Collaborative Arrangements (Tables)

9 Months Ended

Sep. 30, 2022

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)	2022		2021		2022		2021
Alliance revenue - Lynparza	$	284	$	246	$	825	$	721
Alliance revenue - Koselugo	10		6		43		20
Total alliance revenue	$	294	$	252	$	868	$	741

Cost of sales (1)	64		42		425		125
Selling, general and administrative	45		44		135		127
Research and development	28		27		79		87

($ in millions)					September 30, 2022		December 31, 2021
Receivables from AstraZeneca included in Other current assets					$	290	$	271
Payables to AstraZeneca included in Trade accounts payable and Accrued and other current liabilities (2)					12		415
Payables to AstraZeneca included in Other Noncurrent Liabilities (2)					600		—

(1) Represents amortization of capitalized milestone payments. Amount in the first nine months of 2022 includes $250 million of cumulative amortization catch-up expense as noted above.

(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)	2022		2021		2022		2021
Alliance revenue - Lenvima	$	202	$	188	$	660	$	498

Cost of sales (1)	53		49		159		143
Selling, general and administrative	42		34		115		88
Research and development	24		43		128		165

($ in millions)					September 30, 2022		December 31, 2021
Receivables from Eisai included in Other current assets					$	202	$	200
Payables to Eisai included in Accrued and other current liabilities (2)					1		625

(1) Represents amortization of capitalized milestone payments.

(2) Amount as of December 31, 2021 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)	2022		2021		2022		2021
Alliance revenue - Adempas/Verquvo	$	88	$	100	$	258	$	248
Net sales of Adempas recorded by Merck	57		59		181		188
Net sales of Verquvo recorded by Merck	6		2		15		3
Total sales	$	151	$	161	$	454	$	439

Cost of sales (1)	55		53		158		328
Selling, general and administrative	42		31		107		84
Research and development	18		16		52		36
($ in millions)					September 30, 2022		December 31, 2021
Receivables from Bayer included in Other current assets					$	144	$	114
Payables to Bayer included in Accrued and other current liabilities (2)					75		472

(1) Includes amortization of intangible assets. Amount in the first nine months of 2021 includes $153 million of cumulative amortization catch-up expense. In addition, cost of sales includes Bayer’s share of profits from sales in Merck’s marketing territories.

(2) Amount as of December 31, 2021 includes accrued milestone payment.

Summarized financial information related to this collaboration is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2022		2021		2022		2021
Lagevrio sales	$	436	$	—	$	4,859	$	—

Cost of sales (1)	234		4		2,580		56
Selling, general and administrative	41		6		105		13
Research and development	8		58		29		167

($ in millions)					September 30, 2022		December 31, 2021
Payables to Ridgeback included in Accrued and other current liabilities (2)					$	193	$	283

(1) Includes royalty expense and amortization of capitalized milestone payments.

(2) Includes accrued royalty and milestone payments.