Summary
Merck & Co., Inc. (MRK) reported strong first-quarter 2024 results, with net income attributable to Merck & Co., Inc. rising to $4.76 billion, or $1.87 per share, a significant increase from $2.82 billion, or $1.11 per share, in the prior year period. This performance was driven by a 9% increase in total sales, reaching $15.78 billion, bolstered by robust growth in the Oncology and Vaccines segments. Keytruda, Merck's flagship oncology drug, demonstrated substantial sales growth of 20%, and the Gardasil/Gardasil 9 HPV vaccines also saw significant increases. The company also continues to invest in its future through strategic acquisitions, notably the acquisition of Harpoon Therapeutics, Inc. and the pending acquisition of Elanco's aqua business, underscoring a commitment to pipeline expansion and innovation. Despite ongoing pricing pressures and the impact of foreign exchange, Merck's financial health remains strong, supported by effective cost management and a favorable product mix, positioning the company for continued growth.
Financial Highlights
55 data points| Revenue | $15.78B |
| Cost of Revenue | $3.54B |
| Gross Profit | $12.23B |
| R&D Expenses | $3.99B |
| SG&A Expenses | $2.48B |
| Interest Expense | $303.00M |
| Net Income | $4.76B |
| EPS (Basic) | $1.88 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 2.53B |
| Shares Outstanding (Diluted) | 2.54B |
Key Highlights
- 1Net income attributable to Merck & Co., Inc. increased by 69% to $4.76 billion ($1.87 per diluted share) in Q1 2024, up from $2.82 billion ($1.11 per diluted share) in Q1 2023.
- 2Total sales grew by 9% to $15.78 billion in Q1 2024, compared to $14.49 billion in Q1 2023. Excluding foreign exchange impacts, sales increased by 12%.
- 3Keytruda sales surged by 20% (24% excluding foreign exchange) to $6.95 billion, driven by new indications and strong uptake in existing ones globally.
- 4The Vaccines segment showed strong performance, with Gardasil/Gardasil 9 sales increasing by 14% (17% excluding foreign exchange) to $2.25 billion, and Vaxneuvance sales more than doubling.
- 5Merck completed the acquisition of Harpoon Therapeutics for $765 million in March 2024 to bolster its oncology pipeline, and entered into an agreement to acquire Elanco's aqua business for $1.3 billion.
- 6The company implemented a new restructuring program (2024 Restructuring Program) expected to cost approximately $4.0 billion over its duration, aiming for net cost savings of $750 million annually by 2031.
- 7Operating cash flow significantly improved to $3.1 billion in Q1 2024, up from $1.3 billion in Q1 2023, reflecting stronger operating performance.