Merck & Co., Inc. - FORM 8-K - EX-99.2 - CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN THE PRESS RELEASE

Attached files

file	filename
8-K - FORM 8-K - Merck & Co., Inc.	d8k.htm
EX-99.3 - PRESS RELEASE ISSUED APRIL 27, 2011 - Merck & Co., Inc.	dex993.htm
EX-99.1 - PRESS RELEASE ISSUED APRIL 29, 2011 REGARDING EARNINGS FOR FIRST QUARTER 2011 - Merck & Co., Inc.	dex991.htm

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			1Q			2Q			3Q			4Q			Full Year			1Q
Sales	$	11,580		$	11,422		$	11,346		$	11,125		$	12,094		$	45,987			1	%

Costs, Expenses and Other
Materials and production		4,059			5,216			4,549			4,191			4,440			18,396			-22	%
Marketing and administrative ⁽¹⁾		3,164			3,222			3,175			3,192			3,537			13,125			-2	%
Research and development ⁽¹⁾		2,158			2,051			2,179			2,322			4,559			11,111			5	%
Restructuring costs		(14	)		288			526			50			121			985			*
Equity income from affiliates		(138	)		(138	)		(43	)		(236	)		(171	)		(587	)		—
Other (income) expense, net		622			167			(281	)		1,108			309			1,304			*

Income (Loss) Before Taxes		1,729			616			1,241			498			(701	)		1,653			*
Income Tax Provision (Benefit)		658			286			461			126			(201	)		671
Net Income (Loss)		1,071			330			780			372			(500	)		982			*
Less: Net Income Attributable to Noncontrolling Interests		28			31			28			30			31			121
Net Income (Loss) Attributable to Merck & Co., Inc.	$	1,043		$	299		$	752		$	342		$	(531	)	$	861			*
Earnings (Loss) per Common Share Assuming Dilution	$	0.34		$	0.09		$	0.24		$	0.11		$	(0.17	)	$	0.28			*

Average Shares Outstanding Assuming Dilution		3,104			3,141			3,125			3,102			3,081			3,120
Tax Rate		38.1	%		46.4	%		37.1	%		25.3	%		28.7	%		40.6	%

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

*³ 100%

(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

FIRST QUARTER 2010

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b


	GAAP			Purchase Accounting ⁽¹⁾			Restructuring Costs ⁽²⁾			Merger-Related Costs ⁽³⁾			Adjustment Subtotal			Non-GAAP
Sales	$	11,422											$	—		$	11,422

Materials and production		5,216			2,347			57						2,404			2,812

Marketing and administrative		3,222									80			80			3,142

Research and development		2,051			27			6						33			2,018

Restructuring costs		288						288						288			—

Equity income from affiliates		(138	)											—			(138	)

Other (income) expense, net		167									7			7			160

Income Before Taxes		616			(2,374	)		(351	)		(87	)		(2,812	)		3,428

Taxes on Income		286												(503	) ⁽⁴⁾		789

Net Income		330												(2,309	)		2,639

Less: Net Income Attributable to Noncontrolling Interests		31												—			31

Net Income Attributable to Merck & Co., Inc.	$	299											$	(2,309	)	$	2,608

Earnings per Common Share Assuming Dilution	$	0.09														$	0.83	⁽⁵⁾

Average Shares Outstanding Assuming Dilution		3,141															3,141

Tax Rate		46.4	%														23.0	%

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 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.

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

(4)	Includes 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 $2,596 million for the first quarter of 2010.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FIRST QUARTER 2011

(AMOUNTS IN MILLIONS)

Table 3a


	Global						U.S.						International
	1Q11		1Q10		% Change		1Q11		1Q10		% Change		1Q11		1Q10		% Change
TOTAL SALES ⁽¹⁾	$	11,580	$	11,422		1	$	4,848	$	4,998		-3	$	6,732	$	6,424		5


PHARMACEUTICAL ⁽²⁾		9,820		9,665		2		3,907		4,072		-4		5,912		5,593		6

Cardiovascular
Zetia		582		534		9		298		281		6		284		253		12
Vytorin		480		477		1		247		254		-3		233		222		5
Integrilin		64		70		-9		59		65		-9		5		5		-4

Diabetes & Obesity
Januvia		739		511		45		426		354		20		313		157		*
Janumet		305		201		52		163		125		30		142		76		88

Diversified Brands
Cozaar / Hyzaar		426		782		-46		36		291		-87		389		490		-21
Zocor		127		116		10		8		10		-18		119		106		13
Claritin Rx		120		98		23								120		98		23
Propecia		106		100		7		32		35		-9		74		64		16
Proscar		60		58		3		2		2		1		59		57		3
Remeron		60		51		18		2		1		58		58		49		17
Vasotec / Vaseretic		57		59		-4								57		59		-4

Infectious Disease
Isentress		292		232		26		150		111		34		143		121		18
PegIntron		166		186		-11		18		26		-31		148		161		-8
Cancidas		158		153		3		12		15		-19		146		138		6
Primaxin		136		159		-14		25		35		-29		111		124		-10
Avelox		106		106		1		97		101		-4		10		4		*
Invanz		87		75		16		44		38		16		42		37		16
Noxafil		55		49		12		16		12		28		39		37		6
Rebetol		53		56		-7								53		56		-7
Crixivan / Stocrin		45		52		-13		2		3		-39		43		49		-12

