Merck Announces Third-Quarter 2024 Financial Results
Merck reported strong Q3 2024 financial results with total worldwide sales of $16.7 billion, up 4% from Q3 2023. KEYTRUDA sales grew 17% to $7.4 billion, while new launch WINREVAIR achieved sales of $149 million. Animal Health sales increased 6% to $1.5 billion. GAAP EPS was $1.24 and Non-GAAP EPS was $1.57, both including a $0.79 per share net charge from business development transactions. The company narrowed its full-year 2024 outlook, expecting worldwide sales between $63.6-64.1 billion and Non-GAAP EPS between $7.72-7.77.
Merck ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con vendite totali a livello mondiale di 16,7 miliardi di dollari, in aumento del 4% rispetto al terzo trimestre del 2023. Le vendite di KEYTRUDA sono cresciute del 17% a 7,4 miliardi di dollari, mentre il nuovo lancio WINREVAIR ha raggiunto vendite di 149 milioni di dollari. Le vendite nella salute animale sono aumentate del 6% a 1,5 miliardi di dollari. L'EPS GAAP era di 1,24 dollari e l'EPS Non-GAAP di 1,57 dollari, entrambi inclusivi di un addebito netto di 0,79 dollari per azione derivante da transazioni di sviluppo commerciale. L'azienda ha ristretto le previsioni per l'intero anno del 2024, prevedendo vendite mondiali tra 63,6 e 64,1 miliardi di dollari e un EPS Non-GAAP tra 7,72 e 7,77 dollari.
Merck reportó resultados financieros sólidos para el tercer trimestre de 2024, con ventas totales a nivel mundial de 16.7 mil millones de dólares, un aumento del 4% en comparación con el tercer trimestre de 2023. Las ventas de KEYTRUDA crecieron un 17% hasta 7.4 mil millones de dólares, mientras que el nuevo lanzamiento WINREVAIR logró ventas de 149 millones de dólares. Las ventas en Salud Animal aumentaron un 6% hasta 1.5 mil millones de dólares. El EPS GAAP fue de 1.24 dólares y el EPS No GAAP fue de 1.57 dólares, ambos incluidos un cargo neto de 0.79 dólares por acción derivado de transacciones de desarrollo comercial. La compañía ajustó su pronóstico para todo el año 2024, esperando ventas mundiales entre 63.6 y 64.1 mil millones de dólares y un EPS No GAAP entre 7.72 y 7.77 dólares.
머크는 2024년 3분기 강력한 재정 결과를 보고했으며, 전 세계 총 매출은 167억 달러로 2023년 3분기 대비 4% 증가했습니다. KEYTRUDA의 매출은 17% 증가하여 74억 달러에 달했으며, 신제품 WINREVAIR는 1억 4900만 달러의 매출을 기록했습니다. 동물 건강 부문 매출은 6% 증가하여 15억 달러에 이르렀습니다. GAAP EPS는 1.24달러였고, Non-GAAP EPS는 1.57달러로, 두 수치 모두 사업 개발 거래에서 발생한 주당 0.79달러의 순부담을 포함하고 있습니다. 회사는 2024년 전체 전망을 조정하여, 전 세계 판매를 636억에서 641억 달러로 예상하며 Non-GAAP EPS는 7.72에서 7.77달러로 전망하고 있습니다.
Merck a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des ventes mondiales totales de 16,7 milliards de dollars, en hausse de 4 % par rapport au troisième trimestre 2023. Les ventes de KEYTRUDA ont augmenté de 17 % pour atteindre 7,4 milliards de dollars, tandis que le nouveau lancement WINREVAIR a réalisé des ventes de 149 millions de dollars. Les ventes dans la santé animale ont augmenté de 6 % pour atteindre 1,5 milliard de dollars. Le BPA GAAP était de 1,24 dollar et le BPA non GAAP de 1,57 dollar, tous deux incluant une charge nette de 0,79 dollar par action issue de transactions de développement commercial. L'entreprise a affiné ses prévisions pour l'année entière 2024, s'attendant à des ventes mondiales comprises entre 63,6 et 64,1 milliards de dollars et un BPA non GAAP compris entre 7,72 et 7,77 dollars.
Merck hat für das dritte Quartal 2024 starke Finanzzahlen bekannt gegeben, mit weltweiten Gesamterlösen von 16,7 Milliarden Dollar, was einem Anstieg von 4% im Vergleich zum dritten Quartal 2023 entspricht. Die Verkäufe von KEYTRUDA stiegen um 17% auf 7,4 Milliarden Dollar, während der neue Launch WINREVAIR Verkaufszahlen von 149 Millionen Dollar erreichte. Die Erlöse im Bereich Tiergesundheit erhöhten sich um 6% auf 1,5 Milliarden Dollar. Das GAAP EPS betrug 1,24 Dollar und das Non-GAAP EPS betrug 1,57 Dollar, beide einschließlich einer netto Belastung von 0,79 Dollar pro Aktie aus Geschäftsentwicklungstransaktionen. Das Unternehmen hat die Prognose für das Gesamtjahr 2024 eingegrenzt und erwartet weltweite Erlöse zwischen 63,6 und 64,1 Milliarden Dollar und ein Non-GAAP EPS zwischen 7,72 und 7,77 Dollar.
