We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Merck and Co Inc | NYSE:MRK | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
2.81 | 2.20% | 130.38 | 130.425 | 127.01 | 127.01 | 6,629,536 | 21:18:56 |
Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the second quarter of 2021.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210729005307/en/
“We are encouraged by the strong momentum of our underlying business led by our key growth drivers as the impact of the pandemic on our performance lessens,” said Rob Davis, chief executive officer and president, Merck. “We are confident that we will deliver sustained long-term growth and value creation enabled by our strengthening discovery research engine and by working with increased speed, urgency and agility to accelerate the delivery of our innovations to the patients who depend on them.”
Financial Summary – Continuing Operations
The businesses that were contributed to Organon & Co. (Organon) in the spinoff are now accounted for as discontinued operations. Financial information presented in this release reflects Merck’s results on a continuing operations basis, which excludes Organon. Prior periods have been recast to conform to this presentation. The Company previously filed a Form 8-K on June 21, 2021, which included historical financial information recast to reflect Organon as discontinued operations.
$ in millions, except EPS amounts
Second Quarter
2021
2020
Change
Change Ex- Exchange
Sales
$11,402
$9,353
22%
19%
GAAP net income1
1,213
2,341
-48%
-47%
Non-GAAP net income that excludes certain items1,2*
3,321
2,586
28%
27%
GAAP EPS
0.48
0.92
-48%
-48%
Non-GAAP EPS that excludes certain items2*
1.31
1.02
28%
27%
*Refer to table on page 11.
GAAP (generally accepted accounting principles) earnings per share assuming dilution (EPS) was $0.48 for the second quarter of 2021. GAAP EPS for the second quarter of 2021 includes a $1.7 billion charge for the acquisition of Pandion Therapeutics, Inc. (Pandion). Non-GAAP EPS of $1.31 for the second quarter of 2021 excludes acquisition- and divestiture-related costs, restructuring costs, income and losses from investments in equity securities, the charge related to Pandion and certain other items. Year-to-date results can be found in the attached tables.
Oncology Program Highlights
Merck continued to advance development programs across its oncology portfolio, anticipating greater than 90 potential new indications by 2028, including notable progress for KEYTRUDA (pembrolizumab), the company’s anti-PD-1 therapy; Lynparza (olaparib), an oral poly ADP ribose polymerase (PARP) inhibitor, being co-developed and co-commercialized with AstraZeneca; and Lenvima (lenvatinib mesylate), an orally available tyrosine kinase inhibitor, being co-developed and co-commercialized with Eisai Co., Ltd. (Eisai).
Vaccines Highlights
HIV Highlight
Other Highlights
COVID-19 Highlights
Second-Quarter Revenue Performance
The following table reflects sales of the company’s top pharmaceutical products, as well as sales of Animal Health products.
$ in millions
Second Quarter
2021
2020
Change
Change Ex- Exchange
Total Sales
$11,402
$9,353
22%
19%
Pharmaceutical
9,980
8,178
22%
18%
KEYTRUDA
4,176
3,388
23%
20%
JANUVIA / JANUMET
1,261
1,344
-6%
-10%
GARDASIL / GARDASIL 9
1,234
656
88%
78%
PROQUAD, M-M-R II and VARIVAX
516
378
36%
35%
BRIDION
387
224
72%
67%
Lynparza*
ROTATEQ
248
208
178
168
39%
23%
34%
19%
SIMPONI
202
191
5%
-3%
ISENTRESS / ISENTRESS HD Lenvima*
192
181
196
151
-2%
19%
-5%
15%
Animal Health
1,472
1,101
34%
27%
Livestock
820
647
27%
20%
Companion Animals
651
453
44%
38%
Other Revenues**
(50)
74
-167%
-1%
*Alliance revenue for this product represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs.
**Other revenues are comprised primarily of third-party manufacturing sales and miscellaneous corporate revenues, including revenue-hedging activities. The revenue-hedging activities resulted in negative revenue in the second quarter of 2021.
