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 2, 2012

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:

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

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

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

¨ 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 2, 2012, regarding earnings for the full year and fourth quarter 2011, 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 99.1	Press release issued February 2, 2012 regarding earnings for the full year and fourth quarter 2011
Exhibit 99.2	Certain supplemental information not included in the press release

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 2, 2012	By:	/s/ Katie E. Fedosz
		KATIE E. FEDOSZ
		Senior Assistant Secretary

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release issued February 2, 2012 regarding earnings for the full year and fourth quarter 2011
99.2	Certain supplemental information not included in the press release

EX-99.1

Exhibit 99.1

News Release

Media Contact:	Ron Rogers	Investor Contacts:	Carol Ferguson
	(908) 423-6449		(908) 423-4465
			Alex Kelly
			(908) 423-5185

Merck Announces Full-Year and Fourth-Quarter 2011 Financial Results

• 2011 Full-Year Non-GAAP EPS of $3.77, Excluding Certain Items; GAAP EPS of $2.02; Fourth-Quarter Non-GAAP EPS of $0.97, Excluding Certain Items; GAAP EPS of $0.49

• 2011 Full-Year Worldwide Sales Grew Four Percent to $48.0 Billion, Including Two Percent from Foreign Exchange; Fourth-Quarter Worldwide Sales Grew Two Percent to $12.3 Billion

• Full-Year and Fourth-Quarter Double-Digit Global Growth for JANUVIA, JANUMET, ISENTRESS and GARDASIL

• Company plans to file five major products for approval between 2012 and 2013

• 2012 Full-Year Non-GAAP EPS Target of $3.75 to $3.85, Excluding Certain Items; GAAP EPS Range of $2.04 to $2.30

WHITEHOUSE STATION, N.J., Feb. 2, 2012 – Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the fourth quarter and full year of 2011.

$ in millions, except EPS amounts	Fourth Quarter 2011		Fourth Quarter 2010			Year Ended Dec. 31, 2011		Year Ended Dec. 31, 2010
Sales	$	12,294	$	12,094		$	48,047	$	45,987
GAAP EPS		0.49		(0.17	)		2.02		0.28
Non-GAAP EPS that excludes items listed below1		0.97		0.88			3.77		3.42
GAAP Net Income (Loss)2		1,512		(531	)		6,272		861
Non-GAAP Net Income that excludes items listed below1,2		2,978		2,756			11,697		10,715

Non-GAAP (generally accepted accounting principles) earnings per share (EPS) for the fourth quarter of $0.97 and $3.77 for the full year of 2011 exclude acquisition-related costs, restructuring costs and certain other items.

¹  Merck is providing certain 2011 and 2010 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.

²  Net income (loss) attributable to Merck & Co., Inc.

A reconciliation of GAAP to non-GAAP net income (loss) and EPS is provided in the tables that follow.

	Fourth Quarter 2011					Fourth Quarter 2010
$ in millions, except EPS amounts	Net Income2		EPS			Net (Loss) Income2			EPS
GAAP	$	1,512	$	0.49		$	(531	)	$	(0.17	)
Difference		1,466		0.48	3		3,287			1.05	3
Non-GAAP that excludes items listed below	$	2,978	$	0.97		$	2,756		$	0.88

	Year Ended Dec. 31, 2011					Year Ended Dec. 31, 2010
$ in millions, except EPS amounts	Net Income2		EPS			Net Income2		EPS
GAAP	$	6,272	$	2.02		$	861	$	0.28
Difference		5,425		1.75	3		9,854		3.14	3
Non-GAAP that excludes items listed below	$	11,697	$	3.77		$	10,715	$	3.42

$ in millions	Fourth Quarter 2011			Fourth Quarter 2010			Year Ended Dec. 31, 2011			Year Ended Dec. 31, 2010
Acquisition-related costs4	$	1,479		$	3,591		$	5,939		$	9,403
Restructuring costs		692			354			1,911			1,986
Arbitration settlement charge		—			—			500			—
Legal reserve		—			—			—			950
Gain on AstraZeneca’s asset option exercise		—			—			—			(443	)
Other5		6			—			(258	)		—
Net decrease (increase) in income before taxes		2,177			3,945			8,092			11,896
Income tax (benefit) expense6		(711	)		(658	)		(2,667	)		(2,042	)
Decrease (increase) in net income	$	1,466		$	3,287		$	5,425		$	9,854

“We are positioning Merck to perform well by advancing and growing our innovative pipeline, meeting the evolving needs of customers around the world and achieving a more efficient operating model,” said Kenneth C. Frazier, chairman and chief executive officer of Merck. “We closed out 2011 with a high-quality fourth quarter by growing the top and bottom lines. Our overall performance for the year confirms our ability to achieve strong operating results while investing for the longer term. As we begin 2012 and look ahead, we are optimistic about our underlying business, our current momentum and the early success of our strategy.”

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.

⁴  Includes expenses for the amortization of intangible assets and amortization of purchase accounting adjustments to inventories 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.

⁵  Amount for full year of 2011 includes a gain on the divestiture of the company’s interest in the Johnson & Johnson°Merck Consumer Pharmaceuticals Company joint venture and a gain on the sale of certain manufacturing facilities and related assets.

⁶  Includes an estimated income tax (benefit) expense on the reconciling items. The full year amount for 2011 includes the net favorable impact of approximately $700 million relating to the settlement of a federal income tax audit. The full year amount for 2010 includes a $147 million tax charge related to U.S. health care reform legislation. In addition, the full year amounts for 2011 and 2010 include $270 million and $391 million, respectively, of net tax benefits from changes in tax rates, which resulted in a reduction of deferred tax liabilities on intangibles established in purchase accounting.

Page 2

Select Revenue Highlights

Full-year 2011 worldwide sales were $48.0 billion, an increase of 4 percent, which includes a 2 percent benefit from foreign exchange, compared to full-year 2010. Worldwide sales were $12.3 billion for the fourth quarter of 2011, an increase of 2 percent compared with the fourth quarter of 2010. The revenue increases largely reflect strong sales of JANUVIA (sitagliptin), SINGULAIR (montelukast sodium), JANUMET (sitagliptin/metformin hydrochloride), ISENTRESS (raltegravir) and GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16 and 18) Vaccine, Recombinant].

Sales from emerging markets accounted for approximately 18 percent of pharmaceutical sales for the full year and 17 percent in the fourth quarter. China grew 37 percent for the full year and continues to be a key driver of growth in the emerging markets.