- Total sales increased 4% YoY to $16.7 billion
- KEYTRUDA sales grew 17% to $7.4 billion
- Animal Health sales rose 6% to $1.5 billion
- New product WINREVAIR generated $149 million in sales
- Gross margin improved to 75.5% from 73.3% YoY
- GAAP EPS declined 33% to $1.24 from $1.86 YoY
- Non-GAAP EPS decreased 26% to $1.57 from $2.13 YoY
- GARDASIL/GARDASIL 9 sales declined 11% due to lower China demand
- JANUVIA/JANUMET sales fell 42% due to generic competition
- R&D expenses increased 77% to $5.9 billion
Insights
The Q3 2024 results reveal mixed performance with some notable strengths and challenges. Total sales grew 4% to
Key concerns include declining GARDASIL sales in China and continued pressure on diabetes franchise. The narrowed full-year guidance suggests management's increased confidence in near-term execution, though the
The strategic portfolio transformation is gaining momentum through both organic growth and acquisitions. The expansion in earlier-stage cancers, launch of WINREVAIR in PAH and progress in vaccines create multiple growth drivers. While the
The Animal Health segment's
-
Total Worldwide Sales Were
, an Increase of$16.7 Billion 4% From Third Quarter 2023; Excluding the Impact of Foreign Exchange, Growth Was7% -
KEYTRUDA Sales Grew
17% to ; Excluding the Impact of Foreign Exchange, Sales Grew$7.4 Billion 21% -
WINREVAIR Sales Were
;$149 Million U.S. Launch of WINREVAIR Gaining Momentum; Received Approval in the EU -
Animal Health Sales Grew
6% to ; Excluding the Impact of Foreign Exchange, Sales Grew$1.5 Billion 11%
-
KEYTRUDA Sales Grew
-
GAAP EPS Was
; Non-GAAP EPS Was$1.24 ; GAAP and Non-GAAP EPS Include a Net Charge of$1.57 per Share Related to Certain Business Development Transactions$0.79 -
Achieved Significant Milestones in Vaccine Programs
- CAPVAXIVE Recommended by the CDC’s ACIP for Pneumococcal Vaccination in Adults 50 Years of Age and Older
- Presented Positive Results From Clinical Studies Evaluating Clesrovimab (MK-1654), an Investigational RSV Preventative Monoclonal Antibody for Infants Entering Their First RSV Season
- Data Presented for Four Approved Medicines and Six Pipeline Candidates in More Than 20 Types of Cancer at ESMO Congress 2024, Including Overall Survival Data From KEYNOTE-522 and KEYNOTE-A18
- Completed Acquisition of Investigational B-Cell Depletion Therapy, CN201 (MK-1045), From Curon Biopharmaceutical
-
Full-Year 2024 Financial Outlook
-
Narrows Expected Worldwide Sales Range To Be Between
and$63.6 Billion $64.1 Billion -
Now Expects Non-GAAP EPS To Be Between
and$7.72 ; Outlook Reflects a Net Negative Impact of$7.77 per Share Related to Business Development Transactions With Curon Biopharmaceutical and Daiichi Sankyo$0.24
-
Narrows Expected Worldwide Sales Range To Be Between
“Our third-quarter results were strong, as we continue to make progress heading into 2025 and beyond," said Robert M. Davis, chairman and chief executive officer, Merck. "Our pipeline is advancing and expanding, demonstrating our success in creating a sustainable innovation engine, and positioning Merck with a more diversified portfolio to drive growth. I continue to remain confident in the strength of our business and our ability to execute, and I want to thank our colleagues across the globe for their focus and commitment as we work to create lasting value for patients, shareholders and all our stakeholders.”
Financial Summary
$ in millions, except EPS amounts |
Third Quarter |
|||
2024 |
2023 |
Change |
Change Ex-
|
|
Sales |
|
|
|
|
GAAP net income1 |
3,157 |
4,745 |
- |
- |
Non-GAAP net income that excludes certain items1,2* |
3,985 |
5,427 |
- |
- |
GAAP EPS |
1.24 |
1.86 |
- |
- |
Non-GAAP EPS that excludes certain items2* |
1.57 |
2.13 |
- |
- |
*Refer to table on page 7. |
In the third quarter of 2024, total worldwide sales were
For the third quarter of 2024, Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) assuming dilution was
Non-GAAP EPS in both periods excludes acquisition- and divestiture-related costs, 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.
