Merck Announces Second-Quarter 2023 Financial Results
- Total worldwide sales increased by 3% from Q2 2022 to $15.0 billion
- Excluding LAGEVRIO, sales growth was 11%
- KEYTRUDA sales grew 19% to $6.3 billion
- GARDASIL/GARDASIL 9 sales grew 47% to $2.5 billion
- LAGEVRIO sales declined 83% to $203 million
- Merck raises and narrows full-year sales outlook to be between $58.6 billion and $59.6 billion
- GAAP loss per share was $2.35
- Non-GAAP loss per share was $2.06
- Negative impact from one-time charge of $10.2 billion for the acquisition of Prometheus
- Sales Reflect Sustained Underlying Growth, Particularly in Oncology and Vaccines
-
Total Worldwide Sales Were
, an Increase of$15.0 Billion 3% From Second Quarter 2022; Excluding LAGEVRIO, Growth Was11% ; Excluding LAGEVRIO and the Impact of Foreign Exchange, Growth Was14% -
KEYTRUDA Sales Grew
19% to ; Excluding the Impact of Foreign Exchange, Sales Grew$6.3 Billion 21% -
GARDASIL/GARDASIL 9 Sales Grew
47% to ; Excluding the Impact of Foreign Exchange, Sales Grew$2.5 Billion 53% -
LAGEVRIO Sales Declined
83% to ; Excluding the Impact of Foreign Exchange, Sales Declined$203 Million 82%
-
KEYTRUDA Sales Grew
-
GAAP Loss per Share Was
; Non-GAAP Loss per Share Was$2.35 ; GAAP and Non-GAAP Loss per Share Include a Charge of$2.06 per Share for the Acquisition of Prometheus$4.02 -
Presented Compelling Data in Earlier Stages of Cancer at 2023 ASCO Annual Meeting, Including:
- Positive Phase 3 Results From KEYNOTE-671 Trial
- Promising New Data From Phase 2b KEYNOTE-942/mRNA-4157-P201 Trial in Collaboration With Moderna
- Announced Positive Results From Two Phase 3 Trials Evaluating V116
-
Submitted Biologics License Application to the
U.S. FDA for Sotatercept -
Full-Year 2023 Financial Outlook
-
Raises and Narrows Expected Worldwide Sales Range To Be Between
and$58.6 Billion , Including Negative Impact of Foreign Exchange of Approximately 2 Percentage Points; Outlook Includes Approximately$59.6 Billion of LAGEVRIO Sales$1.0 Billion -
Now Expects Non-GAAP EPS To Be Between
and$2.95 , Including the Negative Impact of Foreign Exchange of Approximately 5 Percentage Points; Outlook Reflects Negative Impact From One-Time Charge of$3.05 , or$10.2 Billion per Share, for the Acquisition of Prometheus$4.02
-
Raises and Narrows Expected Worldwide Sales Range To Be Between
"We continue to make great progress as we advance our broad and deep pipeline, raise the bar of innovation, and bring forward leading-edge science to save and improve lives around the world," said Robert M. Davis, chairman and chief executive officer, Merck. "We delivered robust underlying growth during the second quarter and are well positioned to achieve strong full-year results. I am proud of our talented, diverse and dedicated global team that continues to focus on creating value for patients and all our stakeholders now and well into the future.”
Financial Summary
$ in millions, except EPS amounts |
Second Quarter |
|||
2023 |
2022 |
Change |
Change Ex-
|
|
Sales |
|
|
|
|
GAAP net (loss) income1 |
(5,975) |
3,944 |
**N/M |
N/M |
Non-GAAP net (loss) income that excludes certain items1,2* |
(5,220) |
4,743 |
N/M |
N/M |
GAAP EPS |
(2.35) |
1.55 |
N/M |
N/M |
Non-GAAP EPS that excludes certain items2* |
(2.06) |
1.87 |
N/M |
N/M |
*Refer to table on page 6. |
||||
**Not meaningful |
Generally Accepted Accounting Principles (GAAP) loss / earnings per share (EPS) assuming dilution was a loss per share of
Non-GAAP EPS excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities.
