Summary
Merck & Co., Inc. reported total sales of $39.5 billion for the fiscal year ended December 30, 2015, representing a 6% decrease compared to the prior year, partly due to unfavorable foreign exchange rates and the divestiture of its Consumer Care segment. Despite the overall sales decline, the company experienced volume growth in key areas such as oncology (driven by Keytruda), diabetes, and vaccines, along with a positive performance in its Animal Health business. Significant product approvals and expanded indications in 2015 included Keytruda for advanced melanoma and metastatic non-small-cell lung cancer, and Bridion for surgical reversal of neuromuscular blockade. The company also advanced its pipeline with several drug candidates under regulatory review and in Phase 3 development, highlighting a strategic focus on innovation in critical therapeutic areas like cancer and diabetes. Merck continued its commitment to returning capital to shareholders, with $9.3 billion returned through dividends and share repurchases in 2015. The company is actively managing its cost structure through ongoing restructuring programs, which were substantially completed by the end of 2015, contributing to projected annual net cost savings. Management emphasizes a R&D-focused strategy, augmented by business development activities such as strategic acquisitions and collaborations, to enhance its product pipeline and address unmet medical needs.
Financial Highlights
54 data points| Revenue | $39.50B |
| Cost of Revenue | $14.93B |
| Gross Profit | $24.56B |
| R&D Expenses | $6.70B |
| SG&A Expenses | $10.31B |
| Interest Expense | $672.00M |
| Net Income | $4.44B |
| EPS (Basic) | $1.58 |
| EPS (Diluted) | $1.56 |
| Shares Outstanding (Basic) | 2.82B |
| Shares Outstanding (Diluted) | 2.84B |
Key Highlights
- 1Total sales for fiscal year 2015 were $39.5 billion, a 6% decrease from 2014, impacted by foreign exchange and divestitures.
- 2Keytruda, Merck's anti-PD-1 therapy, showed significant growth and received expanded indications, particularly for melanoma and non-small-cell lung cancer.
- 3The company acquired Cubist Pharmaceuticals in January 2015, strengthening its position in the hospital acute care market.
- 4Merck received FDA approval for Bridion in December 2015, a medication used to reverse neuromuscular blockade during surgery.
- 5Zepatier, a new treatment for chronic Hepatitis C, received FDA approval in January 2016.
- 6Restructuring programs initiated in prior years were substantially completed by the end of 2015, meeting cost savings targets.
- 7Merck returned $9.3 billion to shareholders in 2015 through dividends and share repurchases.