MRK Merck and Co Inc

 

 

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 1, 2024 (January 29, 2024)

 

Merck & Co., Inc.

(Exact name of registrant as specified in its charter)

 

New Jersey (State or other jurisdiction of incorporation)

1-6571 (Commission File Number)

22-1918501 (I.R.S. Employer Identification No.)

 

126 East Lincoln Avenue, Rahway, NJ (Address of principal executive offices)

07065 (Zip Code)

 

(Registrant’s telephone number, including area code) (908) 740-4000

 

Not Applicable

(Former name, former address and former fiscal year, 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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock ($0.50 par value)		MRK		New York Stock Exchange
0.500% Notes due 2024		MRK 24		New York Stock Exchange
1.875% Notes due 2026		MRK/26		New York Stock Exchange
2.500% Notes due 2034		MRK/34		New York Stock Exchange
1.375% Notes due 2036		MRK 36A		New York Stock Exchange

 

 

 

 

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 Merck & Co., Inc. on February 1, 2024, regarding earnings for the fourth quarter and year end of 2023, 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 2.05. Costs Associated with Exit or Disposal Activities.

 

On January 29, 2024, the Company approved a new restructuring program (the “2024 Restructuring Program”) intended to continue the optimization of the Company’s Human Health global manufacturing network as the future pipeline shifts to new modalities and also optimize the Animal Health global manufacturing network to improve supply reliability and increase efficiency.

 

The actions contemplated under the 2024 Restructuring Program are expected to be substantially completed by the end of 2031, with the cumulative pretax costs to be incurred by the Company to implement the program estimated to be approximately $4.0 billion. Approximately 60% of the $4.0 billion will be non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested; the remainder of the costs will result in cash outlays primarily relating to facility shutdown costs. 

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit 99.1	Press release issued February 1, 2024, regarding earnings for the fourth quarter and year end of 2023
Exhibit 99.2	Certain supplemental information not included in the press release
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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 1, 2024	By:	/s/ Kelly E. W. Grez
		Kelly E. W. Grez Corporate Secretary

 

 

Exhibit 99.1

 

	News Release

 

Merck Announces Fourth-Quarter and Full-Year 2023 Financial Results

 

-

Fourth-Quarter and Full-Year Sales Reflect Sustained Growth Across Oncology and Vaccines

-

Fourth-Quarter Worldwide Sales Were $14.6 Billion, an Increase of 6% From Fourth Quarter 2022; Excluding LAGEVRIO, Growth Was 11%; Excluding LAGEVRIO and the Impact of Foreign Exchange, Growth Was 13%

-

Fourth-Quarter GAAP Loss per Share Was $0.48; Non-GAAP EPS Was $0.03; GAAP Loss per Share and Non-GAAP EPS Include a Charge of $1.69 per Share for a Collaboration With Daiichi Sankyo

-

Full-Year Worldwide Sales Were $60.1 Billion, an Increase of 1% From Full-Year 2022; Excluding LAGEVRIO, Growth Was 9%; Excluding LAGEVRIO and the Impact of Foreign Exchange, Growth Was 12%

o

KEYTRUDA Sales Grew 19% to $25.0 Billion; Excluding the Impact of Foreign Exchange, Sales Grew 21%

o

GARDASIL/GARDASIL 9 Sales Grew 29% to $8.9 Billion; Excluding the Impact of Foreign Exchange, Sales Grew 33%

o

LAGEVRIO Sales Declined 75% to $1.4 Billion; Excluding the Impact of Foreign Exchange, Sales Declined 74%

-

Full-Year 2023 GAAP EPS Was $0.14; Non-GAAP EPS Was $1.51; GAAP and Non-GAAP EPS Include Charges of $6.21 per Share for Certain Business Development Transactions

-

Obtained FDA Priority Review of Biologics License Applications for V116, an Investigational Pneumococcal Conjugate Vaccine, as Well as Merck and Daiichi Sankyo’s Patritumab Deruxtecan, in the Fourth Quarter

-

Received Multiple FDA Approvals Across Oncology Portfolio in 2023

-

Initiated More Than 20 Phase 3 Study Starts, Including the Progression of Eight Novel Assets Into Phase 3 in 2023

-

Augmented Pipeline Through Acquisitions of Prometheus and Imago, and Collaboration Agreements With Daiichi Sankyo and Kelun-Biotech in 2023

-

Full-Year 2024 Financial Outlook

o

Anticipates Worldwide Sales To Be Between $62.7 Billion and $64.2 Billion

o

Expects Non-GAAP EPS To Be Between $8.44 and $8.59

 

RAHWAY, N.J., Feb. 1, 2024 – Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the fourth quarter and full year of 2023.

 

“2023 was another very strong year for Merck. I am extremely pleased by the progress we’ve made to develop and deliver transformative therapies and vaccines that will help save and improve lives around the world. We reached more than 500 million people with our medicines last year alone, over half of which were donations, including through our program to treat river blindness,” said Robert M. Davis, chairman and chief executive officer, Merck. “We also made investments of approximately $30 billion in research and development in our ongoing effort to discover, develop and collaborate to propel the next generation of impactful innovations. As we move forward, I’m confident that our strong momentum will continue, underpinned by the unwavering dedication of our talented global team.”

 

 

Financial Summary

 

		Fourth Quarter																Year Ended
$ in millions, except EPS amounts		2023				2022				Change				Change Ex- Exchange				Dec. 31, 2023				Dec. 31, 2022				Change				Change Ex- Exchange
Sales		$	14,630			$	13,830				6	%			7	%		$	60,115			$	59,283				1	%			4	%
GAAP net (loss) income1			(1,226	)			3,017				N/M				N/M				365				14,519				-97	%			-95	%
Non-GAAP net income that excludes certain items1,2*			66				4,129				-98	%			N/M				3,837				19,005				-80	%			-75	%
GAAP EPS			(0.48	)			1.18				N/M				N/M				0.14				5.71				-98	%			-95	%
Non-GAAP EPS that excludes certain items2*			0.03				1.62				-98	%			N/M				1.51				7.48				-80	%			-75	%

*Refer to table on page 9.

N/M - Not meaningful

 

Generally Accepted Accounting Principles (GAAP) loss/earnings per share (EPS) assuming dilution was a loss per share of $0.48 for the fourth quarter and EPS of $0.14 for the full year of 2023. Non-GAAP EPS was $0.03 for the fourth quarter and $1.51 for the full year of 2023. GAAP loss per share and non-GAAP EPS in the fourth quarter of 2023 include a charge of $1.69 per share related to the collaboration with Daiichi Sankyo. GAAP and non-GAAP EPS for the full years of 2023 and 2022 include charges of $6.21 and $0.22 per share, respectively, related to certain collaborations, licensing agreements and asset acquisitions.

 

Non-GAAP EPS excludes acquisition- and divestiture-related costs, including pretax intangible asset impairment research and development (R&D) charges of $779 million in the fourth quarter and full year of 2023 related to gefapixant, and $780 million and $1.7 billion in the fourth quarter and full year of 2022, respectively, primarily related to nemtabrutinib. Non-GAAP EPS also excludes restructuring costs, including costs for the recently approved 2024 Restructuring Program, as well as income and losses from investments in equity securities.

 

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.

 

 

Fourth-Quarter Sales Performance

 

The following table reflects sales of the company’s top products and significant performance drivers.