Third-Quarter Sales Performance
The following table reflects sales of the company’s top products and significant performance drivers.
|
Third Quarter |
||||
$ in millions |
2024 |
2023 |
Change |
Change
|
Commentary |
Total Sales |
|
|
|
|
Approximately 2 percentage points of the negative impact of foreign exchange was due to devaluation of Argentine peso, which was largely offset by inflation-related price increases, consistent with practice in that market. |
Pharmaceutical |
14,943 |
14,263 |
|
|
Increase driven by growth in oncology and cardiovascular, partially offset by declines in diabetes, vaccines and virology. |
KEYTRUDA |
7,429 |
6,338 |
|
|
Growth driven by increased global uptake in earlier-stage indications, including triple-negative breast cancer (TNBC), renal cell carcinoma (RCC) and non-small cell lung cancer (NSCLC), as well as continued strong global demand from metastatic indications. Approximately 3 percentage points of the negative impact of foreign exchange was due to devaluation of Argentine peso, which was largely offset by inflation-related price increases. |
GARDASIL/GARDASIL 9 |
2,306 |
2,585 |
- |
- |
Decline primarily due to lower demand in |
PROQUAD, M-M-R II and VARIVAX |
703 |
713 |
- |
- |
Decline primarily due to timing of shipments and lower tenders in |
JANUVIA/JANUMET |
482 |
835 |
- |
- |
Decline primarily due to lower pricing in the |
BRIDION |
420 |
424 |
- |
|
Relatively flat compared with prior year due to generic competition in certain international markets, particularly in |
LAGEVRIO |
383 |
640 |
- |
- |
Decline primarily due to lower demand in |
Lynparza* |
337 |
299 |
|
|
Growth primarily due to higher global demand. |
Lenvima* |
251 |
260 |
- |
- |
Decline primarily due to timing of shipments in |
VAXNEUVANCE |
239 |
214 |
|
|
Growth largely driven by continued uptake from launches in |
PREVYMIS |
208 |
157 |
|
|
Growth primarily due to higher global demand, particularly in the |
ROTATEQ |
193 |
156 |
|
|
Growth primarily due to public-sector buying patterns in the |
WINREVAIR |
149 |
- |
- |
- |
Represents continued uptake since launch in the |
WELIREG |
139 |
54 |
|
|
Growth primarily driven by higher demand in the |
Animal Health |
1,487 |
1,400 |
|
|
Growth primarily driven by higher demand and pricing for both Companion Animal and Livestock product portfolios, as well as sales related to July 2024 acquisition of Elanco aqua business. Approximately 2 percentage points of the negative impact of foreign exchange was due to devaluation of Argentine peso, which was largely offset by inflation-related price increases. |
Livestock |
886 |
874 |
|
|
Growth primarily driven by higher pricing and higher demand for poultry and swine products, as well as sales related to acquisition of Elanco aqua business. |
Companion Animal |
601 |
526 |
|
|
Growth primarily driven by uptake from new product launches, including the injectable formulation of BRAVECTO in certain international markets, as well as higher pricing across product portfolio. Sales of BRAVECTO were |
Other Revenues** |
227 |
299 |
- |
- |
Decline primarily due to lower payments received for out-licensing arrangements and lower royalty income. |
*Alliance revenue for this product represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs.
|
|||||
Third-Quarter Expense, EPS and Related Information
The table below presents selected expense information.
$ in millions |
GAAP |
Acquisition-
|
Restructuring
|
(Income)
|
Non-
|
Third Quarter 2024 |
|||||
Cost of sales |
|
|
|
$- |
|
Selling, general and administrative |
2,731 |
43 |
31 |
- |
2,657 |
Research and development |
5,862 |
24 |
- |
- |
5,838 |
Restructuring costs |
56 |
- |
56 |
- |
- |
Other (income) expense, net |
(162) |
(27) |
- |
58 |
(193) |
|
|
|
|
|
|
Third Quarter 2023 |
|
|
|
|
|
Cost of sales |
|
|
|
$- |
|
Selling, general and administrative |
2,519 |
17 |
40 |
- |
2,462 |
Research and development |
3,307 |
10 |
- |
- |
3,297 |
Restructuring costs |
126 |
- |
126 |
- |
- |
Other (income) expense, net |
126 |
(24) |
- |
17 |
133 |
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 effective tax rate of
GAAP EPS 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 effective tax rate of
Non-GAAP EPS was
A reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows.
Third Quarter |
||
$ in millions, except EPS amounts |
2024 |
2023 |
EPS |
|
|
GAAP EPS |
|
|
Difference |
0.33 |
0.27 |
Non-GAAP EPS that excludes items listed below2 |
|
|
|
|
|
Net Income |
|
|
GAAP net income1 |
|
|
Difference |
828 |
682 |
Non-GAAP net income that excludes items listed below1,2 |
|
|
|
|
|
Excluded Items: |
|
|
Acquisition- and divestiture-related costs3 |
|
|
Restructuring costs |
279 |
199 |
Loss from investments in equity securities |
58 |
17 |
Decrease to net income |
1,016 |
771 |
Estimated income tax (benefit) expense |
(188) |
(89) |
Decrease to net income |
|
|
Pipeline and Portfolio Highlights
In the third quarter, Merck continued to develop and augment its strong, diverse pipeline and achieve key regulatory and clinical milestones.
