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v3.25.2

Segment Reporting (Tables) | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Sales from Products | Sales of the Company’s products were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
($ in millions) | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 4,749 |  |  | $ | 3,207 |  |  | $ | 7,956 |  |  | $ | 4,412 |  |  | $ | 2,858 |  |  | $ | 7,270 |  |  | $ | 9,057 |  |  | $ | 6,104 |  |  | $ | 15,161 |  |  | $ | 8,531 |  |  | $ | 5,686 |  |  | $ | 14,217 |
Alliance revenue-Lynparza (1) | 174 |  |  | 195 |  |  | 370 |  |  | 153 |  |  | 165 |  |  | 317 |  |  | 319 |  |  | 363 |  |  | 682 |  |  | 288 |  |  | 321 |  |  | 609 |
Alliance revenue-Lenvima (1) | 183 |  |  | 83 |  |  | 265 |  |  | 177 |  |  | 73 |  |  | 249 |  |  | 368 |  |  | 155 |  |  | 523 |  |  | 349 |  |  | 155 |  |  | 504 |
Welireg | 138 |  |  | 24 |  |  | 162 |  |  | 116 |  |  | 10 |  |  | 126 |  |  | 261 |  |  | 39 |  |  | 300 |  |  | 194 |  |  | 17 |  |  | 211 |
Alliance revenue-Reblozyl (2) | 88 |  |  | 19 |  |  | 107 |  |  | 75 |  |  | 15 |  |  | 90 |  |  | 189 |  |  | 37 |  |  | 226 |  |  | 133 |  |  | 28 |  |  | 161 |
Vaccines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 545 |  |  | 581 |  |  | 1,126 |  |  | 536 |  |  | 1,941 |  |  | 2,478 |  |  | 1,082 |  |  | 1,371 |  |  | 2,453 |  |  | 1,024 |  |  | 3,702 |  |  | 4,727 |
ProQuad/M-M-R II/Varivax | 481 |  |  | 128 |  |  | 609 |  |  | 490 |  |  | 127 |  |  | 617 |  |  | 903 |  |  | 245 |  |  | 1,148 |  |  | 928 |  |  | 259 |  |  | 1,187 |
Vaxneuvance | 136 |  |  | 93 |  |  | 229 |  |  | 99 |  |  | 90 |  |  | 189 |  |  | 275 |  |  | 184 |  |  | 459 |  |  | 260 |  |  | 148 |  |  | 408 |
RotaTeq | 60 |  |  | 61 |  |  | 121 |  |  | 107 |  |  | 56 |  |  | 163 |  |  | 225 |  |  | 125 |  |  | 349 |  |  | 257 |  |  | 123 |  |  | 379 |
Capvaxive | 129 |  |  | — |  |  | 129 |  |  | — |  |  | — |  |  | — |  |  | 235 |  |  | 1 |  |  | 236 |  |  | — |  |  | — |  |  | — |
Pneumovax 23 | 5 |  |  | 33 |  |  | 38 |  |  | 11 |  |  | 48 |  |  | 59 |  |  | 3 |  |  | 76 |  |  | 79 |  |  | 17 |  |  | 103 |  |  | 120 |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridion | 411 |  |  | 50 |  |  | 461 |  |  | 351 |  |  | 104 |  |  | 455 |  |  | 789 |  |  | 113 |  |  | 902 |  |  | 680 |  |  | 215 |  |  | 895 |
Prevymis | 115 |  |  | 113 |  |  | 228 |  |  | 90 |  |  | 98 |  |  | 188 |  |  | 217 |  |  | 219 |  |  | 436 |  |  | 165 |  |  | 197 |  |  | 362 |
Dificid | 83 |  |  | 13 |  |  | 96 |  |  | 79 |  |  | 12 |  |  | 92 |  |  | 155 |  |  | 24 |  |  | 179 |  |  | 147 |  |  | 17 |  |  | 165 |
Zerbaxa | 45 |  |  | 29 |  |  | 74 |  |  | 33 |  |  | 28 |  |  | 62 |  |  | 87 |  |  | 57 |  |  | 145 |  |  | 67 |  |  | 51 |  |  | 118 |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Winrevair | 323 |  |  | 12 |  |  | 336 |  |  | 70 |  |  | — |  |  | 70 |  |  | 591 |  |  | 24 |  |  | 615 |  |  | 70 |  |  | — |  |  | 70 |