Neurosciences & Ophthalmology
Maxalt		173		135		29		132		83		59		41		52		-20
Cosopt / Trusopt		114		115		-1		4		5		-36		111		109		1

Oncology
Temodar		248		274		-10		102		92		11		145		182		-20
Emend		87		84		4		51		51		-1		36		32		11
Intron A		49		54		-11		26		30		-16		23		24		-4

Respiratory & Immunology
Singulair		1,328		1,165		14		810		728		11		518		437		19
Remicade		753		674		12								753		674		12
Nasonex		373		320		17		156		155		1		216		164		32
Clarinex		155		164		-5		47		49		-5		109		114		-5
Arcoxia		114		95		19								114		95		19
Asmanex		60		51		17		54		49		11		5		2		*
Simponi		54		10		*								54		10		*
Proventil		42		57		-26		39		56		-29		3		1		*
Dulera		13				*		13				*

Vaccines
ProQuad, M-M-R II and Varivax		244		319		-23		226		296		-24		19		23		-18
Gardasil		214		233		-8		151		156		-3		63		77		-18
RotaTeq		125		93		35		107		74		46		18		19		-8
Pneumovax		79		51		55		60		40		50		19		11		75
Zostavax		24		95		-74		22		95		-77		2				*

Women’s Health & Endocrine
Fosamax		208		230		-10		13		25		-50		195		205		-5
NuvaRing		142		135		5		87		83		4		56		52		7
Follistim AQ		133		134				38		41		-7		95		93		3
Implanon		60		51		18		24		19		27		35		31		12
Cerazette		59		55		7								59		55		7

Other Pharmaceutical ⁽³⁾		745		946		-21		109		181		-40		637		765		-17

ANIMAL HEALTH		758		709		7		164		140		17		594		569		4

CONSUMER CARE ⁽²⁾		517		489		6		357		338		6		161		151		6
Claritin OTC		167		136		22		132		102		29		34		34		1

Other Revenues ⁽⁴⁾		486		559		-13		421		448		-6		65		111		-41
Astra		322		364		-11		322		364		-11

^*	100% or over

⁽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 Vaccines sales included in Other Pharmaceutical were $54 million and $55 million on a global basis for first 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.

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

Table 3b


	1Q11			1Q10			2Q10			3Q10			4Q10			Full Year			% Change 1Q
TOTAL PHARMACEUTICAL	$	9,820		$	9,665		$	9,638		$	9,523		$	10,441		$	39,267			2


United States		3,907			4,072			4,026			4,265			4,384			16,748			-4
% Pharmaceutical Sales		39.8	%		42.1	%		41.8	%		44.8	%		42.0	%		42.7	%

Europe ⁽¹⁾		2,587			2,810			2,631			2,342			2,677			10,459			-8
% Pharmaceutical Sales		26.3	%		29.1	%		27.3	%		24.6	%		25.6	%		26.6	%

Japan		1,164			811			902			855			1,077			3,645			44
% Pharmaceutical Sales		11.8	%		8.4	%		9.4	%		9.0	%		10.3	%		9.3	%

Latin America		700			659			696			699			778			2,832			6
% Pharmaceutical Sales		7.1	%		6.8	%		7.2	%		7.3	%		7.5	%		7.2	%

Asia Pacific		699			561			622			618			702			2,503			25
% Pharmaceutical Sales		7.1	%		5.8	%		6.5	%		6.5	%		6.7	%		6.4	%

China		187			133			159			145			173			611			40

Eastern Europe/Middle East Africa		358			375			395			353			393			1,516			-5
% Pharmaceutical Sales		3.6	%		3.9	%		4.1	%		3.7	%		3.8	%		3.9	%

Canada		360			337			328			374			364			1,403			7
% Pharmaceutical Sales		3.7	%		3.5	%		3.4	%		3.9	%		3.5	%		3.6	%

Other		45			40			37			17			67			161			13
% Pharmaceutical Sales		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

FIRST QUARTER 2011

Table 4

EQUITY INCOME FROM AFFILIATES (millions of dollars)



	1Q11		1Q10
ASTRAZENECA LP	$	133	$	125
Other ⁽¹⁾		5		13

TOTAL	$	138	$	138

⁽¹⁾	Primarily reflects results for Sanofi Pasteur MSD and Johnson & JohnsonºMerck Consumer Pharmaceuticals.

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

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


	1Q11		1Q10
GARDASIL	$	58	$	82
OTHER VIRAL VACCINES		19		23
HEPATITIS VACCINES		10		6
ROTATEQ		9		12
FLU VACCINES		2		10
Other Vaccines		89		118

TOTAL SANOFI PASTEUR MSD SALES	$	187	$	251

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


	1Q11			1Q10
INTEREST INCOME	$	(41	)	$	(12	)
INTEREST EXPENSE		186			181
EXCHANGE LOSSES		42			80
Other, net ⁽¹⁾		435			(82	)

TOTAL	$	622		$	167

⁽¹⁾	Other, net in the first quarter of 2011 includes a $500 million charge related to the resolution of the arbitration proceeding with Johnson & Johnson.

Merck & Co., Inc. - FORM 8-K - EX-99.2 - CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN THE PRESS RELEASE - April 29, 2011

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Merck & Co., Inc. Reports