 

		Fourth Quarter
$ in millions		2023				2022				Change				Change Ex- Exchange				Commentary
Total Sales		$	14,630			$	13,830				6	%			7	%
Pharmaceutical			13,141				12,180				8	%			8	%		Increase driven by growth in oncology, vaccines and hospital acute care, partially offset by a decline in virology, due to LAGEVRIO, and diabetes. Excluding LAGEVRIO and impact of foreign exchange, growth of 14%.
KEYTRUDA			6,608				5,450				21	%			22	%		Growth driven by increased global uptake in earlier-stage indications, including triple-negative breast cancer and renal cell carcinoma (RCC), and continued strong global demand from metastatic indications.
GARDASIL/ GARDASIL 9			1,871				1,470				27	%			27	%		Growth due to strong global demand, particularly in China, and public-sector buying patterns in the U.S.
JANUVIA/JANUMET			787				913				-14	%			-13	%		Decline primarily due to generic competition in several international markets, particularly in Europe, and lower demand in the U.S.
PROQUAD, M-M-R II and VARIVAX			545				526				4	%			3	%		Growth largely due to higher pricing in the U.S.
BRIDION			429				441				-3	%			-3	%		Decline primarily due to generic competition in certain ex-U.S. markets, particularly in Europe, partially offset by higher demand in the U.S.
Lynparza*			315				292				8	%			8	%		Growth driven primarily by higher pricing in the U.S.
Lenvima*			226				216				5	%			5	%		Growth primarily due to higher demand in the U.S., partially offset by timing of shipments in China.
LAGEVRIO			193				825				-77	%			-76	%		Decline due to nonrecurrence of sales in the U.K. and lower demand in Japan and Australia.
ROTATEQ			185				139				34	%			33	%		Growth primarily due to public-sector buying patterns in the U.S. and timing of shipments in China.
VAXNEUVANCE			176				138				28	%			26	%		Growth largely driven by launches in Europe and continued uptake for the pediatric indication in the U.S. Prior-year quarter benefited from inventory stocking in the U.S. in preparation for pediatric launch.
Animal Health			1,278				1,230				4	%			4	%		Growth primarily driven by higher demand for Companion Animal products.
Livestock			808				814				-1	%			0	%		Decline primarily due to timing of shipments for ruminant products, largely offset by higher pricing across the product portfolio and higher demand for swine products.

 

 

		Fourth Quarter
$ in millions		2023				2022				Change				Change Ex- Exchange				Commentary
Companion Animal			470				416				13	%			12	%		Growth primarily due to higher demand and timing of shipments for BRAVECTO line of products, as well as higher pricing. Sales of BRAVECTO were $197 million and $168 million in the current and prior-year quarters, respectively, which represented growth of 18%, or 19% excluding the impact of foreign exchange.
Other Revenues**			211				420				-50	%			-1	%		Decline primarily due to impact of revenue hedging activities.

 

*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.

 

Full-Year Revenue Performance

 

The following table reflects sales of the company’s top pharmaceutical products, as well as sales of Animal Health products.

 

		Year Ended
$ in millions		Dec. 31, 2023				Dec. 31, 2022				Change				Change Ex- Exchange
Total Sales		$	60,115			$	59,283				1	%			4	%
Pharmaceutical			53,583				52,005				3	%			5	%
KEYTRUDA			25,011				20,937				19	%			21	%
GARDASIL/GARDASIL 9			8,886				6,897				29	%			33	%
JANUVIA/JANUMET			3,366				4,513				-25	%			-23	%
PROQUAD, M-M-R II and VARIVAX			2,368				2,241				6	%			6	%
BRIDION			1,842				1,685				9	%			11	%
LAGEVRIO			1,428				5,684				-75	%			-74	%
Lynparza*			1,199				1,116				7	%			9	%
Lenvima*			960				876				10	%			11	%
ROTATEQ			769				783				-2	%			-1	%
VAXNEUVANCE			665				170				N/M				N/M
Animal Health			5,625				5,550				1	%			3	%
Livestock			3,337				3,300				1	%			4	%
Companion Animal			2,288				2,250				2	%			3	%
Other Revenues**			907				1,728				-48	%			-15	%

 

*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.

N/M - Not meaningful

 

Full-year 2023 pharmaceutical sales grew 3% to $53.6 billion. Pharmaceutical sales growth was primarily driven by higher sales in oncology, particularly KEYTRUDA, higher sales of vaccines, reflecting strong growth of combined sales of GARDASIL/GARDASIL 9 and VAXNEUVANCE, as well as growth in hospital acute care products, including PREVYMIS and BRIDION. Pharmaceutical sales growth in 2023 was partially offset by lower sales of the COVID-19 medication LAGEVRIO, as well as lower sales of JANUVIA and JANUMET, primarily reflecting generic competition in many ex-U.S. markets and lower demand in the U.S., and lower sales of PNEUMOVAX 23 as the market continues to shift toward newer adult pneumococcal conjugate vaccines. Pharmaceutical sales growth for the full year of 2023 was 14% excluding LAGEVRIO and the unfavorable impact of foreign exchange.

 

 

Full-year 2023 Animal Health sales grew 1% to $5.6 billion. Excluding the unfavorable impact of foreign exchange, Animal Health sales grew 3%, primarily due to higher pricing. Full-year sales growth was also driven by higher demand for livestock products, led by poultry and swine products, partially offset by lower demand for ruminant products. Sales of BRAVECTO were $1.1 billion in 2023, which represented growth of 4%, or 5% excluding the impact of foreign exchange, primarily reflecting higher pricing.

 

Fourth-Quarter and Full-Year Expense, EPS and Related Information

 

The table below presents selected expense information.

 

$ in millions		GAAP				Acquisition- and Divestiture- Related Costs3				Restructuring Costs				(Income) Loss From Investments in Equity Securities				Non- GAAP2
Fourth Quarter 2023
Cost of sales		$	3,911			$	454			$	117			$	-			$	3,340
Selling, general and administrative			2,804				24				29				-				2,751
Research and development			9,628				790				-				-				8,838
Restructuring costs			255				-				255				-				-
Other (income) expense, net			78				(35	)			-				(61	)			174
Fourth Quarter 2022
Cost of sales		$	3,881			$	482			$	38			$	-			$	3,361
Selling, general and administrative			2,687				39				20				-				2,628
Research and development			3,775				740				-				-				3,035
Restructuring costs			49				-				49				-				-
Other (income) expense, net			(75	)			(69	)			-				80				(86	)

 

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. R&D expenses include intangible asset impairment charges of $779 million in both the fourth quarter and full year of 2023 related to gefapixant and $780 million and $1.7 billion in the fourth quarter and full year of 2022, respectively, largely related to nemtabrutinib. 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.

 

 

$ in millions		GAAP				Acquisition- and Divestiture- Related Costs3				Restructuring Costs				(Income) Loss From Investments in Equity Securities				Certain Other Items				Non- GAAP2
Year Ended Dec. 31, 2023
Cost of sales		$	16,126			$	2,018			$	211			$	-			$	-			$	13,897
Selling, general and administrative			10,504				86				122				-				-				10,296
Research and development			30,531				819				1				-				-				29,711
Restructuring costs			599				-				599				-				-				-
Other (income) expense, net			466				(47	)			-				(279	)			573				219
Year Ended Dec. 31, 2022
Cost of sales		$	17,411			$	2,059			$	205			$	-			$	-			$	15,147
Selling, general and administrative			10,042				176				94				-				-				9,772
Research and development			13,548				1,676				30				-				-				11,842
Restructuring costs			337				-				337				-				-				-
Other (income) expense, net			1,501				(207	)			-				1,348				-				360

 

GAAP Expense, EPS and Related Information

 

Gross margin was 73.3% for the fourth quarter of 2023 compared with 71.9% for the fourth quarter of 2022. The increase was primarily due to the favorable impacts of lower LAGEVRIO sales, which have a low gross margin, lower manufacturing facilities costs and product mix, partially offset by the unfavorable impacts of foreign exchange and higher restructuring costs. Gross margin was 73.2% for the full year of 2023 compared with 70.6% for the full year of 2022. The increase was primarily due to the favorable impacts of lower LAGEVRIO sales, product mix, lower manufacturing facilities costs, and lower revenue from third-party manufacturing arrangements, partially offset by the unfavorable impact of foreign exchange.

