Merck & Co., Inc. (Merck) reported a mixed financial performance for the year ended December 31, 2023. The company's worldwide sales increased by 1% to $60.1 billion, with a 4% growth excluding the unfavorable effect of foreign exchange. However, GAAP net income from continuing operations saw a significant decline of 97% to $365 million, and non-GAAP net income also decreased by 80% to $3.837 billion. Earnings per share on a GAAP basis plummeted by 98% to $0.14, while non-GAAP earnings per share dropped by 80% to $1.51. The sales increase was primarily driven by growth in oncology, vaccines, hospital acute care, and animal health, partially offset by declines in virology and diabetes. Merck's business development saw several strategic transactions, including a global agreement with Daiichi Sankyo for three antibody drug...Show More

Merck & Co., Inc. (Merck) reported a mixed financial performance for the year ended December 31, 2023. The company's worldwide sales increased by 1% to $60.1 billion, with a 4% growth excluding the unfavorable effect of foreign exchange. However, GAAP net income from continuing operations saw a significant decline of 97% to $365 million, and non-GAAP net income also decreased by 80% to $3.837 billion. Earnings per share on a GAAP basis plummeted by 98% to $0.14, while non-GAAP earnings per share dropped by 80% to $1.51. The sales increase was primarily driven by growth in oncology, vaccines, hospital acute care, and animal health, partially offset by declines in virology and diabetes. Merck's business development saw several strategic transactions, including a global agreement with Daiichi Sankyo for three antibody drug conjugate candidates, the acquisition of Prometheus Biosciences, and the purchase of Imago BioSciences. The company also received over 25 regulatory approvals in major markets, particularly in oncology. Looking ahead, Merck plans to continue investing in its business to drive growth, including an estimated $18 billion in capital projects from 2023-2027, with more than $10 billion allocated for investments in the U.S. The company's capital allocation strategy prioritizes dividends and value-enhancing business development transactions.