Year-to-date results can be found in the attached tables.
Second-Quarter Sales Performance
The following table reflects sales of the company’s top products and significant performance drivers.
|
Second Quarter |
||||
$ in millions |
2023 |
2022 |
Change |
Change Ex-
|
Commentary |
Total Sales |
|
|
|
|
|
Pharmaceutical |
13,457 |
12,756 |
|
|
Increase driven by growth in oncology, vaccines and hospital acute care, partially offset by lower sales in virology due to LAGEVRIO, and in diabetes. Excluding LAGEVRIO, growth of |
KEYTRUDA |
6,271 |
5,252 |
|
|
Growth from continued strong global momentum in metastatic indications, including certain types of non-small cell lung cancer (NSCLC), renal cell carcinoma (RCC), head and neck squamous cell carcinoma and triple-negative breast cancer (TNBC), and increased uptake across earlier-stage indications, including certain types of neoadjuvant/adjuvant TNBC in the |
GARDASIL / GARDASIL 9 |
2,458 |
1,674 |
|
|
Growth largely due to strong global demand, particularly in |
JANUVIA / JANUMET |
864 |
1,233 |
- |
- |
Decline primarily due to generic competition in several international markets, particularly in |
PROQUAD, M-M-R II and VARIVAX |
582 |
578 |
|
|
Relatively flat compared with prior year. |
BRIDION |
502 |
426 |
|
|
Growth primarily due to increased demand, particularly in the |
Lynparza* |
310 |
275 |
|
|
Growth driven primarily by increased demand in certain international markets. |
Lenvima* |
242 |
231 |
|
|
Growth primarily due to higher demand in the |
LAGEVRIO |
203 |
1,177 |
- |
- |
Decrease largely attributable to lower sales in |
SIMPONI |
180 |
181 |
- |
- |
Relatively flat compared with prior year. |
VAXNEUVANCE |
168 |
12 |
***N/M |
N/M |
Growth driven largely by continued uptake in pediatric indication following launch in the |
Animal Health |
1,456 |
1,467 |
- |
|
Excluding unfavorable impact of foreign exchange, growth primarily driven by higher pricing in both Livestock and Companion Animal product portfolios. |
Livestock |
807 |
826 |
- |
|
Excluding unfavorable impact of foreign exchange, growth due to higher pricing, as well as higher demand for swine and poultry products, partially offset by lower demand for ruminant products, due in part to reduced herd sizes. |
Companion Animal |
649 |
641 |
|
|
Growth driven by higher pricing, including for the BRAVECTO line of products, partially offset by supply challenges for certain companion animal vaccines. Sales of BRAVECTO were |
Other Revenues** |
122 |
370 |
- |
- |
Decline primarily due to impact of revenue hedging. Excluding unfavorable impact of foreign exchange, decline due to lower royalties and milestone payments received for out-licensing arrangements. |
*Alliance revenue for this product represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs. |
|||||
**Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. |
|||||
***Not meaningful |
Second-Quarter Expense, EPS and Related Information
The table below presents selected expense information.
$ in millions |
GAAP |
Acquisition-
|
Restructuring
|
(Income)
|
Non-
|
Second Quarter 2023 |
|
|
|
|
|
Cost of sales |
|
|
|
$- |
|
Selling, general and administrative |
2,702 |
25 |
52 |
- |
2,625 |
Research and development |
13,321 |
9 |
1 |
- |
13,311 |
Restructuring costs |
151 |
- |
151 |
- |
- |
Other (income) expense, net |
172 |
(3) |
- |
194 |
(19) |
|
|
|
|
|
|
Second Quarter 2022 |
|
|
|
|
|
Cost of sales |
|
|
|
$- |
|
Selling, general and administrative |
2,512 |
65 |
27 |
- |
2,420 |
Research and development |
2,798 |
12 |
22 |
- |
2,764 |
Restructuring costs |
142 |
- |
142 |
- |
- |
Other (income) expense, net |
438 |
2 |
- |
234 |
202 |
GAAP Expense, EPS and Related Information
Gross margin was
Selling, general and administrative (SG&A) expenses were
Research and development (R&D) expenses were
Other (income) expense, net, was
The income tax provision for the second quarter of 2023 was
GAAP loss per share was
Non-GAAP Expense, EPS and Related Information
Non-GAAP gross margin was
Non-GAAP SG&A expenses were
Non-GAAP R&D expenses were
Non-GAAP other (income) expense, net, was
The non-GAAP income tax provision for the second quarter of 2023 was
Non-GAAP loss per share was
A reconciliation of GAAP to non-GAAP net (loss) income and EPS is provided in the table that follows.
