Merck & Co (MRK) Q4 2024 earnings summary

Executive summary

• Achieved strong commercial and financial performance in 2024, with sales up 7% to $64.2B, 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.

• Temporarily paused GARDASIL shipments to China due to elevated inventory and weak demand, but remain confident in long-term opportunity.

• Pipeline progress includes FDA acceptance for clesrovimab, positive results for WINREVAIR and subcutaneous pembrolizumab, and multiple late-phase clinical advancements.

• Business development included licensing promising assets in oncology and cardiometabolic, and acquisitions in oncology, ophthalmology, and immunology.

Financial highlights

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

• Keytruda sales grew 21% in Q4 to $7.8B and 18% for the year to $29.5B; GARDASIL sales fell 18% in Q4 to $1.6B and 3% for the year to $8.6B, mainly due to China.

• Animal Health sales rose 13% in Q4 to $1.4B and 4% for the year to $5.9B, with strong growth in both livestock and companion animal segments.

• Winrevair contributed $200M in Q4 sales and $419M for the year; Capvaxive reached $50M.

• Q4 Non-GAAP EPS was $1.72; full-year Non-GAAP EPS was $7.65; operating expenses decreased to $7.4B in Q4.

Outlook and guidance

• 2025 revenue guidance: $64.1B–$65.6B (2–4% growth ex-FX); Non-GAAP EPS expected at $8.88–$9.03, including a $0.09/share one-time charge.

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

• GARDASIL China guidance assumes no shipments at low end, less than $1B at high end.

• Second half of 2025 expected to show strong growth as China headwinds are lapped.

• Long-term GARDASIL $11B target withdrawn due to China uncertainty; ex-China growth outlook unchanged.