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Merck & Co., Inc., Rahway, N.J., USA Announces Second-Quarter 2025 Financial Results
RAHWAY, N.J.--(BUSINESS WIRE)--Merck & Co., Inc., Rahway, N.J., USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the second quarter of 2025. "Earlier this month, we were pleased to announce our pending acquisition of Verona Pharma, which augments our portfolio and pipeline and is another example of acting decisively when science and value align,' said Robert M. Davis, chairman and chief executive officer. 'Today, we announced a multiyear optimization initiative that will redirect investment and resources from more mature areas of our business to our burgeoning array of new growth drivers, further enable the transformation of our portfolio, and drive our next chapter of productive, innovation-driven growth. With these actions, I am confident that we are well positioned to generate near- and long-term value for our shareholders and, most importantly, deliver for our patients.' Financial Summary For the second quarter of 2025, Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) assuming dilution was $1.76 and non-GAAP EPS was $2.13. GAAP and non-GAAP EPS in the second quarter of 2025 include a charge of $0.07 per share for an upfront payment to Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui Pharma) upon closing of a license agreement. Non-GAAP EPS excludes acquisition- and divestiture-related costs, costs related to restructuring programs, and income and losses from investments in equity securities. Non-GAAP EPS in the second quarter of 2025 also excludes tax benefits primarily resulting from favorable audit adjustments. Non-GAAP EPS in the second quarter of 2024 also excludes a tax benefit due to a reduction in reserves for unrecognized income tax benefits, resulting from the expiration of the statute of limitations for assessments related to the 2019 federal tax return year. Year-to-date results can be found in the attached tables. Second-Quarter Sales Performance The following table reflects sales of the Company's top products and significant performance drivers. Second-Quarter Expense, EPS and Related Information The table below presents selected expense information. GAAP Expense, EPS and Related Information Gross margin was 77.5% for the second quarter of 2025 compared with 76.8% for the second quarter of 2024. The increase was primarily due to the favorable impact of product mix, partially offset by higher restructuring costs and inventory write-offs. Selling, general and administrative (SG&A) expenses were $2.6 billion in the second quarter of 2025, a decrease of 3% compared with the second quarter of 2024. The decrease was primarily due to lower administrative, restructuring and promotional costs. Research and development (R&D) expenses were $4.0 billion in the second quarter of 2025, an increase of 16% compared with the second quarter of 2024. The increase was primarily due to a $200 million charge for an upfront payment made in the second quarter of 2025 for a license agreement with Hengrui Pharma, increased clinical development spending, higher compensation and benefit costs, and higher restructuring costs. Other (income) expense, net, was $7 million of income in the second quarter of 2025 compared with $42 million of expense in the second quarter of 2024. The effective tax rate of 11.4% for the second quarter of 2025 includes a 2.9 percentage point favorable impact due to tax benefits primarily resulting from favorable audit adjustments. GAAP EPS was $1.76 for the second quarter of 2025 compared with $2.14 for the second quarter of 2024. The decrease reflects increased operating expenses driven by higher restructuring costs and research and development spending, a charge related to the closing of a license agreement with Hengrui Pharma, unfavorable tax impacts, and the unfavorable impact of foreign exchange. Non-GAAP Expense, EPS and Related Information Non-GAAP gross margin was 82.2% for the second quarter of 2025 compared with 80.9% for the second quarter of 2024. The increase was primarily due to the favorable impact of product mix, partially offset by higher inventory