Second Quarter |
||
$ in millions, except EPS amounts |
2023 |
2022 |
EPS |
|
|
GAAP EPS |
|
|
Difference |
0.29 |
0.32 |
Non-GAAP EPS that excludes items listed below2 |
|
|
|
|
|
Net (Loss) Income |
|
|
GAAP net (loss) income1 |
|
|
Difference |
755 |
799 |
Non-GAAP net (loss) income that excludes items listed below1,2 |
|
|
|
|
|
Excluded Items: |
|
|
Acquisition- and divestiture-related costs3 |
|
|
Restructuring costs |
236 |
258 |
Loss from investments in equity securities |
194 |
234 |
Increase to net loss / decrease to net income before taxes |
928 |
1,022 |
Estimated income tax (benefit) expense |
(173) |
(223) |
Increase to net loss / decrease to net income |
|
|
Pipeline and Portfolio Highlights
Merck’s expansive research efforts resulted in continued progress across its broad pipeline and portfolio. In oncology, the company reached regulatory milestones across different stages of cancer and shared positive results from a range of clinical trials. Notably, Merck presented data on four approved medicines and two pipeline candidates in more than 25 types of cancer at the 2023 American Society of Clinical Oncology (ASCO) Annual Meeting, including investigational data for KEYTRUDA that demonstrates its progress in earlier stages of disease.
Further, in vaccines, Merck announced positive topline results demonstrating that V116, an investigational 21-valent pneumococcal conjugate vaccine specifically designed for adults, met key immunogenicity and safety endpoints in two Phase 3 trials. In cardiovascular, Merck submitted a Biologics License Application to the
Merck also completed the acquisition of Prometheus, which will accelerate the company’s growing presence in immunology and add diversity to its pipeline. Prometheus’ leading clinical candidate, MK-7240, formerly known as PRA-023, creates an opportunity for Merck to transform the treatment of immune-mediated diseases.
Notable recent news releases on Merck’s pipeline and portfolio are provided in the table that follows.
Oncology |
FDA Approved Lynparza Plus Abiraterone and Prednisone or Prednisolone for Treatment of Adult Patients With BRCA-Mutated Metastatic Castration-Resistant Prostate Cancer |
|
FDA Accepted Application for Merck’s KEYTRUDA Plus Chemotherapy as Treatment for Advanced or Unresectable Biliary Tract Cancer |
||
Merck’s KEYTRUDA Plus Chemotherapy Before Surgery and Continued as a Single Agent After Surgery Reduced the Risk of Event-Free Survival Events by |
||
Merck and Moderna Initiated Phase 3 Study Evaluating V940 (mRNA-4157) In Combination With KEYTRUDA for Adjuvant Treatment of Patients With Resected High-Risk (Stage IIB-IV) Melanoma |
||
Merck and Moderna Announced mRNA-4157 (V940) in Combination With KEYTRUDA Demonstrated a Statistically Significant and Clinically Meaningful Improvement in Distant Metastasis-Free Survival in Patients With High-Risk Stage III/IV Melanoma Following Complete Resection Versus KEYTRUDA |
||
KEYTRUDA Plus Chemotherapy Significantly Improved Overall Survival Versus Chemotherapy Alone as First-Line Treatment for Unresectable Advanced Pleural Mesothelioma |
||
KEYTRUDA Plus Lenvima Demonstrated Long-Term, Durable Survival Benefit Versus Sunitinib as First-Line Treatment for Patients With Advanced RCC |
||
Merck Announced Phase 3 KEYNOTE-A18 Trial Met Primary Endpoint of Progression-Free Survival (PFS) in Patients With Newly Diagnosed High-Risk Locally Advanced Cervical Cancer |
||
KEYTRUDA Plus Trastuzumab and Chemotherapy Met Primary Endpoint of PFS as First-Line Treatment in Patients With HER2-Positive Advanced Gastric or Gastroesophageal Junction Adenocarcinoma |
||
Vaccines |