In cardiovascular disease, Merck continued to build on positive momentum in its
In oncology, Merck continued to reinforce its leadership in women’s and earlier stages of cancers and demonstrate progress in its research pipeline. At the European Society for Medical Oncology (ESMO) Congress 2024, three of the company’s data presentations were highlighted during Presidential Symposium sessions. These included overall survival (OS) data from the Phase 3 KEYNOTE-522 trial in high-risk, early-stage TNBC and from the Phase 3 KEYNOTE-A18 trial (also known as ENGOT-cx11/GOG-3047) in high-risk, locally advanced cervical cancer. In addition, new positive data on investigational candidates from Merck’s pipeline were presented, including for patritumab deruxtecan (HER3-DXd), an antibody-drug conjugate (ADC) being developed in collaboration with Daiichi Sankyo, and for sacituzumab tirumotecan (sac-TMT), an anti-TROP2 ADC being developed in collaboration with Kelun-Biotech.
The company also achieved several regulatory milestones, including new approvals for KEYTRUDA-based regimens in the
In vaccines, the CDC’s Advisory Committee on Immunization Practices (ACIP) voted in October 2024 to recommend CAPVAXIVE for individuals 50 to 64 years of age. This decision expanded upon the initial unanimous recommendation in June 2024 for use of CAPVAXIVE in adults age 65 and older, among other cohorts.
At IDWeek 2024, Merck presented positive results from the Phase 2b/3 trial of clesrovimab (MK-1654), an investigational respiratory syncytial virus (RSV) preventative monoclonal antibody for infants. These results support the potential for clesrovimab to become the first and only single-dose immunization designed to protect infants with the same dose, regardless of weight, for the duration of their first RSV season (six months).
In immunology, long-term efficacy and safety data for tulisokibart (MK-7240), an investigational humanized monoclonal antibody directed to a novel target, tumor necrosis factor (TNF)-like cytokine 1A (TL1A), from the Phase 2 ARTEMIS-UC and APOLLO-CD studies in ulcerative colitis (UC) and Crohn’s disease (CD), were presented at the United European Gastroenterology (UEG) Week 2024 Congress. Both studies showed that, at week 50, maintenance of treatment efficacy was generally observed in 12-week induction responders. Phase 3 studies in UC and CD are ongoing.
In addition, Merck continued to expand and diversify its pipeline by securing strategic business development opportunities. Merck completed its acquisition of CN201 (MK-1045), a next-generation CD3xCD19 bispecific antibody with potential applications in B-cell malignancies and autoimmune diseases, from Curon. Merck also announced the expansion of the global development and commercialization agreement with Daiichi Sankyo to include MK-6070, an investigational delta-like ligand 3 (DLL3) targeting T-cell engager. The companies are planning to evaluate MK-6070 in combination with ifinatamab deruxtecan (I-DXd) in certain patients with small cell lung cancer (SCLC), as well as other potential combinations.
Notable recent news releases on Merck’s pipeline and portfolio are provided in the table that follows.
Oncology |
FDA Approved KEYTRUDA Plus Pemetrexed and Platinum Chemotherapy as First-Line Treatment for Adult Patients With Unresectable Advanced or Metastatic Malignant Pleural Mesothelioma, Based on Results From Phase 3 KEYNOTE-483/CCTG IND.227 Trial |
|
EC Approved KEYTRUDA Plus Padcev as First-Line Treatment of Unresectable or Metastatic Urothelial Carcinoma in Adults, Based on Results From Phase 3 KEYNOTE-A39/EV-302 Trial |
||
KEYTRUDA Received 30th Approval From EC With Two New Indications in Gynecologic Cancers, Based on Results From Phase 3 KEYNOTE-868/NRG-GY018 and KEYNOTE-A18 Trials |
||
KEYTRUDA Received New Approvals in |
||
KEYTRUDA Plus Chemotherapy Before Surgery and Continued as Single Agent After Surgery Reduced Risk of Death by More Than One-Third ( |
||
KEYTRUDA Plus Chemoradiotherapy (CRT) Reduced Risk of Death by |
||
KEYTRUDA Ten-Year Data Demonstrated Sustained OS Benefit Versus Ipilimumab in Advanced Melanoma, Based on Results From Phase 3 KEYNOTE-006 Trial |
||
KEYTRUDA Plus Lenvima in Combination With Transarterial Chemoembolization (TACE) Significantly Improved Progression-Free Survival Compared to TACE Alone in Patients With Unresectable, Non-Metastatic Hepatocellular Carcinoma, Based on Results From Phase 3 LEAP-012 Trial |
||
KEYTRUDA Plus Trastuzumab and Chemotherapy Significantly Improved OS Versus Trastuzumab and Chemotherapy Alone in First-Line Treatment of Patients With HER2-Positive Advanced Gastric or GEJ Adenocarcinoma, Based on Results From Phase 3 KEYNOTE-811 Trial |
