		98		-19	7		7		-8	73			90		-20
Propecia	77		112		-31	6		29		-79	70			83		-15
Remeron	56		57		-1	3		1		*	54			56		-4
Clarinex	55		56		-1	5		4		35	50			52		-3
Claritin Rx	52		63		-16						52			63		-16
Proscar	48		56		-15	1		2		-40	47			54		-14
Maxalt	25		162		-85	1		128		-99	24			34		-30
Vaccines
Gardasil	394		442		-11	248		304		-19	146			138		6
ProQuad, M-M-R II and Varivax	273		306		-11	238		283		-16	35			22		55
Zostavax	264		225		18	210		211		-1	54			14		*
Pneumovax 23	241		208		16	176		165		7	65			43		52
RotaTeq	129		168		-23	88		136		-35	41			32		27
Other Pharmaceutical (2)	1,126		1,161		-3	286		209		37	838			952		-12
ANIMAL HEALTH	871		898		-3	198		236		-16	673			662		2
CONSUMER CARE	390		395		-1	254		250		1	137			145		-6
Claritin OTC	92		100		-8	66		68		-3	26			32		-20
Other Revenues (3)	298		360		-17	307		315		-2	(9		)	45		*
Astra	193		251		-23	193		251		-23

* 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 $101 million and $69 million on a global basis for fourth quarter 2013 and 2012, respectively.

(3)  Other revenues are comprised primarily of alliance revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities. On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales.   In addition, Other revenues in the fourth quarter of 2013 reflect $50 million of revenue for the out-license of a pipeline compound. 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES 

FULL YEAR 2013

(AMOUNTS IN MILLIONS)

Table 3b

	Global					U.S.					International
	Full Year 2013		Full Year 2012		% Change	Full Year 2013		Full Year 2012		% Change	Full Year 2013		Full Year 2012		% Change
TOTAL SALES (1)	$	44,033	$	47,267	-7	$	18,246	$	20,392	-11	$	25,787	$	26,875	-4
PHARMACEUTICAL	37,437		40,601		-8	14,854		17,041		-13	22,582		23,560		-4
Primary Care and Women’s Health
Cardiovascular
Zetia	2,658		2,567		4	1,454		1,332		9	1,204		1,235		-3
Vytorin	1,643		1,747		-6	673		764		-12	970		983		-1
Diabetes & Obesity
Januvia	4,004		4,086		-2	2,068		2,136		-3	1,935		1,950		-1
Janumet	1,829		1,659		10	878		865		2	951		795		20
Respiratory
Nasonex	1,335		1,268		5	681		597		14	654		671		-2
Singulair	1,196		3,853		-69	61		2,152		-97	1,135		1,701		-33
Dulera	324		207		56	309		199		55	15		8		93
Asmanex	184		185		-1	162		166		-2	22		19		16
Women’s Health & Endocrine
NuvaRing	686		623		10	426		366		16	260		257		1
Fosamax	560		676		-17	20		28		-28	540		648		-17
Follistim AQ	481		468		3	181		165		9	300		303		-1
Implanon	403		348		16	205		139		48	197		209		-6
Cerazette	208		271		-23						208		271		-23
Other
Arcoxia	484		453		7						484		453		7
Avelox	140		201		-31	130		192		-32	10		9		2
Hospital and Specialty
Immunology
Remicade	2,271		2,076		9						2,271		2,076		9
Simponi	500		331		51						500		331		51
Infectious Disease
Isentress	1,643		1,515		8	882		822		7	761		692		10
Cancidas	660		619		7	31		32		-3	630		587		7
PegIntron	496		653		-24	43		87		-51	453		565		-20
Invanz	488		445		10	252		227		11	236		218		8
Victrelis	428		502		-15	158		267		-41	270		234		15
Noxafil	309		258		20	106		75		42	203		184		11
Oncology
Temodar	708		917		-23	304		423		-28	404		494		-18
Emend	507		489		4	293		276		6	214		213
Other
Cosopt / Trusopt	416		444		-6	16		14		22	400		430		-7
Bridion	288		261		10						288		261		10
Integrilin	186		211		-12	170		193		-12	17		18		-8
Diversified Brands
Cozaar / Hyzaar	1,006		1,284		-22	35		28		24	971		1,256		-23
Primaxin	335		384		-13	18		21		-13	317		363		-13
Zocor	301		383		-21	24		27		-10	276		356		-22
Propecia	283		424		-33	25		124		-80	258		300		-14
Clarinex	235		393		-40	19		126		-85	216		267		-19
Claritin Rx	204		244		-16						204		244		-16
Remeron	206		232		-11	6		5		28	200		227		-12
Proscar	183		217		-15	4		5		-8	179		212		-15
Maxalt	149		638		-77	38		491		-92	111		146		-24
Vaccines
Gardasil	1,831		1,631		12	1,295		1,113		16	536		517		4
ProQuad, M-M-R II and Varivax	1,306		1,273		3	1,172		1,164		1	134		109		23
Zostavax	758		651		16	653		607		8	105		44		*
Pneumovax 23	653		580		13	491		461		6	162		118		37
RotaTeq	636		601		6	471		453		4	166		148		12
Other Pharmaceutical (2)	4,316		4,333			1,100		899		22	3,215		3,436		-6
ANIMAL HEALTH	3,362		3,399		-1	856		879		-3	2,506		2,520		-1
CONSUMER CARE (3)	1,894		1,952		-3	1,326		1,306		2	568		646		-12
Claritin OTC	471		532		-12	410		386		6	61		147		-58
Other Revenues (4)	1,340		1,315		2	1,209		1,166		4	131		149		-12
Astra	920		915		1	920		915		1

* 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 $368 million and $319 million on a global basis for full year 2013 and 2012, respectively.