Pharmaceutical Revenue
Second-quarter pharmaceutical sales increased 22% to $10.0 billion. Excluding the favorable effect of foreign exchange, sales grew by 18%, reflecting ongoing recovery from the COVID-19 pandemic and strong underlying demand. The COVID-19 pandemic unfavorably affected sales in the second quarter of 2021 but to a lesser extent than in the second quarter of 2020. The estimated net favorable benefit of the ongoing COVID-19 pandemic recovery to year-over-year sales growth was approximately $900 million.
Growth in oncology was largely driven by higher sales of KEYTRUDA, which rose 23% to $4.2 billion in the quarter. Global sales growth of KEYTRUDA reflects continued strong momentum from the non-small-cell lung cancer indications as well as continued uptake in other indications, including adjuvant melanoma, RCC, bladder, head and neck squamous cell carcinoma and MSI-H cancers. Also contributing to higher sales in oncology was a 39% rise in Lynparza alliance revenue, reflecting continued uptake in approved indications in the United States, Europe and China, as well as a 19% increase in Lenvima alliance revenue, driven primarily by higher demand in China.
Growth in vaccines for the second quarter was primarily driven by higher combined sales of GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16 and 18) Vaccine, Recombinant] and GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant). Second-quarter 2021 GARDASIL/GARDASIL 9 sales rebounded to $1.2 billion, growing 88%, primarily due to the ongoing COVID-19 pandemic recovery and strong underlying demand in the United States, as well as continued market uptake in certain ex-U.S. markets, including China, which also benefitted from increased supply.
Combined sales of pediatric vaccines VARIVAX (Varicella Virus Vaccine Live), a vaccine to help prevent chickenpox; PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live), a combination vaccine to help protect against measles, mumps, rubella and varicella; and M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live), a vaccine to help prevent measles, mumps and rubella, for second-quarter 2021 rose 36% to $516 million driven primarily by the ongoing market recovery from the COVID-19 pandemic in the United States.
Growth in hospital acute care reflects higher demand globally for BRIDION (sugammadex) Injection 100 mg/mL, a medicine for the reversal of neuromuscular blockade induced by rocuronium bromide or vecuronium bromide in adults and pediatric patients aged 2 years and older undergoing surgery, which rose 72% to $387 million attributable in part to the ongoing COVID-19 pandemic recovery; and the continued uptake of PREVYMIS (letermovir), a medicine for prophylaxis (prevention) of cytomegalovirus (CMV) infection and disease in adult CMV-seropositive recipients of an allogeneic hematopoietic stem cell transplant. Growth in hospital acute care was partially offset by the suspension of sales of ZERBAXA (ceftolozane and tazobactam) for injection, a combination cephalosporin antibacterial and beta-lactamase inhibitor for the treatment of adults with certain bacterial infections, following a product recall in the fourth quarter of 2020.
Sales of JANUVIA (sitagliptin) and JANUMET (sitagliptin and metformin HCI) decreased 6% in the quarter to $1.3 billion reflecting continued pricing pressure in the United States, partially offset by higher demand in certain international markets.
Animal Health Revenue
Animal Health sales totaled $1.5 billion for the second quarter of 2021, an increase of 34% compared with the second quarter of 2020. Excluding the favorable effect from foreign exchange, Animal Health sales grew 27%. Sales growth reflects higher demand globally for companion animal products, driven by companion animal vaccines, as well as growth in parasiticide lines of products, including BRAVECTO (fluralaner). Sales growth in livestock products reflects higher demand for ruminant, swine and poultry products, as well as higher demand globally for Animal Health Intelligence products. The COVID-19 pandemic unfavorably affected Animal Health sales by approximately $100 million in the second quarter of 2020 but had no impact in the second quarter of 2021.
Second-Quarter Expense, EPS and Related Information
The tables below present selected expense information.
