MERCK & CO., INC., 10-Q filed on 5/2/2025
Quarterly Report
v3.25.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2025
Apr. 30, 2025
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 1-6571  
Entity Registrant Name Merck & Co., Inc.  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 22-1918501  
Entity Address, Address Line One 126 East Lincoln Avenue  
Entity Address, City or Town Rahway  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07065  
City Area Code (732)  
Local Phone Number 594-4000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,511,031,253
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000310158  
Current Fiscal Year End Date --12-31  
Common Stock ($0.50 par value)    
Entity Information [Line Items]    
Title of 12(b) Security Common Stock ($0.50 par value)  
Trading Symbol MRK  
Security Exchange Name NYSE  
1.875% Notes due 2026    
Entity Information [Line Items]    
Title of 12(b) Security 1.875% Notes due 2026  
Trading Symbol MRK/26  
Security Exchange Name NYSE  
3.250% Notes due 2032    
Entity Information [Line Items]    
Title of 12(b) Security 3.250% Notes due 2032  
Trading Symbol MRK/32  
Security Exchange Name NYSE  
2.500% Notes due 2034    
Entity Information [Line Items]    
Title of 12(b) Security 2.500% Notes due 2034  
Trading Symbol MRK/34  
Security Exchange Name NYSE  
1.375% Notes due 2036    
Entity Information [Line Items]    
Title of 12(b) Security 1.375% Notes due 2036  
Trading Symbol MRK 36A  
Security Exchange Name NYSE  
3.500% Notes due 2037    
Entity Information [Line Items]    
Title of 12(b) Security 3.500% Notes due 2037  
Trading Symbol MRK/37  
Security Exchange Name NYSE  
3.700% Notes due 2044    
Entity Information [Line Items]    
Title of 12(b) Security 3.700% Notes due 2044  
Trading Symbol MRK/44  
Security Exchange Name NYSE  
3.750% Notes due 2054    
Entity Information [Line Items]    
Title of 12(b) Security 3.750% Notes due 2054  
Trading Symbol MRK/54  
Security Exchange Name NYSE  
v3.25.1
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Statement [Abstract]    
Sales $ 15,529 $ 15,775
Costs, Expenses and Other    
Cost of sales 3,419 3,540
Selling, general and administrative 2,552 2,483
Research and development 3,621 3,992
Restructuring costs 69 123
Other (income) expense, net (35) (33)
Total Costs, Expenses and Other 9,626 10,105
Income Before Taxes 5,903 5,670
Taxes on Income 818 903
Net Income 5,085 4,767
Less: Net Income Attributable to Noncontrolling Interests 6 5
Net Income Attributable to Merck & Co., Inc. $ 5,079 $ 4,762
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) $ 2.01 $ 1.88
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) $ 2.01 $ 1.87
v3.25.1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]    
Net Income Attributable to Merck & Co., Inc. $ 5,079 $ 4,762
Other Comprehensive Loss Net of Taxes:    
Net unrealized (loss) gain on derivatives, net of reclassifications (217) 130
Benefit plan net (loss) gain and prior service (cost) credit, net of amortization (18) (5)
Cumulative translation adjustment 215 (238)
Other comprehensive income (loss), net of taxes (20) (113)
Comprehensive Income Attributable to Merck & Co., Inc. $ 5,059 $ 4,649
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Current Assets    
Cash and cash equivalents $ 8,629 $ 13,242
Short-term investments 599 447
Accounts receivable (net of allowance for doubtful accounts of $93 in 2025 and $89 in 2024) 10,790 10,278
Inventories (excludes inventories of $4,556 in 2025 and $4,193 in 2024 classified in Other assets - see Note 6) 6,196 6,109
Other current assets 9,289 8,706
Total current assets 35,503 38,782
Investments 616 463
Property, Plant and Equipment, at cost, net of accumulated depreciation of $19,680 in 2025 and $19,155 in 2024 24,793 23,779
Goodwill 21,684 21,668
Other Intangibles, Net 15,758 16,370
Other Assets 16,768 16,044
Total Assets 115,122 117,106
Current Liabilities    
Loans payable and current portion of long-term debt 1,360 2,649
Trade accounts payable 3,784 4,079
Accrued and other current liabilities 12,772 15,694
Income taxes payable 5,181 3,914
Dividends payable 2,077 2,084
Total current liabilities 25,174 28,420
Long-Term Debt 33,484 34,462
Deferred Income Taxes 1,409 1,387
Other Noncurrent Liabilities 6,655 6,465
Merck & Co., Inc. Stockholders’ Equity    
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2025 and 2024 1,788 1,788
Other paid-in capital 44,816 44,704
Retained earnings 66,097 63,069
Accumulated other comprehensive loss (4,965) (4,945)
Stockholders' equity before deduction for treasury stock 107,736 104,616
Less treasury stock, at cost: 1,061,021,894 shares in 2025 and 1,049,466,187 shares in 2024 59,401 58,303
Total Merck & Co., Inc. stockholders’ equity 48,335 46,313
Noncontrolling Interests 65 59
Total equity 48,400 46,372
Liabilities and Equity $ 115,122 $ 117,106
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 93 $ 89
Inventories classified in Other assets 4,556 4,193
Accumulated depreciation $ 19,680 $ 19,155
Common stock, par value (in dollars per share) $ 0.50 $ 0.50
Common stock, authorized (shares) 6,500,000,000 6,500,000,000
Common stock, issued (in shares) 3,577,103,522 3,577,103,522
Treasury stock (in shares) 1,061,021,894 1,049,466,187
v3.25.1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash Flows from Operating Activities    
Net income $ 5,085 $ 4,767
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization 597 473
Depreciation 502 511
Income from investments in equity securities, net (90) (143)
Charge for research and development asset acquisition 0 656
Deferred income taxes (186) (51)
Share-based compensation 195 176
Other 109 83
Net changes in assets and liabilities (3,712) (3,382)
Net Cash Provided by Operating Activities 2,500 3,090
Cash Flows from Investing Activities    
Capital expenditures (1,328) (861)
Purchases of securities and other investments (595) (15)
Proceeds from sales of securities and other investments 456 260
Acquisition of Harpoon Therapeutics, Inc., net of cash acquired 0 (746)
Other (20) (14)
Net Cash Used in Investing Activities (1,487) (1,376)
Cash Flows from Financing Activities    
Payments on debt (2,500) (751)
Dividends paid to stockholders (2,050) (1,950)
Purchases of treasury stock (1,164) (122)
Proceeds from exercise of stock options 19 87
Other (60) (78)
Net Cash Used in Financing Activities (5,755) (2,814)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash 156 (138)
Net Decrease in Cash, Cash Equivalents and Restricted Cash (4,586) (1,238)
Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes restricted cash of $76 and $68 at January 1, 2025 and 2024, respectively, included in Other current assets) 13,318 6,909
Cash, Cash Equivalents and Restricted Cash at End of Period (includes restricted cash of $103 and $92 at March 31, 2025 and 2024, respectively, included in Other current assets) $ 8,732 $ 5,671
v3.25.1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Dec. 31, 2023
Statement of Cash Flows [Abstract]        
Restricted cash $ 103 $ 76 $ 92 $ 68
v3.25.1
Basis of Presentation
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Merck & Co., Inc. (Merck or the Company) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States (U.S.) for complete consolidated financial statements are not included herein. These interim statements should be read in conjunction with the audited financial statements and notes thereto included in Merck’s Form 10-K filed on February 25, 2025.
The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. In the Company’s opinion, all adjustments necessary for a fair statement of these interim statements have been included and are of a normal and recurring nature. Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
Recently Issued Accounting Standards Not Yet Adopted
In December 2023, the Financial Accounting Standards Board (FASB) issued guidance intended to improve the transparency of income tax disclosures by requiring consistent categories and disaggregation of information in the effective income tax rate reconciliation and income taxes paid disclosures by jurisdiction. The guidance also includes other amendments to improve the effectiveness of income tax disclosures by removing certain previously required disclosures. The guidance is effective for 2025 annual reporting. The guidance will result in incremental disclosures within the footnotes to the Company’s financial statements.
In November 2024, the FASB issued guidance intended to improve financial reporting by requiring entities to disclose additional information about specific expense categories at interim and annual reporting periods. The guidance is effective for 2027 annual reporting and 2028 interim reporting. Early adoption is permitted. The guidance, which can be applied on a prospective or retrospective basis, will result in incremental disclosures within the footnotes to the Company’s financial statements.
v3.25.1
Acquisitions, Research Collaborations and Licensing Agreements
 3 Months Ended
Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions, Research Collaborations and Licensing Agreements Acquisitions, Research Collaborations and Licensing Agreements
The Company continues to pursue acquisitions and the establishment of external alliances such as research collaborations and licensing agreements to complement its internal research capabilities. These arrangements often include upfront payments; expense reimbursements or payments to the third party; milestone, royalty or profit share arrangements contingent upon the occurrence of certain future events linked to the success of the asset in development; and can also include option and continuation payments. The Company also reviews its marketed products and pipeline to examine candidates which may provide more value through out-licensing and, as part of its portfolio assessment process, may also divest certain assets. Pro forma financial information for acquired businesses is not presented if the historical financial results of the acquired entity are not significant when compared with the Company’s financial results.