The table below reflects sales of the company’s top Pharmaceutical products, as well as total sales of Animal Health and Consumer Care products.

$ in millions	Fourth Quarter 2011		Fourth Quarter 2010		Change			Year Ended Dec. 31, 2011		Year Ended Dec. 31, 2010		Change
Total Sales	$	12,294	$	12,094		2	%	$	48,047	$	45,987		4	%
Pharmaceutical7		10,755		10,441		3	%		41,289		39,267		5	%
SINGULAIR		1,461		1,349		8	%		5,479		4,987		10	%
JANUVIA		960		675		42	%		3,324		2,385		39	%
REMICADE		511		710		-28	%		2,667		2,714		-2	%
ZETIA		640		629		2	%		2,428		2,297		6	%
VYTORIN		475		562		-16	%		1,882		2,014		-7	%
COZAAR/HYZAAR		427		415		3	%		1,663		2,104		-21	%
JANUMET		386		288		34	%		1,363		954		43	%
ISENTRESS		387		313		24	%		1,359		1,090		25	%
NASONEX		325		303		7	%		1,286		1,219		5	%
GARDASIL		274		221		24	%		1,209		988		22	%
PROQUAD, M-M-R II and VARIVAX		276		285		-3	%		1,202		1,378		-13	%
Animal Health		868		815		6	%		3,253		2,941		11	%
Consumer Care7		361		381		-5	%		1,840		1,823		1	%
Other Revenues8		310		457		-32	%		1,666		1,956		-15	%

Worldwide sales of the combined diabetes franchise of JANUVIA/JANUMET grew 40 percent to $1.3 billion in the fourth quarter of 2011 driven by growth in all regions. The combined JANUVIA/JANUMET franchise had sales of $4.7 billion for the full year of 2011, an increase of 40 percent.

Worldwide sales of SINGULAIR, a once-a-day oral medicine indicated for the chronic treatment of asthma and the relief of symptoms of allergic rhinitis, grew 8 percent from the fourth quarter of 2010 to $1.5 billion. Full-year worldwide sales for SINGULAIR were $5.5 billion, a 10 percent increase compared with the prior year. The U.S. patent for SINGULAIR will expire in Aug. 2012, and the company expects a significant decline in sales following expiry.

⁷  In the first quarter of 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

⁸  Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third-party manufacturing sales. Revenue from AstraZeneca LP recorded by Merck was $256 million in the fourth quarter and $1.2 billion for the full year of 2011.

Page 3

Global sales of REMICADE (infliximab) and SIMPONI (golimumab), treatments for inflammatory diseases, for the full year of 2011 increased 4 percent and declined 24 percent for the fourth quarter. In territories retained, the combined sales of REMICADE and SIMPONI grew 21 percent for the full year and 8 percent for the fourth quarter of 2011. In July 2011, the company transferred exclusive marketing rights for REMICADE and SIMPONI to Johnson & Johnson in Canada, Central and South America, the Middle East, Africa and Asia Pacific. Merck retained exclusive marketing rights in Europe, Russia and Turkey.

ISENTRESS, an HIV integrase inhibitor for use in combination with other antiretroviral agents for the treatment of HIV-1 infection in adults, children and adolescents 2 years of age and older and weighing at least 10 kg, grew 24 percent in the fourth quarter. Global sales of ISENTRESS for the full year of 2011 were $1.4 billion, a 25 percent increase compared with the prior year.

Sales of GARDASIL, a vaccine to help prevent certain diseases caused by four types of human papillomavirus (HPV), were $274 million, an increase of 24 percent for the quarter driven by increased vaccination of males ages 9 through 26. Worldwide sales of GARDASIL for the year were $1.2 billion, a 22 percent increase compared with the prior year.

Sales of VICTRELIS (boceprevir), the company’s oral hepatitis C virus NS3/4A protease inhibitor, were $87 million in the quarter and $140 million for the full year of 2011. In addition to the United States, the company has recently launched VICTRELIS in 19 markets including France, Germany, Canada and Brazil.

Sales of ZOSTAVAX (Zoster Vaccine Live) were $78 million in the quarter. Global sales of ZOSTAVAX for the full year of 2011 were $332 million, a 37 percent increase compared with the prior year due to an improved supply status. The company recently filled all back orders and resumed a normal supply schedule in the United States.

As expected, global sales of Merck’s antihypertensive medicines COZAAR (losartan potassium) and HYZAAR (losartan potassium and hydrochlorothiazide) declined for the full year of 2011 following loss of marketing exclusivity in the United States and in major European markets in 2010.

Product Performance – Animal Health

Merck Animal Health sales totaled $868 million for the fourth quarter of 2011, a 6 percent increase over the same period last year. Animal Health had strong fourth-quarter performance across most regions, with growth primarily led by increased sales of swine, poultry and companion animal products. The division’s products include pharmaceutical and vaccine products for the prevention, treatment and control of disease in all major farm and companion animal species. Animal Health global sales for 2011 full year were $3.3 billion, an 11 percent increase, which includes a 3 percent benefit from foreign exchange, compared with the prior year.

Page 4

Product Performance – Consumer Care

2011 full-year global sales of Consumer Care were $1.8 billion, a 1 percent increase compared to full-year 2010. Fourth-quarter global sales were $361 million, a decrease of 5 percent compared to the fourth quarter of 2010. The sales decrease was primarily due to declines in CLARITIN and COPPERTONE. Despite competition, CLARITIN continues to maintain a leadership position in the over-the-counter allergy market.

Fourth-Quarter and Full-Year Expense and Other Information

The costs detailed below totaled $10.8 billion on a GAAP basis during the fourth quarter of 2011 and include $2.2 billion of acquisition-related costs and restructuring costs.

$ in millions	Included in the expense for the period
	GAAP		Acquisition- Related Costs4		Restructuring Costs		Certain Other Items		Non-GAAP1
Fourth Quarter 2011
Materials and production	$	4,176	$	1,212	$	68	$	7	$	2,889
Marketing and administrative		3,704		86		42		—		3,576
Research and development		2,419		244		49		—		2,126
Restructuring costs		533		—		533		—		—
Fourth Quarter 2010
Materials and production	$	4,440	$	1,206	$	105	$	—	$	3,129
Marketing and administrative		3,537		160		13		—		3,364
Research and development		4,559		2,225		115		—		2,219
Restructuring costs		121		—		121		—		—

The costs detailed below totaled $40.4 billion on a GAAP basis for full-year 2011 and include $7.9 billion of acquisition-related costs and restructuring costs.

