Summary
Merck & Co., Inc. reported its first-quarter 2025 financial results, showing a slight year-over-year decrease in total sales to $15.5 billion from $15.8 billion in Q1 2024. This decline was primarily driven by lower vaccine sales, particularly Gardasil/Gardasil 9, and reduced sales in the virology and immunology segments. However, the company saw growth in its oncology, cardiovascular, and diabetes franchises, supported by strong performance from Keytruda and the new cardiovascular drug Winrevair. Despite the overall sales dip, Merck's profitability improved, with Net Income increasing to $5.1 billion from $4.8 billion year-over-year, leading to a rise in diluted Earnings Per Share (EPS) to $2.01 from $1.87. Research and Development expenses saw a notable decrease, primarily due to a significant charge in the prior year related to the acquisition of Harpoon Therapeutics. The company also announced a new licensing agreement for an investigational oral small molecule Lipoprotein(a) inhibitor and acquired a manufacturing facility in Ireland, signaling continued strategic investment in its pipeline and operational capabilities.
Financial Highlights
54 data points| Revenue | $15.53B |
| Cost of Revenue | $3.42B |
| Gross Profit | $12.11B |
| R&D Expenses | $3.62B |
| SG&A Expenses | $2.55B |
| Net Income | $5.08B |
| EPS (Basic) | $2.01 |
| EPS (Diluted) | $2.01 |
| Shares Outstanding (Basic) | 2.52B |
| Shares Outstanding (Diluted) | 2.53B |
Key Highlights
- 1Total sales decreased by 2% to $15.5 billion in Q1 2025, primarily due to a significant decline in Gardasil/Gardasil 9 sales and lower demand for Lagevrio.
- 2Net Income increased by 6.6% to $5.1 billion, and diluted EPS rose to $2.01 from $1.87 in the prior year's quarter.
- 3Keytruda continued its strong performance with global sales growing 4% to $7.2 billion, driven by increased utilization across various cancer indications.
- 4The new cardiovascular drug Winrevair showed strong uptake with $280 million in sales in its first full quarter post-launch.
- 5Research and Development expenses decreased by 9% to $3.6 billion, largely due to a substantial charge in Q1 2024 related to the Harpoon Therapeutics acquisition.
- 6Merck entered into a new exclusive license agreement for HRS-5346, an investigational oral small molecule Lipoprotein(a) inhibitor, for $200 million upfront plus potential milestones.
- 7The company acquired a manufacturing facility in Dundalk, Ireland, for $437 million to support its manufacturing network.