$ in millions
Second-Quarter 2021
GAAP
Acquisition- and Divestiture- Related Costs3
Restructuring Costs
(Income) Loss from Investments in Equity Securities
Certain Other Items
Non- GAAP2
Cost of sales
$3,104
$345
$38
$-
$37
$2,684
Selling, general and administrative
2,281
25
2
-
-
2,254
Research and development
4,321
16
6
-
1,765
2,534
Restructuring costs
82
-
82
-
-
-
Other (income) expense, net
(103)
117
-
(258)
-
38
Second-Quarter 2020
Cost of sales
$2,747
$580
$25
$-
$-
$2,142
Selling, general and administrative
2,085
44
11
-
-
2,030
Research and development
2,085
(63)
31
-
-
2,117
Restructuring costs
82
-
82
-
-
-
Other (income) expense, net
(387)
63
-
(511)
(16)
77
GAAP Expense, EPS and Related Information
Gross margin was 72.8% for the second quarter of 2021 compared to 70.6% for the second quarter of 2020. The increase reflects lower acquisition- and divestiture-related costs and favorable product mix, partially offset by the unfavorable effects of foreign exchange, pricing pressure and higher manufacturing costs.
Selling, general and administrative expenses were $2.3 billion in the second quarter of 2021, an increase of 9% compared to the second quarter of 2020. The increase primarily reflects higher promotion and administrative costs, as well as the unfavorable effects of foreign exchange.
Research and development expenses were $4.3 billion in the second quarter of 2021 compared with $2.1 billion in the second quarter of 2020. The increase was primarily driven by a $1.7 billion charge for the acquisition of Pandion, as well as higher expenses related to clinical development, and increased investment in discovery research and early drug development.
Other (income) expense, net, was $103 million of income in the second quarter of 2021 compared to $387 million of income in the second quarter of 2020, primarily reflecting lower income from investments in equity securities in 2021 compared with 2020.
The effective income tax rate of 29.3% for the second quarter of 2021 reflects no tax benefit recognized on the Pandion acquisition charge.
GAAP EPS was $0.48 for the second quarter of 2021 compared with $0.92 for the second quarter of 2020.
Non-GAAP Expense, EPS and Related Information
Non-GAAP gross margin was 76.5% for the second quarter of 2021 compared to 77.1% for the second quarter of 2020. The decrease in non-GAAP gross margin reflects the unfavorable effects of foreign exchange, pricing pressure and higher manufacturing costs, partially offset by favorable product mix.
Non-GAAP selling, general and administrative expenses were $2.3 billion in the second quarter of 2021, an increase of 11% compared to the second quarter of 2020. The increase primarily reflects higher promotion and administrative costs, as well as the unfavorable effects of foreign exchange.
Non-GAAP R&D expenses were $2.5 billion in the second quarter of 2021, a 20% increase compared to the second quarter of 2020. The increase primarily reflects higher expenses related to clinical development, as well as increased investment in discovery research and early drug development.
Non-GAAP other (income) expense, net, was $38 million of expense in the second quarter of 2021 compared to $77 million of expense in the second quarter of 2020.
The non-GAAP effective income tax rate was 14.6% for the second quarter of 2021.
Non-GAAP EPS was $1.31 for the second quarter of 2021 compared with $1.02 for the second quarter of 2020.
A reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows.
$ in millions, except EPS amounts
Second Quarter
2021
2020
EPS
GAAP EPS
$0.48
$0.92
Difference
0.83
0.10
Non-GAAP EPS that excludes items listed below2
$1.31
$1.02
Net Income
GAAP net income1
$1,213
$2,341
Difference
2,108
245
Non-GAAP net income that excludes items listed below1,2
$3,321
$2,586
Decrease (Increase) in Net Income Due to Excluded Items:
Acquisition- and divestiture-related costs3
$503
$624
Restructuring costs
128
149
(Income) loss from investments in equity securities
(258)
(511)
Charge for the acquisition of Pandion
1,704
-
Charge for the discontinuation of COVID-19 development programs
37
-
Other
61
(16)
Net decrease (increase) in income before taxes
2,175
246
Income tax (benefit) expense4
(67)
(1)
Decrease (increase) in net income
$2,108
$245
Financial Outlook
Merck continues to experience strong global underlying demand across its business. Consequently, at mid-July 2021 exchange rates, Merck now expects sales growth of 12% to 14% in 2021 with full-year 2021 revenue estimated to be between $46.4 billion and $47.4 billion, including a positive impact from foreign exchange of less than 2%.