Alliance revenue-Adempas/Verquvo (3) | 108 |  |  | 15 |  |  | 123 |  |  | 98 |  |  | 8 |  |  | 106 |  |  | 205 |  |  | 23 |  |  | 229 |  |  | 188 |  |  | 16 |  |  | 203 |
Adempas | — |  |  | 80 |  |  | 80 |  |  | — |  |  | 72 |  |  | 72 |  |  | — |  |  | 147 |  |  | 147 |  |  | — |  |  | 142 |  |  | 142 |
Virology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Lagevrio | 30 |  |  | 52 |  |  | 83 |  |  | 15 |  |  | 95 |  |  | 110 |  |  | 66 |  |  | 119 |  |  | 185 |  |  | 60 |  |  | 400 |  |  | 460 |
Isentress/Isentress HD | 48 |  |  | 38 |  |  | 86 |  |  | 43 |  |  | 46 |  |  | 89 |  |  | 99 |  |  | 77 |  |  | 176 |  |  | 93 |  |  | 107 |  |  | 200 |
Delstrigo | 14 |  |  | 70 |  |  | 83 |  |  | 14 |  |  | 45 |  |  | 60 |  |  | 29 |  |  | 121 |  |  | 150 |  |  | 26 |  |  | 89 |  |  | 116 |
Pifeltro | 25 |  |  | 16 |  |  | 41 |  |  | 27 |  |  | 12 |  |  | 39 |  |  | 57 |  |  | 29 |  |  | 86 |  |  | 56 |  |  | 25 |  |  | 81 |
Neuroscience |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Belsomra | 18 |  |  | 21 |  |  | 40 |  |  | 19 |  |  | 34 |  |  | 53 |  |  | 31 |  |  | 58 |  |  | 90 |  |  | 33 |  |  | 66 |  |  | 99 |
Immunology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | — |  |  | — |  |  | — |  |  | 172 |  |  | 172 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 356 |  |  | 356 |
Remicade | — |  |  | — |  |  | — |  |  | — |  |  | 35 |  |  | 35 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 74 |  |  | 74 |
Diabetes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Januvia | 216 |  |  | 155 |  |  | 372 |  |  | 177 |  |  | 227 |  |  | 405 |  |  | 561 |  |  | 360 |  |  | 921 |  |  | 361 |  |  | 463 |  |  | 824 |
Janumet | 68 |  |  | 184 |  |  | 251 |  |  | 17 |  |  | 208 |  |  | 224 |  |  | 133 |  |  | 366 |  |  | 498 |  |  | 55 |  |  | 420 |  |  | 475 |
Other pharmaceutical (4) | 136 |  |  | 450 |  |  | 584 |  |  | 190 |  |  | 430 |  |  | 618 |  |  | 317 |  |  | 997 |  |  | 1,313 |  |  | 354 |  |  | 899 |  |  | 1,252 |
Total Pharmaceutical segment sales | 8,328 |  |  | 5,722 |  |  | 14,050 |  |  | 7,399 |  |  | 7,009 |  |  | 14,408 |  |  | 16,254 |  |  | 11,434 |  |  | 27,688 |  |  | 14,336 |  |  | 14,079 |  |  | 28,415 |
Animal Health: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Livestock | 190 |  |  | 771 |  |  | 961 |  |  | 168 |  |  | 669 |  |  | 837 |  |  | 384 |  |  | 1,501 |  |  | 1,885 |  |  | 334 |  |  | 1,352 |  |  | 1,686 |
Companion Animal | 309 |  |  | 376 |  |  | 685 |  |  | 287 |  |  | 358 |  |  | 645 |  |  | 617 |  |  | 732 |  |  | 1,349 |  |  | 595 |  |  | 712 |  |  | 1,307 |
Total Animal Health segment sales | 499 |  |  | 1,147 |  |  | 1,646 |  |  | 455 |  |  | 1,027 |  |  | 1,482 |  |  | 1,001 |  |  | 2,233 |  |  | 3,234 |  |  | 929 |  |  | 2,064 |  |  | 2,993 |
Total segment sales | 8,827 |  |  | 6,869 |  |  | 15,696 |  |  | 7,854 |  |  | 8,036 |  |  | 15,890 |  |  | 17,255 |  |  | 13,667 |  |  | 30,922 |  |  | 15,265 |  |  | 16,143 |  |  | 31,408 |