Page 5

$ in millions	Included in the expense for the period
	GAAP		Acquisition- Related Costs4		Restructuring Costs		Certain Other Items		Non-GAAP1
Full Year 2011
Materials and production	$	16,871	$	5,137	$	348	$	7	$	11,379
Marketing and administrative		13,733		278		119		—		13,336
Research and development		8,467		587		138		—		7,742
Restructuring costs		1,306		—		1,306		—		—
Full Year 2010
Materials and production	$	18,396	$	6,566	$	430	$	—	$	11,400
Marketing and administrative		13,125		379		143		—		12,603
Research and development		11,111		2,441		428		—		8,242
Restructuring costs		985		—		985		—		—

The gross margin was 66.0 percent for the fourth quarter of 2011 and 63.3 percent for the fourth quarter of 2010, reflecting 10.5 and 10.8 percentage point unfavorable impacts, respectively, from the acquisition-related costs and restructuring costs noted above.

Marketing and administrative expenses, on a non-GAAP basis, were $3.6 billion in the fourth quarter of 2011, an increase from $3.4 billion in the fourth quarter of 2010. The increase was primarily due to the impact of product launches, U.S. health care reform fees and corporate charges.

Research and development expenses, on a non-GAAP basis, were $2.1 billion in the fourth quarter of 2011, a decrease from $2.2 billion in the fourth quarter of 2010. The decrease was primarily due to efficiency savings.

Equity income from affiliates was $257 million for the fourth quarter and $610 million for the full year, which primarily includes partnerships with AstraZeneca LP and Sanofi Pasteur MSD.

Key Developments

The company noted the following recent developments:

• Received a Complete Response Letter from the U.S. Food and Drug Administration (FDA) regarding the company’s supplemental new drug application for DULERA (mometasone furoate and formoterol fumarate dihydrate) for the treatment of chronic obstructive pulmonary disease. The company is discussing the letter with the FDA to determine next steps.

• Obtained FDA approval to update the label for VYTORIN (ezetimibe/simvastatin) with results from the Study of Heart and Renal Protection in patients with moderate-to-severe chronic kidney disease

Page 6

• Received FDA approval for a new use of ISENTRESS in combination with other antiretroviral medicines for the treatment of HIV-1 infection in pediatric patients 2 years of age and older and weighing at least 10 kg

• Announced the establishment of an Asia Research & Development (R&D) headquarters for innovative drug discovery and development located in Beijing, China

• Increased the quarterly dividend 11 percent to $0.42 per share

• The Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices recommended the routine use of GARDASIL in boys ages 11 to 12 and catch-up vaccination for males ages 13 to 21 who have not been vaccinated previously

• Launched JUVISYNC (sitagliptin and simvastatin) in the U.S. market. JUVISYNC is the first drug to be approved that combines the blood-sugar lowering of a DPP-4 inhibitor with the cholesterol-lowering benefits of simvastatin.

In November, the company held its R&D and Business Briefing for investors, highlighting nearly 20 candidates in Phase III clinical trials targeting a broad range of diseases. Merck plans to advance its pipeline and file five major products for approval between 2012 and 2013, including:

• BRIDION (sugammadex), a potential first-in-class neuromuscular reversal agent in the United States

• V503, an investigational vaccine to help protect against certain HPV associated cancers

• Odanacatib, an investigational once-weekly oral compound with a unique mechanism of action for the treatment of osteoporosis

• TREDAPTIVE (ER niacin/laropiprant), an investigational extended release niacin plus laropiprant for the treatment of atherosclerosis in the United States

• Suvorexant, an investigational, first-in-class treatment for patients with insomnia.

Financial Targets

Merck expects full-year 2012 non-GAAP EPS to be between $3.75 and $3.85, and the 2012 GAAP EPS range to be $2.04 to $2.30. The 2012 non-GAAP range excludes acquisition-related costs and costs related to restructuring programs.

Merck expects full-year 2012 revenues to be at or near 2011 levels on a constant currency basis. At current exchange rates, sales would be unfavorably affected by about 2 to 3 percent.

In addition, the company expects full-year 2012 non-GAAP R&D expense to be at approximately the same level as in 2011 and expects its full-year 2012 non-GAAP tax rate to be in the range of 23 to 25 percent.

Page 7

A reconciliation of anticipated 2012 EPS as reported in accordance with GAAP to non-GAAP EPS that excludes certain items is provided in the table below.⁹

$ in millions, except EPS amounts	Full Year 2012
GAAP EPS	$2.04 to $2.30
Difference3	1.71 to 1.55
Non-GAAP EPS that excludes items listed below	$3.75 to $3.85
Acquisition-related costs4	$5,200 to $4,900
Restructuring costs	1,100 to 800
Net decrease (increase) in income before taxes	6,300 to 5,700
Estimated income tax (benefit) expense	(1,110) to (985)
Decrease (increase) in net income	$5,190 to $4,715

Total Employees

As of Dec. 31, 2011, Merck had approximately 86,000 employees worldwide.

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 Web site, 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. Journalists are invited to monitor the call by dialing (706) 758-9928 or (800) 399-7917. A replay of the call will be available starting at 11 a.m. EST today for approximately one week. To listen to the replay, dial (404) 537-3406 or (855) 859-2056 and enter ID No. 23636062.

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. Such statements may include, but are not limited to, statements about the benefits of the merger

⁹  Both non-GAAP and GAAP EPS guidance for 2012 assume the potential exercise by AstraZeneca of the Shares Option in mid-2012 and include the estimated associated impact on revenue and equity income from affiliates. They do not reflect any gain on the potential transaction, which would be reflected only in the company’s GAAP results.