Merck continues to believe that global health systems and patients have largely adapted to the impacts of COVID-19 disease, and that while certain negative effects will persist, the trend will continue to improve. Merck now estimates that the pandemic will have a net unfavorable impact to 2021 revenues of less than 3%, all of which relates to the pharmaceutical segment.
Merck expects full-year 2021 GAAP EPS to be between $4.24 and $4.34.
Merck expects full-year 2021 non-GAAP EPS to be between $5.47 and $5.57, including a positive impact from foreign exchange of approximately 2%. The non-GAAP range excludes acquisition- and divestiture-related costs, costs related to restructuring programs, income and losses from investments in equity securities and certain other items.
For full-year 2021, Merck continues to expect the pandemic will have a negligible impact on operating expenses, as spending on the development of its COVID-19 antiviral program is expected to offset the favorable impact of lower spending in other areas due to the COVID-19 pandemic.
Neither the sales nor the EPS guidance ranges provided above include the impact of the potential launch of Merck’s COVID-19 antiviral drug candidate, molnupiravir.
The following table summarizes the company’s full-year 2021 financial guidance.
GAAP
Non-GAAP2
Revenue
$46.4 to $47.4 billion
$46.4 to $47.4 billion*
Operating expenses
Lower than 2020 by a mid-single digit rate
Higher than 2020 by a high-single digit rate
Effective tax rate
14.5% to 15.5%
14.5% to 15.5%
EPS**
$4.24 to $4.34
$5.47 to $5.57
*The company does not have any non-GAAP adjustments to revenue.
**EPS guidance for 2021 assumes a share count (assuming dilution) of approximately 2.53 billion shares.
A reconciliation of anticipated 2021 GAAP EPS to non-GAAP EPS and the items excluded from non-GAAP EPS are provided in the table below.
$ in millions, except EPS amounts
Full-Year 2021
GAAP EPS
$4.24 to $4.34
Difference
$1.23
Non-GAAP EPS that excludes items listed below2
$5.47 to $5.57
Acquisition- and divestiture-related costs
Restructuring costs
(Income) loss from investments in equity securities
$2,100
700
(1,200)
Charge for the discontinuation of COVID-19 development programs
225
Charge for the acquisition of Pandion
1,704
Other
61
Net decrease (increase) in income before taxes
3,590
Income tax (benefit) expense4
(475)
Decrease (increase) in net income
$3,115
Earnings Conference Call
Investors, journalists and the general public may access a live audio webcast of the call today at 8:00 a.m. EDT on Merck’s website at https://investors.merck.com/events-and-presentations/default.aspx. Institutional investors and analysts can participate in the call by dialing (833) 353-0277 or (469) 886-1947 and using ID code number 5951886. Members of the media are invited to monitor the call by dialing (833) 353-0277 or (469) 886-1947 and using ID code number 5951886. Journalists who wish to ask questions are requested to contact a member of Merck’s Media Relations team at the conclusion of the call.