 

Selling, general and administrative (SG&A) expenses were $2.8 billion in the fourth quarter of 2023, an increase of 4% compared with the fourth quarter of 2022. The increase was primarily due to higher administrative costs, including higher compensation and benefit costs, partially offset by lower promotional spending. Full-year 2023 SG&A expenses were $10.5 billion, an increase of 5% compared with the full year of 2022. The increase was primarily due to higher administrative costs, including higher compensation and benefit costs, and higher promotional spending, partially offset by the favorable impact of foreign exchange and lower acquisition- and divestiture-related costs.

 

R&D expenses were $9.6 billion in the fourth quarter of 2023 compared with $3.8 billion in the fourth quarter of 2022. R&D expenses were $30.5 billion for the full year of 2023 compared with $13.5 billion for the full year of 2022. The increase in the fourth quarter and full year of 2023 reflects a $5.5 billion charge for the collaboration with Daiichi Sankyo, and higher development costs due to spending on clinical programs, including newly acquired programs, as well as higher compensation and benefit costs (reflecting in part increased headcount). The increase in R&D expenses for the full year was also due to charges of $11.4 billion in the aggregate for the acquisitions of Prometheus Biosciences, Inc. (Prometheus) and Imago BioSciences, Inc. (Imago). The increase in R&D expenses for the full year was partially offset by lower intangible asset impairment charges in 2023 and charges of $690 million in the aggregate in 2022 for collaboration and licensing agreements with Moderna, Inc. (Moderna), Orna Therapeutics (Orna) and Orion Corporation (Orion).

 

 

Other (income) expense, net, was $78 million of expense in the fourth quarter of 2023 compared with $75 million of income in the fourth quarter of 2022, primarily due to higher exchange losses and higher net interest expense, partially offset by net gains from investments in equity securities for the fourth quarter of 2023 compared with net losses from investments in equity securities for the fourth quarter of 2022, and lower pension settlement costs. Other (income) expense, net, was $466 million of expense in the full year of 2023 compared with $1.5 billion of expense in the full year of 2022, primarily due to net gains from investments in equity securities in 2023 compared with net losses from investments in equity securities in 2022, and lower pension settlement costs, partially offset by a $572.5 million charge in 2023 related to settlements with certain plaintiffs in the Zetia antitrust litigation.

 

The effective tax rate was 40.1% for the fourth quarter of 2023 compared with 14.1% in the fourth quarter of 2022. The effective tax rate for the fourth quarter of 2023 includes a 29.2 percentage point impact resulting from the charge for the Daiichi Sankyo collaboration. The effective tax rate was 80.0% for the full year of 2023 compared with 11.7% for the full year of 2022. The full-year 2023 effective tax rate reflects an aggregate 65.6 percentage point unfavorable impact, resulting from charges for asset acquisitions (for which no tax benefits were recognized) as well as the charge for the Daiichi Sankyo collaboration.

 

GAAP loss per share was $0.48 for the fourth quarter of 2023 compared with EPS of $1.18 for the fourth quarter of 2022, primarily driven by the charge in 2023 related to the collaboration with Daiichi Sankyo, the unfavorable impact of foreign exchange and higher restructuring costs, partially offset by a beneficial impact from the tax rate and operational strength in the business. GAAP EPS was $0.14 for the full year of 2023 compared with EPS of $5.71 for the full year of 2022. The EPS decline in 2023 was primarily due to higher charges for certain business development transactions, the unfavorable impact of foreign exchange and the tax rate, as well as a charge related to settlements with certain plaintiffs in the Zetia antitrust litigation, partially offset by the beneficial impacts of operational strength in the business, better performance from equity investments and lower intangible asset impairment charges.

 

Non-GAAP Expense, EPS and Related Information

 

Non-GAAP gross margin was 77.2% for the fourth quarter of 2023 compared with 75.7% for the fourth quarter of 2022. Non-GAAP gross margin was 76.9% for the full year of 2023 compared with 74.4% for the full year of 2022. The non-GAAP gross margin improvement in the fourth quarter and full year of 2023 was primarily due to the favorable impacts of lower LAGEVRIO sales, which have a low gross margin, product mix, and lower manufacturing facilities costs. The increase in non-GAAP gross margin for the full year was also due to lower revenue from third-party manufacturing arrangements. The non-GAAP gross margin improvement in the fourth quarter and full year of 2023 was partially offset by the unfavorable impact of foreign exchange.

 

 

Non-GAAP SG&A expenses were $2.8 billion for the fourth quarter of 2023 compared with $2.6 billion for the fourth quarter of 2022. The increase was primarily due to higher administrative costs, including higher compensation and benefit costs, partially offset by lower promotional spending. Full-year 2023 non-GAAP SG&A expenses were $10.3 billion, an increase of 5% compared with the full year of 2022. The increase was primarily due to higher administrative costs, including higher compensation and benefit costs, and higher promotional spending, partially offset by the favorable impact of foreign exchange.

 

Non-GAAP R&D expenses were $8.8 billion in the fourth quarter of 2023 compared with $3.0 billion in the fourth quarter of 2022. Non-GAAP R&D expenses were $29.7 billion for the full year of 2023 compared with $11.8 billion for the full year of 2022. The increase in the fourth quarter and full year of 2023 reflects a $5.5 billion charge for the collaboration with Daiichi Sankyo, and higher development costs due to spending on clinical programs, including newly acquired programs, as well as higher compensation and benefit costs (reflecting in part increased headcount). The increase in non-GAAP R&D expenses for the full year was also due to charges of $11.4 billion in the aggregate for the acquisitions of Prometheus and Imago. The increase in R&D expenses for the full year was partially offset by charges of $690 million in the aggregate in 2022 for collaboration and licensing agreements with Moderna, Orna and Orion.

 

Non-GAAP other (income) expense, net, was $174 million of expense in the fourth quarter of 2023 compared with $86 million of income in the fourth quarter of 2022, primarily due to higher exchange losses and higher net interest expense, partially offset by lower pension settlement costs. Non-GAAP other (income) expense, net, was $219 million of expense in the full year of 2023 compared with $360 million of expense in the full year of 2022, primarily due to lower pension settlement costs.

 

The non-GAAP effective tax rate was 114.2% for the fourth quarter of 2023 compared with 15.6% in the fourth quarter of 2022. The non-GAAP effective tax rate for the fourth quarter of 2023 includes a 101.1 percentage point unfavorable impact resulting from the charge for the Daiichi Sankyo collaboration. The non-GAAP effective tax rate was 35.8% for the full year of 2023 compared with 14.2% for the full year of 2022. The full-year 2023 non-GAAP effective tax rate reflects an aggregate 21.2 percentage point unfavorable impact, resulting from charges for asset acquisitions (for which no benefits were recognized) as well as the charge for the Daiichi Sankyo collaboration.