Page 8

between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period; the impact of pharmaceutical industry regulation and health care legislation; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to 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 2010 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 9

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1

	GAAP									GAAP
	4Q11			4Q10			% Change			Full Year 2011			Full Year 2010			% Change
Sales	$	12,294		$	12,094			2	%	$	48,047		$	45,987			4	%
Costs, Expenses and Other
Materials and production (1)		4,176			4,440			-6	%		16,871			18,396			-8	%
Marketing and administrative (1) / (2)		3,704			3,537			5	%		13,733			13,125			5	%
Research and development (1) / (2)		2,419			4,559			-47	%		8,467			11,111			-24	%
Restructuring costs (3)		533			121			*			1,306			985			33	%
Equity income from affiliates (4)		(257	)		(171	)		50	%		(610	)		(587	)		4	%
Other (income) expense, net (1) / (5)		139			309			-55	%		946			1,304			-27	%
Income (Loss) Before Taxes		1,580			(701	)		*			7,334			1,653			*
Income Tax Provision (Benefit)		37			(201	)					942			671
Net Income (Loss)		1,543			(500	)		*			6,392			982			*
Less: Net Income Attributable to Noncontrolling Interests		31			31						120			121
Net Income (Loss) Attributable to Merck & Co., Inc.	$	1,512		$	(531	)		*		$	6,272		$	861			*
Earnings (Loss) per Common Share Assuming Dilution (6)	$	0.49		$	(0.17	)		*		$	2.02		$	0.28			*
Average Shares Outstanding Assuming Dilution (7)		3,069			3,081						3,094			3,120
Tax Rate (8)		2.3	%		28.7	%					12.8	%		40.6	%

* 100% or greater

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

(2) The fourth quarter and full year of 2010 include a reclassification of certain expenses from marketing and administrative to research and development of $42 million and $120 million, respectively.

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

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

(5) Other (income) expense, net in the full year of 2011 includes a charge of $500 million related to the resolution of the arbitration proceeding with Johnson & Johnson, a $136 million gain on the sale of the company’s interest in the Johnson & JohnsonºMerck Consumer Pharmaceuticals Company joint venture and a $127 million gain on the sale of certain manufacturing facilities and related assets. Other (income) expense, net in the full year of 2010 reflects a $950 million legal reserve, $200 million of exchange losses due to Venezuelan currency devaluations and $443 million of income recognized upon AstraZeneca’s asset option exercise.

(6) The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders (losses are not allocated). Net income attributable to Merck & Co., Inc. common shareholders used to calculate earnings per common share assuming dilution was $1,510 million for the fourth quarter of 2011 and was $6,257 million and $859 million for the full year of 2011 and 2010, respectively.

(7) Because the company recorded a loss in the fourth quarter of 2010, no potential dilutive common shares were used in the computation of loss per share assuming dilution as the effect would have been anti-dilutive.

(8) The GAAP effective tax rate for the fourth quarter of 2011 was 2.3%. The GAAP effective tax rate for the full year of 2011 was 12.8%, which reflects the net favorable impact of approximately $700 million related to the settlement of the company’s 2002-2005 federal income tax audit. Excluding this item and the other non-GAAP reconciling items detailed in the accompanying tables, the effective tax rates were 19.9% and 23.4% for the fourth quarter and full year of 2011, respectively. The GAAP effective tax rates for the fourth quarter and full year of 2010 were 28.7% and 40.6%, respectively. Excluding the impact of the non-GAAP reconciling items detailed in the accompanying tables, the effective tax rates were 14.1% and 20.0% for the fourth quarter and full year of 2010, respectively.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FOURTH QUARTER 2011

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a

	GAAP			Acquisition- Related Costs (1)			Restructuring Costs (2)			Certain Other Items			Adjustment Subtotal			Non-GAAP
Sales	$	12,294											$	—		$	12,294
Materials and production		4,176			1,212			68			7			1,287			2,889
Marketing and administrative		3,704			86			42						128			3,576
Research and development		2,419			244			49						293			2,126
Restructuring costs		533						533						533			—
Equity income from affiliates		(257	)											—			(257	)
Other (income) expense, net		139			(63	)					(1	)		(64	)		203
Income Before Taxes		1,580			(1,479	)		(692	)		(6	)		(2,177	)		3,757
Taxes on Income		37												(711	) (3)		748
Net Income		1,543												(1,466	)		3,009
Less: Net Income Attributable to Noncontrolling Interests		31												—			31
Net Income Attributable to Merck & Co., Inc.	$	1,512											$	(1,466	)	$	2,978
Earnings per Common Share Assuming Dilution	$	0.49														$	0.97	(4)
Average Shares Outstanding Assuming Dilution		3,069															3,069
Tax Rate		2.3	%														19.9	%

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 for the amortization of intangible assets and the amortization of purchase accounting adjustments to inventories recognized as a result of mergers and acquisitions. Amounts included in marketing and administrative expenses reflect integration costs, as well as other costs associated with mergers and acquisitions, such as severance costs which are not part of the company’s formal restructuring programs. Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges. Amounts included in other (income) expense, net reflect the favorable resolution of certain reserves assumed in conjunction with the merger.

(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) Includes the favorable impact of certain state tax rate changes that resulted in a net $40 million reduction of deferred tax liabilities on intangibles established in purchase accounting, as well as the estimated tax impact on the reconciling items.

(4) The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $2,973 million for the fourth quarter of 2011.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FULL YEAR 2011

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

	GAAP			Acquisition- Related Costs (1)			Restructuring Costs (2)			Certain Other Items (3)			Adjustment Subtotal			Non-GAAP
Sales	$	48,047											$	—		$	48,047
Materials and production		16,871			5,137			348			7			5,492			11,379
Marketing and administrative		13,733			278			119						397			13,336
Research and development		8,467			587			138						725			7,742
Restructuring costs		1,306						1,306						1,306			—
Equity income from affiliates		(610	)											—			(610	)
Other (income) expense, net		946			(63	)					235			172			774
Income Before Taxes		7,334			(5,939	)		(1,911	)		(242	)		(8,092	)		15,426
Taxes on Income		942												(2,667	) (4)		3,609
Net Income		6,392												(5,425	)		11,817
Less: Net Income Attributable to Noncontrolling Interests		120												—			120
Net Income Attributable to Merck & Co., Inc.	$	6,272											$	(5,425	)	$	11,697
Earnings per Common Share Assuming Dilution	$	2.02														$	3.77	(5)
Average Shares Outstanding Assuming Dilution		3,094															3,094
Tax Rate		12.8	%														23.4	%

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 $5.0 billion for the amortization of intangible assets and the amortization of purchase accounting adjustments to inventories recognized as a result of mergers and acquisitions, as well as $118 million of impairment charges on product intangibles. Amounts included in marketing and administrative expenses reflect integration costs, as well as other costs associated with mergers and acquisitions, such as severance costs which are not part of the company’s formal restructuring programs. Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges. Amounts included in other (income) expense, net reflect the favorable resolution of certain reserves assumed in conjunction with the merger.

(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) Included in other (income) expense, net is a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson, a $136 million gain on the divestiture of the company’s interest in the Johnson & JohnsonºMerck Consumer Pharmaceuticals Company joint venture, as well as a $127 million gain on the sale of certain manufacturing facilities and related assets.