2025 Transactions
In March 2025, Merck and Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui Pharma) announced that the companies have entered into an exclusive license agreement for HRS-5346, an investigational oral small molecule Lipoprotein(a) inhibitor, which is currently being evaluated in a Phase 2 clinical trial in China. Under the agreement, Hengrui Pharma granted Merck exclusive rights to develop, manufacture and commercialize HRS-5346 worldwide, excluding the Greater China region. Hengrui Pharma will receive an upfront payment of $200 million and is eligible to receive future contingent developmental milestone payments of up to $92.5 million, regulatory milestone payments of up to $177.5 million and sales-based milestone payments of up to $1.5 billion, as well as tiered royalties ranging from a mid-single-digit rate to a low-double digit rate on future net sales of HRS-5346, if approved. Closing of the proposed transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Merck expects to record a pretax charge of $200 million to Research and development expenses upon closing, which is anticipated in the second quarter of 2025.
Also in March 2025, Merck acquired the Dundalk, Ireland facility of WuXi Vaccines (a wholly owned subsidiary of WuXi Biologics), which was accounted for as an asset acquisition. Merck paid $437 million at closing which, combined with previous consideration transferred under a prior manufacturing arrangement with WuXi Vaccines related to this facility, resulted in $759 million being recorded as assets under construction within Property, Plant and Equipment. There are no future contingent payments associated with the acquisition.
2024 Transactions
In March 2024, Merck acquired Harpoon Therapeutics, Inc. (Harpoon), a clinical-stage immunotherapy company developing a novel class of T-cell engagers designed to harness the power of the body’s immune system to treat patients suffering from cancer and other diseases, for $765 million and also incurred $56 million of transaction costs. Harpoon’s lead candidate, MK-6070 (formerly HPN328), is a T-cell engager targeting delta-like ligand 3 (DLL3), an inhibitory canonical Notch ligand that is expressed at high levels in small-cell lung cancer and neuroendocrine tumors. The transaction was accounted for as an asset acquisition since MK-6070 represented substantially all of the fair value of the gross assets acquired (excluding cash and deferred income taxes). Merck recorded net assets of $165 million, as well as a charge of $656 million to Research and development expenses in the first three months of 2024 related to the transaction. There are no future contingent payments
associated with the acquisition. In August 2024, Merck and Daiichi Sankyo expanded their existing global co-development and co-commercialization agreement to include MK-6070. See Note 3 for more information on Merck’s collaboration with Daiichi Sankyo.
v3.25.1
Collaborative Arrangements
 3 Months Ended
Mar. 31, 2025
Collaborative Arrangements [Abstract]  
Collaborative Arrangements Collaborative Arrangements
Merck has entered into collaborative arrangements that provide the Company with varying rights to develop, produce and market products together with its collaborative partners. Both parties in these arrangements are active participants and exposed to significant risks and rewards dependent on the commercial success of the activities of the collaboration. Merck’s more significant collaborative arrangements are discussed below.
AstraZeneca PLC
In 2017, Merck and AstraZeneca PLC (AstraZeneca) entered into a global strategic oncology collaboration to co-develop and co-commercialize AstraZeneca’s Lynparza (olaparib) for multiple cancer types. Independently, Merck and AstraZeneca are developing and commercializing Lynparza in combinations with their respective PD-1 and PD-L1 medicines, Keytruda (pembrolizumab) and Imfinzi. The companies are also jointly developing and commercializing AstraZeneca’s Koselugo (selumetinib) for multiple indications. Under the terms of the agreement, AstraZeneca and Merck share the development and commercialization costs for Lynparza and Koselugo monotherapy and non-PD-1/PD-L1 combination therapy opportunities.
Profits from Lynparza and Koselugo product sales generated through monotherapies or combination therapies are shared equally. AstraZeneca is the principal on Lynparza and Koselugo sales transactions. Merck records its share of Lynparza and Koselugo product sales, net of cost of sales and commercialization costs, as alliance revenue, and its share of development costs associated with the collaboration as part of Research and development expenses. Reimbursements received from AstraZeneca for research and development expenses are recognized as reductions to Research and development costs.
As part of the agreement, Merck made an upfront payment to AstraZeneca and also made payments over a multi-year period for certain license options. In addition, the agreement provides for contingent payments from Merck to AstraZeneca related to the successful achievement of sales-based and regulatory milestones.
In the first quarter of 2025, Merck made sales-based milestone payments aggregating $700 million to AstraZeneca of which $600 million related to Lynparza and $100 million related to Koselugo (both of which had been previously accrued for). Potential future sales-based milestone payments of $2.0 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. Lynparza received a regulatory approval triggering a capitalized milestone payment from Merck to AstraZeneca of $245 million in the first quarter of 2024 (which had been previously accrued for). The partners have agreed that no future regulatory milestone payments from Merck to AstraZeneca are likely under the agreement.
The intangible asset balances related to Lynparza and Koselugo (which reflect the capitalized sales-based and regulatory milestone payments attributed to each product) were $1.1 billion and $48 million, respectively, at March 31, 2025 and are included in Other Intangibles, Net. The assets are being amortized over their estimated useful lives (through 2028 for Lynparza and through 2029 for Koselugo) as supported by projected future cash flows, subject to impairment testing.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Alliance revenue - Lynparza$312 $292 
Alliance revenue - Koselugo44 38 
Total alliance revenue$356 $330 
Cost of sales (1)
83 82 
Selling, general and administrative32 39 
Research and development12 20 
($ in millions)March 31, 2025December 31, 2024
Receivables from AstraZeneca included in Other current assets
$358 $424 
Payables to AstraZeneca included in Accrued and other current liabilities (2)
15 713 
(1)    Represents amortization of capitalized milestone payments.
(2)    Balance at December 31, 2024 includes accrued milestone payments.
Eisai Co., Ltd.
In 2018, Merck and Eisai Co., Ltd. (Eisai) announced a strategic collaboration for the worldwide co-development and co-commercialization of Lenvima (lenvatinib), an orally available tyrosine kinase inhibitor discovered by Eisai. Under the agreement, Merck and Eisai are developing and commercializing Lenvima jointly, both as monotherapy and in combination with Keytruda. Eisai records Lenvima product sales globally (Eisai is the principal on Lenvima sales transactions) and Merck and
Eisai share applicable profits equally. Merck records its share of Lenvima product sales, net of cost of sales and commercialization costs, as alliance revenue. Expenses incurred during co-development are shared by the two companies in accordance with the collaboration agreement and reflected in Research and development expenses. Certain expenses incurred solely by Merck or Eisai are not shareable under the collaboration agreement, including costs incurred in excess of agreed upon caps and costs related to certain combination studies of Keytruda and Lenvima.
Under the agreement, Merck made an upfront payment to Eisai and also made payments over a multi-year period for certain option rights. In addition, the agreement provides for contingent payments from Merck to Eisai related to the successful achievement of sales-based and regulatory milestones.
In the second quarter of 2024, Merck made a $125 million sales-based milestone payment to Eisai (which had been previously accrued for). Potential future sales-based milestone payments of $2.3 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. There are no regulatory milestone payments remaining under the agreement.
The intangible asset balance related to Lenvima (which includes capitalized sales-based and regulatory milestone payments) was $382 million at March 31, 2025 and is included in Other Intangibles, Net. The amount is being amortized over its estimated useful life through 2026 as supported by projected future cash flows, subject to impairment testing.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Alliance revenue - Lenvima$258 $255 
Cost of sales (1)
60 60 
Selling, general and administrative31 39 
Research and development5 8 
($ in millions)March 31, 2025December 31, 2024
Receivables from Eisai included in Other current assets
$263 $257 
(1)    Represents amortization of capitalized milestone payments.
Bayer AG
In 2014, the Company entered into a worldwide clinical development collaboration with Bayer AG (Bayer) to market and develop soluble guanylate cyclase (sGC) modulators including Bayer’s Adempas (riociguat) and Verquvo (vericiguat). The two companies have implemented a joint development and commercialization strategy. Under the agreement, Bayer commercializes Adempas in the Americas, while Merck commercializes in the rest of the world. For Verquvo, Merck commercializes in the U.S. and Bayer commercializes in the rest of the world. Both companies share in development costs and profits on sales. Merck records sales of Adempas and Verquvo in its marketing territories, as well as alliance revenue. Alliance revenue represents Merck’s share of profits from sales of Adempas and Verquvo in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs. Cost of sales includes Bayer’s share of profits from sales in Merck’s marketing territories.
In addition, the agreement provided for contingent payments from Merck to Bayer related to the successful achievement of sales-based milestones. There are no sales-based milestone payments remaining under this collaboration.
The intangible asset balances related to Adempas (which includes the acquired intangible asset balance, as well as capitalized sales-based milestone payments attributed to Adempas) and Verquvo (which reflects the portion of the final sales-based milestone payment that was attributed to Verquvo) were $353 million and $42 million, respectively, at March 31, 2025 and are included in Other Intangibles, Net. The assets are being amortized over their estimated useful lives (through 2027 for Adempas and through 2031 for Verquvo) as supported by projected future cash flows, subject to impairment testing.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Alliance revenue - Adempas/Verquvo$106 $98 
Net sales of Adempas recorded by Merck68 70 
Net sales of Verquvo recorded by Merck9 5 
Total sales$183 $173 
Cost of sales (1)
58 62 
Selling, general and administrative29 33 
Research and development24 28 
($ in millions)March 31, 2025December 31, 2024
Receivables from Bayer included in Other current assets
$160 $160 
Payables to Bayer included in Accrued and other current liabilities
83 82 
(1)    Includes amortization of intangible assets, cost of products sold by Merck, as well as Bayer’s share of profits from sales in Merck’s marketing territories.