Merck Announced V116, an Investigational, 21-Valent Pneumococcal Conjugate Vaccine Specifically Designed for Adults, Met Key Immunogenicity and Safety Endpoints in Two Phase 3 Trials |
|
Other Pipeline Updates |
FDA Approved New Indication for Merck’s PREVYMIS for Prevention of Cytomegalovirus Disease in High-Risk Adult Kidney Transplant Recipients |
|
Merck Presented Phase 2a Data for Efinopegdutide (MK-6024), an Investigational GLP-1/Glucagon Receptor Co-agonist, in Patients With Nonalcoholic Fatty Liver Disease, at EASL 2023; Additionally, Efinopegdutide Was Granted Fast Track Designation by the FDA for the Treatment of Nonalcoholic Steatohepatitis (NASH) |
||
Merck Received Positive European Union Committee for Medicinal Products for Human Use (CHMP) Opinion for Gefapixant |
Full-Year 2023 Financial Outlook
The following table summarizes the company’s full-year financial outlook.
Sales* |
|
Non-GAAP Gross margin2 |
Approximately |
Non-GAAP Operating expenses2** |
|
Non-GAAP Other (income) expense, net2 |
Approximately |
Non-GAAP Effective tax rate2*** |
|
Non-GAAP EPS2**** |
|
Share count (assuming dilution) |
2.55 billion |
*Includes approximately |
**Includes an aggregate |
***Includes a negative impact of 15 percentage points from the one-time charge for the acquisition of Prometheus. |
****Includes |
Merck has not provided a reconciliation of forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective tax rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary for such a reconciliation, including intangible asset impairment charges, legal settlements, and gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are inherently difficult to forecast and could have a significant impact on the company’s future GAAP results.
Merck continues to experience strong global demand for key growth products, particularly in oncology and vaccines. As a result, Merck is raising and narrowing its full-year sales outlook. Merck now expects full-year sales to be between
Merck’s full-year non-GAAP effective income tax rate is expected to be between
Merck now expects its full-year non-GAAP EPS to be between
-
Additional strength in the business of approximately
per share.$0.24 -
A charge of
, or$10.2 billion per share, for the acquisition of Prometheus.$4.02 -
Estimated 2023 expense of approximately
per share to be incurred to finance the Prometheus acquisition and to advance the acquired assets.$0.14 -
A less than
1% , or approximately per share, incremental negative impact of foreign exchange.$0.02
The non-GAAP EPS range excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities, and a previously disclosed charge related to settlements with certain plaintiffs in the Zetia antitrust litigation.
Earnings Conference Call
Investors, journalists and the general public may access a live audio webcast of the earnings conference call on Tuesday, Aug. 1, at 8 a.m. ET via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures, prepared remarks and slides highlighting the results, will be available at www.merck.com.
All participants may join the call by dialing (888) 769-8514 (
About Merck
At Merck, known as MSD outside of
Forward-Looking Statement of Merck & Co., Inc.,
This news release of Merck & Co., Inc.,
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 the global outbreak of novel coronavirus disease (COVID-19); the impact of pharmaceutical industry regulation and health care legislation in
The company 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 the company’s Annual Report on Form 10-K for the year ended December 31, 2022, and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
Appendix
Generic product names are provided below.
