Merck & Co (MRK) Q4 2024 earnings summary

Executive summary

• Achieved strong commercial and financial performance in 2024, driven by oncology, animal health, and new product launches, offsetting GARDASIL headwinds in China.

• Reached nearly half a billion people globally with medicines and vaccines, emphasizing commitment to innovation and pipeline advancement.

• Pipeline progress included FDA acceptance for clesrovimab, positive results for subcutaneous pembrolizumab, islatravir/doravirine in HIV, and WINREVAIR.

• Business development included licensing oncology and cardiometabolic assets from LaNova and Hansoh, and acquisitions of Harpoon Therapeutics and EyeBio.

• Created long-term value for patients and shareholders, with a diversified portfolio and robust late-stage pipeline.

Financial highlights

• Q4 2024 revenues were $15.6 billion, up 7% year-over-year (9% ex-FX); full-year 2024 sales reached $64.2B, up 7% (10% ex-FX).

• KEYTRUDA sales grew 21% to $7.8B in Q4; full-year KEYTRUDA sales up 18% to $29.5B.

• GARDASIL sales fell 18% to $1.6B in Q4 due to China; full-year GARDASIL/GARDASIL 9 sales down 3% to $8.6B.

• Animal Health sales rose 13% in Q4 to $1.4B; full-year Animal Health sales up 4% to $5.9B.

• Gross margin was 80.8% in Q4, up 3.6 points; EPS was $1.72 (Non-GAAP), operating expenses $7.4B.

Outlook and guidance

• 2025 revenue guidance: $64.1–$65.6B, 2–4% growth ex-FX, with ~2% FX headwind.

• 2025 Non-GAAP EPS guidance: $8.88–$9.03, including $0.09 for LaNova payment and $0.35 FX impact.

• Excluding GARDASIL China and FX, expected company growth is 7–9%.

• GARDASIL China shipments paused through at least mid-2025; guidance assumes no shipments at low end, less than $1B at high end.

• Strong growth expected in H2 2025 and beyond, with robust pipeline and new launches.