(3)  The decrease in Consumer Care sales in the full year of 2013 resulted from the ongoing termination in China of distribution arrangements and a reversal of sales previously made to those distributors, together with associated termination costs.

(4) Other revenues are comprised primarily of alliance revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities. On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales.   In addition, Other revenues in the full year of 2013 reflect $50 million of revenue for the out-license of a pipeline compound.

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

	1Q13			2Q13			3Q13			4Q13			Full Year			1Q12			2Q12			3Q12			4Q12			Full Year			% Change 4Q	% Change Full Year
TOTAL PHARMACEUTICAL	$	8,891		$	9,310		$	9,475		$	9,760		$	37,437		$	10,082		$	10,560		$	9,875		$	10,085		$	40,601		-3	-8
United States	3,256			3,689			4,148			3,761			14,854			4,189			4,633			4,304			3,915			17,041			-4	-13
% Pharmaceutical Sales	36.6		%	39.6		%	43.8		%	38.5		%	39.7		%	41.6		%	43.9		%	43.6		%	38.8		%	42.0		%
Europe (1)	2,465			2,343			2,276			2,535			9,619			2,558			2,540			2,210			2,441			9,750			4	-1
% Pharmaceutical Sales	27.7		%	25.2		%	24.0		%	26.0		%	25.7		%	25.4		%	24.1		%	22.4		%	24.2		%	24.0		%
Japan	1,034			948			893			1,074			3,949			1,267			1,199			1,124			1,388			4,978			-23	-21
% Pharmaceutical Sales	11.6		%	10.2		%	9.4		%	11.0		%	10.5		%	12.6		%	11.4		%	11.4		%	13.8		%	12.3		%
Latin America	596			676			628			667			2,567			627			668			715			742			2,752			-10	-7
% Pharmaceutical Sales	6.7		%	7.3		%	6.6		%	6.8		%	6.9		%	6.2		%	6.3		%	7.2		%	7.4		%	6.8		%
Asia Pacific	822			874			799			870			3,365			762			787			846			864			3,259			1	3
% Pharmaceutical Sales	9.2		%	9.4		%	8.4		%	8.9		%	9.0		%	7.6		%	7.4		%	8.6		%	8.6		%	8.0		%
China	271			297			242			293			1,103			221			262			262			298			1,044			-2	6
Eastern Europe/Middle East Africa	439			479			431			534			1,883			361			441			366			416			1,584			29	19
% Pharmaceutical Sales	4.9		%	5.1		%	4.5		%	5.5		%	5.0		%	3.6		%	4.2		%	3.7		%	4.1		%	3.9		%
Canada	245			257			253			276			1,030			264			236			257			276			1,034			0	0
% Pharmaceutical Sales	2.8		%	2.8		%	2.7		%	2.8		%	2.8		%	2.6		%	2.2		%	2.6		%	2.7		%	2.5		%
Other	34			45			47			43			170			53			56			52			42			203			2	-16
% Pharmaceutical Sales	0.4		%	0.5		%	0.5		%	0.4		%	0.5		%	0.5		%	0.5		%	0.5		%	0.4		%	0.5		%

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

MERCK & CO., INC.

FOURTH QUARTER 2013

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

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

EQUITY INCOME FROM AFFILIATES

	4Q13		4Q12			Full Year 2013		Full Year 2012
ASTRAZENECA LP	$	50	$	233		$	352	$	621
Other (1)	3		(2		)	52		21
TOTAL	$	53	$	231		$	404	$	642

(1) Includes results for Sanofi Pasteur MSD.

SANOFI PASTEUR MSD JOINT VENTURE SALES DETAIL

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

	4Q13		4Q12		Full Year 2013		Full Year 2012
GARDASIL	$	70	$	67	$	291	$	264
FLU VACCINES	69		79		162		161
OTHER VIRAL VACCINES	25		26		104		107
ZOSTAVAX	27		—		68		—
ROTATEQ	14		12		55		47
HEPATITIS VACCINES	8		7		31		31
Other Vaccines	122		122		453		474
TOTAL SANOFI PASTEUR MSD SALES	$	335	$	313	$	1,164	$	1,084

OTHER (INCOME) EXPENSE, NET

	4Q13			4Q12			Full Year 2013			Full Year 2012
INTEREST INCOME	$	(75	)	$	(55	)	$	(264	)	$	(232	)
INTEREST EXPENSE	201			190			801			714
EXCHANGE LOSSES	12			55			290			185
Other, net (1)	19			479			(12		)	449
TOTAL	$	157		$	669		$	815		$	1,116

(1) Other, net for the fourth quarter and full year of 2012 includes a $493 million net charge related to the settlement of certain shareholder litigation.