(4) Includes a net benefit of approximately $700 million relating to the settlement of the company’s 2002-2005 federal income tax audit, the favorable impact of certain foreign and state tax rate changes that resulted in a net $270 million reduction of deferred tax liabilities on intangibles established in purchase accounting, as well as the estimated tax impact on the reconciling items.

(5) The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $11,670 million for 2011.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

(AMOUNTS IN MILLIONS)

Table 3

	2011										2010										% Change		% Change
	1Q		2Q		3Q		4Q		Full Year		1Q		2Q		3Q		4Q		Full Year		4Q		Full Year
TOTAL SALES (1)	$	11,580	$	12,151	$	12,022	$	12,294	$	48,047	$	11,422	$	11,346	$	11,125	$	12,094	$	45,987		2		4
PHARMACEUTICAL (2)		9,820		10,360		10,354		10,755		41,289		9,665		9,638		9,523		10,441		39,267		3		5
Cardiovascular
Zetia		582		592		614		640		2,428		534		564		571		629		2,297		2		6
Vytorin		480		459		469		475		1,882		477		490		485		562		2,014		-16		-7
Integrilin		64		56		53		57		230		70		70		63		63		266		-9		-14
Diabetes & Obesity
Januvia		739		779		846		960		3,324		511		600		600		675		2,385		42		39
Janumet		305		321		350		386		1,363		201		218		247		288		954		34		43
Diversified Brands
Cozaar /Hyzaar		426		406		404		427		1,663		782		485		423		415		2,104		3		-21
Zocor		127		107		110		111		456		116		117		114		121		468		-8		-3
Propecia		106		112		112		117		447		100		113		109		124		447		-6		0
Claritin Rx		120		65		55		74		314		98		58		53		86		296		-14		6
Remeron		60		57		65		59		241		51		59		50		62		223		-5		8
Vasotec /Vaseretic		57		59		57		58		231		59		63		69		64		255		-9		-10
Proscar		60		53		58		52		223		58		56		58		44		216		18		3
Infectious Disease
Isentress		292		337		343		387		1,359		232		267		278		313		1,090		24		25
PegIntron		166		154		163		175		657		186		185		168		198		737		-12		-11
Cancidas		158		168		150		164		640		153		150		135		174		611		-6		5
Primaxin		136		136		124		119		515		159		158		135		158		610		-25		-16
Invanz		87		103		107		110		406		75		83		91		113		362		-3		12
Avelox		106		61		59		95		322		106		59		59		92		316		3		2
Noxafil		55		56		61		59		230		49		50		52		48		198		24		16
Crixivan /Stocrin		45		50		56		42		192		52		48		49		58		206		-28		-7
Rebetol		53		48		38		36		174		56		55		55		54		221		-34		-21
Victrelis		1		21		31		87		140		0		0		0		0		0		*		*
Neurosciences & Ophthalmology
Maxalt		173		131		156		178		639		135		133		133		149		550		20		16
Cosopt /Trusopt		114		122		124		117		477		115		123		114		131		484		-11		-1
Oncology
Temodar		248		234		223		230		935		274		271		254		266		1,065		-13		-12
Emend		87		120		98		114		419		84		93		91		110		378		4		11
Intron A		49		47		47		51		194		54		51		50		54		209		-5		-7
Respiratory & Immunology
Singulair		1,328		1,354		1,336		1,461		5,479		1,165		1,258		1,215		1,349		4,987		8		10
Remicade		753		842		561		511		2,667		674		669		661		710		2,714		-28		-2
Nasonex		373		323		266		325		1,286		320		338		259		303		1,219		7		5
Clarinex		155		209		128		129		621		164		191		131		138		623		-6		0
Arcoxia		114		100		108		110		431		95		95		94		115		398		-4		8
Simponi		54		75		74		61		264		10		18		27		42		97		45		*
Asmanex		60		47		42		57		206		51		56		48		53		208		7		-1
Proventil		42		37		38		38		155		57		55		43		55		210		-31		-26
Dulera		13		25		22		37		96		0		0		2		6		8		*		*
Vaccines
Gardasil		214		277		445		274		1,209		233		219		316		221		988		24		22
ProQuad, M-M-R II and Varivax		244		291		391		276		1,202		319		340		434		285		1,378		-3		-13
RotaTeq		125		148		184		195		651		93		139		119		169		519		15		25
Pneumovax		79		64		133		222		498		51		59		110		156		376		43		33
Zostavax		24		122		108		78		332		95		18		23		107		243		-27		37
Women’s Health & Endocrine
Fosamax		208		221		215		211		855		230		241		220		234		926		-10		-8
NuvaRing		142		154		159		168		623		135		145		134		145		559		16		12
Follistim AQ		133		143		129		126		530		134		137		119		138		528		-9		0
Implanon		60		81		80		74		294		51		51		64		71		236		3		25
Cerazette		59		66		74		69		268		55		49		56		49		209		42		28
Other Pharmaceutical (3)		744		927		888		953		3,521		946		941		942		1,044		3,879		-9		-9
ANIMAL HEALTH		758		802		826		868		3,253		709		731		687		815		2,941		6		11
CONSUMER CARE (2)		517		541		421		361		1,840		489		544		409		381		1,823		-5		1
Claritin OTC		167		134		118		92		511		136		167		120		103		526		-11		-3
Other Revenues (4)		486		448		421		310		1,666		559		433		506		457		1,956		-32		-15
Astra		322		306		299		256		1,184		364		241		345		302		1,252		-15		-5

* 100% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾  Only select products are shown.

⁽²⁾  Beginning in 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

⁽³⁾  Includes pharmaceutical products not individually shown above. Other Vaccine sales included in Other Pharmaceutical were $54 million, $67 million, $100 million and $62 million for the first, second, third and fourth quarters of 2011, respectively. Other Vaccine sales included in Other Pharmaceutical were $55 million, $57 million, $94 million and $75 million for the first, second, third and fourth quarters of 2010, respectively.