write-offs. Non-GAAP SG&A expenses were $2.6 billion in the second quarter of 2025, a decrease of 2% compared with the second quarter of 2024. The decrease was primarily due to lower administrative and promotional costs. Non-GAAP R&D expenses were $4.0 billion in the second quarter of 2025, an increase of 15% compared with the second quarter of 2024. The increase was primarily due to a $200 million charge for an upfront payment made in the second quarter of 2025 for a license agreement with Hengrui Pharma, increased clinical development spending, and higher compensation and benefit costs. Non-GAAP other (income) expense, net, was $54 million of expense in the second quarter of 2025 compared with $108 million of expense in the second quarter of 2024. The non-GAAP effective tax rate was 15.0% for the second quarter of 2025. Non-GAAP EPS was $2.13 for the second quarter of 2025 compared with $2.28 for the second quarter of 2024. The decrease reflects increased operating expenses driven by higher research and development spending, a charge related to the closing of a license agreement with Hengrui Pharma, and the unfavorable impact of foreign exchange. A reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows. Planned Acquisition of Verona Pharma On July 9, 2025, the Company furthered its science-led business development strategy by announcing an agreement under which the Company, through a subsidiary, will acquire Verona Pharma plc (Verona Pharma) for $107 per American Depository Share, each of which represents eight Verona Pharma ordinary shares, for a total transaction value of approximately $10 billion. Through the acquisition, the Company will add Ohtuvayre, a first-in-class selective dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4), to its growing cardio-pulmonary pipeline and portfolio. The U.S. Food and Drug Administration (FDA) approved Ohtuvayre in June 2024 for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adult patients. It is the first novel inhaled mechanism for the treatment of COPD in more than 20 years. The transaction is anticipated to close in the fourth quarter of 2025. Pipeline and Portfolio Highlights In the second quarter, the Company continued to advance its broad and diverse pipeline with multiple regulatory and clinical milestones. In oncology, the FDA approved KEYTRUDA as part of a therapy regimen for the treatment of certain adult patients with resectable locally advanced head and neck squamous cell carcinoma (HNSCC), based on results from the Phase 3 KEYNOTE-689 trial. This approval is the first perioperative anti-PD-1 treatment regimen for adults with resectable locally advanced HNSCC whose tumors express PD-L1 (CPS ≥1). In addition, the Ministry of Health, Labor and Welfare (MHLW) in Japan approved WELIREG as monotherapy for the treatment of adults with von Hippel-Lindau (VHL) disease-associated tumors, and for adults with unresectable or metastatic RCC that has progressed after chemotherapy. At the 2025 American Society of Clinical Oncology Annual Meeting, the Company announced new research across more than 25 types of cancer in multiple treatment settings. Data were presented for several candidates, including MK-1084, an investigational oral selective KRAS G12C inhibitor, and from the Company's pipeline of antibody-drug conjugates (ADCs). The Company also presented data from Phase 3 trials evaluating new combination regimens with KEYTRUDA, and longer-term data for studies of KEYTRUDA and WELIREG, with the KEYTRUDA studies including people with earlier stages of cancer. The Company announced results from the Phase 3 KEYNOTE-B96 trial (also known as ENGOT-ov65) evaluating KEYTRUDA plus chemotherapy, which met its primary endpoint of progression-free survival (PFS) for the treatment of patients with platinum-resistant recurrent ovarian cancer whose tumors express PD-L1 and in all comers, as well as a secondary endpoint of overall survival (OS) in patients whose tumors express PD-L1. In addition, a pre-specified interim analysis of the Phase 3 KEYNOTE-937 study found that compared to placebo, KEYTRUDA did not show a statistically significant improvement in the primary endpoint of recurrence-free