||
KEYTRUDA Met Primary Endpoint of Event-Free Survival as Perioperative Treatment Regimen in Patients With Resected, LA-HNSCC, Based on Results From Phase 3 KEYNOTE-689 Trial |
||
Patritumab Deruxtecan (HER3-DXd) Demonstrated Statistically Significant Improvement in Progression-Free Survival Versus Doublet Chemotherapy in Patients With Locally Advanced or Metastatic EGFR-Mutated NSCLC, Based on Results From Phase 3 HERTHENA-Lung02 Trial |
||
Ifinatamab Deruxtecan Continued to Demonstrate Promising Objective Response Rates in Patients With Extensive-Stage SCLC, Based on Results From Phase 2 IDeate-Lung01 Trial |
||
Merck and Moderna Initiated Phase 3 Trial Evaluating Adjuvant V940 (mRNA-4157) in Combination With KEYTRUDA After Neoadjuvant KEYTRUDA and Chemotherapy in Patients With Certain Types of NSCLC |
||
Merck Initiated Phase 3 Shorespan-007 Trial for Bomedemstat, an Investigational Candidate for the Treatment of Certain Patients With Essential Thrombocythemia |
||
Merck and Daiichi Sankyo Initiated Phase 3 IDeate-Lung02 Trial of Ifinatamab Deruxtecan in Patients With Relapsed SCLC |
||
Merck and Exelixis Signed Clinical Development Collaboration To Evaluate Investigational Zanzalintinib in Combination With KEYTRUDA in Head and Neck Cancer and in Combination With WELIREG in RCC |
||
Vaccines |
Clesrovimab (MK-1654), an Investigational RSV Preventative Monoclonal Antibody, Significantly Reduced Incidence of RSV Disease and Hospitalization in Healthy Preterm and Full-Term Infants, Based on Results From Phase 2b/3 MK-1654-004 Trial |
|
CDC’s ACIP Recommended CAPVAXIVE for Pneumococcal Vaccination in Adults 50 Years of Age and Older |
||
CAPVAXIVE Demonstrated Positive Immune Responses in Adults With Increased Risk for Pneumococcal Disease, Based on Results From Phase 3 STRIDE-8 Trial |
||
Merck Announced Positive Top-line Results From Phase 3 Trial Evaluating Efficacy and Safety of GARDASIL 9 in Japanese Males |
||
Cardiovascular |
EC Approved WINREVAIR in Combination With Other PAH Therapies for the Treatment of PAH in Adult Patients With Functional Class II-III, Based on Results From Phase 3 STELLAR Trial |
|
Immunology |
Merck Presented New Long-Term Data for Tulisokibart (MK-7240), an Investigational Anti-TL1A Monoclonal Antibody, in Inflammatory Bowel Disease at UEG Week 2024 |
|
Infectious Diseases |
Merck and Gilead Announced Phase 2 Data Showing a Treatment Switch to an Investigational Oral Once-Weekly Combination Regimen of Islatravir and Lenacapavir (MK-8591D) Maintained Viral Suppression in Adults at Week 48 |
|
Ophthalmology |
Merck and EyeBio Initiated Phase 2b/3 Clinical Trial for MK-3000 for the Treatment of Diabetic Macular Edema |
Sustainability Highlights
Merck issued its 2023/2024 Impact Report, reaffirming its commitment to operating responsibly and enabling broad access to its products. The report noted how the company reached more than 550 million people around the world with its medicines and vaccines through commercial channels, clinical trials, voluntary licensing and product donations.
Full-Year 2024 Financial Outlook
The following table summarizes the company’s full-year financial outlook.
|
Full Year 2024 |
|
|
Updated |
Prior |
Sales* |
|
|
Non-GAAP Gross margin2 |
Approximately |
Approximately |
Non-GAAP Operating expenses2** |
|
|
Non-GAAP Other (income) expense, net2 |
Approximately |
Approximately |
Non-GAAP Effective tax rate2 |
|
|
Non-GAAP EPS2*** |
|
|
Share count (assuming dilution) |
Approximately 2.54 billion |
Approximately 2.54 billion |
*The company does not have any non-GAAP adjustments to sales. |
||
**Includes one-time R&D charges of |
||
***Includes net one-time charge of |
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 growth, including from KEYTRUDA, new product launches and Animal Health. As a result, Merck is narrowing the range of its full-year sales outlook.
Merck now expects its full-year sales to be between
Merck now expects its full-year non-GAAP effective income tax rate to be between
Merck now expects its full-year non-GAAP EPS to be between
- The acquisition of CN201 (MK-1045) from Curon.
- Payment received from Daiichi Sankyo related to the expansion of the existing development and commercialization agreement.
Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions.
Non-GAAP EPS excludes acquisition- and divestiture-related costs, costs related to restructuring programs, income and losses from investments in equity securities, as well as a tax benefit in 2024 due to a reduction in reserves for unrecognized income tax benefits, resulting from the expiration of the statute of limitations for assessments related to the 2019 federal tax return year.
