Merck & Co., Inc. (Merck) reported a robust financial performance for the first quarter of 2024, with worldwide sales reaching $15.8 billion, marking a 9% increase compared to the first quarter of 2023. Excluding the impact of foreign exchange, the growth rate was 12%. The company's growth was primarily driven by higher sales in the oncology franchise, particularly Keytruda and Welireg, and the vaccines franchise, with notable contributions from Gardasil/Gardasil 9 and Vaxneuvance. However, sales in the diabetes franchise saw a decline due to lower sales of Januvia and Janumet. Merck's business development activities included the acquisition of Harpoon Therapeutics for $765 million and the aqua business of Elanco Animal Health for $1.3 billion, which are expected to enhance its immunotherapy and animal health portfolios, respectively...Show More

Merck & Co., Inc. (Merck) reported a robust financial performance for the first quarter of 2024, with worldwide sales reaching $15.8 billion, marking a 9% increase compared to the first quarter of 2023. Excluding the impact of foreign exchange, the growth rate was 12%. The company's growth was primarily driven by higher sales in the oncology franchise, particularly Keytruda and Welireg, and the vaccines franchise, with notable contributions from Gardasil/Gardasil 9 and Vaxneuvance. However, sales in the diabetes franchise saw a decline due to lower sales of Januvia and Janumet. Merck's business development activities included the acquisition of Harpoon Therapeutics for $765 million and the aqua business of Elanco Animal Health for $1.3 billion, which are expected to enhance its immunotherapy and animal health portfolios, respectively. The company also faced pricing pressures due to global healthcare cost containment efforts and legislative changes in the U.S. affecting drug rebates and pricing. Looking ahead, Merck anticipates these pressures to negatively affect sales and profits. The company's R&D expenses decreased by 7% due to lower charges for business development transactions. Merck continues to invest in its pipeline, with several candidates under regulatory review and a focus on expanding indications for Keytruda. The company's effective income tax rate for the quarter was 15.9%, influenced by a charge for the Harpoon acquisition. Merck's liquidity remains strong, with $5.9 billion in cash and investments, and operating activities providing $3.1 billion in cash.