Merck & Co. 8K Merck Announces Fourth-Quarter and Full-Year 2024 Financial Results | MRK 4 Feb 25

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2024															2023															% Change
		1Q			2Q			3Q			4Q			Full Year			1Q			2Q			3Q			4Q			Full Year			4Q		Full Year
Sales	$	15,775		$	16,112		$	16,657		$	15,624		$	64,168		$	14,487		$	15,035		$	15,962		$	14,630		$	60,115			7	%	7	%

Costs, Expenses and Other
Cost of sales		3,540			3,745			4,080			3,828			15,193			3,926			4,024			4,264			3,911			16,126			-2	%	-6	%
Selling, general and administrative		2,483			2,739			2,731			2,864			10,816			2,479			2,702			2,519			2,804			10,504			2	%	3	%
Research and development		3,992			3,500			5,862			4,585			17,938			4,276			13,321			3,307			9,628			30,531			-52	%	-41	%
Restructuring costs		123			80			56			51			309			67			151			126			255			599			-80	%	-48	%
Other (income) expense, net		(33	)		42			(162	)		126			(24	)		89			172			126			78			466			62	%	*
Income (Loss) Before Taxes		5,670			6,006			4,090			4,170			19,936			3,650			(5,335	)		5,620			(2,046	)		1,889			*		*
Income Tax Provision (Benefit)		903			545			929			425			2,803			825			637			870			(821	)		1,512
Net Income (Loss)		4,767			5,461			3,161			3,745			17,133			2,825			(5,972	)		4,750			(1,225	)		377			*		*
Less: Net Income Attributable to Noncontrolling Interests		5			6			4			2			16			4			3			5			1			12
Net Income (Loss) Attributable to Merck & Co., Inc.	$	4,762		$	5,455		$	3,157		$	3,743		$	17,117		$	2,821		$	(5,975	)	$	4,745		$	(1,226	)	$	365			*		*

Earnings (Loss) per Common Share Assuming Dilution ⁽¹⁾	$	1.87		$	2.14		$	1.24		$	1.48		$	6.74		$	1.11		$	(2.35	)	$	1.86		$	(0.48	)	$	0.14			*		*

Average Shares Outstanding Assuming Dilution ⁽¹⁾		2,544			2,544			2,541			2,537			2,541			2,551			2,539			2,546			2,533			2,547
Tax Rate		15.9	%		9.1	%		22.7	%		10.2	%		14.1	%		22.6	%		-11.9	%		15.5	%		40.1	%		80.0	%

* 100% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾Because the company recorded a net loss in the second quarter and the fourth quarter of 2023, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive.

MERCK & CO., INC.
FOURTH QUARTER AND FULL YEAR 2023 GAAP TO NON-GAAP RECONCILIATION
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2b

	GAAP			Acquisition and Divestiture- Related Costs ⁽¹⁾			Restructuring Costs ⁽²⁾			(Income) Loss from Investments in Equity Securities			Certain Other Items			Adjustment Subtotal			Non-GAAP
Fourth Quarter
Cost of sales	$	3,911			454			117									571		$	3,340
Selling, general and administrative		2,804			24			29									53			2,751
Research and development		9,628			790												790			8,838
Restructuring costs		255						255									255			–
Other (income) expense, net		78			(35	)					(61	)					(96	)		174
Loss Before Taxes		(2,046	)		(1,233	)		(401	)		61						(1,573	)		(473	)
Income Tax Provision (Benefit)		(821	)		(227	)⁽⁴⁾		(67	)⁽⁴⁾		13	⁽⁴⁾					(281	)		(540	)
Net (Loss) Income		(1,225	)		(1,006	)		(334	)		48						(1,292	)		67
Net (Loss) Income Attributable to Merck & Co., Inc.		(1,226	)		(1,006	)		(334	)		48						(1,292	)		66
(Loss) Earnings per Common Share Assuming Dilution ⁽⁵⁾	$	(0.48	)		(0.40	)		(0.13	)		0.02						(0.51	)	$	0.03