Pharmaceutical
BRIDION (sugammadex)
GARDASIL (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant)
GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant)
JANUMET (sitagliptin and metformin HCl)
JANUVIA (sitagliptin)
KEYTRUDA (pembrolizumab)
LAGEVRIO (molnupiravir)
Lenvima (lenvatinib)
Lynparza (olaparib)
M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live)
PREVYMIS (letermovir)
PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live)
SIMPONI (golimumab)
VARIVAX (Varicella Virus Vaccine Live)
VAXNEUVANCE (Pneumococcal 15-valent Conjugate Vaccine)
Animal Health
BRAVECTO (fluralaner)
________________________________ |
1 Net (loss) income attributable to Merck & Co., Inc. |
2 Merck is providing certain 2023 and 2022 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 results because management uses non-GAAP results to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, senior management’s annual compensation is derived in part using a non-GAAP pre-tax income metric. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the non-GAAP adjustments, see Table 2a attached to this release. |
3 Includes expenses for the amortization of intangible assets and purchase accounting adjustments to inventories recognized as a result of acquisitions of businesses, intangible asset impairment charges and expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration. Also includes integration, transaction and certain other costs associated with acquisitions and divestitures, as well as amortization of intangible assets related to collaborations and licensing arrangements. |
CONSOLIDATED STATEMENT OF OPERATIONS - GAAP | ||||||||||||||||||
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
Table 1 | ||||||||||||||||||
GAAP |
% Change |
GAAP |
% Change |
|||||||||||||||
2Q23 |
2Q22 |
June YTD
|
June YTD
|
|||||||||||||||
Sales | $ |
15,035 |
|
$ |
14,593 |
|
|
$ |
29,522 |
|
$ |
30,494 |
|
- |
||||
Costs, Expenses and Other | ||||||||||||||||||
Cost of sales |
|
4,024 |
|
|
4,216 |
|
- |
|
7,951 |
|
|
9,596 |
|
- |
||||
Selling, general and administrative |
|
2,702 |
|
|
2,512 |
|
|
|
5,182 |
|
|
4,834 |
|
|
||||
Research and development |
|
13,321 |
|
|
2,798 |
|
* |
|
17,597 |
|
|
5,374 |
|
* |
||||
Restructuring costs |
|
151 |
|
|
142 |
|
|
|
218 |
|
|
194 |
|
|
||||
Other (income) expense, net |
|
172 |
|
|
438 |
|
- |
|
259 |
|
|
1,148 |
|
- |
||||
(Loss) Income Before Taxes |
|
(5,335 |
) |
|
4,487 |
|
* |
|
(1,685 |
) |
|
9,348 |
|
* |
||||
Income Tax Provision |
|
637 |
|
|
538 |
|
|
1,462 |
|
|
1,092 |
|
||||||
Net (Loss) Income |
|
(5,972 |
) |
|
3,949 |
|
* |
|
(3,147 |
) |
|
8,256 |
|
* |
||||
Less: Net Income Attributable to Noncontrolling Interests |
|
3 |
|
|
5 |
|
|
7 |
|
|
2 |
|
||||||
Net (Loss) Income Attributable to Merck & Co., Inc. | $ |
(5,975 |
) |
$ |
3,944 |
|
* |
$ |
(3,154 |
) |
$ |
8,254 |
|
* |
||||
(Loss) Earnings per Common Share Assuming Dilution (1) | $ |
(2.35 |
) |
$ |
1.55 |
|
* |
$ |
(1.24 |
) |
$ |
3.25 |
|
* |
||||
Average Shares Outstanding Assuming Dilution (1) |
|
2,539 |
|
|
2,540 |