Earnings Conference Call
Investors, journalists and the general public may access a live audio webcast of the earnings conference call on Thursday, October 31, at 9 a.m. ET via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures, and slides highlighting the results, will be available at www.merck.com.
All participants may join the call by dialing (800) 369-3351 (
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 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, 2023 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)
CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine)
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)
ROTATEQ (Rotavirus Vaccine, Live, Oral, Pentavalent)
VARIVAX (Varicella Virus Vaccine Live)
VAXNEUVANCE (Pneumococcal 15-valent Conjugate Vaccine)
VERQUVO (vericiguat)
WELIREG (belzutifan)
WINREVAIR (sotatercept-csrk)
Animal Health
BRAVECTO (fluralaner)
_________________________________ | |
1 |
Net income attributable to Merck & Co., Inc. |
2 |
Merck is providing certain 2024 and 2023 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, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax 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 |
Reflects expenses related to acquisitions of businesses, including the amortization of intangible assets, 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. |
MERCK & CO., INC. | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME - GAAP | ||||||||||||||||||||
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
Table 1 | ||||||||||||||||||||
GAAP | % Change | GAAP | % Change | |||||||||||||||||
|
3Q24 |
|
|
3Q23 |
|
Sep YTD 2024 | Sep YTD 2023 | |||||||||||||
Sales | $ |
16,657 |
|
$ |
15,962 |
|
4 |
% |
$ |
48,544 |
|
$ |
45,485 |
|
7 |
% |
||||
Costs, Expenses and Other | ||||||||||||||||||||
Cost of sales |
|
4,080 |
|
|
4,264 |
|
-4 |
% |
|
11,365 |
|
|
12,214 |
|
-7 |
% |
||||
Selling, general and administrative |
|
2,731 |
|
|
2,519 |
|
8 |
% |
|
7,952 |
|
|
7,700 |
|
3 |
% |
||||
Research and development |
|
5,862 |
|
|
3,307 |
|
77 |
% |
|
13,354 |
|
|
20,904 |
|
-36 |
% |
||||
Restructuring costs |
|
56 |
|
|
126 |
|
-56 |
% |
|
258 |
|
|
344 |
|
-25 |
% |
||||
Other (income) expense, net |
|
(162 |
) |
|
126 |
|
* |
|
(151 |
) |
|
388 |
|
* | ||||||
Income Before Taxes |
|
4,090 |
|
|
5,620 |
|
-27 |
% |
|
15,766 |
|
|
3,935 |
|
* | |||||
Taxes on Income |
|
929 |
|
|
870 |
|
|
2,377 |
|
|
2,332 |
|
||||||||
Net Income |
|
3,161 |
|
|
4,750 |
|
-33 |
% |
|
13,389 |
|
|
1,603 |
|
* | |||||
Less: Net Income Attributable to Noncontrolling Interests |
|
4 |
|
|
5 |
|
|
15 |
|
|
12 |
|
||||||||
Net Income Attributable to Merck & Co., Inc. | $ |
3,157 |
|
$ |
4,745 |
|
-33 |
% |
$ |
13,374 |
|
$ |
1,591 |
|
* | |||||
Earnings per Common Share Assuming Dilution | $ |
1.24 |
|
$ |
1.86 |
|
-33 |
% |
$ |
5.26 |
|
$ |
0.62 |
|
* | |||||
Average Shares Outstanding Assuming Dilution |
|
2,541 |
|
|
2,546 |
|
|
2,543 |
|
|
2,549 |
|
||||||||
Tax Rate |
|
22.7 |
% |
|
15.5 |
% |
|
15.1 |
% |
|
59.3 |
% |
||||||||
* |
MERCK & CO., INC. | |||||||||||||||||||||||||||
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||||||
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) | |||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||
Table 2a | |||||||||||||||||||||||||||
GAAP | Acquisition and Divestiture-Related Costs (1) | Restructuring Costs (2) | (Income) Loss from Investments in Equity Securities | Certain Other Items | Adjustment Subtotal | Non-GAAP | |||||||||||||||||||||
Third Quarter | |||||||||||||||||||||||||||