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

EX-99.2

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2011															2010															% Change
	1Q			2Q			3Q			4Q			Full Year			1Q			2Q			3Q			4Q			Full Year			4Q			Full Year
Sales	$	11,580		$	12,151		$	12,022		$	12,294		$	48,047		$	11,422		$	11,346		$	11,125		$	12,094		$	45,987			2	%		4	%
Costs, Expenses and Other
Materials and production		4,059			4,284			4,352			4,176			16,871			5,216			4,549			4,191			4,440			18,396			-6	%		-8	%
Marketing and administrative (1)		3,164			3,525			3,340			3,704			13,733			3,222			3,175			3,192			3,537			13,125			5	%		5	%
Research and development (1)		2,158			1,936			1,954			2,419			8,467			2,051			2,179			2,322			4,559			11,111			-47	%		-24	%
Restructuring costs		(14	)		668			119			533			1,306			288			526			50			121			985			*			33	%
Equity income from affiliates		(138	)		(55	)		(161	)		(257	)		(610	)		(138	)		(43	)		(236	)		(171	)		(587	)		50	%		4	%
Other (income) expense, net		622			121			66			139			946			167			(281	)		1,108			309			1,304			-55	%		-27	%
Income (Loss) Before Taxes		1,729			1,672			2,352			1,580			7,334			616			1,241			498			(701	)		1,653			*			*
Income Tax Provision (Benefit)		658			(382	)		628			37			942			286			461			126			(201	)		671
Net Income (Loss)		1,071			2,054			1,724			1,543			6,392			330			780			372			(500	)		982			*			*
Less: Net Income Attributable to Noncontrolling Interests		28			30			32			31			120			31			28			30			31			121
Net Income (Loss) Attributable to Merck & Co., Inc.	$	1,043		$	2,024		$	1,692		$	1,512		$	6,272		$	299		$	752		$	342		$	(531	)	$	861			*			*
Earnings (Loss) per Common Share Assuming Dilution	$	0.34		$	0.65		$	0.55		$	0.49		$	2.02		$	0.09		$	0.24		$	0.11		$	(0.17	)	$	0.28			*			*
Average Shares Outstanding Assuming Dilution		3,104			3,110			3,091			3,069			3,094			3,141			3,125			3,102			3,081			3,120
Tax Rate		38.1	%		-22.8	%		26.7	%		2.3	%		12.8	%		46.4	%		37.1	%		25.3	%		28.7	%		40.6	%

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

*100% or greater

(1) Amounts in 2010 include a reclassification of certain expenses from marketing and administrative to research and development of $24 million, $28 million, $26 million, $42 million and $120 million in 1Q, 2Q, 3Q, 4Q and full year, respectively.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FOURTH QUARTER 2010

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

	GAAP			Acquisition- Related Costs  (1)			Restructuring Costs (2)			Certain Other Items		Adjustment Subtotal			Non-GAAP
Sales	$	12,094										$	—		$	12,094
Materials and production		4,440			1,206			105					1,311			3,129
Marketing and administrative		3,537			160			13					173			3,364
Research and development		4,559			2,225			115					2,340			2,219
Restructuring costs		121						121					121			—
Equity income from affiliates		(171	)										—			(171	)
Other (income) expense, net		309											—			309
(Loss) Income Before Taxes		(701	)		(3,591	)		(354	)		—		(3,945	)		3,244
Taxes on Income		(201	)										(658	) (3)		457
Net (Loss) Income		(500	)										(3,287	)		2,787
Less: Net Income Attributable to Noncontrolling Interests		31											—			31
Net (Loss) Income Attributable to Merck & Co., Inc.	$	(531	)									$	(3,287	)	$	2,756
(Loss) Earnings per Common Share Assuming Dilution	$	(0.17	)												$	0.88	(4)
Average Shares Outstanding Assuming Dilution		3,081														3,106
Tax Rate		28.7	%													14.1	%

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 and the amortization of purchase accounting adjustments to inventories recognized as a result of the merger. Amounts included in marketing and administrative expenses reflect transaction and integration costs associated with mergers and acquisitions. Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges, including a $1.7 billion charge to write-down the intangible asset related to vorapaxar.

⁽²⁾  Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be sold or closed related to actions under the company’s formal restructuring programs.

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

⁽⁴⁾  The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $2,746 million for the fourth quarter of 2010.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FULL YEAR 2010

(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	$	45,987											$	—		$	45,987
Materials and production		18,396			6,566			430						6,996			11,400
Marketing and administrative		13,125			379			143						522			12,603
Research and development		11,111			2,441			428						2,869			8,242
Restructuring costs		985						985						985			—
Equity income from affiliates		(587	)											—			(587	)
Other (income) expense, net		1,304			17						507			524			780
Income Before Taxes		1,653			(9,403	)		(1,986	)		(507	)		(11,896	)		13,549
Taxes on Income		671												(2,042	) (4)		2,713
Net Income		982												(9,854	)		10,836
Less: Net Income Attributable to Noncontrolling Interests		121												—			121
Net Income Attributable to Merck & Co., Inc.	$	861											$	(9,854	)	$	10,715
Earnings per Common Share Assuming Dilution	$	0.28														$	3.42	(5)
Average Shares Outstanding Assuming Dilution		3,120															3,120
Tax Rate		40.6	%														20.0	%

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 and the amortization of purchase accounting adjustments to inventories recognized as a result of the merger. Amounts included in marketing and administrative expenses and other (income) expense, net reflect transaction and integration costs associated with mergers and acquisitions. Amounts included in research and development expenses represent in-process research and development (“IPR&D”) impairment charges, including a $1.7 billion charge to write-down the intangible asset related to vorapaxar.

⁽²⁾  Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be sold or closed related to actions under the company’s formal restructuring programs.

⁽³⁾ Included in other (income) expense, net is a $950 million legal reserve and $443 million of income recognized upon AstraZeneca’s asset option exercise.

⁽⁴⁾  Includes a $391 million tax benefit from changes in a foreign entity’s tax rate, a charge of $147 million associated with a change in tax law enacted as part of U.S. health care reform legislation, as well as the estimated tax impact on the reconciling items.