Ridgeback Biotherapeutics LP
In 2020, Merck and Ridgeback Biotherapeutics LP (Ridgeback), a closely held biotechnology company, entered into a collaboration agreement to develop Lagevrio (molnupiravir), an investigational orally available antiviral candidate for the treatment of patients with COVID-19. Merck gained exclusive worldwide rights to develop and commercialize Lagevrio and related molecules. Following initial authorizations in certain markets in 2021, Lagevrio has since received multiple additional authorizations.
Under the terms of the agreement, Ridgeback received an upfront payment and is eligible to receive future contingent payments dependent upon the achievement of certain developmental and regulatory approval milestones. The agreement also provides for Merck to reimburse Ridgeback for a portion of certain third-party contingent milestone payments and royalties on net sales, which is part of the profit-sharing calculation. Merck is the principal on sales transactions, recognizing sales and related costs, with profit-sharing amounts recorded within Cost of sales. Profits from the collaboration are split equally between the partners. Reimbursements from Ridgeback for its share of research and development costs (deducted from Ridgeback’s share of profits) are reflected as decreases to Research and development expenses.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Net sales of Lagevrio recorded by Merck
$102 $350 
Cost of sales (1)
53 191 
Selling, general and administrative
13 16 
Research and development
8 (5)
($ in millions)March 31, 2025December 31, 2024
Payables to Ridgeback included in Accrued and other current liabilities (2)
$43 $68 
(1)    Includes cost of products sold by Merck, Ridgeback’s share of profits, royalty expense, amortization of capitalized milestone payments and inventory reserves.
(2)    Includes accrued royalties.
Daiichi Sankyo
In October 2023, Merck and Daiichi Sankyo entered into a global development and commercialization agreement for three of Daiichi Sankyo’s DXd antibody drug conjugate (ADC) candidates: patritumab deruxtecan (HER3-DXd) (MK-1022), ifinatamab deruxtecan (I-DXd) (MK-2400) and raludotatug deruxtecan (R-DXd) (MK-5909). All three potentially first-in-class DXd ADCs are in various stages of clinical development for the treatment of multiple solid tumors both as monotherapy and/or in combination with other treatments. The companies will jointly develop and potentially commercialize these ADC candidates worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights. Daiichi Sankyo will be solely responsible for manufacturing and supply.
Under the terms of the agreement, Merck made payments to Daiichi Sankyo totaling $4.0 billion in 2023. These payments included $1.0 billion ($500 million each for patritumab deruxtecan and ifinatamab deruxtecan) which may be refundable on a pro-rated basis in the event of early termination of development with respect to either program. In addition, the agreement provided for a continuation payment of $750 million related to patritumab deruxtecan, which Merck paid in October 2024, and a continuation payment of $750 million related to raludotatug deruxtecan due from Merck in October 2025. If Merck does not make the remaining continuation payment for raludotatug deruxtecan, the rights for that program will revert to Daiichi
Sankyo and the non-refundable upfront payments already paid will be retained by Daiichi Sankyo. The agreement also provides for contingent payments from Merck to Daiichi Sankyo of up to an additional $5.5 billion for each DXd ADC upon the successful achievement of certain sales-based milestones. In conjunction with this transaction, Merck recorded an aggregate pretax charge of $5.5 billion to Research and development expenses in 2023 for the $4.0 billion of upfront payments and the $1.5 billion of continuation payments.
Merck and Daiichi Sankyo equally share research and development costs, except for raludotatug deruxtecan, where Merck is responsible for 75% of the first $2.0 billion of research and development expenses. Merck includes its share of development costs associated with the collaboration as part of Research and development expenses. Following regulatory approval, Daiichi Sankyo will generally record sales worldwide (Daiichi Sankyo will be the principal on sales transactions) and the companies will equally share expenses as well as profits worldwide except for Japan where Daiichi Sankyo retains exclusive rights and Merck will receive a 5% sales-based royalty. Merck will record its share of product sales, net of cost of sales and commercialization costs, as alliance revenue.
In August 2024, Merck and Daiichi Sankyo expanded their agreement to include MK-6070, an investigational delta-like ligand 3 (DLL3) targeting T-cell engager, which Merck obtained through its acquisition of Harpoon (see Note 2). The companies are planning to evaluate MK-6070 in combination with ifinatamab deruxtecan in certain patients with small-cell-lung cancer, as well as other potential combinations. Merck received an upfront cash payment of $170 million from Daiichi Sankyo (recorded within Other (income) expense, net) and has also satisfied a contingent quid obligation from the original collaboration agreement. The companies will jointly develop and commercialize MK-6070 worldwide and share research and development, as well as commercialization expenses. Research and development expenses related to MK-6070 in combination with ifinatamab deruxtecan will be shared in a manner consistent with the original agreement for ifinatamab deruxtecan. Merck will be solely responsible for manufacturing and supply of MK-6070. If approved, Merck will generally record sales for MK-6070 worldwide (Merck will be the principal on sales transactions) and the companies will equally share expenses as well as profits worldwide, except for Japan where Merck retains exclusive rights and Daiichi Sankyo will receive a 5% sales-based royalty.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Selling, general and administrative $9 $3 
Research and development
128 69 
($ in millions)March 31, 2025December 31, 2024
Receivables from Daiichi Sankyo included in Other current assets
$13 $8 
Payables to Daiichi Sankyo included in Accrued and other current liabilities (1)
803 817 
(1) Includes accrued continuation payment.
Moderna, Inc.
In 2022, Merck exercised its option to jointly develop and commercialize intismeran autogene (V940/mRNA-4157), an investigational individualized neoantigen therapy, pursuant to the terms of an existing collaboration and license agreement with Moderna, Inc. (Moderna). Intismeran autogene is currently being evaluated in combination with Keytruda in multiple Phase 3 clinical trials. Merck and Moderna share costs and will share any profits equally under this worldwide collaboration. Merck records its share of development costs associated with the collaboration as part of Research and development expenses. Any reimbursements received from Moderna for research and development expenses are recognized as reductions to Research and development costs. Merck has also capitalized certain of the shared costs, mainly related to facility costs, which aggregated $228 million at March 31, 2025 and will be amortized over the assets’ estimated useful lives.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Selling, general and administrative $6 $2 
Research and development
86 69 
($ in millions)March 31, 2025December 31, 2024
Payables to Moderna included in Accrued and other current liabilities
$37 $57 
Bristol-Myers Squibb Company
Reblozyl (luspatercept-aamt) is a first-in-class erythroid maturation recombinant fusion protein that is being commercialized through a global collaboration with Bristol-Myers Squibb Company (BMS). Reblozyl is approved in the U.S., Europe and certain other markets for the treatment of anemia in certain rare blood disorders and is also being evaluated for additional indications for hematology therapies. BMS is the principal on sales transactions for Reblozyl; however, Merck co-promotes Reblozyl (and may co-promote any future products approved under this collaboration) in North America, which is
reimbursed by BMS. Merck receives tiered royalties ranging from 20% to 24% based on sales levels. This royalty will be reduced by 50% upon the earlier of patent expiry or generic entry on an indication-by-indication basis in each market. Additionally, Merck is eligible to receive future contingent sales-based milestone payments of up to $80 million. Alliance revenue related to this collaboration, consisting of royalties (recorded within Sales) was $119 million and $71 million in the first quarter of 2025 and 2024, respectively.
v3.25.1
Restructuring
 3 Months Ended
Mar. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In January 2024, the Company approved a restructuring program (2024 Restructuring Program) intended to continue the optimization of the Company’s Human Health global manufacturing network as the future pipeline shifts to new modalities and also optimize the Animal Health global manufacturing network to improve supply reliability and increase efficiency. The actions contemplated under the 2024 Restructuring Program are expected to be substantially completed by the end of 2031, with the cumulative pretax costs to be incurred by the Company to implement the program estimated to be approximately $4.0 billion. Approximately 60% of the cumulative pretax costs will be non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested. The remainder of the costs will result in cash outlays, relating primarily to facility shut-down costs. The Company recorded total pretax costs of $105 million and $246 million in the first quarter of 2025 and 2024, respectively, related to the 2024 Restructuring Program. Since inception of the 2024 Restructuring Program through March 31, 2025, Merck has incurred total cumulative pretax costs of $1.2 billion.
For segment reporting, restructuring charges are unallocated expenses.
The following tables summarize the charges related to restructuring program activities by type of cost:
 Three Months Ended March 31, 2025
($ in millions)
Accelerated Depreciation
Separation Costs
Other Exit Costs
Total
Cost of sales$41 $— $(5)$36 
Restructuring costs— 1 68 69 
$41 $1 $63 $105 
 Three Months Ended March 31, 2024
($ in millions)
Accelerated Depreciation
Separation Costs
Other Exit Costs
Total
Cost of sales$65 $— $51 $116 
Selling, general and administrative— — 5 5 
Research and development— — 2 2 
Restructuring costs— 92 31 123 
$65 $92 $89 $246 
Accelerated depreciation costs primarily relate to manufacturing, research and administrative facilities and equipment to be sold or closed as part of the programs. Accelerated depreciation costs represent the difference between the depreciation expense to be recognized over the revised useful life of the asset, based upon the anticipated date the site will be closed or divested or the equipment disposed of, and depreciation expense as determined utilizing the useful life prior to the restructuring actions. All the sites will continue to operate up through the respective closure dates and, since future undiscounted cash flows are sufficient to recover the respective book values, Merck is recording accelerated depreciation over the revised useful life of the site assets. Anticipated site closure dates, particularly related to manufacturing locations, have been and may continue to be adjusted to reflect changes resulting from regulatory or other factors.