Other (5) | 9 |  |  | 100 |  |  | 110 |  |  | 22 |  |  | 200 |  |  | 222 |  |  | 104 |  |  | 310 |  |  | 413 |  |  | 89 |  |  | 390 |  |  | 479 |
| $ | 8,836 |  |  | $ | 6,969 |  |  | $ | 15,806 |  |  | $ | 7,876 |  |  | $ | 8,236 |  |  | $ | 16,112 |  |  | $ | 17,359 |  |  | $ | 13,977 |  |  | $ | 31,335 |  |  | $ | 15,354 |  |  | $ | 16,533 |  |  | $ | 31,887 |
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 c orpor ate revenue, including revenue hedging activities which increa se d sales by $16 million and $118 million for the six months ended June 30, 2025 and 2024, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon & Co.). Other for the six months ended June 30, 2025 and 2024 also includes $100 million and $76 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.
Consolidated Sales by Geographic Area | Consolidated sales by geographic area where derived are as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
($ in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
United States | $ | 8,836 |  |  | $ | 7,876 |  |  | $ | 17,359 |  |  | $ | 15,354 |
Europe, Middle East and Africa | 3,659 |  |  | 3,515 |  |  | 7,109 |  |  | 7,078 |
Latin America | 859 |  |  | 858 |  |  | 1,651 |  |  | 1,655 |
Asia Pacific (other than China and Japan) | 785 |  |  | 748 |  |  | 1,474 |  |  | 1,472 |
Japan | 626 |  |  | 686 |  |  | 1,295 |  |  | 1,507 |
China | 446 |  |  | 1,817 |  |  | 1,148 |  |  | 3,589 |
Other | 595 |  |  | 612 |  |  | 1,299 |  |  | 1,232 |
| $ | 15,806 |  |  | $ | 16,112 |  |  | $ | 31,335 |  |  | $ | 31,887 |
Reconciliation of Segment Profits to Income before Taxes | A reconciliation of segment profits to Income Before Taxes is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
($ in millions) | Pharma- ceutical |  | Animal Health |  | Total |  | Pharma- ceutical |  | Animal Health |  | Total |  | Pharma-ceutical |  | Animal Health |  | Total |  | Pharma-ceutical |  | Animal Health |  | Total
Segment sales | $ | 14,050 |  |  | $ | 1,646 |  |  | $ | 15,696 |  |  | $ | 14,408 |  |  | $ | 1,482 |  |  | $ | 15,890 |  |  | $ | 27,688 |  |  | $ | 3,234 |  |  | $ | 30,922 |  |  | $ | 28,415 |  |  | $ | 2,993 |  |  | $ | 31,408 |
Less segment costs: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales | 1,601 |  |  | 659 |  |  |  |  | 1,708 |  |  | 612 |  |  |  |  | 3,174 |  |  | 1,258 |  |  |  |  | 3,414 |  |  | 1,225 |  |  |
Selling, general and administrative | 1,456 |  |  | 284 |  |  |  |  | 1,514 |  |  | 270 |  |  |  |  | 2,858 |  |  | 544 |  |  |  |  | 2,943 |  |  | 523 |  |  |
Research and development (2) | — |  |  | 110 |  |  |  |  | — |  |  | 91 |  |  |  |  | — |  |  | 205 |  |  |  |  | — |  |  | 181 |  |  |
Other segment items (3) | (21) |  |  | — |  |  |  |  | (14) |  |  | 1 |  |  |  |  | (70) |  |  | 1 |  |  |  |  | (46) |  |  | — |  |  |
Total segment profits | $ | 11,014 |  |  | $ | 593 |  |  | $ | 11,607 |  |  | $ | 11,200 |  |  | $ | 508 |  |  | $ | 11,708 |  |  | $ | 21,726 |  |  | $ | 1,226 |  |  | $ | 22,952 |  |  | $ | 22,104 |  |  | $ | 1,064 |  |  | $ | 23,168 |