survival for certain patients with hepatocellular carcinoma. Also, a pre-specified interim analysis of the Phase 3 LEAP-014 trial found that KEYTRUDA plus Lenvima, in combination with platinum-based chemotherapy, did not show a statistically significant improvement in its primary endpoint of OS compared to KEYTRUDA plus chemotherapy for the first-line treatment of patients with metastatic esophageal squamous cell carcinoma (ESCC). In vaccines and infectious diseases, the Company received FDA approval of ENFLONSIA for the prevention of respiratory syncytial virus (RSV) lower respiratory tract disease in newborns and infants who are born during or entering their first RSV season. ENFLONSIA is the first and only RSV preventive option administered to infants using the same dose regardless of weight. The CDC's Advisory Committee on Immunization Practices (ACIP) also recommended ENFLONSIA for the prevention of RSV in infants younger than 8 months of age born during or entering their first RSV season. In addition, the Company announced initiation of the MOBILIZE-1 Phase 3 trial evaluating V181, an investigational single-dose quadrivalent vaccine for the prevention of dengue disease. In addition, the FDA accepted a New Drug Application (NDA) for doravirine/islatravir, an investigational, once-daily, oral, two-drug regimen for the treatment of adults with virologically suppressed HIV-1 based on the Phase 3 MK-8591A-051 and MK-8591A-052 trials. The FDA set a Prescription Drug User Fee Act (PDUFA) date of April 28, 2026. The Company also announced the initiation of the EXPrESSIVE Phase 3 trials for MK-8527, its investigational once-monthly oral candidate for HIV pre-exposure prophylaxis (PrEP). In cardiovascular disease, the Company announced positive topline results from Phase 3 CORALreef HeFH and CORALreef AddOn, the first two of three Phase 3 clinical trials evaluating the safety and efficacy of enlicitide decanoate, an investigational, oral proprotein convertase subtilisin/kexin type 9 (PCSK9) inhibitor being evaluated for the treatment of adults with hyperlipidemia already on lipid-lowering therapies, including at least a statin. In both trials, enlicitide demonstrated statistically significant and clinically meaningful reductions in low-density lipoprotein cholesterol. If approved, it would be the first marketed oral PCSK9 inhibitor. In addition, the FDA granted priority review for a new supplemental Biologics License Application for WINREVAIR seeking approval to update the U.S. product label based on compelling results from the Phase 3 ZENITH trial. The FDA has set a PDUFA date of Oct. 25, 2025. The Company also provided an update on the Phase 3 HYPERION study evaluating WINREVAIR in recently diagnosed adults with pulmonary arterial hypertension (PAH). In the study, WINREVAIR added on top of background therapy within 12 months after initial diagnosis of PAH demonstrated a statistically significant and clinically meaningful reduction in the risk of clinical worsening events when compared to placebo. Further, the MHLW in Japan approved sotatercept for the treatment of adults with PAH under the trademark AIRWIN. It is the first activin signaling inhibitor therapy for PAH approved in Japan. In the Animal Health business, the FDA approved BRAVECTO QUANTUM, an injectable formulation of BRAVECTO for dogs for the treatment and persistent killing of fleas and ticks. In addition, the European Commission (EC) approved NUMELVI tablets for dogs, a once-daily, second-generation Janus kinase (JAK) inhibitor, indicated for the treatment of pruritus associated with allergic dermatitis including atopic dermatitis and treatment of clinical manifestations of atopic dermatitis. Notable recent news releases on the Company's pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company's website to read the releases*. New Multiyear Optimization Initiative, Which Includes a Restructuring Program The Company launched a new multiyear optimization initiative to enable the transformation of its portfolio by generating an expected $3.0 billion in annual cost savings from productivity actions, which will be fully reinvested to support new product launches and its pipeline