Cost of sales | $ |
4,080 |
|
639 |
|
192 |
|
831 |
|
$ |
3,249 |
|
|||||||||||||||
Selling, general and administrative |
|
2,731 |
|
43 |
|
31 |
|
74 |
|
|
2,657 |
|
|||||||||||||||
Research and development |
|
5,862 |
|
24 |
|
24 |
|
|
5,838 |
|
|||||||||||||||||
Restructuring costs |
|
56 |
|
56 |
|
56 |
|
|
– |
|
|||||||||||||||||
Other (income) expense, net |
|
(162 |
) |
(27 |
) |
58 |
|
31 |
|
|
(193 |
) |
|||||||||||||||
Income Before Taxes |
|
4,090 |
|
(679 |
) |
(279 |
) |
(58 |
) |
(1,016 |
) |
|
5,106 |
|
|||||||||||||
Income Tax Provision (Benefit) |
|
929 |
|
(129 |
) |
(3 |
) |
(46 |
) |
(3 |
) |
(13 |
) |
(3 |
) |
(188 |
) |
|
1,117 |
|
|||||||
Net Income |
|
3,161 |
|
(550 |
) |
(233 |
) |
(45 |
) |
(828 |
) |
|
3,989 |
|
|||||||||||||
Net Income Attributable to Merck & Co., Inc. |
|
3,157 |
(550 |
) |
(233 |
) |
(45 |
) |
(828 |
) |
|
3,985 |
|
||||||||||||||
Earnings per Common Share Assuming Dilution | $ |
1.24 |
|
(0.22 |
) |
(0.09 |
) |
(0.02 |
) |
(0.33 |
) |
$ |
1.57 |
|
|||||||||||||
Tax Rate |
|
22.7 |
% |
|
21.9 |
% |
|||||||||||||||||||||
Sep YTD | |||||||||||||||||||||||||||
Cost of sales | $ |
11,365 |
|
1,708 |
|
374 |
|
2,082 |
|
$ |
9,283 |
|
|||||||||||||||
Selling, general and administrative |
|
7,952 |
|
88 |
|
67 |
|
155 |
|
|
7,797 |
|
|||||||||||||||
Research and development |
|
13,354 |
|
60 |
|
2 |
|
62 |
|
|
13,292 |
|
|||||||||||||||
Restructuring costs |
|
258 |
|
258 |
|
258 |
|
|
– |
|
|||||||||||||||||
Other (income) expense, net |
|
(151 |
) |
(48 |
) |
(107 |
) |
(155 |
) |
|
4 |
|
|||||||||||||||
Income Before Taxes |
|
15,766 |
|
(1,808 |
) |
(701 |
) |
107 |
|
(2,402 |
) |
|
18,168 |
|
|||||||||||||
Income Tax Provision (Benefit) |
|
2,377 |
|
(350 |
) |
(3 |
) |
(118 |
) |
(3 |
) |
23 |
|
(3 |
) |
(259 |
) |
(4 |
) |
(704 |
) |
|
3,081 |
|
|||
Net Income |
|
13,389 |
|
(1,458 |
) |
(583 |
) |
84 |
|
259 |
|
(1,698 |
) |
|
15,087 |
|
|||||||||||
Net Income Attributable to Merck & Co., Inc. |
|
13,374 |
(1,458 |
) |
(583 |
) |
84 |
|
259 |
|
(1,698 |
) |
|
15,072 |
|
||||||||||||
Earnings per Common Share Assuming Dilution | $ |
5.26 |
|
(0.57 |
) |
(0.23 |
) |
0.03 |
|
0.10 |
|
(0.67 |
) |
$ |
5.93 |
|
|||||||||||
Tax Rate |
|
15.1 |
% |
|
17.0 |
% |
|||||||||||||||||||||
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, annual employee compensation, including senior management’s 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 the amortization of intangible assets and Animal Health intangible asset impairment charges. Amounts included in other (income) expense, net, primarily reflect royalty income related to the prior termination of the Sanofi-Pasteur MSD joint venture. | |||||||||||||||||||||||||||
(2) Amounts primarily include employee separation costs, accelerated depreciation and asset impairments associated with facilities to be closed or divested related to activities under the company's formal restructuring programs. | |||||||||||||||||||||||||||
(3) Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. | |||||||||||||||||||||||||||
(4) Represents a benefit due to a reduction in reserves for unrecognized income tax benefits resulting from the expiration of the statute of limitations for assessments related to the 2019 federal tax return year. |
MERCK & CO., INC. | |||||||||||||||
FRANCHISE / KEY PRODUCT SALES | |||||||||||||||
(AMOUNTS IN MILLIONS) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Table 3 | |||||||||||||||
2024 |
2023 |
3Q | Sep YTD | ||||||||||||
1Q | 2Q | 3Q | Sep YTD | 1Q | 2Q | 3Q | Sep YTD | Nom % | Ex-Exch % | Nom % | Ex-Exch % | ||||