Other profits |  |  |  |  | 30 |  |  |  |  |  |  | 129 |  |  |  |  |  |  | 231 |  |  |  |  |  |  | 274 |
Unallocated: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  |  |  | 69 |  |  |  |  |  |  | 69 |  |  |  |  |  |  | 178 |  |  |  |  |  |  | 141 |
Interest expense |  |  |  |  | (305) |  |  |  |  |  |  | (310) |  |  |  |  |  |  | (618) |  |  |  |  |  |  | (613) |
Amortization |  |  |  |  | (601) |  |  |  |  |  |  | (614) |  |  |  |  |  |  | (1,198) |  |  |  |  |  |  | (1,087) |
Depreciation |  |  |  |  | (455) |  |  |  |  |  |  | (450) |  |  |  |  |  |  | (896) |  |  |  |  |  |  | (902) |
Research and development |  |  |  |  | (3,844) |  |  |  |  |  |  | (3,360) |  |  |  |  |  |  | (7,321) |  |  |  |  |  |  | (7,209) |
Restructuring costs |  |  |  |  | (560) |  |  |  |  |  |  | (80) |  |  |  |  |  |  | (629) |  |  |  |  |  |  | (202) |
Other unallocated, net |  |  |  |  | (942) |  |  |  |  |  |  | (1,086) |  |  |  |  |  |  | (1,797) |  |  |  |  |  |  | (1,895) |
|  |  |  |  | $ | 4,999 |  |  |  |  |  |  | $ | 6,006 |  |  |  |  |  |  | $ | 10,902 |  |  |  |  |  |  | $ | 11,675 |
(1) The significant expense categories and amounts align with the segment level information that is regularly provided to the chief operating decision maker. (2) Human health-related research and development expenses incurred by Merck Research Laboratories are not allocated to segment profits as noted below. (3) Includes equity (income) loss from affiliates and other miscellaneous non-operating expenses.
Equity Loss from Affiliates and Depreciation Included in Segment Profits | Equity income from affiliates and depreciation included in segment profits is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
($ in millions) | Pharma- ceutical |  | Animal Health |  | Total |  | Pharma- ceutical |  | Animal Health |  | Total |  | Pharma-ceutical |  | Animal Health |  | Total |  | Pharma-ceutical |  | Animal Health |  | Total
Equity income from affiliates | $ | 29 |  |  | $ | — |  |  | $ | 29 |  |  | $ | 29 |  |  | $ | — |  |  | $ | 29 |  |  | $ | 86 |  |  | $ | — |  |  | $ | 86 |  |  | $ | 77 |  |  | $ | — |  |  | $ | 77 |
Depreciation | 1 |  |  | 62 |  |  | 63 |  |  | 1 |  |  | 67 |  |  | 68 |  |  | 2 |  |  | 122 |  |  | 124 |  |  | 2 |  |  | 125 |  |  | 127 |
Property, Plant and Equipment, Net by Geographic Area | Property, plant and equipment, net, by geographic area where located is as follows:
($ in millions) | June 30, 2025 |  | December 31, 2024
United States | $ | 15,182 |  |  | $ | 14,724 |
Europe, Middle East and Africa | 8,554 |  |  | 7,548 |
Asia Pacific (other than China and Japan) | 966 |  |  | 982 |
China | 204 |  |  | 202 |
Japan | 144 |  |  | 143 |
Latin America | 135 |  |  | 133 |
Other | 51 |  |  | 47 |
| $ | 25,236 |  |  | $ | 23,779 |

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