across multiple therapeutic areas. In July 2025, as part of this initiative, the Company approved a new restructuring program, in which it expects to eliminate certain administrative, sales and R&D positions. The Company will, however, continue to hire employees into new roles across strategic growth areas of the business. In addition, the Company will reduce its global real estate footprint and continue to optimize its manufacturing network, aligning the geography of its global manufacturing to its customers and reflecting changes in the Company's business. The Company anticipates cumulative pretax costs related to the program to be approximately $3.0 billion. For the second quarter of 2025, the Company recorded charges in its GAAP results of $649 million related to this restructuring program. The Company expects the actions under the restructuring program to result in annual cost savings of approximately $1.7 billion, which will be substantially realized by the end of 2027. This restructuring program is part of the multiyear optimization initiative expected to achieve $3.0 billion in annual cost savings by the end of 2027. Manufacturing and R&D Investment The Company continued to make long-term investments in its U.S. manufacturing and R&D capabilities. This includes the start of construction for a $1.0 billion, 470,000-square-foot state-of-the-art biologics center of excellence in Wilmington, Delaware, which will serve as a launch and commercial production facility and the primary U.S. manufacturing site for KEYTRUDA. In addition, the Company announced an $895 million expansion of its Animal Health manufacturing facility in De Soto, Kansas; the 200,000-square-foot facility will increase capacity for Animal Health vaccines and biologic products. Full-Year 2025 Financial Outlook The following table summarizes the Company's full-year financial outlook. The Company has not provided a reconciliation of forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective tax rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary for such a reconciliation, including intangible asset impairment charges, legal settlements, and income and losses from investments in equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are inherently difficult to forecast and could have a significant impact on the Company's future GAAP results. The Company now expects full-year 2025 sales to be between $64.3 billion and $65.3 billion, including a revised negative impact of foreign exchange of approximately 0.5% at mid-July 2025 exchange rates. The Company now expects its full-year non-GAAP effective income tax rate to be between 15.0% and 16.0%. The Company now expects its full-year non-GAAP EPS to be between $8.87 and $8.97, including a revised negative impact of foreign exchange of approximately $0.15 per share. This revised non-GAAP EPS range continues to reflect the impacts of a one-time charge of $200 million (recorded in the second quarter of 2025) for an upfront payment made in connection with the closing of a license agreement with Hengrui Pharma and the one-time charge of $300 million (to be recorded in the third quarter of 2025) related to a payment to LaNova for the completion of the technology transfer for MK-2010, which will impact EPS by approximately $0.16 in the aggregate. In 2024, non-GAAP EPS of $7.65 was negatively impacted by a net charge of $1.28 per share related to certain asset acquisitions, licensing agreements and collaborations. The financial outlook does not include the anticipated impact of the announced acquisition of Verona Pharma. Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions. The $200 million of costs previously included in the Company's financial outlook related to the impact of tariffs is unchanged pending the outcome of additional potential government actions. Earnings Conference Call Investors, journalists and the general public may access a live audio webcast of the call on Tuesday, July 29, at 9 a.m. ET via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures and slides highlighting the results, will be available on the Company's website. All participants may join the call by dialing (800) 369-3351 (U.S. and Canada Toll-Free) or (517) 308-9448 and using the access code 9818590. About Our Company At Merck & Co., Inc., Rahway, N.J., USA, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA This news release of Merck & Co., Inc., Rahway, 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 candidates that the candidates 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 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 Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site ( Appendix Generic product names are provided below. Animal Health BRAVECTO (fluralaner) BRAVECTO QUANTUM (fluralaner for extended-release injectable suspension) NUMELVI (atinvicitinib) ________________________________ 1 All trademarks are property of their respective owners. 2 Net income attributable to the Company. 3 The Company is providing certain 2025 and 2024 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 because management uses non-GAAP results to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management's compensation, is derived in part using a non-GAAP pretax income metric. 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. 4 Reflects expenses related to business combinations, including the amortization of intangible assets, 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 associated with acquisitions and divestitures, as well as amortization of intangible assets related to collaborations and licensing arrangements. 5 Includes the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments for both periods presented. Amount in the second quarter of 2025 also includes a $146 million benefit primarily resulting from favorable audit adjustments. Amount in the second quarter of 2024 also includes a $259 million benefit due to a reduction in reserves for unrecognized income tax benefits resulting from the expiration of the statute of limitations for assessments related to the 2019 federal tax return year. Expand MERCK & CO., INC., RAHWAY, N.J., USA THREE AND SIX MONTHS ENDED JUNE 30, 2025 GAAP TO NON-GAAP RECONCILIATION (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 2a GAAP Acquisition- and Divestiture-Related Costs (1) Restructuring Costs (2) (Income) Loss from Investments in Equity Securities Certain Other Items Adjustment Subtotal Non-GAAP Second Quarter Cost of sales $ 3,557 576 165 741 $ 2,816 Selling, general and administrative 2,649 15 1 16 2,633 Research and development 4,048 3 53 56 3,992 Restructuring costs 560 560 560 – Other (income) expense, net (7 ) (61 ) (61 ) 54 Income Before Taxes 4,999 (594 ) (779 ) 61 (1,312 ) 6,311 Income Tax Provision (Benefit) 571 (102 ) (3) (139 ) (3) 14 (3) (146 ) (4) (373 ) 944 Net Income 4,428 (492 ) (640 ) 47 146 (939 ) 5,367 Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA 4,427 (492 ) (640 ) 47 146 (939 ) 5,366 Earnings per Common Share Assuming Dilution $ 1.76 (0.20 ) (0.25 ) 0.02 0.06 (0.37 ) $ 2.13 Tax Rate 11.4 % 15.0 % June YTD Cost of sales $ 6,976 1,196 201 1,397 $ 5,579 Selling, general and administrative 5,202 38 1 39 5,163 Research and development 7,669 10 53 63 7,606 Restructuring costs 629 629 629 – Other (income) expense, net (43 ) (3 ) (168 ) (171 ) 128 Income Before Taxes 10,902 (1,241 ) (884 ) 168 (1,957 ) 12,859 Income Tax Provision (Benefit) 1,388 (219 ) (3) (157 ) (3) 36 (3) (146 ) (4) (486 ) 1,874 Net Income 9,514 (1,022 ) (727 ) 132 146 (1,471 ) 10,985 Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA 9,506 (1,022 ) (727 ) 132 146 (1,471 ) 10,977 Earnings per Common Share Assuming Dilution $ 3.77 (0.40 ) (0.29 ) 0.05 0.06 (0.58 ) $ 4.35 Tax Rate 12.7 % 14.6 % Only the line items that are affected by non-GAAP adjustments are shown. The Company 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 non-GAAP information enhances investors' understanding of the Company's results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management's compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented 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 reflect expenses for the amortization of intangible assets and intangible asset impairment charges, partially offset by a decrease in the estimated fair value measurement of liabilities for contingent consideration. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. Amounts included in research and development expenses reflect the amortization of intangible assets. (2) Amounts primarily include employee separation costs, accelerated depreciation and asset impairments associated with facilities to be closed or divested related to activities under the Company's formal restructuring programs. (3) Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. (4) Represents tax benefits primarily resulting from favorable audit adjustments. Expand FRANCHISE / KEY PRODUCT SALES (AMOUNTS IN MILLIONS) Table 3 2025 2024 2Q June YTD 1Q 2Q June YTD 1Q 2Q June YTD 3Q 4Q Full Year Nom % Ex-Exch % Nom % Ex-Exch % TOTAL SALES (1) $15,529 $15,806 $31,335 $15,775 $16,112 $31,887 $16,657 $15,624 $64,168 -2 -2 -2 0 PHARMACEUTICAL 13,638 14,050 27,688 14,006 14,408 28,415 14,943 14,042 57,400 -2 -3 -3 -2 Oncology Keytruda 7,205 7,956 15,161 6,947 7,270 14,217 7,429 7,836 29,482 9 9 7 8 Alliance Revenue – Lynparza (2) 312 370 682 292 317 609 337 365 1,311 17 15 12 12 Alliance Revenue – Lenvima (2) 258 265 523 255 249 504 251 255 1,010 6 5 4 4 Welireg 137 162 300 85 126 211 139 160 509 29 29 42 43 Alliance Revenue – Reblozyl (3) 119 107 226 71 90 161 100 110 371 19 19 40 40 Vaccines (4) Gardasil/Gardasil 9 1,327 1,126 2,453 2,249 2,478 4,727 2,306 1,550 8,583 -55 -55 -48 -48 ProQuad/M-M-R II/Varivax 539 609 1,148 570 617 1,187 703 594 2,485 -1 -2 -3 -3 Vaxneuvance 230 229 459 219 189 408 239 161 808 21 20 13 13 RotaTeq 228 121 349 216 163 379 193 139 711 -26 -26 -8 -7 Capvaxive 107 129 236 47 50 97 - - - - Pneumovax 23 41 38 79 61 59 120 68 74 263 -36 -37 -35 -33 Hospital Acute Care Bridion 441 461 902 440 455 895 420 449 1,764 1 1 1 1 Prevymis 208 228 436 174 188 362 208 215 785 21 20 20 21 Dificid 83 96 179 73 92 165 96 79 340 5 5 8 9 Zerbaxa 70 74 145 56 62 118 64 70 252 21 21 23 24 Cardiovascular Winrevair 280 336 615 70 70 149 200 419 * * * * Alliance Revenue - Adempas/Verquvo (5) 106 123 229 98 106 203 102 109 415 16 16 12 12 Adempas (6) 68 80 147 70 72 142 72 73 287 10 6 4 4 Virology Lagevrio 102 83 185 350 110 460 383 121 964 -25 -27 -60 -59 Isentress/Isentress HD 90 86 176 111 89 200 102 92 394 -3 -4 -12 -11 Delstrigo 67 83 150 56 60 116 65 69 249 40 35 30 30 Pifeltro 45 41 86 42 39 81 42 40 163 5 4 6 6 Neuroscience Belsomra 50 40 90 46 53 99 78 45 222 -24 -26 -9 -8 Immunology Simponi 184 172 356 189 543 -100 -100 -100 -100 Remicade 39 35 74 41 114 -100 -100 -100 -100 Diabetes (7) Januvia 549 372 921 419 405 824 278 232 1,334 -8 -8 12 13 Janumet 247 251 498 251 224 475 204 255 935 12 14 5 8 Other Pharmaceutical (8) 729 584 1,313 632 618 1,252 638 699 2,590 -6 -7 5 6 ANIMAL HEALTH 1,588 1,646 3,234 1,511 1,482 2,993 1,487 1,397 5,877 11 11 8 11 Livestock 924 961 1,885 850 837 1,686 886 889 3,462 15 16 12 16 Companion Animal 664 685 1,349 661 645 1,307 601 508 2,415 6 6 3 4 Other Revenues (9) 303 110 413 258 222 479 227 185 891 -50 -3 -14 7 *200% or greater Sum of quarterly amounts may not equal year-to-date amounts due to rounding. (1) Only select products are shown. (2) Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs. (3) Alliance Revenue represents royalties. (4) Total Vaccines sales were $2,607 million and $2,370 million in the first and second quarter of 2025, respectively, and $3,424 million and $3,656 million in the first and second quarter of 2024, respectively. (5) Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs. (6) Net product sales in the Company's marketing territories. (7) Total Diabetes sales were $876 million and $704 million in the first and second quarter of 2025, respectively, and $745 million and $715 million in the first and second quarter of 2024. (8) Includes Pharmaceutical products not individually shown above. (9) Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of upfront and milestone payments for out-licensed products were $95 million and $5 million in the first and second quarter of 2025, respectively, and $61 million and $15 million in the first and second quarter of 2024, respectively. Expand
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Will These 5 Pharma/Biotech Bigwigs Surpass Q2 Earnings Forecasts?