About Merck
For 130 years, Merck, known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the world’s most challenging diseases in pursuit of our mission to save and improve lives. We demonstrate our commitment to patients and population health by increasing access to health care through far-reaching policies, programs and partnerships. Today, Merck continues to be at the forefront of research to prevent and treat diseases that threaten people and animals – including cancer, infectious diseases such as HIV and Ebola and emerging animal diseases – as we aspire to be the premier research-intensive biopharmaceutical company in the world. For more information, visit www.merck.com and connect with us on Twitter, Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA
This news release of Merck & Co., Inc., Kenilworth, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline products that the products will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of the global outbreak of novel coronavirus disease (COVID-19); the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s 2020 Annual Report on Form 10-K and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
1
Net income attributable to Merck & Co., Inc.2
Merck is providing certain 2021 and 2020 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s results and permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, senior management’s annual compensation is derived in part using non-GAAP pretax income. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the non-GAAP adjustments, see Table 2a attached to this release.3
Includes expenses for the amortization of intangible assets and purchase accounting adjustments to inventories recognized as a result of acquisitions, intangible asset impairment charges and expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration. Also includes integration, transaction and certain other costs related to acquisitions and divestitures.4
Includes the estimated tax impact on the reconciling items. In addition, the amount for full-year 2021 includes a $207 million net tax benefit related to the settlement of certain federal income tax matters. MERCK & CO., INC. CONSOLIDATED STATEMENT OF INCOME - GAAP (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 1 On June 2, 2021, Merck completed the spinoff of products from its women’s health, biosimilars and established brands businesses into a new, independent, publicly traded company named Organon & Co. (Organon) through a distribution of Organon’s publicly traded stock to company shareholders. The historical results of the women’s health, biosimilars and established brands businesses that were contributed to Organon in the spin-off are excluded from sales and expenses below and reflected as discontinued operations in the company’s Consolidated Statements of Income provided below. GAAP % Change GAAP % Change2Q21
2Q20
June YTD 2021 June YTD 2020 Sales$ 11,402
$ 9,353
22%
$ 22,029
$ 19,641
12%
Costs, Expenses and Other
Cost of sales
3,104
2,747
13%
6,303
5,576
13%
Selling, general and administrative2,281
2,085
9%
4,468
4,276
4%
Research and development4,321
2,085
*
6,732
4,260
58%
Restructuring costs (1)82
82
0%
380
152
*
Other (income) expense, net(103
)
(387
)
-73%
(558
)
(325
)
72%
Income from Continuing Operations Before Taxes1,717
2,741
-37%
4,704
5,702
-18%
Income Tax Provision503
396
741
891
Net Income from Continuing Operations
1,214
2,345
-48%
3,963
4,811
-18%
Less: Net Income (Loss) Attributable to Noncontrolling Interests1
4
5
(1
)
Net Income from Continuing Operations Attributable to Merck & Co., Inc.
$ 1,213
$ 2,341
-48%
$ 3,958
$ 4,812
-18%
Income from Discontinued Operations, Net of Taxes and AmountsAttributable to Noncontrolling Interests$ 332
$ 661
-50%
$ 766
$ 1,409
-46%
Net Income Attributable to Merck & Co., Inc.$ 1,545
$ 3,002
-49%
$ 4,724
$ 6,221
-24%
Basic Earnings per Common Share Attributable to Merck & Co., Inc.Common Shareholders:
Income from Continuing Operations
$ 0.48
$ 0.93
-48%
$ 1.56
$ 1.90
-18%
Income from Discontinued Operations$ 0.13
$ 0.26
-50%
$ 0.30
$ 0.56
-46%
Net Income$ 0.61
$ 1.19
-49%
$ 1.87
$ 2.46
-24%
Earnings per Common Share Assuming Dilution Attributable toMerck & Co., Inc. Common Shareholders:
Income from Continuing Operations
$ 0.48
$ 0.92
-48%
$ 1.56
$ 1.89
-17%
Income from Discontinued Operations$ 0.13
$ 0.26
-50%
$ 0.30
$ 0.55
-45%
Net Income$ 0.61
$ 1.18
-48%
$ 1.86
$ 2.45
-24%
Average Shares Outstanding2,533
2,527
2,532
2,531
Average Shares Outstanding Assuming Dilution
2,540
2,536
2,540
2,542
Tax Rate from Continuing Operations (2)
29.3
%
14.4
%
15.8
%
15.6
%
* 100% or greater (1) Represents separation and other related costs associated with restructuring activities under the company's formal restructuring programs. (2) The effective income tax rates for the second quarter and first six months of 2021 reflect the unfavorable impact of a charge for the acquisition of Pandion Therapeutics, Inc. for which no tax benefit was recognized. Additionally, the effective income tax rate for the first six months of 2021 reflects a net tax benefit of $207 million related to the settlement of certain federal income tax matters. MERCK & CO., INC. SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2021 GAAP TO NON-GAAP RECONCILIATION - CONTINUING OPERATIONS (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 2a The table below reflects a reconciliation of GAAP to non-GAAP financial information on a continuing operations basis. As Organon results are reflected within discontinued operations, they are excluded from the financial information provided below. GAAP Acquisition and Divestiture-Related Costs (1) Restructuring Costs (2) (Income) Loss fromInvestments in EquitySecurities Certain Other Items Adjustment Subtotal Non-GAAP Second Quarter Cost of sales$
3,104
345
38
37
(3)
420
$
2,684
Selling, general and administrative
2,281
25
2
27
2,254
Research and development
4,321
16
6
1,765
(4)
1,787
2,534
Restructuring costs
82
82
82
-
Other (income) expense, net
(103)
117
(258)
(141)
38
Income From Continuing Operations Before Taxes
1,717
(503)
(128)
258
(1,802)
(2,175)
3,892
Income Tax Provision (Benefit)
503
(98)
(5)
(15)
(5)
57
(5)
(11)
(5)
(67)
570
Net Income from Continuing Operations
1,214
(405)
(113)
201
(1,791)
(2,108)
3,322
Net Income from Continuing Operations Attributable toMerck & Co., Inc.