Tax Rate		40.1	%																	114.2	%

Full Year
Cost of sales	$	16,126			2,018			211									2,229		$	13,897
Selling, general and administrative		10,504			86			122									208			10,296
Research and development		30,531			819			1									820			29,711
Restructuring costs		599						599									599			–
Other (income) expense, net		466			(47	)					(279	)		573	⁽³⁾		247			219
Income Before Taxes		1,889			(2,876	)		(933	)		279			(573	)		(4,103	)		5,992
Income Tax Provision (Benefit)		1,512			(476	)⁽⁴⁾		(155	)⁽⁴⁾		60	⁽⁴⁾		(60	)⁽⁴⁾		(631	)		2,143
Net Income		377			(2,400	)		(778	)		219			(513	)		(3,472	)		3,849
Net Income Attributable to Merck & Co., Inc.		365			(2,400	)		(778	)		219			(513	)		(3,472	)		3,837
Earnings per Common Share Assuming Dilution	$	0.14			(0.94	)		(0.31	)		0.08			(0.20	)		(1.37	)	$	1.51

Tax Rate		80.0	%																	35.8	%

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 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 primarily reflect expenses for the amortization of intangible assets. 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 primarily reflect a $779 million in-process research and development (IPR&D) impairment charge related to gefapixant and expenses for the amortization of intangible assets. Amounts included in other (income) expense, net, primarily reflect royalty income related to the prior termination of the Sanofi-Pasteur MSD joint venture. Additionally, other (income) expense, net, for the full year includes a $37 million loss on the sale of a business.

⁽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⁾ Reflects a charge related to settlements with certain plaintiffs in the Zetia antitrust litigation.

⁽⁴⁾ Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

⁽⁵⁾ Because the company recorded a net loss in the fourth quarter of 2023, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive.

MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
FOURTH QUARTER 2024
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3a

	Global						U.S.						International
	4Q 2024		4Q 2023		% Change		4Q 2024		4Q 2023		% Change		4Q 2024		4Q 2023		% Change
TOTAL SALES ⁽¹⁾	$	15,624	$	14,630		7	$	8,188	$	7,088		16	$	7,436	$	7,542		-1
PHARMACEUTICAL		14,042		13,141		7		7,728		6,698		15		6,314		6,443		-2
Oncology
Keytruda		7,836		6,608		19		4,841		3,972		22		2,996		2,636		14
Alliance Revenue – Lynparza ⁽²⁾		365		315		16		177		168		5		187		147		28
Alliance Revenue – Lenvima ⁽²⁾		255		226		13		182		181		1		73		45		63
Welireg		160		72		122		146		68		114		14		4		*
Alliance Revenue – Reblozyl ⁽³⁾		110		70		58		88		60		47		22		10		124
Vaccines ⁽⁴⁾
Gardasil/Gardasil 9		1,550		1,871		-17		380		365		4		1,170		1,506		-22
ProQuad/M-M-R II/Varivax		594		545		9		419		402		4		175		143		23
Vaxneuvance		161		176		-9		64		138		-53		96		38		153
RotaTeq		139		185		-25		84		112		-25		55		73		-25
Pneumovax 23		74		85		-12		19		22		-13		55		62		-12
Hospital Acute Care
Bridion		449		429		5		382		315		21		67		113		-41
Prevymis		215		175		23		106		78		36		109		98		12
Dificid		79		87		-9		72		75		-4		7		12		-42
Zerbaxa		70		61		14		40		33		23		30		28		4
Noxafil		36		46		-23		-2		4		-149		37		43		-12
Cardiovascular
Winrevair		200				-		192				-		9				-
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		109		108		1		105		102		3		5		6		-27
Adempas ⁽⁶⁾		73		66		11								73		66		11
Virology
Lagevrio		121		193		-37		32		10		*		88		183		-52
Isentress/Isentress HD		92		105		-13		38		50		-23		53		56		-4
Delstrigo		69		54		28		14		12		19		55		42		30
Pifeltro		40		33		20		26		23		16		13		10		29
Neuroscience
Belsomra		45		54		-17		19		21		-12		26		33		-20
Immunology
Simponi				171		N/M										171		N/M
Remicade				43		N/M										43		N/M
Diabetes ⁽⁷⁾
Januvia		232		547		-58		41		309		-87		191		239		-20
Janumet		255		240		7		91		41		122		164		198		-17
Other Pharmaceutical ⁽⁸⁾		713		576		25		172		137		26		544		438		24
ANIMAL HEALTH		1,397		1,278		9		444		387		15		953		891		7
Livestock		889		808		10		203		158		28		686		649		6
Companion Animal		508		470		8		241		229		5		267		242		11
Other Revenues ⁽⁹⁾		185		211		-13		16		3		*		169		208		-19

*200% or greater

N/M - Not Meaningful

Sum of U.S. plus international may not equal global 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⁾ Alliance Revenue represents royalties.
⁽⁴⁾ Total Vaccines sales were $2,693 million and $2,962 million on a global basis in the fourth quarter of 2024 and 2023, respectively.
⁽⁵⁾ 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.
⁽⁶⁾ Net product sales in Merck's marketing territories.
⁽⁷⁾ Total Diabetes sales were $546 million and $876 million on a global basis in the fourth quarter of 2024 and 2023, respectively.
⁽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 $15 million on a global basis in the fourth quarter of 2024.

MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
FULL YEAR 2024
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3b

	Global						U.S.						International
	FullYear 2024		Full Year 2023		% Change		Full Year 2024		Full Year 2023		% Change		Full Year 2024		Full Year 2023		% Change
TOTAL SALES ⁽¹⁾	$	64,168	$	60,115		7	$	32,277	$	28,480		13	$	31,891	$	31,635		1
PHARMACEUTICAL		57,400		53,583		7		30,290		26,539		14		27,110		27,044		-
Oncology
Keytruda		29,482		25,011		18		17,872		15,114		18		11,610		9,897		17
Alliance Revenue – Lynparza ⁽²⁾		1,311		1,199		9		626		607		3		685		592		16
Alliance Revenue – Lenvima ⁽²⁾		1,010		960		5		705		657		7		305		303		1
Welireg		509		218		133		466		209		123		43		10		*
Alliance Revenue – Reblozyl ⁽³⁾		371		212		75		303		168		80		68		43		56
Vaccines ⁽⁴⁾
Gardasil/Gardasil 9		8,583		8,886		-3		2,425		2,083		16		6,158		6,803		-9
ProQuad/M-M-R II/Varivax		2,485		2,368		5		1,919		1,837		4		566		531		7
Vaxneuvance		808		665		22		461		561		-18		347		103		*
RotaTeq		711		769		-8		472		493		-4		239		276		-13
Pneumovax 23		263		412		-36		56		127		-56		207		285		-27
Hospital Acute Care
Bridion		1,764		1,842		-4		1,401		1,156		21		363		686		-47
Prevymis		785		605		30		371		264		41		414		341		21
Dificid		340		302		13		303		274		10		37		28		34
Zerbaxa		252		218		16		146		119		23		106		100		7
Noxafil		177		213		-17		7		32		-78		170		181		-6
Cardiovascular
Winrevair		419				-		408				-		11				-
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		415		367		13		388		350		11		27		16		65
Adempas ⁽⁶⁾		287		255		12								287		255		12
Virology
Lagevrio		964		1,428		-33		176		10		*		787		1,418		-44
Isentress/Isentress HD		394		483		-18		185		215		-14		209		268		-22
Delstrigo		249		201		24		56		49		14		193		152		27
Pifeltro		163		142		15		113		101		12		50		41		22
Neuroscience
Belsomra		222		231		-4		72		81		-11		150		150		-
Immunology
Simponi		543		710		-24								543		710		-24
Remicade		114		187		-39								114		187		-39
Diabetes ⁽⁷⁾
Januvia		1,334		2,189		-39		469		1,151		-59		865		1,039		-17
Janumet		935		1,177		-21		161		223		-28		774		954		-19
Other Pharmaceutical ⁽⁸⁾		2,510		2,333		8		729		658		11		1,782		1,675		6
ANIMAL HEALTH		5,877		5,625		4		1,861		1,804		3		4,016		3,821		5
Livestock		3,462		3,337		4		732		700		5		2,729		2,637		3
Companion Animal		2,415		2,288		6		1,129		1,104		2		1,287		1,184		9
Other Revenues ⁽⁹⁾		891		907		-2		126		137		-8		765		770		-1

*200% or greater

Sum of U.S. plus international may not equal global 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⁾Alliance Revenue represents royalties.
⁽⁴⁾Total Vaccines sales were $13,448 million and $13,654 million on a global basis for December YTD 2024 and 2023, respectively.
⁽⁵⁾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.
⁽⁶⁾Net product sales in Merck's marketing territories.
⁽⁷⁾Total Diabetes sales were $2,599 million and $3,701 million on a global basis for December YTD 2024 and 2023, respectively.
⁽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 $106 million and $118 million on a global basis for December YTD 2024 and 2023, respectively.