 

Non-GAAP EPS was $0.03 for the fourth quarter of 2023 compared with $1.62 for the fourth quarter of 2022. The non-GAAP EPS decline in the fourth quarter was primarily due to the charge in 2023 related to the collaboration with Daiichi Sankyo and the unfavorable impact of foreign exchange, partially offset by a beneficial impact from the tax rate and operational strength in the business. Non-GAAP EPS was $1.51 for the full year of 2023 compared with $7.48 for the full year of 2022. The non-GAAP EPS decline for the full year was primarily due to higher charges for certain business development transactions, the unfavorable impact of foreign exchange and the tax rate, partially offset by operational strength in the business.

 

 

A reconciliation of GAAP to non-GAAP net (loss) income and (loss) earnings per share is provided in the table that follows.

 

		Fourth Quarter								Year Ended
$ in millions, except EPS amounts		2023				2022				Dec. 31, 2023				Dec. 31, 2022
EPS
GAAP EPS		$	(0.48	)		$	1.18			$	0.14			$	5.71
Difference			0.51				0.44				1.37				1.77
Non-GAAP EPS that excludes items listed below2		$	0.03			$	1.62			$	1.51			$	7.48
Net (Loss) Income
GAAP net (loss) income1		$	(1,226	)		$	3,017			$	365			$	14,519
Difference			1,292				1,112				3,472				4,486
Non-GAAP net income that excludes items listed below1,2		$	66			$	4,129			$	3,837			$	19,005
Excluded Items:
Acquisition- and divestiture-related costs3		$	1,233			$	1,192			$	2,876			$	3,704
Restructuring costs			401				107				933				666
(Income) loss from investments in equity securities			(61	)			80				(279	)			1,348
Charge for Zetia antitrust litigation settlements			-				-				573				-
Increase to net loss/decrease to net income before taxes			1,573				1,379				4,103				5,718
Estimated income tax (benefit) expense			(281	)			(267	)			(631	)			(1,232	)
Increase to net loss/decrease to net income		$	1,292			$	1,112			$	3,472			$	4,486

 

2024 Restructuring Program

 

Merck recently approved a new restructuring program (2024 Restructuring Program) intended to continue the optimization of the company’s Human Health global manufacturing network as the future pipeline shifts to new modalities, and also to optimize the Animal Health global manufacturing network to improve supply reliability and increase efficiency. The company recorded charges in its GAAP results of $190 million related to the 2024 Restructuring Program for the fourth quarter and full year of 2023.

 

Pipeline and Portfolio Highlights

 

In the fourth quarter, Merck continued to make significant progress advancing its broad portfolio and pipeline across key therapeutic areas, representing continued momentum toward addressing patient needs.

 

In oncology, Merck received multiple U.S. Food and Drug Administration (FDA) approvals, including KEYTRUDA plus Padcev for the first-line treatment of adult patients with locally advanced or metastatic urothelial cancer and WELIREG for the treatment of certain patients with previously treated advanced RCC, among other approvals. The FDA also accepted and granted Priority Review to Merck and Daiichi Sankyo’s Biologics License Application (BLA) for patritumab deruxtecan for the treatment of certain patients with previously treated locally advanced or metastatic EGFR-mutated non-small cell lung cancer (NSCLC). The FDA set a Prescription Drug User Fee Act (PDUFA), or target action, date of June 26, 2024. In addition, Merck showed meaningful progress in its robust oncology pipeline, initiating Phase 3 trials for four investigational medicines, including bomedemstat (LSD1 inhibitor), nemtabrutinib (BTK inhibitor), MK-2870 (anti-TROP2 antibody-drug conjugate) and MK-5684 (CYP11A1 inhibitor).

 

 

In vaccines, Merck received Priority Review from the FDA for a BLA for V116, the company’s investigational, 21-valent pneumococcal conjugate vaccine specifically designed to protect adults, based on results from multiple Phase 3 trials. The FDA set a PDUFA date of June 17, 2024. If approved, V116 would be the first pneumococcal conjugate vaccine to include serotypes responsible for approximately 83 percent of adult invasive pneumococcal disease in individuals 65 and older, according to U.S. Centers for Disease Control and Prevention data from 2018-2021.

 

In hospital acute care, the European Commission (EC) approved PREVYMIS for prevention of cytomegalovirus (CMV) disease in high-risk adult kidney transplant recipients and extended 200-day dosing in adult hematopoietic stem cell transplant (HSCT) recipients who are at high risk for late CMV infection and disease.

 

Merck continued to augment its pipeline through business development, and in January 2024, entered into a definitive agreement to acquire Harpoon Therapeutics, Inc. (Harpoon), for an approximate total equity value of $680 million, further diversifying its oncology pipeline.

 

Notable recent news releases on Merck’s pipeline and portfolio are provided in the table that follows.

 

Oncology	FDA Approved Expanded Indication for KEYTRUDA Plus Padcev as First-Line Treatment for Adult Patients With Locally Advanced or Metastatic Urothelial Cancer, Based on Results From Phase 3 KEYNOTE-A39 Trial	(Read Announcement)
	FDA Approved Merck’s WELIREG as Treatment for Patients With Advanced RCC Following a PD-1 or PD-L1 Inhibitor and a VEGF-TKI, Based on Results From LITESPARK-005 Trial	(Read Announcement)
	FDA Approved Merck’s KEYTRUDA Plus Chemoradiotherapy as Treatment for Patients With FIGO 2014 Stage III-IVA Cervical Cancer, Based on Results From Phase 3 KEYNOTE-A18 Trial	(Read Announcement)
	FDA Approved Merck’s KEYTRUDA Plus Chemotherapy as First-Line Treatment for Locally Advanced Unresectable or Metastatic HER2-Negative Gastric or Gastroesophageal Junction (GEJ) Adenocarcinoma, Based on Results From Phase 3 KEYNOTE-859 Trial	(Read Announcement)
	FDA Approved Merck’s KEYTRUDA Plus Gemcitabine and Cisplatin as Treatment for Patients With Locally Advanced Unresectable or Metastatic Biliary Tract Cancer, Based on Results From Phase 3 KEYNOTE-966 Trial	(Read Announcement)
	EC Approved KEYTRUDA Plus Chemotherapy for New First-Line Indications in Advanced HER2-Negative Gastric or GEJ Adenocarcinoma in Tumors Expressing PD-L1 (CPS ≥1) and Advanced Biliary Tract Cancer, Based on Results From Phase 3 KEYNOTE-859 and KEYNOTE-966 Trials	(Read Announcement)
	FDA Granted Priority Review to Merck and Daiichi Sankyo’s BLA for Patritumab Deruxtecan for the Treatment of Certain Patients With Previously Treated Locally Advanced or Metastatic EGFR-Mutated NSCLC, Based on Results From Phase 2 HERTHENA-Lung01 Trial; FDA Set PDUFA Date of June 26, 2024	(Read announcement)

 

 

	Merck Announced Phase 3 Trial Initiations for Bomedemstat, Nemtabrutinib, MK-2870 and MK-5684, Four Investigational Candidates From Promising Hematology and Oncology Pipeline	(Read announcement)
	Merck and Moderna Initiated INTerpath-002, a Phase 3 Study Evaluating V940 (mRNA-4157) in Combination With KEYTRUDA for Adjuvant Treatment of Patients With Certain Types of Resected NSCLC	(Read Announcement)
	KEYTRUDA Reduced the Risk of Death by 38% Versus Placebo as Adjuvant Therapy for Patients With RCC at an Increased Risk of Recurrence Following Nephrectomy, Based on Results From Phase 3 KEYNOTE-564 Trial	(Read Announcement)
	KEYTRUDA Significantly Improved Disease-Free Survival as Adjuvant Therapy Versus Observation in High-Risk Patients With Localized Muscle-Invasive and Locally Advanced Urothelial Carcinoma After Surgery, Based on Results From Phase 3 AMBASSADOR/KEYNOTE-123 Trial	(Read Announcement)
	Moderna and Merck Announced V940 (mRNA-4157) in Combination With KEYTRUDA Demonstrated Continued Improvement in Recurrence-Free Survival and Distant Metastasis-Free Survival in Patients With High-Risk Stage III/IV Melanoma Following Complete Resection Versus KEYTRUDA at Three Years, Based on Results From Phase 2b Randomized KEYNOTE-942/mRNA-4157-P201 Study	(Read Announcement)
Vaccines	FDA Granted Priority Review to Merck’s New BLA for V116, an Investigational, 21-valent Pneumococcal Conjugate Vaccine Specifically Designed to Protect Adults, Based on Results From Multiple Phase 3 Trials; FDA Set PDUFA Date of June 17, 2024	(Read Announcement)
	Merck’s V116, an Investigational, 21-valent Pneumococcal Conjugate Vaccine Specifically Designed to Protect Adults, Demonstrated Superior Immunogenicity for 10 of 11 Unique Serotypes Compared to PCV20 in Adults 50 Years of Age and Older, Based on Results From Phase 3 STRIDE-3 Trial	(Read Announcement)

 

Full-Year 2024 Financial Outlook

 

The following table summarizes the company’s full-year financial outlook.

 

		Full Year 2024
Sales*		$62.7 to $64.2 billion
Non-GAAP gross margin2		Approximately 80.5%
Non-GAAP operating expenses2**		$25.1 to $26.1 billion
Non-GAAP other (income) expense, net2		Approximately $200 million expense
Non-GAAP effective tax rate2		14.5% to 15.5%
Non-GAAP EPS2***		$8.44 to $8.59
Share count (assuming dilution)		Approximately 2.54 billion

 

*The company does not have any non-GAAP adjustments to sales.

**Includes approximately $650 million of R&D expense related to the recently announced Harpoon acquisition, which is expected to close in the first half of 2024. Outlook does not assume any additional significant potential business development transactions.

***Includes a one-time charge of approximately $0.26 per share related to the Harpoon acquisition.

 

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 income 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 anticipates full-year 2024 sales to be between $62.7 billion and $64.2 billion, including a negative impact of foreign exchange of approximately 2% at mid-January 2024 exchange rates. The negative impact is primarily due to the devaluation of the Argentine peso, which the company expects will largely be offset by inflation-related price increases, consistent with market practice.

 

The outlook for operating expenses reflects incremental R&D spending expected to be incurred to advance the development of promising programs related to the acquisitions of Prometheus, Imago and Harpoon, as well as the collaborations with Daiichi Sankyo and Kelun-Biotech.

 

Merck’s full-year non-GAAP effective income tax rate is expected to be between 14.5% and 15.5%.

 

Merck expects full-year 2024 non-GAAP EPS to be between $8.44 and $8.59, including a negative impact of foreign exchange of approximately $0.25 per share. In 2023, non-GAAP EPS of $1.51 was negatively impacted by charges of $6.21 per share related to certain acquisitions and collaboration agreements.

 

In early January 2024, Merck announced the acquisition of Harpoon, which is expected to close in the first half of 2024, and result in a non-tax deductible charge of approximately $650 million of R&D expense included in non-GAAP results. The impact of the transaction on expected full-year non-GAAP EPS is approximately $0.26 per share, which is included in the 2024 outlook.

 

Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions.

 

Earnings Conference Call

 

Investors, journalists and the general public may access a live audio webcast of the earnings conference call on Thursday, Feb. 1, at 9 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 (800) 779-6561 (U.S. and Canada Toll-Free) or (773) 756-4619 and using the access code 5958465.

 

About Merck

 

At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit www.merck.com and connect with us on X (formerly Twitter), Facebook, Instagram, YouTube and LinkedIn.

 

 

Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA

 

This news release of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

 

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of the global outbreak of novel coronavirus disease (COVID-19); the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

 

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)

PNEUMOVAX 23 (Pneumococcal Vaccine Polyvalent)

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)

WELIREG (belzutifan)

 

Animal Health

BRAVECTO (fluralaner)

 

###

 

 

Media Contacts:	Investor Contacts:
Robert Josephson (203) 914-2372 robert.josephson@merck.com   Michael Levey (215) 872-1462 michael.levey@merck.com	Peter Dannenbaum (732) 594-1579 peter.dannenbaum@merck.com   Steven Graziano (732) 594-1583 steven.graziano@merck.com

 

 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1

 

		GAAP												GAAP
		4Q23				4Q22				% Change				Full Year 2023				Full Year 2022				% Change
Sales		$	14,630			$	13,830				6	%		$	60,115			$	59,283				1	%
Costs, Expenses and Other
Cost of sales			3,911				3,881				1	%			16,126				17,411				-7	%
Selling, general and administrative			2,804				2,687				4	%			10,504				10,042				5	%
Research and development			9,628				3,775				*				30,531				13,548				*
Restructuring costs			255				49				*				599				337				78	%
Other (income) expense, net			78				(75	)			*				466				1,501				-69	%
(Loss) Income Before Taxes			(2,046	)			3,513				*				1,889				16,444				-89	%
Income Tax (Benefit) Provision			(821	)			495								1,512				1,918
Net (Loss) Income			(1,225	)			3,018				*				377				14,526				-97	%
Less: Net Income Attributable to Noncontrolling Interests			1				1								12				7
Net (Loss) Income Attributable to Merck & Co., Inc.		$	(1,226	)		$	3,017				*			$	365			$	14,519				-97	%
(Loss) Earnings per Common Share Assuming Dilution (1)		$	(0.48	)		$	1.18				*			$	0.14			$	5.71				-98	%
Average Shares Outstanding Assuming Dilution (1)			2,533				2,548								2,547				2,542
Tax Rate			40.1	%			14.1	%							80.0	%			11.7	%

 

* 100% or greater                    

 

⁽¹⁾ Because the company recorded a net loss in the fourth quarter 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. 

FOURTH QUARTER AND FULL YEAR 2023 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
Fourth Quarter
Cost of sales		$	3,911				454				117												571			$	3,340
Selling, general and administrative			2,804				24				29												53				2,751
Research and development			9,628				790																790				8,838
Restructuring costs			255								255												255				–
Other (income) expense, net			78				(35	)							(61	)							(96	)			174
Loss Before Taxes			(2,046	)			(1,233	)			(401	)			61								(1,573	)			(473	)
Income Tax Provision (Benefit)			(821	)			(227	)(4)			(67	)(4)			13	(4)							(281	)			(540	)
Net (Loss) Income			(1,225	)			(1,006	)			(334	)			48								(1,292	)			67
Net (Loss) Income Attributable to Merck & Co., Inc.			(1,226	)			(1,006	)			(334	)			48								(1,292	)			66
(Loss) Earnings per Common Share Assuming Dilution (5)		$	(0.48	)			(0.40	)			(0.13	)			0.02								(0.51	)		$	0.03
Tax Rate			40.1	%																							114.2	%
Full Year
Cost of sales		$	16,126				2,018				211												2,229			$	13,897
Selling, general and administrative			10,504				86				122												208				10,296
Research and development			30,531				819				1												820				29,711
Restructuring costs			599								599												599				–
Other (income) expense, net			466				(47	)							(279	)			573	(3)			247				219
Income Before Taxes			1,889				(2,876	)			(933	)			279				(573	)			(4,103	)			5,992
Income Tax Provision (Benefit)			1,512				(476	)(4)			(155	)(4)			60	(4)			(60	)(4)			(631	)			2,143
Net Income			377				(2,400	)			(778	)			219				(513	)			(3,472	)			3,849
Net Income Attributable to Merck & Co., Inc.			365				(2,400	)			(778	)			219				(513	)			(3,472	)			3,837
Earnings per Common Share Assuming Dilution		$	0.14				(0.94	)			(0.31	)			0.08				(0.20	)			(1.37	)		$	1.51
Tax Rate			80.0	%																							35.8	%

 

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 a $779 million in-process research and development (IPR&D) impairment charge related to gefapixant, which was obtained as part of the 2016 Afferent Pharmaceuticals acquisition, and expenses for the amortization of intangible assets.  Amounts included in other (income) expense, net, primarily reflect royalty income related to the prior termination of the Sanofi-Pasteur MSD joint venture.   Additionally, other (income) expense, net, for the full year includes a $37 million loss on the sale of a business.

 

⁽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 fourth quarter 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																				4Q							Full Year
			1Q				2Q				3Q				4Q				Full Year				1Q				2Q				3Q				4Q				Full Year			Nom %				Ex-Exch %				Nom %				Ex-Exch %
TOTAL SALES (1)		$	14,487			$	15,035			$	15,962			$	14,630			$	60,115			$	15,901			$	14,593			$	14,959			$	13,830			$	59,283				6				7				1				4
PHARMACEUTICAL			12,721				13,457				14,263				13,141				53,583				14,107				12,756				12,963				12,180				52,005				8				8				3				5
Oncology
Keytruda			5,795				6,271				6,338				6,608				25,011				4,809				5,252				5,426				5,450				20,937				21				22				19				21
Alliance Revenue – Lynparza (2)			275				310				299				315				1,199				266				275				284				292				1,116				8				8				7				9
Alliance Revenue – Lenvima (2)			232				242				260				226				960				227				231				202				216				876				5				5				10				11
Welireg			42				50				54				72				218				18				27				38				40				123				79				78				77				77
Alliance Revenue – Reblozyl (3)			43				47				52				70				212				52				33				39				41				166				69				69				28				28
Vaccines (4)
Gardasil / Gardasil 9			1,972				2,458				2,585				1,871				8,886				1,460				1,674				2,294				1,470				6,897				27				27				29				33
ProQuad / M-M-R II / Varivax			528				582				713				545				2,368				470				578				668				526				2,241				4				3				6				6
RotaTeq			297				131				156				185				769				216				173				256				139				783				34				33				-2				-1
Vaxneuvance			106				168				214				176				665				5				12				16				138				170				28				26				*				*
Pneumovax 23			96				92				140				85				412				173				153				131				145				602				-42				-43				-32				-31
Vaqta			40				42				69				29				180				36				35				64				39				173				-24				-25				4				4
Hospital Acute Care
Bridion			487				502				424				429				1,842				395				426				423				441				1,685				-3				-3				9				11
Prevymis			129				143				157				175				605				94				103				114				118				428				49				49				41				43
Dificid			65				76				74				87				302				52				66				77				67				263				30				30				15				15
Zerbaxa			50				54				53				61				218				30				46				43				49				169				25				23				29				30
Noxafil			60				55				51				46				213				57				60				62				58				238				-21				-16				-11				-4
Primaxin			80				53				41				39				213				58				64				63				54				239				-28				-28				-11				-6
Cardiovascular
Alliance Revenue - Adempas/Verquvo (5)			99				68				92				108				367				72				98				88				82				341				31				31				8				8
Adempas (6)			59				65				65				66				255				61				63				57				57				238				15				11				7				8
Virology
Lagevrio			392				203				640				193				1,428				3,247				1,177				436				825				5,684				-77				-76				-75				-74
Isentress / Isentress HD			123				136				119				105				483				158				147				161				167				633				-37				-37				-24				-23
Neuroscience
Belsomra			56				63				58				54				231				69				69				62				59				258				-8				-6				-11				-6
Immunology
Simponi			180				180				179				171				710				186				181				173				166				706				3				-2				1				-
Remicade			51				48				45				43				187				61				53				49				44				207				-1				-2				-9				-8
Diabetes (7)
Januvia			551				511				581				547				2,189				779				756				717				561				2,813				-2				-2				-22				-20
Janumet			329				354				255				240				1,177				454				476				417				353				1,700				-32				-32				-31				-29
Other Pharmaceutical (8)			584				553				549				595				2,283				602				528				603				583				2,319				2				2				-2				-
ANIMAL HEALTH			1,491				1,456				1,400				1,278				5,625				1,482				1,467				1,371				1,230				5,550				4				4				1				3
Livestock			849				807				874				808				3,337				832				826				829				814				3,300				-1				-				1				4
Companion Animal			642				649				526				470				2,288				650				641				542				416				2,250				13				12				2				3
Other Revenues (9)			275				122				299				211				907				312				370				625				420				1,728				-50				-1				-48				-15

 

*200% or greater

 

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 and a milestone payment of $20 million received in the first quarter of 2022.

 

⁽⁴⁾ Total Vaccines sales were $3,133 million, $3,557 million, $4,002 million and $2,962 million in the first, second, third and fourth quarter of 2023, respectively, and $2,481 million, $2,709 million, $3,552 million and $2,554 million in the first, second, third and fourth quarter of 2022, respectively.

 

⁽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 $950 million, $951 million, $924 million and $876 million in the first, second, third and fourth quarter of 2023, respectively, and $1,305 million, $1,300 million, $1,231 million and $1,012 million in the first, second, third and fourth quarter of 2022, respectively.

 

⁽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 $51 million, $3 million and $65 million in the first, second and third quarter of 2023, respectively, and $114 million, $32 million, $10 million and $10 million in the first, second, third and fourth quarter of 2022, respectively.

 

 

Exhibit 99.2

 

MERCK & CO., INC.    

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP    

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)    

(UNAUDITED)    

Table 1a

 

		2023																				2022																				% Change
		1Q				2Q				3Q				4Q				Full Year				1Q				2Q				3Q				4Q				Full Year				4Q				Full Year
Sales		$	14,487			$	15,035			$	15,962			$	14,630			$	60,115			$	15,901			$	14,593			$	14,959			$	13,830			$	59,283				6	%			1	%
Costs, Expenses and Other
Cost of sales			3,926				4,024				4,264				3,911				16,126				5,380				4,216				3,934				3,881				17,411				1	%			-7	%
Selling, general and administrative			2,479				2,702				2,519				2,804				10,504				2,323				2,512				2,520				2,687				10,042				4	%			5	%
Research and development			4,276				13,321				3,307				9,628				30,531				2,576				2,798				4,399				3,775				13,548				*				*
Restructuring costs			67				151				126				255				599				53				142				94				49				337				*				78	%
Other (income) expense, net			89				172				126				78				466				708				438				429				(75	)			1,501				*				-69	%
Income (Loss) Before Taxes			3,650				(5,335	)			5,620				(2,046	)			1,889				4,861				4,487				3,583				3,513				16,444				*				-89	%
Income Tax Provision (Benefit)			825				637				870				(821	)			1,512				554				538				330				495				1,918
Net Income (Loss)			2,825				(5,972	)			4,750				(1,225	)			377				4,307				3,949				3,253				3,018				14,526				*				-97	%
Less: Net Income (Loss) Attributable to Noncontrolling Interests			4				3				5				1				12				(3	)			5				5				1				7
Net Income (Loss) Attributable to Merck & Co., Inc.		$	2,821			$	(5,975	)		$	4,745			$	(1,226	)		$	365			$	4,310			$	3,944			$	3,248			$	3,017			$	14,519				*				-97	%
Earnings (Loss) per Common Share Assuming Dilution (1)		$	1.11			$	(2.35	)		$	1.86			$	(0.48	)		$	0.14			$	1.70			$	1.55			$	1.28			$	1.18			$	5.71				*				-98	%
Average Shares Outstanding Assuming Dilution (1)			2,551				2,539				2,546				2,533				2,547				2,537				2,540				2,542				2,548				2,542
Tax Rate			22.6	%			-11.9	%			15.5	%			40.1	%			80.0	%			11.4	%			12.0	%			9.2	%			14.1	%			11.7	%

 

*100% or greater

 

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

 

⁽¹⁾ Because the company recorded a net loss in the second and fourth quarters 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.

FOURTH QUARTER AND FULL YEAR 2022 GAAP TO NON-GAAP RECONCILIATION

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

                         

		GAAP				Acquisition and Divestiture- Related Costs (1)				Restructuring Costs (2)				(Income) Loss from Investments in Equity Securities				Adjustment Subtotal				Non-GAAP
Fourth Quarter
Cost of sales		$	3,881				482				38								520			$	3,361
Selling, general and administrative			2,687				39				20								59				2,628
Research and development			3,775				740												740				3,035
Restructuring costs			49								49								49				–
Other (income) expense, net			(75	)			(69	)							80				11				(86	)
Income Before Taxes			3,513				(1,192	)			(107	)			(80	)			(1,379	)			4,892
Income Tax Provision (Benefit)			495				(222	)(3)			(32	)(3)			(13	)(3)			(267	)			762
Net Income			3,018				(970	)			(75	)			(67	)			(1,112	)			4,130
Net Income Attributable to Merck & Co., Inc.			3,017				(970	)			(75	)			(67	)			(1,112	)			4,129
Earnings per Common Share Assuming Dilution		$	1.18				(0.38	)			(0.03	)			(0.03	)			(0.44	)		$	1.62
Tax Rate			14.1	%																			15.6	%
Full Year
Cost of sales		$	17,411				2,059				205								2,264			$	15,147
Selling, general and administrative			10,042				176				94								270				9,772
Research and development			13,548				1,676				30								1,706				11,842
Restructuring costs			337								337								337				–
Other (income) expense, net			1,501				(207	)							1,348				1,141				360
Income Before Taxes			16,444				(3,704	)			(666	)			(1,348	)			(5,718	)			22,162
Income Tax Provision (Benefit)			1,918				(809	)(3)			(129	)(3)			(294	)(3)			(1,232	)			3,150
Net Income			14,526				(2,895	)			(537	)			(1,054	)			(4,486	)			19,012
Net Income Attributable to Merck & Co., Inc.			14,519				(2,895	)			(537	)			(1,054	)			(4,486	)			19,005
Earnings per Common Share Assuming Dilution		$	5.71				(1.14	)			(0.21	)			(0.42	)			(1.77	)		$	7.48
Tax Rate			11.7	%																			14.2	%

 

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 for the fourth quarter and full year primarily reflect $780 million and $1.7 billion, respectively, of intangible asset impairment charges largely related to nemtabrutinib, which was obtained as part of the 2020 ArQule, Inc. acquisition, and expenses for the amortization of intangible assets, partially offset by a reduction in expenses related to changes in the estimated fair value of liabilities for contingent consideration.  Amounts included in other (income) expense, net, reflect royalty income and decreases in the estimated fair value measurement of liabilities for contingent consideration related to the prior termination of the Sanofi-Pasteur MSD joint venture.  

 

⁽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⁾ Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.  

 

 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FOURTH QUARTER 2023

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3a

 

		Global												U.S.												International
		4Q 2023				4Q 2022				% Change				4Q 2023				4Q 2022				% Change				4Q 2023				4Q 2022				% Change
TOTAL SALES (1)		$	14,630			$	13,830				6			$	7,088			$	6,279				13			$	7,542			$	7,551				-
PHARMACEUTICAL			13,141				12,180				8				6,698				5,871				14				6,443				6,309				2
Oncology
Keytruda			6,608				5,450				21				3,972				3,378				18				2,636				2,071				27
Alliance Revenue – Lynparza (2)			315				292				8				168				157				7				147				135				9
Alliance Revenue – Lenvima (2)			226				216				5				181				154				18				45				62				-28
Welireg			72				40				79				68				40				70				4								-
Alliance Revenue – Reblozyl (3)			70				41				69				60				36				68				10				6				74
Vaccines (4)
Gardasil / Gardasil 9			1,871				1,470				27				365				262				39				1,506				1,207				25
ProQuad / M-M-R II / Varivax			545				526				4				402				387				4				143				139				3
RotaTeq			185				139				34				112				82				37				73				57				28
Vaxneuvance			176				138				28				138				132				5				38				6				*
Pneumovax 23			85				145				-42				22				66				-66				62				79				-21
Vaqta			29				39				-24				28				23				24				1				16				-94
Hospital Acute Care
Bridion			429				441				-3				315				257				22				113				183				-38
Prevymis			175				118				49				78				52				49				98				65				50
Dificid			87				67				30				75				57				32				12				10				17
Zerbaxa			61				49				25				33				25				31				28				24				18
Noxafil			46				58				-21				4				13				-72				43				46				-7
Primaxin			39				54				-28								1				N/M				39				53				-27
Cardiovascular
Alliance Revenue - Adempas/Verquvo (5)			108				82				31				102				85				20				6				-2				*
Adempas (6)			66				57				15																66				57				15
Virology
Lagevrio			193				825				-77				10								-				183				825				-78
Isentress / Isentress HD			105				167				-37				50				78				-36				56				89				-38
Neuroscience
Belsomra			54				59				-8				21				19				10				33				39				-17
Immunology
Simponi			171				166				3																171				166				3
Remicade			43				44				-1																43				44				-1
Diabetes (7)
Januvia			547				561				-2				309				290				6				239				271				-12
Janumet			240				353				-32				41				97				-58				198				255				-22
Other Pharmaceutical (8)			595				583				2				144				180				-20				450				406				11
ANIMAL HEALTH			1,278				1,230				4				387				396				-2				891				834				7
Livestock			808				814				-1				158				188				-16				649				626				4
Companion Animal			470				416				13				229				208				10				242				208				16
Other Revenues (9)			211				420				-50				3				12				-75				208				408				-49

 

*200% or greater                      

 

N/M - Not Meaningful                      

 

Sum of U.S. plus international may not equal global 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 $2,962 million in the fourth quarter of 2023 and $2,554 million in the fourth quarter of 2022.        

 

⁽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 $876 million in the fourth quarter of 2023 and $1,012 million in the fourth quarter of 2022.        

 

⁽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 $10 million in the fourth quarter of 2022.         

 

 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FULL YEAR 2023

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

 

		Global												U.S.												International
		Full Year 2023				Full Year 2022				% Change				Full Year 2023				Full Year 2022				% Change				Full Year 2023				Full Year 2022				% Change
TOTAL SALES (1)		$	60,115			$	59,283				1			$	28,480			$	27,206				5			$	31,635			$	32,077				-1
PHARMACEUTICAL			53,583				52,005				3				26,539				24,989				6				27,044				27,016				-
Oncology
Keytruda			25,011				20,937				19				15,114				12,686				19				9,897				8,251				20
Alliance Revenue – Lynparza (2)			1,199				1,116				7				607				584				4				592				532				11
Alliance Revenue – Lenvima (2)			960				876				10				657				579				13				303				297				2
Welireg			218				123				77				209				123				70				10								-
Alliance Revenue – Reblozyl (3)			212				166				28				168				123				37				43				43				1
Vaccines (4)
Gardasil / Gardasil 9			8,886				6,897				29				2,083				2,065				1				6,803				4,832				41
ProQuad / M-M-R II / Varivax			2,368				2,241				6				1,837				1,724				7				531				518				3
RotaTeq			769				783				-2				493				508				-3				276				275				-
Vaxneuvance			665				170				*				561				163				*				103				7				*
Pneumovax 23			412				602				-32				127				346				-63				285				256				11
Vaqta			180				173				4				119				95				25				61				78				-21
Hospital Acute Care
Bridion			1,842				1,685				9				1,156				922				25				686				762				-10
Prevymis			605				428				41				264				188				40				341				240				42
Dificid			302				263				15				274				241				14				28				22				25
Zerbaxa			218				169				29				119				89				33				100				79				25
Noxafil			213				238				-11				32				51				-37				181				187				-3
Primaxin			213				239				-11				1				1				-6				211				238				-11
Cardiovascular
Alliance Revenue - Adempas/Verquvo (5)			367				341				8				350				329				6				16				12				41
Adempas (6)			255				238				7																255				238				7
Virology
Lagevrio			1,428				5,684				-75				10				1,523				-99				1,418				4,161				-66
Isentress / Isentress HD			483				633				-24				215				274				-21				268				359				-25
Neuroscience
Belsomra			231				258				-11				81				79				3				150				179				-16
Immunology
Simponi			710				706				1																710				706				1
Remicade			187				207				-9																187				207				-9
Diabetes (7)
Januvia			2,189				2,813				-22				1,151				1,248				-8				1,039				1,565				-34
Janumet			1,177				1,700				-31				223				355				-37				954				1,344				-29
Other Pharmaceutical (8)			2,283				2,319				-2				688				693				-1				1,596				1,628				-2
ANIMAL HEALTH			5,625				5,550				1				1,804				1,822				-1				3,821				3,728				2
Livestock			3,337				3,300				1				700				710				-1				2,637				2,590				2
Companion Animal			2,288				2,250				2				1,104				1,112				-1				1,184				1,138				4
Other Revenues (9)			907				1,728				-48				137				395				-65				770				1,333				-42

 

*200% or greater

 

Sum of U.S. plus international may not equal global 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 and a milestone payment of $20 million received in the first quarter of 2022.

 

⁽⁴⁾ Total Vaccines sales were $13,654 million and $11,297 million on a global basis for December YTD 2023 and 2022, respectively.

 

⁽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 $3,701 million and $4,848 million on a global basis for December YTD 2023 and 2022, respectively.

 

⁽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 $118 million and $165 million on a global basis for December YTD 2023 and 2022, respectively.                                                                        

 

 

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES 

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

                             

 

		2023																				2022																		% Change
		1Q				2Q				3Q				4Q				Full Year				1Q				2Q				3Q			4Q			Full Year				4Q				Full Year
TOTAL PHARMACEUTICAL		$	12,721			$	13,457			$	14,263			$	13,141			$	53,583			$	14,107			$	12,756			$	12,963		$	12,180		$	52,005				8				3
United States			6,117				6,570				7,153				6,698				26,539				6,773				5,726				6,620			5,871			24,989				14				6
% Pharmaceutical Sales			48.1	%			48.8	%			50.1	%			51.0	%			49.5	%			48.0	%			44.9	%			51.1	%		48.2%			48.1	%
Europe (1)			2,326				2,401				2,497				2,491				9,715				3,309				2,677				2,427			2,494			10,906				-				-11
% Pharmaceutical Sales			18.3	%			17.8	%			17.5	%			19.0	%			18.1	%			23.5	%			21.0	%			18.7	%		20.5%			21.0	%
China			1,694				1,887				1,674				1,456				6,710				1,113				1,355				1,419			1,216			5,102				20				32
% Pharmaceutical Sales			13.3	%			14.0	%			11.7	%			11.1	%			12.5	%			7.9	%			10.6	%			10.9	%		10.0%			9.8	%
Japan			737				652				1,062				629				3,081				965				1,092				653			832			3,542				-24				-13
% Pharmaceutical Sales			5.8	%			4.8	%			7.4	%			4.8	%			5.7	%			6.8	%			8.6	%			5.0	%		6.8%			6.8	%
Asia Pacific (other than China and Japan)			703				705				636				616				2,661				786				854				702			691			3,034				-11				-12
% Pharmaceutical Sales			5.5	%			5.2	%			4.5	%			4.7	%			5.0	%			5.6	%			6.7	%			5.4	%		5.7%			5.8	%
Latin America			470				566				696				596				2,328				435				453				511			472			1,871				26				24
% Pharmaceutical Sales			3.7	%			4.2	%			4.9	%			4.5	%			4.3	%			3.1	%			3.6	%			3.9	%		3.9%			3.6	%
Eastern Europe/Middle East/Africa			381				370				301				299				1,351				450				339				360			320			1,469				-7				-8
% Pharmaceutical Sales			3.0	%			2.7	%			2.1	%			2.3	%			2.5	%			3.2	%			2.7	%			2.8	%		2.6%			2.8	%
Canada			141				127				133				138				540				189				166				166			158			678				-12				-20
% Pharmaceutical Sales			1.1	%			0.9	%			0.9	%			1.1	%			1.0	%			1.3	%			1.3	%			1.3	%		1.3%			1.3	%
Other			152				179				111				218				658				87				94				105			126			414				73				59
% Pharmaceutical Sales			1.2	%			1.6	%			0.9	%			1.5	%			1.4	%			0.6	%			0.6	%			0.9	%		1.0%			0.8	%

 

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

 

⁽¹⁾ Europe represents all European Union countries, the European Union accession markets and the United Kingdom.

 

 

MERCK & CO., INC.

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

             

OTHER (INCOME) EXPENSE, NET

 

		4Q23				4Q22				Full Year 2023				Full Year 2022
Interest income		$	(70	)		$	(95	)		$	(365	)		$	(157	)
Interest expense			310				235				1,146				962
Exchange losses			162				17				370				237
(Income) loss from investments in equity securities, net (1)			(99	)			59				(340	)			1,419
Net periodic defined benefit plan (credit) cost other than service cost			(134	)			(71	)			(498	)			(279	)
Other, net			(91	)			(220	)			153				(681	)
Total		$	78			$	(75	)		$	466			$	1,501

 

⁽¹⁾ Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds.  Unrealized gains and losses from investments that are directly owned are determined at the end of the reporting period, while gains and losses from ownership interests in investment funds are accounted for on a one quarter lag.

 

v3.24.0.1

Cover	Jan. 29, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 29, 2024
Entity File Number	1-6571
Entity Registrant Name	Merck & Co., Inc.
Entity Central Index Key	0000310158
Entity Tax Identification Number	22-1918501
Entity Incorporation, State or Country Code	NJ
Entity Address, Address Line One	126 East Lincoln Avenue
Entity Address, City or Town	Rahway
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07065
City Area Code	908
Local Phone Number	740-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock ($0.50 par value)
Trading Symbol	MRK
Security Exchange Name	NYSE
0.500% Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	0.500% Notes due 2024
Trading Symbol	MRK 24
Security Exchange Name	NYSE
1.875% Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2026
Trading Symbol	MRK/26
Security Exchange Name	NYSE
2.500% Notes due 2034
Document Information [Line Items]
Title of 12(b) Security	2.500% Notes due 2034
Trading Symbol	MRK/34
Security Exchange Name	NYSE
1.375% Notes due 2036
Document Information [Line Items]
Title of 12(b) Security	1.375% Notes due 2036
Trading Symbol	MRK 36A
Security Exchange Name	NYSE

---