Separation costs are associated with actual headcount reductions, as well as involuntary headcount reductions which were probable and could be reasonably estimated.
Other exit costs in 2025 and 2024 include asset impairment, facility shut-down and other related costs, as well as pretax gains and losses resulting from the sales of facilities and related assets. Additionally, other activity includes certain employee-related costs associated with pension and other postretirement benefit plans (see Note 9) and share-based compensation.
The following table summarizes the charges and spending relating to restructuring program activities for the three months ended March 31, 2025:
($ in millions)
Accelerated Depreciation
Separation
Costs
Other Exit Costs
Total
Restructuring reserves January 1, 2025
$— $564 $— $564 
Expenses41 1 63 105 
(Payments) receipts, net— (8)(55)(63)
Non-cash activity(41)— (8)(49)
Restructuring reserves March 31, 2025
$— $557 $— $557 
v3.25.1
Financial Instruments
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
Derivative Instruments and Hedging Activities
The Company manages the impact of foreign exchange rate movements and interest rate movements on its earnings, cash flows and fair values of assets and liabilities through operational means and through the use of various financial instruments, including derivative instruments.
A significant portion of the Company’s revenues and earnings in foreign affiliates is exposed to changes in foreign exchange rates. The objectives of and accounting related to the Company’s foreign currency risk management program, as well as its interest rate risk management activities are discussed below.
Foreign Currency Risk Management
The Company has established revenue hedging, balance sheet risk management and net investment hedging programs to protect against volatility of future foreign currency cash flows and changes in fair value caused by changes in foreign exchange rates.
The objective of the revenue hedging program is to reduce the variability caused by changes in foreign exchange rates that would affect the U.S. dollar value of future cash flows derived from foreign currency denominated sales, primarily the euro, Japanese yen and Chinese renminbi. To achieve this objective, the Company will hedge a portion of its forecasted foreign currency denominated third-party and intercompany distributor entity sales (forecasted sales) that are expected to occur over its planning cycle, typically no more than two years into the future. The Company will layer in hedges over time, increasing the portion of forecasted sales hedged as it gets closer to the expected date of the forecasted sales. The portion of forecasted sales hedged is based on assessments of cost-benefit profiles that consider natural offsetting exposures, revenue and foreign exchange rate volatilities and correlations, and the cost of hedging instruments. The Company manages its anticipated transaction exposure principally with purchased local currency put options, forward contracts, and purchased collar options.
The fair values of these derivative contracts are recorded as either assets (gain positions) or liabilities (loss positions) in the Condensed Consolidated Balance Sheet. Changes in the fair value of derivative contracts are recorded each period in either current earnings or Other comprehensive income (OCI), depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the unrealized gains or losses on these contracts are recorded in Accumulated Other Comprehensive Loss (AOCL) and reclassified into Sales when the hedged anticipated revenue is recognized. The amount reclassified into earnings as a result of the discontinuation of cash flow hedges because it was no longer deemed probable the forecasted hedged transactions would occur was not material for the first quarter of 2025 or 2024. For those derivatives which are not designated as cash flow hedges, but serve as economic hedges of forecasted sales, unrealized gains or losses are recorded in Sales each period. The cash flows from both designated and non-designated contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows. The Company does not enter into derivatives for trading or speculative purposes.
The Company manages operating activities and net asset positions at each local subsidiary in order to mitigate the effects of foreign exchange on monetary assets and liabilities. Monetary assets and liabilities denominated in a currency other than the functional currency of a given subsidiary are remeasured at spot rates in effect on the balance sheet date with the effects of changes in spot rates reported in Other (income) expense, net. The Company also uses a balance sheet risk management program to mitigate the exposure of such assets and liabilities from the effects of volatility in foreign exchange. Merck principally utilizes forward exchange contracts to offset the effects of foreign exchange on exposures when it is deemed economical to do so based on a cost-benefit analysis that considers the magnitude of the exposure, the volatility of the foreign exchange rate and the cost of the hedging instrument (primarily the euro, Swiss franc, Japanese yen, and Chinese renminbi). The forward contracts are not designated as hedges and are marked to market through Other (income) expense, net. Accordingly, fair value changes in the forward contracts help mitigate the changes in the value of the remeasured assets and liabilities attributable to changes in foreign currency exchange rates, except to the extent of the spot-forward differences. These differences are not significant due to the short-term nature of the contracts, which typically have average maturities at inception of less than six months. The cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows.
The Company also uses forward exchange contracts to hedge a portion of its net investment in foreign operations against movements in foreign exchange rates. The forward contracts are designated as hedges of the net investment in a foreign operation. The unrealized gains or losses on these contracts are recorded in foreign currency translation adjustment within OCI and remain in AOCL until either the sale or complete or substantially complete liquidation of the subsidiary. The Company excludes certain portions of the change in fair value of its derivative instruments from the assessment of hedge effectiveness (excluded components). Changes in fair value of the excluded components are recognized in OCI. The Company recognizes in earnings the initial value of the excluded components on a straight-line basis over the life of the derivative instrument, rather than using the mark-to-market approach. The cash flows from these contracts are reported as investing activities in the Condensed Consolidated Statement of Cash Flows.
Foreign exchange risk is also managed through the use of foreign currency debt. Certain of the Company’s senior unsecured euro-denominated notes have been designated as, and are effective as, economic hedges of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in foreign currency translation adjustment within OCI.
The effects of the Company’s net investment hedges on OCI and the Condensed Consolidated Statement of Income are shown below:
Amount of Pretax Loss (Gain) Recognized in Other Comprehensive Income (1)
Amount of Pretax Gain Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing
Three Months Ended March 31,Three Months Ended March 31,
($ in millions)2025202420252024
Net Investment Hedging Relationships
Foreign exchange contracts$27 $(2)$(3)$— 
Euro-denominated notes130 (62)— — 
(1)    No amounts were reclassified from AOCL into income related to the sale of a subsidiary.
Interest Rate Risk Management
The Company may use interest rate swap contracts on certain investing and borrowing transactions to manage its net exposure to interest rate changes and to reduce its overall cost of borrowing. The Company does not use leveraged swaps and, in general, does not leverage any of its investment activities that would put principal at risk.
At March 31, 2025, the Company was a party to seven pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of a portion of fixed-rate notes as detailed in the table below.
March 31, 2025
($ in millions)
Par Value of Debt
Number of Interest Rate Swaps Held
Total Swap Notional Amount
4.50% notes due 2033
$1,500 6 $1,500 
    5.00% notes due 2053
1,500 1 250
The interest rate swap contracts are designated hedges of the fair value changes in the notes attributable to changes in the benchmark Secured Overnight Financing Rate (SOFR) swap rate. The fair value changes in the notes attributable to changes in the SOFR swap rate are recorded in interest expense along with the offsetting fair value changes in the swap contracts. The cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows.
The table below presents the location of amounts recorded in the Condensed Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount of Hedged Liabilities
Cumulative Amount of Fair Value Hedging Adjustment Increase Included in the Carrying Amount
($ in millions)
March 31, 2025December 31, 2024March 31, 2025December 31, 2024
Balance Sheet Caption
Long-Term Debt
$1,794 $1,509 $56 $17 
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments:
  March 31, 2025December 31, 2024
  Fair Value of DerivativeU.S. Dollar
Notional		Fair Value of DerivativeU.S. Dollar
Notional
($ in millions)AssetLiabilityAssetLiability
Derivatives Designated as Hedging InstrumentsBalance Sheet Caption
Interest rate swap contracts
Other Assets
$56 $— $1,750 $17 $— $1,500 
Foreign exchange contractsOther current assets121 — 6,816 323 — 8,662 
Foreign exchange contractsOther Assets45 — 2,915 66 — 2,125 
Foreign exchange contractsAccrued and other current liabilities— 58 2,339 — 1 162 
Foreign exchange contractsOther Noncurrent Liabilities— 1 18 — 1 16 
  $222 $59 $13,838 $406 $2 $12,465 
Derivatives Not Designated as Hedging InstrumentsBalance Sheet Caption      
Foreign exchange contractsOther current assets$188 $— $13,218 $323 $— $12,544 
Foreign exchange contractsAccrued and other current liabilities— 209 15,304 — 343 13,551 
  $188 $209 $28,522 $323 $343 $26,095 
  $410 $268 $42,360 $729 $345 $38,560 
As noted above, the Company records its derivatives on a gross basis in the Condensed Consolidated Balance Sheet. The Company has master netting agreements with several of its financial institution counterparties (see Concentrations of Credit Risk below). The following table provides information on the Company’s derivative positions subject to these master
netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes:
 March 31, 2025December 31, 2024
($ in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the condensed consolidated balance sheet$410 $268 $729 $345 
Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet(239)(239)(299)(299)
Cash collateral received
(23)— (165)— 
Net amounts$148 $29 $265 $46 
The table below provides information regarding the location and amount of pretax gains and losses of derivatives designated in fair value or cash flow hedging relationships:
Three Months Ended March 31,
($ in millions)202520242025202420252024
Financial Statement Caption in which Effects of Fair Value or Cash Flow
Hedges are Recorded		Sales
Other (income) expense, net (1)
Other comprehensive income (loss)
$15,529 $15,775 $(35)$(33)$(20)$(113)
Loss (gain) on fair value hedging relationships:
Interest rate swap contracts
Hedged items— — 38 (30)— — 
Derivatives designated as hedging instruments— — (39)30 — — 
Impact of cash flow hedging relationships:
Foreign exchange contracts
Amount of (loss) gain recognized in OCI on derivatives
— — — — (201)209 
Increase in Sales as a result of AOCL reclassifications
74 44 — — (74)(44)
(1)    Interest expense is a component of Other (income) expense, net.