The second-quarter 2025 reporting cycle for the Medical sector is about to pick up pace this week, as most firms are slated to share their earnings results over the next two weeks. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector kicked off around mid-July when bellwether Johnson & Johnson reported strong second-quarter results, beating estimates for earnings and sales. J&J consequently raised its total revenue expectation as well as its adjusted earnings expectation for the year. Among other pharma bigwigs, Novartis beat second-quarter earnings and revenue estimates, driven by a year-over-year increase in sales of key drugs. Based on strong momentum, Novartis raised its annual guidance for core operating income. Roche also posted solid growth in the first half of 2025 as high demand for key drugs like Phesgo (breast cancer), Xolair (food allergies), Hemlibra (hemophilia A), Vabysmo (severe eye diseases) and Ocrevus (multiple sclerosis) offset the decline in sales of legacy drugs. Per the Earnings Trends report, as of July 23, 15% of the companies in the Medical sector — representing 27.2% of the sector's market capitalization — reported quarterly earnings. Of these, 88.9% outperformed earnings estimates, while 100% beat the same for revenues. Earnings increased 0.4% year over year, while revenues increased 10.2%. Overall, second-quarter earnings of the Medical sector are expected to increase 0.9%, while sales are expected to rise 7.9% from the year-ago quarter. Merck MRK, AstraZeneca AZN, Bristol Myers BMY, AbbVie ABBV and Moderna MRNA are all slated to release theirquarterly results this week. Let us see how these biotech/pharma companies are likely to have performed in the soon-to-be-reported quarter. Merck Merck has an encouraging earnings track record. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 3.82%. In the last reported quarter, MRK beat earnings estimates by 3.26%. Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Merck has an Earnings ESP of -0.18% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for MRK's earnings is pegged at $2.01 per share. You can see the complete list of today's Zacks #1 Rank stocks here. Merck's top-line growth in the second quarter is likely to have been driven by higher sales of its blockbuster cancer drug Keytruda, attributable to additional indications and patient demand. Merck is scheduled to release its quarterly earnings results before the opening bell on July 29. Merck & Co., Inc. Price and Consensus Merck & Co., Inc. price-consensus-chart | Merck & Co., Inc. Quote AstraZeneca AstraZeneca has a mixed earnings track recordover the trailing four quarters. The company's earnings beat estimates in three of the last four quarters, missing the mark on one occasion. On average, AZN registered an earnings surprise of 4.24% in the last four quarters. In the last reported quarter, AstraZeneca beat earnings estimates by 12.73%. AstraZeneca has an Earnings ESP of -0.64% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for AZN's earnings is pegged at $1.09 per share. Sales of AstraZeneca's key medicines, mainly cancer drugs — Lynparza, Tagrisso and Imfinzi — and diabetes medicine Farxiga, are expected to have driven the company's top line in the second quarter, backed by strong demand trends. AstraZeneca is scheduled to release its quarterly earnings results before the opening bell on July 29. AstraZeneca PLC Price and Consensus AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote Bristol Myers Bristol Myers has an excellent earnings track record. BMY's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 20.16%. In the last reported quarter, Bristol Myers' earnings surpassed estimates by 19.21%. Bristol Myers has an Earnings ESP of -7.92% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BMY's earnings is pegged at $1.18 per share. Bristol Myers' revenues in the second quarter of 2025 are likely to have been impacted by a decline in sales from its legacy drugs, which include Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, among others. However, the expected decline is likely to have been partially offset by an increase in the sales of BMY's growth products like Opdivo, Yervoy, Reblozyl, Breyanzi, Zeposia, Opdualag and others. Bristol Myers is slated to release its quarterly earnings results before the opening bell on July 31. Bristol Myers Squibb Company Price and Consensus Bristol Myers Squibb Company price-consensus-chart | Bristol Myers Squibb Company Quote AbbVie AbbVie has an impeccable earnings track record to date. ABBV's earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 2.55%. In the last reported quarter, AbbVie's earnings beat estimates by 2.93%. AbbVie has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for ABBV's earnings is pegged at $2.89 per share. AbbVie's top line is expected to have been driven by robust sales of key drugs Rinvoq, Skyrizi, Venclexta and Vraylar, coupled with significant contributions from newer drugs, namely Ubrelvy, Elahere, Epkinly and Qulipta. ABBV is scheduled to report its quarterly earnings results on July 31, before the opening bell. AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote Moderna Moderna has an excellent earnings track record. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 31.60%. In the last reported quarter, MRNA beat earnings estimates by 13.70%. Moderna has an Earnings ESP of +7.22% and a Zacks Rank #3 at present, indicating a positive surprise this time around. The Zacks Consensus Estimate for MRNA's loss per share is pegged at $2.99. Moderna's second-quarter revenues are expected to have been driven by sales of its COVID-19 vaccine, Spikevax. However, with declining demand for COVID-related products, investors are advised to focus more on updates regarding the company's broader pipeline. Moderna is slated to release its quarterly earnings results before the opening bell on Aug. 1. Moderna, Inc. Price and Consensus Moderna, Inc. price-consensus-chart | Moderna, Inc. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Wire