1,213
(405)
(113)
201
(1,791)
(2,108)
3,321
Earnings per Common Share Assuming Dilution fromContinuing Operations$
0.48
(0.16)
(0.04)
0.08
(0.71)
(0.83)
$
1.31
Tax Rate
29.3%
14.6%
June YTD Cost of sales$
6,303
842
65
225
(3)
1,132
$
5,171
Selling, general and administrative
4,468
35
4
39
4,429
Research and development
6,732
34
13
1,765
(4)
1,812
4,920
Restructuring costs
380
380
380
-
Other (income) expense, net
(558)
89
(819)
(730)
172
Income From Continuing Operations Before Taxes
4,704
(1,000)
(462)
819
(1,990)
(2,633)
7,337
Income Tax Provision (Benefit)
741
(187)
(5)
(56)
(5)
180
(5)
(260)
(5)
(323)
1,064
Net Income from Continuing Operations
3,963
(813)
(406)
639
(1,730)
(2,310)
6,273
Net Income from Continuing Operations Attributable toMerck & Co., Inc.
3,958
(813)
(406)
639
(1,730)
(2,310)
6,268
Earnings per Common Share Assuming Dilution fromContinuing Operations$
1.56
(0.32)
(0.16)
0.25
(0.68)
(0.91)
$
2.47
Tax Rate
15.8%
14.5%
Only the line items that are affected by non-GAAP adjustments are shown. Merck is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, senior management’s annual compensation is derived in part using non-GAAP pretax income. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. (1) Amounts included in cost of sales primarily reflect expenses for the amortization of intangible assets. Amounts included in selling, general and administrative expenses reflect acquisition and divestiture-related costs. Amounts included in research and development expenses primarily reflect expenses for the amortization of intangible assets. Amounts included in other (income) expense, net, for the second quarter and six months period primarily reflect an increase in the estimated fair value measurement of liabilities for contingent consideration related to the termination of the Sanofi-Pasteur MSD joint venture and a loss on a forward exchange contract entered into in conjunction with the Organon spinoff. Amount included in other (income) expense, net, for the six month period is partially offset by royalty income related to the termination of the Sanofi-Pasteur MSD joint venture. (2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company's formal restructuring programs. (3) Represents charges for the discontinuation of COVID-19 development programs. (4) Includes a $1.7 billion charge for the acquisition of Pandion Therapeutics, Inc. (5) Represent the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. Certain other items for the six month period also includes a $207 million net tax benefit related to the settlement of certain federal income tax matters. MERCK & CO., INC. FRANCHISE / KEY PRODUCT SALES - CONTINUING OPERATIONS (AMOUNTS IN MILLIONS) (UNAUDITED) Table 32021
2020
2Q June YTD 1Q 2Q June YTD 1Q 2Q June YTD 3Q 4Q Full Year Nom % Ex-Exch % Nom % Ex-Exch % TOTAL SALES (1)$10,627
$11,402
$22,029
$10,288
$9,353
$19,641
$10,929
$10,948
$41,518
22
19
12
10
PHARMACEUTICAL9,238
9,980
19,218
8,905
8,178
17,083
9,714
9,813
36,610
22
18
12
9
Oncology Keytruda3,899
4,176
8,076
3,284
3,388
6,672
3,715