The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments:
Amount of Derivative Pretax (Gain) Loss Recognized in Income
Three Months Ended March 31,
($ in millions)20252024
Derivatives Not Designated as Hedging InstrumentsIncome Statement Caption
Foreign exchange contracts (1)
Other (income) expense, net$(20)$65 
Foreign exchange contracts (2)
Sales16 (10)
(1)    These derivative contracts primarily mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates.
(2)    These derivative contracts serve as economic hedges of forecasted transactions.
At March 31, 2025, the Company estimates $16 million of pretax net unrealized gains on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCL to Sales. The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual foreign exchange rates at maturity.
Investments in Debt and Equity Securities
Information on investments in debt and equity securities is as follows:
 March 31, 2025December 31, 2024
 Amortized
Cost		Gross UnrealizedFair
Value		Amortized
Cost		Gross UnrealizedFair
Value
($ in millions)GainsLossesGainsLosses
Commercial paper$599 $— $— $599 $348 $— $— $348 
U.S. government and agency securities91 — — 91 188 — — 188 
Total debt securities$690 $— $— $690 $536 $— $— $536 
Publicly traded equity securities (1)
1,033 920 
Total debt and publicly traded equity securities$1,723 $1,456 
(1)    Unrealized net gains of $115 million were recorded in Other (income) expense, net in the first quarter of 2025 on equity securities still held at March 31, 2025. Unrealized net gains of $143 million were recorded in Other (income) expense, net in the first quarter 2024 on equity securities still held at March 31, 2024.
At March 31, 2025 and March 31, 2024, the Company also had $872 million and $851 million, respectively, of equity investments without readily determinable fair values included in Other Assets. The Company records unrealized gains on these equity investments based on favorable observable price changes from transactions involving similar investments of the same
investee and records unrealized losses based on unfavorable observable price changes, which are included in Other (income) expense, net. During the first quarter of 2025, the Company recorded unrealized losses of $11 million related to certain of these equity investments still held at March 31, 2025. During the first quarter of 2024, the Company recorded unrealized gains of $4 million and unrealized losses of $5 million related to certain of these equity investments still held at March 31, 2024. Cumulative unrealized gains and cumulative unrealized losses based on observable price changes for investments in equity investments without readily determinable fair values still held at March 31, 2025 were $309 million and $118 million, respectively.
At March 31, 2025 and March 31, 2024, the Company also had $249 million and $396 million, respectively, recorded in Other Assets for equity securities held through ownership interests in investment funds. Losses recorded in Other (income) expense, net relating to these investment funds were $23 million and $2 million for the first quarter of 2025 and 2024, respectively.
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a fair value hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value with Level 1 having the highest priority and Level 3 having the lowest:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs that are supported by little or no market activity. Level 3 assets or liabilities are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as assets or liabilities for which the determination of fair value requires significant judgment or estimation.
If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
Fair Value Measurements UsingFair Value Measurements Using
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
($ in millions)March 31, 2025December 31, 2024
Assets
Investments
Commercial paper$— $599 $— $599 $— $348 $— $348 
U.S. government and agency securities— — — — — 99 — 99 
Publicly traded equity securities616 — — 616 463 — — 463 
 616 599 — 1,215 463 447 — 910 
Other assets (1)
U.S. government and agency securities91 — — 91 89 — — 89 
Publicly traded equity securities (2)
417 — — 417 457 — — 457 
508 — — 508 546 — — 546 
Derivative assets (3)
Forward exchange contracts— 246 — 246 — 499 — 499 
Purchased currency options— 108 — 108 — 213 — 213 
Interest rate swaps
— 56 — 56 — 17 — 17 
 — 410 — 410 — 729 — 729 
Total assets$1,124 $1,009 $— $2,133 $1,009 $1,176 $— $2,185 
Liabilities
Other liabilities
Contingent consideration$— $— $70 $70 $— $— $193 $193 
Derivative liabilities (3)
Forward exchange contracts— 252 — 252 — 338 — 338 
Written currency options— 16 — 16 — 7 — 7 
— 268 — 268 — 345 — 345 
Total liabilities$— $268 $70 $338 $— $345 $193 $538 
(1)    Investments included in other assets are restricted as to use, including for the payment of benefits under employee benefit plans.
(2)    Includes securities with an aggregate fair value of $49 million and $81 million at March 31, 2025 and December 31, 2024, respectively, which were subject to a contractual sale restriction that expired in April 2025.
(3)    The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.
As of March 31, 2025 and December 31, 2024, Cash and cash equivalents included $7.9 billion and $12.3 billion of cash equivalents, respectively (which would be considered Level 2 in the fair value hierarchy).
Contingent Consideration
Summarized information about the changes in the fair value of liabilities for contingent consideration associated with business combinations is as follows:
($ in millions)20252024
Fair value January 1$193 $354 
Changes in estimated fair value (1)
(7)(2)
Payments(116)(126)
Fair value March 31 (2)
$70 $226 
(1)    Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net. Includes cumulative translation adjustments.
(2)    Balance at March 31, 2025 includes $25 million of current liabilities.
The payments of contingent consideration during the first three months of 2025 and 2024 relate to the 2016 termination of the Sanofi Pasteur MSD (SPMSD) joint venture. There are no remaining contingent consideration liabilities related to the SPMSD joint venture termination.
Other Fair Value Measurements
Some of the Company’s financial instruments, such as cash and cash equivalents, receivables and payables, are reflected in the balance sheet at carrying value, which approximates fair value due to their short-term nature.
The estimated fair value of loans payable and long-term debt (including current portion) at March 31, 2025, was $30.6 billion compared with a carrying value of $34.8 billion and at December 31, 2024, was $32.6 billion compared with a carrying value of $37.1 billion. Fair value was estimated using recent observable market prices and would be considered Level 2 in the fair value hierarchy.
Concentrations of Credit Risk
On an ongoing basis, the Company monitors concentrations of credit risk associated with corporate and government issuers of securities and financial institutions with which it conducts business. Credit exposure limits are established to limit a concentration with any single issuer or institution. Cash and investments are placed in instruments that meet high credit quality standards as specified in the Company’s investment policy guidelines.
The majority of the Company’s accounts receivable arise from product sales in the U.S., Europe and China and are primarily due from drug wholesalers, distributors and retailers, hospitals and government agencies. The Company monitors the financial performance and creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. The Company also continues to monitor global economic conditions, including the volatility associated with international sovereign economies, and associated impacts on the financial markets and its business.
The Company has accounts receivable factoring agreements with financial institutions in certain countries to sell accounts receivable. The Company factored $1.7 billion and $2.1 billion of accounts receivable as of March 31, 2025 and December 31, 2024, respectively, under these factoring arrangements, which reduced outstanding accounts receivable. The cash received from the financial institutions is reported within operating activities in the Condensed Consolidated Statement of Cash Flows. In certain of these factoring arrangements, for ease of administration, the Company will collect customer payments related to the factored receivables, which it then remits to the financial institutions, generally within thirty days after receipt. As of March 31, 2025 and December 31, 2024, the Company had collected $39 million and $55 million, respectively, on behalf of the financial institutions, which is reflected as restricted cash in Other current assets, and the related obligation to remit the cash is recorded in Accrued and other current liabilities. The net cash flows related to these collections are reported as financing activities in the Condensed Consolidated Statement of Cash Flows. The cost of factoring such accounts receivable was de minimis.
Derivative financial instruments are executed under International Swaps and Derivatives Association master agreements. The master agreements with several of the Company’s financial institution counterparties also include credit support annexes. These annexes contain provisions that require collateral to be exchanged depending on the value of the derivative assets and liabilities, the Company’s credit rating, and the credit rating of the counterparty. Cash collateral received by the Company from various counterparties was $23 million and $165 million at March 31, 2025 and December 31, 2024, respectively. The obligation to return such collateral is recorded in Accrued and other current liabilities.
v3.25.1
Inventories
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consisted of:
($ in millions)March 31, 2025December 31, 2024
Finished goods$2,129 $2,022 
Raw materials and work in process9,179 8,831 
Supplies290 289 
Total11,598 11,142 
Decrease to LIFO cost(846)(840)
 $10,752 $10,302 
Recognized as:
Inventories$6,196 $6,109 
Other Assets4,556 4,193 
Amounts recognized as Other Assets are comprised almost entirely of raw materials and work in process inventories. At March 31, 2025 and December 31, 2024, these amounts included $4.0 billion and $3.8 billion, respectively, of inventories not expected to be sold within one year. In addition, these amounts included $544 million and $412 million at March 31, 2025 and December 31, 2024, respectively, of inventories produced in preparation for product launches.
v3.25.1
Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
The Company is involved in various claims and legal proceedings of a nature considered normal to its business, including product liability, intellectual property, commercial litigation, and securities litigation, as well as certain additional matters including governmental and environmental matters. In the opinion of the Company, it is unlikely that the resolution of these matters will be material to the Company’s financial condition, results of operations or cash flows.
Given the nature of the litigation discussed below and the complexities involved in these matters, the Company is unable to reasonably estimate a possible loss or range of possible loss for such matters until the Company knows, among other factors, (i) what claims, if any, will survive dispositive motion practice, (ii) the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate, (iii) how the discovery process will affect the litigation, (iv) the settlement posture of the other parties to the litigation and (v) any other factors that may have a material effect on the litigation.
The Company records accruals for contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. Generally, for product liability claims, a portion of the overall accrual is actuarially determined and considers such factors as past experience, number of claims reported and estimates of claims incurred but not yet reported. Individually significant contingent losses are accrued when probable and reasonably estimable. Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable.
The Company’s decision to obtain insurance coverage is dependent on market conditions, including cost and availability, existing at the time such decisions are made. The Company has evaluated its risks and has determined that the cost of obtaining product liability insurance outweighs the likely benefits of the coverage that is available and, as such, has no insurance for most product liabilities.
Product Liability Litigation
Dr. Scholl’s Foot Powder
As previously disclosed, Merck is a defendant in product liability lawsuits in the U.S. arising from consumers’ alleged exposure to talc in Dr. Scholl’s foot powder, which Merck acquired through its merger with Schering-Plough Corporation and sold as part of the divestiture of Merck’s consumer care business to Bayer in 2014. In these actions, plaintiffs allege that they were exposed to asbestos-contaminated talc and developed mesothelioma as a result. As of March 31, 2025, approximately 500 cases were pending against Merck in various state courts.
Gardasil/Gardasil 9
As previously disclosed, Merck is a defendant in product liability lawsuits in the U.S. involving Gardasil (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant) and Gardasil 9 (Human Papillomavirus 9-valent Vaccine, Recombinant). As of March 31, 2025, approximately 245 cases were filed and pending against Merck in either federal or state court. In these actions, plaintiffs allege, among other things, that they suffered various personal injuries after vaccination with Gardasil or Gardasil 9, with postural orthostatic tachycardia syndrome (POTS) as a predominate alleged injury.
In August 2022, the U.S. Judicial Panel on Multidistrict Litigation ordered that Gardasil/Gardasil 9 product liability cases pending in federal courts nationwide be transferred to Judge Robert J. Conrad in the Western District of North Carolina for coordinated pre-trial proceedings. In February 2024, the multidistrict litigation (Gardasil MDL) was reassigned to Judge Kenneth
D. Bell. On March 11, 2025, the court granted Merck’s motion for summary judgment in 16 bellwether cases on implied preemption grounds; plaintiffs have filed a Notice of Appeal to the Fourth Circuit. The parties’ letter submissions on next steps in the Gardasil MDL proceeding in light of the court’s decision were submitted on April 8, 2025.
On March 21, 2025, plaintiff’s co-lead counsel in the Gardasil MDL filed a seven-plaintiff complaint in New Jersey state court. On March 24, 2025, Merck removed the case to federal court and has requested that the U.S. Judicial Panel on Multidistrict Litigation transfer the case to the Gardasil MDL. Plaintiffs have opposed transfer to the Gardasil MDL and have moved to have the case remanded to New Jersey state court.
On January 28, 2025, a trial commenced in California state court. Plaintiff claims that she suffers from POTS and fibromyalgia as a result of her Gardasil vaccinations. On February 14, 2025, after several weeks of trial and an opportunity to litigate plaintiff’s claims before a jury, plaintiff’s counsel approached Merck and proposed that the jury be discharged and the case adjourned. Merck agreed, subject to an explicit stipulation that Merck would provide no financial or other consideration in exchange for the agreement to adjourn. The case has thus been adjourned until a new trial date of September 15, 2025. Merck is vigorously defending this case and believes that evidence presented in court will show that Gardasil had no role in causing any of plaintiff’s conditions.
As previously disclosed, there are fewer than 15 product liability cases pending outside the U.S.
Governmental Proceedings
As previously disclosed, from time to time, the Company’s subsidiaries in China receive inquiries regarding their operations from various Chinese governmental agencies. Some of these inquiries may be related to matters involving other multinational pharmaceutical companies, as well as Chinese entities doing business with such companies. The Company’s policy is to cooperate with these authorities and to provide responses as appropriate.
As previously disclosed, from time to time, the Company receives inquiries and is the subject of preliminary investigation activities from competition and other governmental authorities in markets outside the U.S. These authorities may include regulators, administrative authorities, and law enforcement and other similar officials, and these preliminary investigation activities may include site visits, formal or informal requests or demands for documents or materials, inquiries or interviews and similar matters. Certain of these preliminary inquiries or activities may lead to the commencement of formal proceedings. Should those proceedings be determined adversely to the Company, monetary fines and/or remedial undertakings may be required.
Securities Litigation
As previously disclosed, in February 2025, a putative class action was filed against Merck and certain of its officers in the U.S. District Court for the District of New Jersey purportedly on behalf of all purchasers of Merck common stock between February 2022 and February 2025. Plaintiff alleges that Merck violated federal securities laws by making materially false and misleading statements and material omissions regarding demand for Gardasil/Gardasil 9 in China. Plaintiff seeks unspecified monetary damages, pre-judgment and post-judgment interest, and fees and costs.
Commercial and Other Litigation
Zetia Antitrust Litigation
As previously disclosed, Merck, MSD, Schering Corporation, Schering-Plough Corporation, and MSP Singapore Company LLC (collectively, the Merck Defendants) were defendants in a number of lawsuits filed in 2018 on behalf of direct and indirect purchasers of Zetia (ezetimibe) alleging violations of federal and state antitrust laws, as well as other state statutory and common law causes of action. The cases were consolidated in a federal multidistrict litigation (Zetia MDL) before Judge Rebecca Beach Smith in the Eastern District of Virginia. In April 2023, the Merck Defendants reached settlements with the direct purchaser and retailer plaintiffs and a settlement with the indirect purchaser class that the court approved in October 2023.
As previously disclosed, in 2020 and 2021, United HealthCare Services, Inc. (United HealthCare), Humana Inc. (Humana), Centene Corporation and others (Centene), and Kaiser Foundation Health Plan, Inc. (Kaiser) (collectively, the Insurer Plaintiffs), each filed a lawsuit in a jurisdiction outside of the Eastern District of Virginia against the Merck Defendants and others, making similar allegations as those made in the Zetia MDL, as well as additional allegations about Vytorin. These cases were transferred to the Eastern District of Virginia to proceed with the Zetia MDL.
In December 2023, the U.S. Judicial Panel on Multidistrict Litigation remanded the four Insurer Plaintiff cases to the transferor courts in the Northern District of California (Kaiser), the District of Minnesota (United HealthCare), and the District of New Jersey (Humana and Centene). The Merck Defendants filed motions to dismiss in each of the Insurer Plaintiff cases.
On December 30, 2024, the district court in the District of New Jersey granted in part and denied in part the motions to dismiss in the Humana and Centene cases and, on January 29, 2025, Humana and Centene filed amended complaints. On March 5, 2025, the Merck Defendants filed motions to dismiss the amended complaints. On March 24, 2025, the Merck Defendants filed a third-party complaint against AmerisourceBergen Drug Corp., AmerisourceBergen Corp., and Cencora, Inc., seeking indemnification for Humana’s direct purchaser claims.
On February 25, 2025, the district court in the District of Minnesota granted in part and denied in part the motion to dismiss in the United HealthCare case. On March 11, 2025, the Merck Defendants filed an answer and affirmative defenses in response to United HealthCare’s complaint. On March 24, 2025, the Merck Defendants filed a third-party complaint against
Cardinal Health, Inc., Cardinal Health 110, LLC, and Cardinal Health 112, LLC, seeking indemnification for certain of United HealthCare’s direct and indirect purchaser claims.
On March 18, 2025, the district court in the Northern District of California granted in part and denied in part the motion to dismiss in the Kaiser case. The court granted Kaiser leave to amend its complaint.
Patent Litigation
From time to time, generic and biosimilar manufacturers of pharmaceutical products file abbreviated New Drug Applications (ANDAs) and Biologics License Applications, respectively, with the U.S. Food and Drug Administration (FDA) seeking to market generic and biosimilar forms of the Company’s products prior to the expiration of relevant patents owned by the Company. To protect its patent rights, the Company may file patent infringement lawsuits against such generic and biosimilar companies. Similar lawsuits defending the Company’s patent rights may exist in other countries. The Company intends to vigorously defend its patents, which it believes are valid, against infringement by companies attempting to market products prior to the expiration of such patents. As with any litigation, there can be no assurance of the outcomes, which, if adverse, could result in significantly shortened periods of exclusivity for these products and, with respect to products acquired through acquisitions accounted for as business combinations, potentially significant intangible asset impairment charges.
Bridion — As previously disclosed, between January and November 2020, the Company received multiple Paragraph IV Certification Letters under the Hatch-Waxman Act notifying the Company that generic drug companies had filed applications to the FDA seeking pre-patent expiry approval to sell generic versions of Bridion (sugammadex) Injection. In March, April and December 2020, the Company filed patent infringement lawsuits in the U.S. District Courts for the District of New Jersey and the Northern District of West Virginia against those generic companies. All actions in the District of New Jersey were consolidated. The West Virginia case was jointly dismissed with prejudice in August 2022 in favor of proceeding in New Jersey. The remaining defendants in the New Jersey action have stipulated to infringement of the asserted claims and withdrew all remaining claims and defenses other than a defense seeking to shorten the patent term extension (PTE) of the sugammadex patent to December 2022. The U.S. District Court for the District of New Jersey held a one-day trial in December 2022 on this remaining PTE calculation defense. The court ordered a post-trial briefing on this defense and held closing arguments in February 2023.
In June 2023, the U.S. District Court for the District of New Jersey ruled in Merck’s favor. The court held that Merck’s calculation of PTE for the sugammadex patent covering the compound is not invalid and that the U.S. Patent & Trademark Office correctly granted a full five-year extension. Also in June 2023, the U.S. District Court for the District of New Jersey issued a final judgment prohibiting the FDA from approving any of the pending or tentatively approved generic applications until January 27, 2026, except for any subsequent agreements between defendants and Merck or further order by the court.
In July 2023, the defendants filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit. Oral argument took place on February 4, 2025.
While the New Jersey action was pending, the Company settled with five generic companies providing that these generic companies can bring their generic versions of Bridion to the market in January 2026 (which may be delayed by any applicable pediatric exclusivity) or earlier under certain circumstances. The Company agreed to stay the lawsuit filed against two generic companies, which in exchange agreed to be bound by a judgment on the merits of the consolidated action in the District of New Jersey. One of the generic companies in the consolidated action requested dismissal of the action against it and the Company did not oppose this request, which was subsequently granted by the court. The Company does not expect this company to bring its generic version of Bridion to the market before July 27, 2026.
In February 2024, the Company received another Paragraph IV Certification Letter under the Hatch-Waxman Act notifying the Company that Hikma Pharmaceuticals USA Inc. (Hikma) had filed an application to the FDA seeking pre-patent expiry approval to sell a generic version of Bridion Injection. In March 2024, the Company filed a patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Hikma, postponing FDA approval of the Hikma generic drug for 30 months or until expiration of the sugammadex patent (January 27, 2026) and any potentially applicable pediatric exclusivity or an adverse court decision, if any, whichever may occur earlier. Expiration of the patent, and any potentially applicable pediatric exclusivity, will occur earlier than expiry of the 30-month stay. On April 16, 2024, the district court stayed the case during the pendency of the Federal Circuit appeal noted above.
On March 13, 2025, the Federal Circuit affirmed the district court’s decision, holding that the patent term extension granted to the sugammadex patent covering Bridion was not invalid and that the patent is entitled to its full five-year patent term extension. The FDA has now granted Bridion six months of pediatric exclusivity. Thus, the Federal Circuit’s decision secures Bridion’s exclusivity in the U.S. through July 27, 2026.
Januvia, Janumet, Janumet XR — As previously disclosed, the FDA granted pediatric exclusivity with respect to Januvia (sitagliptin), Janumet (sitagliptin/metformin HCI), and Janumet XR (sitagliptin and metformin HCl extended-release), which provides a further six months of exclusivity in the U.S. beyond the expiration of all patents listed in the FDA’s Orange Book. Adding this exclusivity to the term of the key patent protection extended exclusivity on these products to January 2023. However, Januvia, Janumet, and Janumet XR contain sitagliptin phosphate monohydrate and the Company has another patent covering certain phosphate salt and polymorphic forms of sitagliptin that expires in May 2027, including pediatric exclusivity (salt/polymorph patent).
As previously disclosed, beginning in 2019, a number of generic drug companies filed ANDAs seeking approval of generic forms of Januvia and Janumet along with paragraph IV certifications challenging the validity of the salt/polymorph patent.
The Company responded by filing infringement suits which have all been settled. The Company has settled with a total 26 generic companies providing that these generic companies can bring their generic versions of Januvia and Janumet to the market in the U.S. in May 2026 or earlier under certain circumstances, and their generic versions of Janumet XR to the market in July 2026 or earlier under certain circumstances.
In March 2021, the Company filed a patent infringement lawsuit in the U.S. District Court for the District of Delaware against Zydus Worldwide DMCC, Zydus Pharmaceuticals (USA) Inc., and Cadila Healthcare Ltd. (collectively, Zydus). In that lawsuit, the Company alleged infringement of the salt/polymorph patent based on the filing of Zydus’s NDA seeking approval of a form of sitagliptin that is a different from than that used in Januvia. In December 2022, the parties reached settlement that included dismissal of the case without prejudice enabling Zydus to seek final approval of a non-automatically substitutable product.
In January 2023, the Company received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying the Company that Zydus filed an ANDA seeking approval of sitagliptin/metformin HCl tablets and certifying that no valid or enforceable claim of any of the patents listed in FDA’s Orange Book for Janumet will be infringed by the proposed Zydus product. In March 2023, the parties reached settlement enabling Zydus to seek final approval of a non-automatically substitutable product containing a different form of sitagliptin than that used in Janumet. In November 2023, the Company received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying the Company that Zydus filed an ANDA seeking approval of sitagliptin/metformin HCl Extended Release tablets. In January 2024, the parties reached settlement enabling Zydus to seek final approval of a non-automatically substitutable version containing a different form of sitagliptin than that used in Janumet XR.
As a result of these settlement agreements related to the later expiring 2027 salt/polymorph patent directed to the specific sitagliptin salt form of the products, the Company expects that Januvia and Janumet will not lose market exclusivity in the U.S. until May 2026 and Janumet XR will not lose market exclusivity in the U.S. until July 2026, although Zydus has received FDA approval for a non-automatically substitutable form of sitagliptin that differs from the form in the Company’s sitagliptin products.
In March 2024, the Company received another Paragraph IV Certification Letter under the Hatch-Waxman Act from Azurity Pharmaceuticals, Inc. (Azurity) asserting that a different sitagliptin product subject to its ANDA does not infringe the salt/polymorph patent. In May 2024, Merck filed a civil action in the U.S. District Court of Delaware alleging infringement. The case was dismissed without prejudice in July 2024. Following the dismissal, the Company granted Azurity a covenant not to assert the salt/polymorph patent against the Azurity product that is the subject of such ANDA.
Supplementary Protection Certificates (SPCs) for Janumet expired in April 2023 for the majority of European countries. Prior to expiration, generic companies sought revocation of the Janumet SPCs in a number of European countries. In February 2022, a Finnish court referred certain questions to the Court of Justice of the European Union that could impact the validity of the Janumet SPCs in Europe. A decision was rendered in December 2024. The decision provides guidance on points of law and does not directly apply to the Janumet SPCs. Thus, additional proceedings in certain countries where generic companies were prevented from launching products during the SPC period may be necessary to determine whether the SPCs are valid and if not, whether damages are appropriate. Those countries include Belgium, Czech Republic, Ireland, Finland, France, Slovakia and Switzerland. If the Janumet SPCs are ultimately upheld, the Company has reserved its rights related to the pursuit of damages for those countries where a generic launched prior to expiry of the Janumet SPC.
In October 2023, the Company filed a patent infringement lawsuit against Sawai Pharmaceuticals Co., Ltd. and Medisa Shinyaku Co., Ltd (collectively, Defendants) in the Tokyo District Court seeking an injunction to stop the manufacture, sale and offer for sale of the Defendants’ sitagliptin dihydrogen phosphate product, while the Company’s patents and patent term extensions are in force. The lawsuit is in response to the Defendants’ application for marketing authorization to sell a generic sitagliptin dihydrogen phosphate product, in the anhydrate form, which was approved in August 2023. Merck asserts that the Defendants’ activity infringes a patent term extension associated with Merck’s patent directed to the sitagliptin compound patent.
Keytruda — As previously disclosed, in November 2022, the Company filed a complaint against The Johns Hopkins University (JHU) in the U.S. District Court of Maryland. This action concerns patents emerging from a joint research collaboration between Merck and JHU regarding the use of pembrolizumab, which Merck sells under the trade name Keytruda. Merck and JHU partnered to design and conduct a clinical study administering Keytruda to cancer patients having tumors that had the genetic biomarker known as microsatellite instability-high (MSI-H). After the conclusion of the study, JHU secured U.S. patents citing the joint research study. Merck alleges that JHU has breached the collaboration agreement by filing and obtaining these patents without informing or involving Merck and then licensing the patents to others. Merck therefore brought this action for breach of contract, declaratory judgment of noninfringement, and promissory estoppel. JHU answered the complaint in April and May 2023, denying Merck’s claims, and counterclaiming for willful infringement of nine issued U.S. patents, including a demand for damages. Between November 30, 2023, and March 13, 2024, the Company filed inter partes review petitions with the United States Patent Trial and Appeal Board (PTAB), challenging the validity of all nine patents asserted in the case. Between June 2024 and October 2024, the PTAB instituted a review of all nine asserted patents. In July 2024, the district court granted Merck’s motion to stay the case in its entirety pending the outcome of the PTAB proceeding instituted in June 2024.
Subcutaneous Pembrolizumab — Halozyme, Inc. has publicly alleged that certain patents in its modified hyaluronidase (MDASE) portfolio cover the Company’s subcutaneous pembrolizumab candidate, which is currently under review by the FDA. In November 2024, the Company began filing a series of post grant review (PGR) petitions before the PTAB alleging that certain patents in the MDASE portfolio are invalid. On April 24, 2025, Halozyme, Inc. filed a complaint in the U.S. District Court for the District of New Jersey alleging that the Company’s activities related to subcutaneous pembrolizumab infringe or will
infringe 15 patents belonging to the MDASE portfolio, 11 of which are the subject of the Company’s already filed PGR petitions. The PTAB will likely issue a decision regarding the institution of the Company’s first filed petition in early June 2025.