22-07-2025
- Business
- Business Wire
Merck Announces Fourth-Quarter 2025 Dividend
RAHWAY, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside of the United States and Canada, announced today that the Board of Directors has declared a quarterly dividend of $0.81 per share of the company's common stock for the fourth quarter of 2025. Payment will be made on Oct. 7, 2025 to shareholders of record at the close of business on Sept. 15, 2025. At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit and connect with us on X (formerly Twitter), Facebook, Instagram, YouTube and LinkedIn. Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA This news release of Merck & Co., Inc., Rahway, 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. 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 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 Annual Report on Form 10-K for the year ended December 31, 2024 and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (
Economic Times
16-07-2025
- Business
- Economic Times
Trump to impose pharma tariffs by August 1, semiconductors likely next
At a Cabinet meeting earlier this month, Trump said he planned to impose a 50% tariff on copper in the coming weeks, and that he expected pharmaceutical tariffs to grow as high as 200% after giving companies a year to bring manufacturing back to the US. Trump has already announced investigations under Section 232 of the Trade Expansion Act of 1962 on drugs, arguing a flood of foreign imports was threatening national security. Tired of too many ads? Remove Ads WASHINGTON: President Donald Trump said that he was likely to impose tariffs on pharmaceuticals as soon as the end of the month and that levies on semiconductors could come soon as well, suggesting that those import taxes could hit alongside broad "reciprocal" rates set for implementation on Aug. 1."Probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff," Trump told reporters Tuesday as he returned to Washington after attending an artificial intelligence summit in also said his timeline for implementing tariffs on semiconductors was "similar" and that it was "less complicated" to impose levies on chips, without providing additional a Cabinet meeting earlier this month, Trump said he planned to impose a 50% tariff on copper in the coming weeks, and that he expected pharmaceutical tariffs to grow as high as 200% after giving companies a year to bring manufacturing back to the US. Trump has already announced investigations under Section 232 of the Trade Expansion Act of 1962 on drugs, arguing a flood of foreign imports was threatening national any tariffs could immediately impact drugmakers like Eli Lilly & Co., Merck & Co. and Pfizer Inc . that produce drugs overseas - and risks driving up costs for US consumers. So does Trump's plans for semiconductor tariffs, which are expected to hit not only the chips themselves but popular products like Apple Inc. and Samsung Electronic Co Ltd. laptops and smartphones.
The Mainichi
16-07-2025
- Health
- The Mainichi
Japan discards state-acquired COVID-19 drugs worth 240 billion yen
TOKYO (Kyodo) -- The government discarded COVID-19 oral medicines believed to be worth around 240 billion yen ($1.6 billion) in the fiscal year through March as they had passed their expiry dates, health ministry officials said Wednesday. While the exact purchase price remains unclear, the value was calculated in accordance with current prices. The amount is enough to treat some 2.5 million people. The government acquired the oral drugs at the height of the coronavirus pandemic and provided them free of charge to hospitals and clinics nationwide. But many of them were unused after COVID-19 was downgraded to the same category as seasonal influenza in May 2023, which required people to pay for COVID-19 treatment. Drugmakers had also started general distribution of COVID-19 medicine in Japan themselves. A Ministry of Health, Labor and Welfare official said offering the drugs to other countries was considered but legally difficult. Among the 2 million doses of Pfizer Inc.'s nirmatrelvir and 1.6 million doses of Merck & Co.'s molnupiravir procured by the government, about 1.75 million doses of nirmatrelvir and some 780,000 doses of molnupiravir were disposed of, according to the ministry. The government also secured 2 million doses of Shionogi & Co.'s ensitrelvir but about 1.77 million of them are unused, the ministry said. They are expected to be discarded after they reach their expiration dates starting next fiscal year.