TOTAL SALES (1) |
|
|
|
|
|
|
|
|
4 |
7 |
7 |
10 |
|||
PHARMACEUTICAL | 14,006 |
14,408 |
14,943 |
43,358 |
12,721 |
13,457 |
14,263 |
40,442 |
5 |
8 |
7 |
10 |
|||
Oncology | |||||||||||||||
Keytruda | 6,947 |
7,270 |
7,429 |
21,646 |
5,795 |
6,271 |
6,338 |
18,403 |
17 |
21 |
18 |
22 |
|||
Alliance Revenue – Lynparza (2) | 292 |
317 |
337 |
947 |
275 |
310 |
299 |
884 |
13 |
13 |
7 |
8 |
|||
Alliance Revenue – Lenvima (2) | 255 |
249 |
251 |
755 |
232 |
242 |
260 |
734 |
-3 |
-4 |
3 |
3 |
|||
Welireg | 85 |
126 |
139 |
349 |
42 |
50 |
54 |
146 |
156 |
157 |
138 |
139 |
|||
Alliance Revenue – Reblozyl (3) | 71 |
90 |
100 |
261 |
43 |
47 |
52 |
142 |
91 |
91 |
84 |
84 |
|||
Vaccines (4) | |||||||||||||||
Gardasil/Gardasil 9 | 2,249 |
2,478 |
2,306 |
7,032 |
1,972 |
2,458 |
2,585 |
7,015 |
-11 |
-10 |
- |
3 |
|||
ProQuad/M-M-R II/Varivax | 570 |
617 |
703 |
1,891 |
528 |
582 |
713 |
1,823 |
-1 |
-1 |
4 |
4 |
|||
Vaxneuvance | 219 |
189 |
239 |
647 |
106 |
168 |
214 |
488 |
12 |
13 |
33 |
34 |
|||
RotaTeq | 216 |
163 |
193 |
572 |
297 |
131 |
156 |
584 |
24 |
25 |
-2 |
-1 |
|||
Pneumovax 23 | 61 |
59 |
68 |
188 |
96 |
92 |
140 |
327 |
-51 |
-51 |
-42 |
-40 |
|||
Hospital Acute Care | |||||||||||||||
Bridion | 440 |
455 |
420 |
1,315 |
487 |
502 |
424 |
1,413 |
-1 |
- |
-7 |
-6 |
|||
Prevymis | 174 |
188 |
208 |
570 |
129 |
143 |
157 |
430 |
32 |
36 |
33 |
36 |
|||
Dificid | 73 |
92 |
96 |
261 |
65 |
76 |
74 |
215 |
31 |
31 |
21 |
21 |
|||
Zerbaxa | 56 |
62 |
64 |
182 |
50 |
54 |
53 |
157 |
22 |
25 |
16 |
19 |
|||
Noxafil | 56 |
45 |
41 |
141 |
60 |
55 |
51 |
167 |
-20 |
-13 |
-15 |
-5 |
|||
Cardiovascular | |||||||||||||||
Alliance Revenue - Adempas/Verquvo (5) | 98 |
106 |
102 |
306 |
99 |
68 |
92 |
259 |
11 |
11 |
18 |
18 |
|||
Winrevair | 70 |
149 |
219 |
- |
- |
- |
- |
||||||||
Adempas (6) | 70 |
72 |
72 |
214 |
59 |
65 |
65 |
189 |
11 |
13 |
13 |
15 |
|||
Virology | |||||||||||||||
Lagevrio | 350 |
110 |
383 |
843 |
392 |
203 |
640 |
1,236 |
-40 |
-36 |
-32 |
-27 |
|||
Isentress/Isentress HD | 111 |
89 |
102 |
302 |
123 |
136 |
119 |
377 |
-14 |
-10 |
-20 |
-16 |
|||
Delstrigo | 56 |
60 |
65 |
180 |
44 |
50 |
54 |
148 |
21 |
25 |
22 |
26 |
|||
Pifeltro | 42 |
39 |
42 |
123 |
34 |
38 |
37 |
109 |
14 |
15 |
13 |
14 |
|||
Neuroscience | |||||||||||||||
Belsomra | 46 |
53 |
78 |
177 |
56 |
63 |
58 |
176 |
35 |
40 |
- |
7 |
|||
Immunology | |||||||||||||||
Simponi | 184 |
172 |
189 |
545 |
180 |
180 |
179 |
539 |
5 |
7 |
1 |
2 |
|||
Remicade | 39 |
35 |
41 |
115 |
51 |
48 |
45 |
144 |
-9 |
-5 |
-20 |
-16 |
|||
Diabetes (7) | |||||||||||||||
Januvia | 419 |
405 |
278 |
1,102 |
551 |
511 |
581 |
1,642 |
-52 |
-49 |
-33 |
-30 |
|||
Janumet | 251 |
224 |
204 |
679 |
329 |
354 |
255 |
937 |
-20 |
-13 |
-28 |
-23 |
|||
Other Pharmaceutical (8) | 576 |
573 |
644 |
1,796 |
626 |
560 |
568 |
1,758 |
13 |
15 |
2 |
5 |
|||
ANIMAL HEALTH | 1,511 |
1,482 |
1,487 |
4,480 |
1,491 |
1,456 |
1,400 |
4,347 |
6 |
11 |
3 |
7 |
|||
Livestock | 850 |
837 |
886 |
2,573 |
849 |
807 |
874 |
2,530 |
1 |
7 |
2 |
7 |
|||
Companion Animal | 661 |
645 |
601 |
1,907 |
642 |
649 |
526 |
1,817 |
14 |
17 |
5 |
7 |
|||
Other Revenues (9) | 258 |
222 |
227 |
706 |
275 |
122 |
299 |
696 |
-24 |
-22 |
2 |
4 |
|||
Sum of quarterly amounts may not equal year-to-date amounts due to rounding. | |||||||||||||||
(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. | |||||||||||||||
(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/20241031033115/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.
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