3,993
14,380
23
20
21
18
Alliance Revenue – Lynparza (2)228
248
475
145
178
323
196
206
725
39
34
47
42
Alliance Revenue – Lenvima (2)130
181
310
128
151
279
142
158
580
19
15
11
8
Vaccines (3) Gardasil / Gardasil 9917
1,234
2,151
1,097
656
1,753
1,187
998
3,938
88
78
23
17
ProQuad / M-M-R II / Varivax449
516
965
435
378
813
576
488
1,878
36
35
19
17
Pneumovax 23171
152
323
256
117
373
375
339
1,087
30
27
-13
-16
RotaTeq158
208
366
222
168
391
210
196
797
23
19
-6
-8
Vaqta34
56
90
60
28
88
51
31
170
101
96
2
-
Hospital Acute Care Bridion340
387
727
299
224
524
320
355
1,198
72
67
39
35
Prevymis82
93
174
60
63
123
77
80
281
47
41
42
36
Noxafil67
66
133
94
73
168
79
82
329
-10
-14
-21
-24
Primaxin65
60
125
51
64
115
74
62
251
-6
-14
8
-
Cancidas57
54
111
55
43
98
50
65
213
24
17
13
8
Invanz57
48
104
64
43
108
51
53
211
10
3
-3
-5
Zerbaxa(8)
(1)
(9)
37
32
69
43
19
130
-104
-104
-113
-113
Immunology Simponi214
202
416
215
191
406
209
223
838
5
-3
2
-6
Remicade85
75
160
88
73
160
82
88
330
3
-3
-
-6
Neuroscience Belsomra79
78
157
79
84
163
81
83
327
-7
-6
-4
-5
Virology Isentress / Isentress HD209
192
401
245
196
441
205
211
857
-2
-5
-9
-11
Cardiovascular Alliance Revenue - Adempas/Verquvo (4)74
74
149
53
79
133
83
65
281
-7
13
12
23
Adempas (5)55
74
129
56
57
113
55
53
220
29
23
15
7
Diabetes (6) Januvia809
784
1,593
774
854
1,628
821
857
3,306
-8
-11
-2
-5
Janumet486
477
962
503
490
993
506
472
1,971
-3
-8
-3
-7
Other Pharmaceutical (7)581
546
1,130
605
548
1,149
526
636
2,312
-
-5
-2
-6
ANIMAL HEALTH1,418
1,472
2,890
1,214
1,101
2,314
1,220
1,168
4,703
34
27
25
21
Livestock819
821
1,640
739
648
1,386
758
794
2,939
27
20
18
15
Companion Animals599
651
1,250
475
453
928
462
374
1,764
44
38
35
31
Other Revenues (8)(29)
(50)
(79)
169
74
244
(5)
(33)
205
-167
-1
-132
-15
Sum of quarterly amounts may not equal year-to-date amounts due to rounding. (1) Only select products are shown. (2) Alliance Revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs. (3) Total Vaccines sales were $1,809 million and $2,293 million in the first and second quarter of 2021, respectively, and $2,155 million, $1,418 million, $2,521 million and $2,163 million in the first, second, third and fourth quarters of 2020, respectively. (4) Alliance Revenue represents Merck's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs. (5) Net product sales in Merck's marketing territories. (6) Total Diabetes sales were $1,363 million and $1,330 million in the first and second quarter of 2021, respectively, and $1,353 million, $1,418 million, $1,405 million and $1,412 million in the first, second, third and fourth quarters of 2020, respectively. (7) Includes Pharmaceutical products not individually shown above. (8) Other Revenues are comprised primarily of third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005307/en/
Media Contact: Patrick Ryan (973) 275-7075 Melissa Moody (215) 407-353 Investor Contacts: Peter Dannenbaum (908) 740-1037 Raychel Kruper (908) 740-2107
1 Year Merck Chart |
1 Month Merck Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions