Collaborative Arrangements (Tables)

9 Months Ended

Sep. 30, 2021

Collaborative Arrangements [Abstract]

Summarized financial information related to this collaboration is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2021		2020		2021		2020
Alliance revenue - Lynparza	$	246	$	196	$	721	$	519
Alliance revenue - Koselugo	6		3		20		3
Total alliance revenue	$	252	$	199	$	741	$	522

Cost of sales (1)	42		41		125		205
Selling, general and administrative	44		40		127		112
Research and development	27		20		87		93

($ in millions)					September 30, 2021		December 31, 2020
Receivables from AstraZeneca included in Other current assets					$	248	$	215
Payables to AstraZeneca included in Accrued and other current liabilities (2)					415		423

(1) Represents amortization of capitalized milestone payments.

(2) Includes accrued milestone payments.

Summarized financial information related to this collaboration is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2021		2020		2021		2020
Alliance revenue - Lenvima	$	188	$	142	$	498	$	421

Cost of sales (1)	49		46		143		215
Selling, general and administrative	34		18		88		48
Research and development	43		48		165		168

($ in millions)					September 30, 2021		December 31, 2020
Receivables from Eisai included in Other current assets					$	223	$	157
Payables to Eisai included in Accrued and other current liabilities (2)					600		335
Payables to Eisai included in Other Noncurrent Liabilities (3)					—		600

(1) Represents amortization of capitalized milestone payments.

(2) Includes accrued milestone and future option payments.

(3) Includes accrued milestone payments.

Summarized financial information related to this collaboration is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2021		2020		2021		2020
Alliance revenue - Adempas/Verquvo	$	100	$	83	$	248	$	216
Net sales of Adempas recorded by Merck	59		55		188		167
Net sales of Verquvo recorded by Merck	2		—		3		—
Total sales	$	161	$	138	$	439	$	383

Cost of sales (1)	53		81		328		229
Selling, general and administrative	31		12		84		32
Research and development	16		12		36		53

($ in millions)					September 30, 2021		December 31, 2020
Receivables from Bayer included in Other current assets					$	139	$	65
Payables to Bayer included in Accrued and other current liabilities (2)					467		—

(1) Includes amortization of intangible assets. Amount in the first nine months of 2021 includes $153 million of cumulative amortization as noted above. In addition, cost of sales in all periods now includes Bayer’s share of profits from sales in Merck’s marketing territories.

(2) Includes accrued milestone payment.