|
|
2,539 |
|
|
2,538 |
|
||||||
Tax Rate |
|
-11.9 |
% |
|
12.0 |
% |
|
-86.8 |
% |
|
11.7 |
% |
||||||
* |
||||||||||||||||||
(1) Because the company recorded a net loss in the second quarter and first six months of 2023, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive. |
||||||||||||||||||
MERCK & CO., INC. | |||||||||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2023 GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
Table 2a | |||||||||||||||||||||||
GAAP |
Acquisition and Divestiture-
|
Restructuring Costs (2) |
(Income) Loss from
|
Certain Other Items |
Adjustment Subtotal |
Non-GAAP |
|||||||||||||||||
Second Quarter | |||||||||||||||||||||||
Cost of sales | $ |
4,024 |
|
467 |
|
32 |
|
499 |
|
$ |
3,525 |
|
|||||||||||
Selling, general and administrative |
|
2,702 |
|
25 |
|
52 |
|
77 |
|
|
2,625 |
|
|||||||||||
Research and development |
|
13,321 |
|
9 |
|
1 |
|
10 |
|
|
13,311 |
|
|||||||||||
Restructuring costs |
|
151 |
|
151 |
|
151 |
|
|
- |
|
|||||||||||||
Other (income) expense, net |
|
172 |
|
(3 |
) |
194 |
|
191 |
|
|
(19 |
) |
|||||||||||
Loss Before Taxes |
|
(5,335 |
) |
(498 |
) |
(236 |
) |
(194 |
) |
(928 |
) |
|
(4,407 |
) |
|||||||||
Income Tax Provision (Benefit) |
|
637 |
|
(91 |
) |
(4) |
(38 |
) |
(4) |
(44 |
) |
(4) |
(173 |
) |
|
810 |
|
||||||
Net Loss |
|
(5,972 |
) |
(407 |
) |
(198 |
) |
(150 |
) |
(755 |
) |
|
(5,217 |
) |
|||||||||
Net Loss Attributable to Merck & Co., Inc. |
|
(5,975 |
) |
(407 |
) |
(198 |
) |
(150 |
) |
(755 |
) |
|
(5,220 |
) |
|||||||||
Loss per Common Share Assuming Dilution(5) | $ |
(2.35 |
) |
(0.16 |
) |
(0.07 |
) |
(0.06 |
) |
(0.29 |
) |
$ |
(2.06 |
) |
|||||||||
Tax Rate |
|
-11.9 |
% |
|
-18.4 |
% |
|||||||||||||||||
June YTD | |||||||||||||||||||||||
Cost of sales | $ |
7,951 |
|
1,012 |
|
61 |
|
1,073 |
|
$ |
6,878 |
|
|||||||||||
Selling, general and administrative |
|
5,182 |
|
45 |
|
53 |
|
98 |
|
|
5,084 |
|
|||||||||||
Research and development |
|
17,597 |
|
19 |
|
1 |
|
20 |
|
|
17,577 |
|
|||||||||||
Restructuring costs |
|
218 |
|
218 |
|
218 |
|
|
- |
|
|||||||||||||
Other (income) expense, net |
|
259 |
|
12 |
|
(235 |
) |
573 |
|
(3) |
350 |
|
|
(91 |
) |
||||||||
(Loss) Income Before Taxes |
|
(1,685 |
) |
(1,088 |
) |
(333 |
) |
235 |
|
(573 |
) |
(1,759 |
) |
|
74 |
|
|||||||
Income Tax Provision (Benefit) |
|
1,462 |
|
(196 |
) |
(4) |
(56 |
) |
(4) |
51 |
|
(4) |
(60 |
) |
(4) |
(261 |
) |
|
1,723 |
|
|||
Net Loss |
|
(3,147 |
) |
(892 |
) |
(277 |
) |
184 |
|
(513 |
) |
(1,498 |
) |
|
(1,649 |
) |
|||||||
Net Loss Attributable to Merck & Co., Inc. |
|
(3,154 |
) |
(892 |
) |
(277 |
) |
184 |
|
(513 |
) |
(1,498 |
) |
|
(1,656 |
) |
|||||||
Loss per Common Share Assuming Dilution(5) | $ |
(1.24 |
) |
(0.35 |
) |
(0.11 |
) |
0.07 |
|
(0.20 |
) |
(0.59 |
) |
$ |
(0.65 |
) |
|||||||
Tax Rate |
|
-86.8 |
% |
|
2,328.4 |
% |
|||||||||||||||||
Only the line items that are affected by non-GAAP adjustments are shown. |
|||||||||||||||||||||||