⁽⁵⁾  The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $10,673 million for the full year of 2010.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FOURTH QUARTER 2011

(AMOUNTS IN MILLIONS)

Table 3a

	Global						U.S.						International
	4Q11		4Q10		% Change		4Q11		4Q10		% Change		4Q11		4Q10		% Change
TOTAL SALES (1)	$	12,294	$	12,094		2	$	5,296	$	5,224		1	$	6,998	$	6,870		2
PHARMACEUTICAL (2)		10,755		10,441		3		4,606		4,384		5		6,149		6,057		2
Cardiovascular
Zetia		640		629		2		327		329		-1		313		299		5
Vytorin		475		562		-16		213		296		-28		262		266		-2
Integrilin		57		63		-9		50		58		-13		7		5		31
Diabetes & Obesity
Januvia		960		675		42		503		425		18		457		250		83
Janumet		386		288		34		193		164		18		193		123		56
Diversified Brands
Cozaar / Hyzaar		427		415		3		20		9		*		407		406
Zocor		111		121		-8		8		12		-33		103		109		-5
Propecia		117		124		-6		36		39		-8		81		85		-5
Claritin Rx		74		86		-14								74		86		-14
Remeron		59		62		-5		1		1		14		58		61		-5
Vasotec / Vaseretic		58		64		-9								58		64		-9
Proscar		52		44		18		1		1		8		51		43		18
Infectious Disease
Isentress		387		313		24		193		164		18		194		149		30
PegIntron		175		198		-12		25		35		-28		150		163		-8
Cancidas		164		174		-6		12		17		-30		152		157		-3
Primaxin		119		158		-25		14		29		-50		104		130		-19
Invanz		110		113		-3		55		50		10		54		63		-13
Avelox		95		92		3		86		86		1		9		6		40
Noxafil		59		48		24		16		9		85		42		39		9
Crixivan / Stocrin		42		58		-28		1		2		-26		40		56		-28
Rebetol		36		54		-34								36		54		-34
Victrelis		87				*		58				*		29				*
Neurosciences & Ophthalmology
Maxalt		178		149		20		132		106		24		46		43		8
Cosopt / Trusopt		117		131		-11		4		5		-28		113		126		-10
Oncology
Temodar		230		266		-13		99		109		-10		132		157		-16
Emend		114		110		4		68		65		5		46		45		2
Intron A		51		54		-5		25		28		-10		26		26		1
Respiratory & Immunology
Singulair		1,461		1,349		8		957		838		14		504		511		-1
Remicade		511		710		-28								511		710		-28
Nasonex		325		303		7		163		146		12		161		157		3
Clarinex		129		138		-6		51		47		8		78		90		-14
Arcoxia		110		115		-4								110		115		-4
Simponi		61		42		45								61		42		45
Asmanex		57		53		7		51		47		8		6		6		4
Proventil		38		55		-31		35		53		-35		3		2		76
Dulera		37		6		*		36		6		*		1				*
Vaccines
Gardasil		274		221		24		202		157		29		72		64		13
ProQuad, M-M-R II     and Varivax		276		285		-3		243		272		-11		33		13		*
RotaTeq		195		169		15		162		149		9		33		21		57
Pneumovax		222		156		43		137		115		18		86		40		*
Zostavax		78		107		-27		73		107		-32		5				*
Women’s Health & Endocrine
Fosamax		211		234		-10		8		25		-69		204		209		-3
NuvaRing		168		145		16		102		86		18		66		58		12
Follistim AQ		126		138		-9		42		40		4		84		98		-14
Implanon		74		71		3		33		24		39		40		47		-15
Cerazette		69		49		42								69		49		42
Other Pharmaceutical (3)		953		1,044		-9		169		233		-28		784		811		-3
ANIMAL HEALTH		868		815		6		192		169		13		676		646		5
CONSUMER CARE (2)		361		381		-5		225		232		-3		136		149		-8
Claritin OTC		92		103		-11		59		65		-10		33		38		-14
Other Revenues (4)		310		457		-32		274		438		-38		37		19		97
Astra		256		302		-15		256		302		-15

* 100% or greater

⁽¹⁾  Only select products are shown.

⁽²⁾  In the first quarter of 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

⁽³⁾ Includes Pharmaceutical products not individually shown above. Other Vaccine sales included in Other Pharmaceutical were $62 million and $75 million on a global basis for fourth quarter 2011 and 2010, respectively.

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FULL YEAR 2011

(AMOUNTS IN MILLIONS)

Table 3b

	Global						U.S.						International
	Full Year 2011		Full Year 2010		% Change		Full Year 2011		Full Year 2010		% Change		Full Year 2011		Full Year 2010		% Change
TOTAL SALES (1)	$	48,047	$	45,987		4	$	20,495	$	20,226		1	$	27,552	$	25,761		7
PHARMACEUTICAL (2)		41,289		39,267		5		17,117		16,748		2		24,172		22,519		7
Cardiovascular
Zetia		2,428		2,297		6		1,223		1,227				1,205		1,070		13
Vytorin		1,882		2,014		-7		888		1,077		-18		994		938		6
Integrilin		230		266		-14		208		245		-15		22		20		7
Diabetes & Obesity
Januvia		3,324		2,385		39		1,824		1,563		17		1,499		822		82
Janumet		1,363		954		43		712		576		24		651		378		72
Diversified Brands
Cozaar / Hyzaar		1,663		2,104		-21		107		400		-73		1,555		1,705		-9
Zocor		456		468		-3		32		42		-22		423		426		-1
Propecia		447		447				134		148		-10		313		298		5
Claritin Rx		314		296		6								314		296		6
Remeron		241		223		8		6		7		-4		234		216		8
Vasotec / Vaseretic		231		255		-10								231		255		-10
Proscar		223		216		3		5		6		-17		218		210		4
Infectious Disease
Isentress		1,359		1,090		25		681		554		23		678		536		27
PegIntron		657		737		-11		71		98		-27		586		639		-8
Cancidas		640		611		5		44		61		-28		595		550		8
Primaxin		515		610		-16		87		123		-30		429		487		-12
Invanz		406		362		12		205		180		14		200		182		10
Avelox		322		316		2		288		296		-3		34		20		69
Noxafil		230		198		16		61		51		20		169		147		15
Crixivan / Stocrin		192		206		-7		5		8		-32		187		198		-6
Rebetol		174		221		-21		1		1		-13		173		220		-21
Victrelis		140				*		98				*		43				*
Neurosciences & Ophthalmology
Maxalt		639		550		16		451		378		19		187		173		9
Cosopt / Trusopt		477		484		-1		16		20		-19		461		464		-1
Oncology
Temodar		935		1,065		-12		396		403		-2		538		662		-19
Emend		419		378		11		239		230		4		180		147		22
Intron A		194		209		-7		97		114		-14		97		95		1
Respiratory & Immunology
Singulair		5,479		4,987		10		3,536		3,219		10		1,942		1,768		10
Remicade		2,667		2,714		-2								2,667		2,714		-2
Nasonex		1,286		1,219		5		604		639		-6		682		580		18
Clarinex		621		623				197		203		-3		424		420		1
Arcoxia		431		398		8								431		398		8
Simponi		264		97		*								264		97		*
Asmanex		206		208		-1		185		195		-5		21		13		63
Proventil		155		210		-26		145		202		-28		10		8		30
Dulera		96		8		*		94		8		*		2				*
Vaccines
Gardasil		1,209		988		22		880		722		22		329		266		24
ProQuad, M-M-R II and Varivax		1,202		1,378		-13		1,108		1,305		-15		94		73		29
RotaTeq		651		519		25		522		439		19		129		81		60
Pneumovax		498		376		33		350		296		18		148		80		85
Zostavax		332		243		37		320		243		32		12				*
Women’s Health & Endocrine
Fosamax		855		926		-8		45		93		-52		810		832		-3
NuvaRing		623		559		12		369		342		8		254		217		17
Follistim AQ		530		528				163		167		-2		367		361		2
Implanon		294		236		25		126		86		45		169		150		13
Cerazette		268		209		28								268		209		28
Other Pharmaceutical (3)		3,521		3,879		-9		593		781		-24		2,928		3,098		-5
ANIMAL HEALTH		3,253		2,941		11		711		616		15		2,542		2,326		9
CONSUMER CARE (2)		1,840		1,823		1		1,210		1,213				630		609		3
Claritin OTC		511		526		-3		363		379		-4		147		147
Other Revenues (4)		1,666		1,956		-15		1,457		1,649		-12		208		307		-32
Astra		1,184		1,252		-5		1,184		1,252		-5

