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Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Sales from Products | Sales of the Company’s products were as follows:
| Three Months Ended March 31, |  |
| 2024 |  | 2023 |  |  |  |
($ in millions) | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  |  |  |  |  |  |  |  |  |  |  |
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 4,119 |  |  | $ | 2,828 |  |  | $ | 6,947 |  |  | $ | 3,485 |  |  | $ | 2,310 |  |  | $ | 5,795 |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue-Lynparza (1) | 135 |  |  | 157 |  |  | 292 |  |  | 142 |  |  | 133 |  |  | 275 |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue-Lenvima (1) | 173 |  |  | 82 |  |  | 255 |  |  | 153 |  |  | 79 |  |  | 232 |  |  |  |  |  |  |  |  |  |  |  |  |
Welireg | 77 |  |  | 7 |  |  | 85 |  |  | 41 |  |  | 1 |  |  | 42 |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue-Reblozyl (2) | 58 |  |  | 12 |  |  | 71 |  |  | 30 |  |  | 12 |  |  | 43 |  |  |  |  |  |  |  |  |  |  |  |  |
Vaccines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 488 |  |  | 1,761 |  |  | 2,249 |  |  | 416 |  |  | 1,556 |  |  | 1,972 |  |  |  |  |  |  |  |  |  |  |  |  |
ProQuad/M-M-R II/Varivax | 438 |  |  | 133 |  |  | 570 |  |  | 421 |  |  | 107 |  |  | 528 |  |  |  |  |  |  |  |  |  |  |  |  |
Vaxneuvance | 161 |  |  | 58 |  |  | 219 |  |  | 94 |  |  | 13 |  |  | 106 |  |  |  |  |  |  |  |  |  |  |  |  |
RotaTeq | 149 |  |  | 67 |  |  | 216 |  |  | 180 |  |  | 117 |  |  | 297 |  |  |  |  |  |  |  |  |  |  |  |  |
Pneumovax 23 | 6 |  |  | 55 |  |  | 61 |  |  | 40 |  |  | 56 |  |  | 96 |  |  |  |  |  |  |  |  |  |  |  |  |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridion | 329 |  |  | 111 |  |  | 440 |  |  | 276 |  |  | 210 |  |  | 487 |  |  |  |  |  |  |  |  |  |  |  |  |
Prevymis | 74 |  |  | 100 |  |  | 174 |  |  | 54 |  |  | 75 |  |  | 129 |  |  |  |  |  |  |  |  |  |  |  |  |
Dificid | 68 |  |  | 5 |  |  | 73 |  |  | 62 |  |  | 3 |  |  | 65 |  |  |  |  |  |  |  |  |  |  |  |  |
Zerbaxa | 33 |  |  | 23 |  |  | 56 |  |  | 27 |  |  | 23 |  |  | 50 |  |  |  |  |  |  |  |  |  |  |  |  |
Noxafil | 8 |  |  | 48 |  |  | 56 |  |  | 14 |  |  | 46 |  |  | 60 |  |  |  |  |  |  |  |  |  |  |  |  |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue-Adempas/Verquvo (3) | 90 |  |  | 8 |  |  | 98 |  |  | 83 |  |  | 16 |  |  | 99 |  |  |  |  |  |  |  |  |  |  |  |  |
Adempas | — |  |  | 70 |  |  | 70 |  |  | — |  |  | 59 |  |  | 59 |  |  |  |  |  |  |  |  |  |  |  |  |
Virology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Lagevrio | 45 |  |  | 305 |  |  | 350 |  |  | (2) |  |  | 394 |  |  | 392 |  |  |  |  |  |  |  |  |  |  |  |  |
Isentress/Isentress HD | 50 |  |  | 61 |  |  | 111 |  |  | 52 |  |  | 71 |  |  | 123 |  |  |  |  |  |  |  |  |  |  |  |  |
Delstrigo | 12 |  |  | 44 |  |  | 56 |  |  | 11 |  |  | 33 |  |  | 44 |  |  |  |  |  |  |  |  |  |  |  |  |
Pifeltro | 29 |  |  | 13 |  |  | 42 |  |  | 24 |  |  | 10 |  |  | 34 |  |  |  |  |  |  |  |  |  |  |  |  |
Neuroscience |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Belsomra | 15 |  |  | 32 |  |  | 46 |  |  | 16 |  |  | 40 |  |  | 56 |  |  |  |  |  |  |  |  |  |  |  |  |
Immunology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | 184 |  |  | 184 |  |  | — |  |  | 180 |  |  | 180 |  |  |  |  |  |  |  |  |  |  |  |  |
Remicade | — |  |  | 39 |  |  | 39 |  |  | — |  |  | 51 |  |  | 51 |  |  |  |  |  |  |  |  |  |  |  |  |
Diabetes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Januvia | 183 |  |  | 236 |  |  | 419 |  |  | 271 |  |  | 280 |  |  | 551 |  |  |  |  |  |  |  |  |  |  |  |  |