Merck is providing certain 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 non-GAAP information enhances investors’ understanding of the company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, senior management’s annual compensation is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. |
|||||||||||||||||||||||
(1) Amounts included in cost of sales primarily reflect expenses for the amortization of intangible assets. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. Amounts included in research and development expenses primarily reflect expenses for the amortization of intangible assets. Amounts included in other (income) expense, net, for the six-month period primarily reflect a |
|||||||||||||||||||||||
(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company's formal restructuring programs. |
|||||||||||||||||||||||
(3) Reflects a charge related to settlements with certain plaintiffs in the Zetia antitrust litigation. |
|||||||||||||||||||||||
(4) Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. |
|||||||||||||||||||||||
(5) Because the company recorded a net loss in the second quarter and first six months of 2023, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive. |
|||||||||||||||||||||||
MERCK & CO., INC. | ||||||||||||||||
FRANCHISE / KEY PRODUCT SALES | ||||||||||||||||
(AMOUNTS IN MILLIONS) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Table 3 | ||||||||||||||||
2023 |
2022 |
2Q |
June YTD |
|||||||||||||
1Q |
2Q |
June YTD |
1Q |
2Q |
June YTD |
3Q |
4Q |
Full Year |
Nom % |
Ex-Exch % |
Nom % |
Ex-Exch % |
||||
TOTAL SALES (1) |
|
|
|
|
|
|
|
|
|
3 |
7 |
-3 |
- |
|||
PHARMACEUTICAL | 12,721 |
13,457 |
26,179 |
14,107 |
12,756 |
26,863 |
12,963 |
12,180 |
52,005 |
6 |
8 |
-3 |
- |
|||
Oncology | ||||||||||||||||
Keytruda | 5,795 |
6,271 |
12,065 |
4,809 |
5,252 |
10,061 |
5,426 |
5,450 |
20,937 |
19 |
21 |
20 |
23 |
|||
Alliance Revenue – Lynparza (2) | 275 |
310 |
585 |
266 |
275 |
541 |
284 |
292 |
1,116 |
13 |
15 |
8 |
12 |
|||
Alliance Revenue – Lenvima (2) | 232 |
242 |
474 |
227 |
231 |
459 |
202 |
216 |
876 |
5 |
6 |
3 |
5 |
|||
Welireg | 42 |
50 |
92 |
18 |
27 |
45 |
38 |
40 |
123 |
89 |
89 |
105 |
105 |
|||
Alliance Revenue – Reblozyl (3) | 43 |
47 |
90 |
52 |
33 |
86 |
39 |
41 |
166 |
41 |
41 |
4 |
4 |
|||
Vaccines (4) | ||||||||||||||||
Gardasil / Gardasil 9 | 1,972 |
2,458 |
4,430 |
1,460 |
1,674 |
3,133 |
2,294 |
1,470 |
6,897 |
47 |
53 |
41 |
48 |
|||
ProQuad / M-M-R II / Varivax | 528 |
582 |
1,109 |
470 |
578 |
1,047 |
668 |
526 |
2,241 |
1 |
1 |
6 |
7 |
|||
RotaTeq | 297 |
131 |
428 |
216 |
173 |
389 |
256 |
139 |
783 |
-25 |
-24 |
10 |
13 |
|||
Vaxneuvance | 106 |
168 |
274 |
5 |
12 |
16 |
16 |
138 |
170 |
* | * | * | * | |||
Pneumovax 23 | 96 |
92 |
188 |
173 |
153 |
325 |
131 |
145 |
602 |
-40 |
-38 |
-42 |
-39 |
|||
Vaqta | 40 |
42 |
82 |
36 |
35 |
71 |
64 |
39 |
173 |
20 |
20 |
16 |
17 |
|||
Hospital Acute Care | ||||||||||||||||
Bridion | 487 |
502 |
989 |
395 |
426 |
821 |
423 |
441 |
1,685 |
18 |
19 |
21 |
23 |
|||
Prevymis | 129 |
143 |
273 |
94 |
103 |
197 |
114 |
118 |
428 |
39 |
42 |
39 |
43 |
|||
Dificid | 65 |
76 |
141 |
52 |