MERCK & CO., INC.
PHARMACEUTICAL GEOGRAPHIC SALES
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3c

	2024															2023															% Change
	1Q			2Q			3Q			4Q			Full Year			1Q			2Q			3Q			4Q			Full Year			4Q		Full Year
TOTAL PHARMACEUTICAL	$	14,006		$	14,408		$	14,943		$	14,042		$	57,400		$	12,721		$	13,457		$	14,263		$	13,141		$	53,583			7		7

United States		6,936			7,399			8,227			7,728			30,290			6,117			6,570			7,153			6,698			26,539			15		14
% Pharmaceutical Sales		49.5	%		51.4	%		55.1	%		55.0	%		52.8	%		48.1	%		48.8	%		50.1	%		51.0	%		49.5	%
Europe ⁽¹⁾		2,555			2,572			2,620			2,498			10,246			2,326			2,401			2,497			2,491			9,715			-		5
% Pharmaceutical Sales		18.2	%		17.9	%		17.5	%		17.8	%		17.9	%		18.3	%		17.8	%		17.5	%		19.0	%		18.1	%
China		1,744			1,790			996			864			5,394			1,694			1,887			1,674			1,456			6,710			-41		-20
% Pharmaceutical Sales		12.5	%		12.4	%		6.7	%		6.2	%		9.4	%		13.3	%		14.0	%		11.7	%		11.1	%		12.5	%
Japan		802			664			919			813			3,199			737			652			1,062			629			3,081			29		4
% Pharmaceutical Sales		5.7	%		4.6	%		6.2	%		5.8	%		5.6	%		5.8	%		4.8	%		7.4	%		4.8	%		5.7	%
Latin America		601			661			730			680			2,672			470			566			696			596			2,328			14		15
% Pharmaceutical Sales		4.3	%		4.6	%		4.9	%		4.8	%		4.7	%		3.7	%		4.2	%		4.9	%		4.5	%		4.3	%
Asia Pacific (other than China and Japan)		580			595			669			612			2,457			703			705			636			616			2,661			-1		-8
% Pharmaceutical Sales		4.1	%		4.1	%		4.5	%		4.4	%		4.3	%		5.5	%		5.2	%		4.5	%		4.7	%		5.0	%
Eastern Europe/Middle East/Africa		395			353			400			348			1,495			381			370			301			299			1,351			16		11
% Pharmaceutical Sales		2.8	%		2.4	%		2.7	%		2.5	%		2.6	%		3.0	%		2.7	%		2.1	%		2.3	%		2.5	%
Canada		138			143			133			144			558			141			127			133			138			540			4		3
% Pharmaceutical Sales		1.0	%		1.0	%		0.9	%		1.0	%		1.0	%		1.1	%		0.9	%		0.9	%		1.1	%		1.0	%
Other		255			231			249			355			1,089			152			179			111			218			658			63		66
% Pharmaceutical Sales		1.9	%		1.6	%		1.5	%		2.5	%		1.7	%		1.2	%		1.6	%		0.9	%		1.5	%		1.4	%

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾Europe represents all European Union countries, the European Union accession markets and the United Kingdom.

MERCK & CO., INC.
OTHER (INCOME) EXPENSE, NET - GAAP
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 4

OTHER (INCOME) EXPENSE, NET

	4Q24			4Q23			Full Year 2024			Full Year 2023
Interest income	$	(146	)	$	(70	)	$	(415	)	$	(365	)
Interest expense		328			310			1,271			1,146
Exchange losses		49			162			227			370
Loss (income) from investments in equity securities, net ⁽¹⁾		156			(99	)		(14	)		(340	)
Net periodic defined benefit plan (credit) cost other than service cost		(157	)		(134	)		(633	)		(498	)
Other, net		(104	)		(91	)		(460	)		153
Total	$	126		$	78		$	(24	)	$	466

⁽¹⁾Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds. Unrealized gains and losses from investments that are directly owned are determined at the end of the reporting period, while gains and losses from ownership interests in investment funds are accounted for on a one quarter lag.

Merck & Co. (MRK) 8-KMerck Announces Fourth-Quarter and Full-Year 2024 Financial Results