Janumet | 39 |  |  | 212 |  |  | 251 |  |  | 56 |  |  | 272 |  |  | 329 |  |  |  |  |  |  |  |  |  |  |  |  |
Other pharmaceutical (4) | 157 |  |  | 419 |  |  | 576 |  |  | 171 |  |  | 457 |  |  | 626 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Pharmaceutical segment sales | 6,936 |  |  | 7,070 |  |  | 14,006 |  |  | 6,117 |  |  | 6,604 |  |  | 12,721 |  |  |  |  |  |  |  |  |  |  |  |  |
Animal Health: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Livestock | 166 |  |  | 683 |  |  | 850 |  |  | 174 |  |  | 676 |  |  | 849 |  |  |  |  |  |  |  |  |  |  |  |  |
Companion Animal | 308 |  |  | 354 |  |  | 661 |  |  | 308 |  |  | 334 |  |  | 642 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Animal Health segment sales | 474 |  |  | 1,037 |  |  | 1,511 |  |  | 482 |  |  | 1,010 |  |  | 1,491 |  |  |  |  |  |  |  |  |  |  |  |  |
Total segment sales | 7,410 |  |  | 8,107 |  |  | 15,517 |  |  | 6,599 |  |  | 7,614 |  |  | 14,212 |  |  |  |  |  |  |  |  |  |  |  |  |
Other (5) | 68 |  |  | 190 |  |  | 258 |  |  | 60 |  |  | 214 |  |  | 275 |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 7,478 |  |  | $ | 8,297 |  |  | $ | 15,775 |  |  | $ | 6,659 |  |  | $ | 7,828 |  |  | $ | 14,487 |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. plus international may not equal total due to rounding. (1) Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 3). (2) Alliance revenue for Reblozyl represents royalties (see Note 3). (3) Alliance revenue for Adempas/Verquvo 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 (see Note 3). (4) Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. (5) Other is primarily comprised of miscellaneous corporate revenue, including revenue hedging activities which increased sales by $54 million and $99 million for the three months ended March 31, 2024 and 2023, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for the three months ended March 31, 2024 and 2023 also includes $61 million and $51 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.
Consolidated Sales by Geographic Area | Consolidated sales by geographic area where derived are as follows:
| Three Months Ended March 31, |  |
($ in millions) | 2024 |  | 2023 |  |  |  |
United States | $ | 7,478 |  |  | $ | 6,659 |  |  |  |  |
Europe, Middle East and Africa | 3,563 |  |  | 3,303 |  |  |  |  |
China | 1,772 |  |  | 1,715 |  |  |  |  |
Japan | 821 |  |  | 758 |  |  |  |  |
Latin America | 796 |  |  | 661 |  |  |  |  |
Asia Pacific (other than China and Japan) | 724 |  |  | 846 |  |  |  |  |
Other | 621 |  |  | 545 |  |  |  |  |
| $ | 15,775 |  |  | $ | 14,487 |  |  |  |  |
Reconciliation of Segment Profits to Income before Taxes | A reconciliation of segment profits to Income Before Taxes is as follows:
| Three Months Ended March 31, |  |
($ in millions) | 2024 |  | 2023 |  |  |  |
Segment profits: |  |  |  |  |  |  |
Pharmaceutical segment | $ | 10,904 |  |  | $ | 9,140 |  |  |  |  |
Animal Health segment | 555 |  |  | 566 |  |  |  |  |
Total segment profits | 11,459 |  |  | 9,706 |  |  |  |  |
Other profits | 146 |  |  | 164 |  |  |  |  |
Unallocated: |  |  |  |  |  |  |
Interest income | 73 |  |  | 112 |  |  |  |  |
Interest expense | (303) |  |  | (242) |  |  |  |  |
Amortization | (473) |  |  | (543) |  |  |  |  |
Depreciation | (452) |  |  | (398) |  |  |  |  |
Research and development | (3,851) |  |  | (4,147) |  |  |  |  |
Restructuring costs | (123) |  |  | (67) |  |  |  |  |
Charge for Zetia antitrust litigation settlements | — |  |  | (573) |  |  |  |  |
Other unallocated, net | (806) |  |  | (362) |  |  |  |  |
| $ | 5,670 |  |  | $ | 3,650 |  |  |  |  |

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