66 |
119 |
77 |
67 |
263 |
14 |
14 |
19 |
19 |
|||
Primaxin | 80 |
53 |
133 |
58 |
64 |
122 |
63 |
54 |
239 |
-16 |
-12 |
9 |
17 |
|||
Noxafil | 60 |
55 |
116 |
57 |
60 |
118 |
62 |
58 |
238 |
-8 |
-3 |
-2 |
5 |
|||
Zerbaxa | 50 |
54 |
104 |
30 |
46 |
76 |
43 |
49 |
169 |
17 |
18 |
36 |
39 |
|||
Cardiovascular | ||||||||||||||||
Alliance Revenue - Adempas/Verquvo (5) | 99 |
68 |
167 |
72 |
98 |
170 |
88 |
82 |
341 |
-31 |
-31 |
-2 |
-2 |
|||
Adempas (6) | 59 |
65 |
125 |
61 |
63 |
124 |
57 |
57 |
238 |
3 |
5 |
- |
5 |
|||
Virology | ||||||||||||||||
Lagevrio | 392 |
203 |
595 |
3,247 |
1,177 |
4,424 |
436 |
825 |
5,684 |
-83 |
-82 |
-87 |
-85 |
|||
Isentress / Isentress HD | 123 |
136 |
259 |
158 |
147 |
305 |
161 |
167 |
633 |
-7 |
-4 |
-15 |
-12 |
|||
Neuroscience | ||||||||||||||||
Belsomra | 56 |
63 |
119 |
69 |
69 |
137 |
62 |
59 |
258 |
-9 |
-4 |
-14 |
-7 |
|||
Immunology | ||||||||||||||||
Simponi | 180 |
180 |
359 |
186 |
181 |
366 |
173 |
166 |
706 |
-1 |
-1 |
-2 |
1 |
|||
Remicade | 51 |
48 |
99 |
61 |
53 |
114 |
49 |
44 |
207 |
-11 |
-10 |
-13 |
-10 |
|||
Diabetes (7) | ||||||||||||||||
Januvia | 551 |
511 |
1,062 |
779 |
756 |
1,535 |
717 |
561 |
2,813 |
-33 |
-30 |
-31 |
-28 |
|||
Janumet | 329 |
354 |
683 |
454 |
476 |
931 |
417 |
353 |
1,700 |
-26 |
-23 |
-27 |
-24 |
|||
Other Pharmaceutical (8) | 584 |
553 |
1,138 |
602 |
528 |
1,131 |
603 |
583 |
2,319 |
5 |
8 |
1 |
4 |
|||
ANIMAL HEALTH | 1,491 |
1,456 |
2,947 |
1,482 |
1,467 |
2,949 |
1,371 |
1,230 |
5,550 |
-1 |
2 |
- |
4 |
|||
Livestock | 849 |
807 |
1,656 |
832 |
826 |
1,658 |
829 |
814 |
3,300 |
-2 |
2 |
- |
5 |
|||
Companion Animal | 642 |
649 |
1,291 |
650 |
641 |
1,291 |
542 |
416 |
2,250 |
1 |
2 |
- |
2 |
|||
Other Revenues (9) | 275 |
122 |
396 |
312 |
370 |
682 |
625 |
420 |
1,728 |
-67 |
-19 |
-42 |
-20 |
|||
* |
||||||||||||||||
(1) Only select products are shown. |
||||||||||||||||
(2) Alliance Revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs. |
||||||||||||||||
(3) Alliance Revenue represents royalties and a milestone payment of |
||||||||||||||||
(4) Total Vaccines sales were |
||||||||||||||||
(5) Alliance Revenue represents Merck's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs. |
||||||||||||||||
(6) Net product sales in Merck's marketing territories. |
||||||||||||||||
(7) Total Diabetes sales were |
||||||||||||||||
(8) Includes Pharmaceutical products not individually shown above. |
||||||||||||||||
(9) Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of upfront and milestone payments for out-licensed products were |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230801830764/en/
Media Contacts:
Robert Josephson
(203) 914-2372
robert.josephson@merck.com
Michael Levey
(215) 872-1462
michael.levey@merck.com
Investor Contacts:
Peter Dannenbaum
(732) 594-1579
peter.dannenbaum@merck.com
Steven Graziano
(732) 594-1583
steven.graziano@merck.com
Source: Merck & Co., Inc.
FAQ
What were Merck's total worldwide sales in Q2 2023?
How much did KEYTRUDA sales grow in Q2 2023?
What was the decline in LAGEVRIO sales in Q2 2023?