* 100% or greater

⁽¹⁾  Only select products are shown.

⁽²⁾  In the first quarter of 2011, Merck changed the reporting for certain over-the-counter products. Sales of these products outside the United States were previously recorded in the Pharmaceutical business, and are now reported in the Consumer Care business. Prior period amounts have been recast on a comparative basis.

⁽³⁾ Includes Pharmaceutical products not individually shown above. Other Vaccine sales included in Other Pharmaceutical were $283 million and $282 million on a global basis for full year 2011 and 2010, respectively.

⁽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)

Table 3c

	1Q11			2Q11			3Q11			4Q11			Full Year			1Q10			2Q10			3Q10			4Q10			Full Year			% Change 4Q		% Change FY
TOTAL PHARMACEUTICAL	$	9,820		$	10,360		$	10,354		$	10,755		$	41,289		$	9,665		$	9,638		$	9,523		$	10,441		$	39,267			3		5
United States		3,907			4,088			4,515			4,606			17,117			4,072			4,026			4,265			4,384			16,748			5		2
% Pharmaceutical Sales		39.8	%		39.5	%		43.6	%		42.8	%		41.5	%		42.1	%		41.8	%		44.8	%		42.0	%		42.7	%
Europe (1)		2,587			2,827			2,588			2,621			10,623			2,810			2,631			2,342			2,677			10,459			-2		2
% Pharmaceutical Sales		26.3	%		27.3	%		25.0	%		24.4	%		25.7	%		29.1	%		27.3	%		24.6	%		25.6	%		26.6	%
Japan		1,164			1,104			1,114			1,327			4,709			811			902			855			1,077			3,645			23		29
% Pharmaceutical Sales		11.8	%		10.7	%		10.8	%		12.3	%		11.4	%		8.4	%		9.4	%		9.0	%		10.3	%		9.3	%
Latin America		700			743			667			747			2,857			659			696			699			778			2,832			-4		1
% Pharmaceutical Sales		7.1	%		7.2	%		6.4	%		6.9	%		6.9	%		6.8	%		7.2	%		7.3	%		7.5	%		7.2	%
Asia Pacific		699			779			763			736			2,977			561			622			618			702			2,503			5		19
% Pharmaceutical Sales		7.1	%		7.5	%		7.4	%		6.8	%		7.2	%		5.8	%		6.5	%		6.5	%		6.7	%		6.4	%
China		187			206			220			221			834			133			159			145			173			611			28		37
Eastern Europe/Middle East Africa		358			369			371			378			1,476			375			395			353			393			1,516			-4		-3
% Pharmaceutical Sales		3.6	%		3.6	%		3.6	%		3.5	%		3.6	%		3.9	%		4.1	%		3.7	%		3.8	%		3.9	%
Canada		360			399			285			279			1,323			337			328			374			364			1,403			-23		-6
% Pharmaceutical Sales		3.7	%		3.9	%		2.8	%		2.6	%		3.2	%		3.5	%		3.4	%		3.9	%		3.5	%		3.6	%
Other		45			51			51			61			208			40			37			17			67			161			-9		29
% Pharmaceutical Sales		0.5	%		0.5	%		0.5	%		0.6	%		0.5	%		0.4	%		0.4	%		0.2	%		0.6	%		0.4	%

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

MERCK & CO., INC.

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

FOURTH QUARTER 2011

AMOUNTS IN MILLIONS

Table 4

EQUITY INCOME FROM AFFILIATES

	4Q11		4Q10			Full Year 2011		Full Year 2010
ASTRAZENECA LP	$	256	$	190		$	574	$	546
Other (1)		1		(19	)		36		41
TOTAL	$	257	$	171		$	610	$	587

⁽¹⁾ Primarily reflects results for Sanofi Pasteur MSD and Johnson & JohnsonºMerck Consumer Pharmaceuticals Company (“JJMCP”). In the third quarter of 2011, the company divested its interest in the JJMCP joint venture.

SANOFI PASTEUR MSD JOINT VENTURE SALES DETAIL

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

	4Q11		4Q10		Full Year 2011		Full Year 2010
GARDASIL	$	70	$	106	$	253	$	350
FLU VACCINES		54		62		183		220
OTHER VIRAL VACCINES		28		27		105		93
ROTATEQ		12		9		44		42
HEPATITIS VACCINES		10		7		39		25
Other Vaccines		131		135		486		487
TOTAL SANOFI PASTEUR MSD SALES	$	305	$	346	$	1,110	$	1,217

OTHER (INCOME) EXPENSE, NET

	4Q11			4Q10			Full Year 2011			Full Year 2010
INTEREST INCOME	$	(61	)	$	(27	)	$	(199	)	$	(83	)
INTEREST EXPENSE		192			177			749			715
EXCHANGE LOSSES		41			130			143			214
Other, net (1)		(33	)		29			253			458
TOTAL	$	139		$	309		$	946		$	1,304

⁽¹⁾ Other, net for the full year of 2011 includes a charge of $500 million related to the resolution of the arbitration proceeding with Johnson & Johnson. Other, net for the full year of 2010 reflects a $950 million legal reserve and $443 million of income recognized upon AstraZeneca’s asset option exercise.