Lynparza — As previously disclosed, in December 2022, AstraZeneca Pharmaceuticals LP received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying AstraZeneca that Natco Pharma Limited (Natco) has filed an application to the FDA seeking pre-patent expiry approval to sell generic versions of Lynparza (olaparib) tablet. In February 2023, AstraZeneca and the Company filed a patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Natco. This lawsuit, which asserts one or more patents covering olaparib, automatically stays FDA approval of the generic application until June 2025 or until an adverse court decision, if any, whichever may occur earlier. In 2024, AstraZeneca and the Company filed additional patent infringement lawsuits in the U.S. District Court for the District of New Jersey against Natco asserting additional patents covering olaparib.
In December 2023, AstraZeneca Pharmaceuticals LP received a second Paragraph IV Certification Letter under the Hatch-Waxman Act notifying AstraZeneca that Sandoz Inc. has filed an application to the FDA seeking pre-patent expiry approval to sell generic versions of Lynparza (olaparib) tablet. In February 2024, AstraZeneca and the Company filed a patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Sandoz. This lawsuit, which asserts one or more patents covering olaparib, automatically stays FDA approval of the generic application until June 2026 or until an adverse court decision, if any, whichever may occur earlier. In 2024, AstraZeneca and the Company filed additional patent infringement lawsuits in the U.S. District Court for the District of New Jersey against Sandoz asserting additional patents covering olaparib.
In May 2024, AstraZeneca Pharmaceuticals LP received a third Paragraph IV Certification Letter under the Hatch-Waxman Act notifying AstraZeneca that Cipla USA, Inc. and Cipla Limited (collectively, Cipla) filed an application to the FDA seeking pre-patent expiry approval to sell generic versions of Lynparza (olaparib) tablet. In June 2024, AstraZeneca and the Company filed a patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Cipla. This lawsuit, which asserts one or more patents covering olaparib, automatically stays FDA approval of the generic application until November 2026 or until an adverse court decision, if any, whichever may occur earlier. In 2024, AstraZeneca and the Company filed additional patent infringement lawsuits in the U.S. District Court for the District of New Jersey against Cipla asserting additional patents covering olaparib.
In November 2024, AstraZeneca Pharmaceuticals LP received another Paragraph IV Certification Letter under the Hatch-Waxman Act notifying AstraZeneca that Zydus Pharmaceuticals (USA) Inc. filed an application to the FDA seeking pre-patent expiry approval to sell generic versions of Lynparza (olaparib) tablet. In November 2024, AstraZeneca and the Company filed a patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Zydus. This lawsuit, which asserts one or more patents covering olaparib, automatically stays FDA approval of the generic application until May 2027 or until an adverse court decision, if any, whichever may occur earlier. In 2024, AstraZeneca and the Company filed an additional patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Zydus asserting an additional patent covering olaparib.
Other Litigation
There are various other pending legal proceedings involving the Company, principally product liability and intellectual property lawsuits. While it is not feasible to predict the outcome of such proceedings, in the opinion of the Company, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s financial condition, results of operations or cash flows either individually or in the aggregate.
Legal Defense Reserves
Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. Some of the significant factors considered in the review of these legal defense reserves are as follows: the actual costs incurred by the Company; the development of the Company’s legal defense strategy and structure in light of the scope of its litigation; the number of cases being brought against the Company; the costs and outcomes of completed trials; and the most current information regarding anticipated timing, progression, and related costs of pre-trial activities and trials in the associated litigation. The amount of legal defense reserves as of March 31, 2025 and December 31, 2024 of approximately $230 million and $225 million, respectively, represents the Company’s best estimate of the minimum amount of defense costs to be incurred in connection with its outstanding litigation; however, events such as additional trials and other events that could arise in the course of its litigation could affect the ultimate amount of legal defense costs to be incurred by the Company. The Company will continue to monitor its legal defense costs and review the adequacy of the associated reserves and may determine to increase the reserves at any time in the future if, based upon the factors set forth, it believes it would be appropriate to do so.
v3.25.1
Equity
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Equity Equity
Three Months Ended March 31,
   Common StockOther
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		 Treasury StockNon-
controlling
Interests		Total
($ and shares in millions except per share amounts)SharesPar ValueSharesCost
Balance at January 1, 2024
3,577 $1,788 $44,509 $53,895 $(5,161)1,045 $(57,450)$54 $37,635 
Net income attributable to Merck & Co., Inc.
— — — 4,762 — — — — 4,762 
Other comprehensive loss, net of taxes— — — — (113)— — — (113)
Cash dividends declared on common stock ($0.77 per share)
— — — (1,960)— — — — (1,960)
Treasury stock shares purchased— — — — — 1 (122)— (122)
Share-based compensation plans and other— — 89 — — (2)127 1 217 
Net income attributable to noncontrolling interests— — — — — — — 5 5 
Balance at March 31, 20243,577 $1,788 $44,598 $56,697 $(5,274)1,044 $(57,445)$60 $40,424 
Balance at January 1, 2025
3,577 $1,788 $44,704 $63,069 $(4,945)1,049 $(58,303)$59 $46,372 
Net income attributable to Merck & Co., Inc.— — — 5,079 — — — — 5,079 
Other comprehensive loss, net of taxes
— — — — (20)— — — (20)
Cash dividends declared on common stock ($0.81 per share)
— — — (2,051)— — — — (2,051)
Treasury stock shares purchased— — — — — 13 (1,164)— (1,164)
Share-based compensation plans and other— — 112 — — (1)66 — 178 
Net income attributable to noncontrolling interests— — — — — — — 6 6 
Balance at March 31, 20253,577 $1,788 $44,816 $66,097 $(4,965)1,061 $(59,401)$65 $48,400 
v3.25.1
Pension and Other Postretirement Benefit Plans
 3 Months Ended
Mar. 31, 2025
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans
The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components: 
Three Months Ended
March 31,
20252024
($ in millions)U.S.InternationalU.S.International
Service cost$89 $54 $86 $61 
Interest cost141 71 134 74 
Expected return on plan assets(210)(143)(207)(139)
Amortization of unrecognized prior service credit
— (4)— (3)
Net loss amortization
13 3 10 1 
Termination benefits— — 3 — 
 $33 $(19)$26 $(6)
The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net credit of such plans consisted of the following components: 
  Three Months Ended
March 31,
($ in millions)20252024
Service cost$10 $8 
Interest cost16 14 
Expected return on plan assets(14)(20)
Amortization of unrecognized prior service credit(10)(11)
Net gain amortization(10)(12)
 $(8)$(21)
In connection with restructuring actions (see Note 4), termination charges were recorded on pension plans related to expanded eligibility for certain employees exiting Merck.
The components of net periodic benefit cost (credit) other than the service cost component are included in Other (income) expense, net (see Note 10), with the exception of certain amounts for termination benefits which are recorded in Restructuring costs if the event giving rise to the termination benefits related to restructuring actions.
v3.25.1
Other (Income) Expense, Net
 3 Months Ended
Mar. 31, 2025
Other Income and Expenses [Abstract]  
Other (Income) Expense, Net Other (Income) Expense, Net
Other (income) expense, net, consisted of: 
 Three Months Ended
March 31,
($ in millions)20252024
Interest income$(109)$(73)
Interest expense313 303 
Exchange losses90 83 
Income from investments in equity securities, net (1)
(90)(143)
Net periodic defined benefit plan (credit) cost other than service cost(148)(160)
Other, net(91)(43)
 $(35)$(33)
(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.
Interest paid for the three months ended March 31, 2025 and 2024 was $233 million and $217 million, respectively.
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective income tax rate of 13.9% for the first quarter of 2025 reflects the favorable impacts of geographical mix of income and expense, as well as certain discrete items.
The effective income tax rate of 15.9% for the first quarter of 2024 reflects a 1.6 percentage point unfavorable impact of a charge for the acquisition of Harpoon for which no tax benefit was recognized.
While many jurisdictions in which Merck operates have adopted the global minimum tax provision of the Organization for Economic Cooperation and Development (OECD) Pillar 2, effective for tax years beginning in January 2024, it resulted in a minimal impact to the Company’s 2024 effective income tax rate due to the accounting for the tax effects of intercompany transactions. The Company expects the impact of the global minimum tax to be approximately 2% for full year 2025.
The Internal Revenue Service (IRS) is currently conducting examinations of the Company’s tax returns for the years 2017 and 2018, including the one-time transition tax enacted under the Tax Cuts and Jobs Act of 2017 (TCJA). On April 21, 2025, Merck received Notices of Proposed Adjustment (NOPAs) that would increase the amount of the one-time transition tax on certain undistributed earnings of foreign subsidiaries by approximately $1.3 billion. In addition, the NOPAs included penalties of approximately $260 million. These amounts are exclusive of any interest that may be due. The Company disagrees with the proposed adjustments and will vigorously contest the NOPAs through all available administrative and, if necessary, judicial proceedings. It is expected to take a number of years to reach resolution of this matter. If the Company is ultimately unsuccessful in defending its position, the impact could be material to its financial statements. The statute of limitations for assessments with respect to the 2019 and 2020 federal tax return years expired in June 2024 and October 2024, respectively. The IRS is also currently conducting examinations of the Company’s tax returns for the years 2021 and 2022. In addition, various state and foreign examinations are in progress.
v3.25.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The calculations of earnings per share are as follows:
 Three Months Ended
March 31,
($ and shares in millions except per share amounts)20252024
Net Income Attributable to Merck & Co., Inc.
$5,079 $4,762 
Average common shares outstanding2,523 2,533 
Common shares issuable (1)
8 11 
Average common shares outstanding assuming dilution 2,531 2,544 
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders
$2.01 $1.88 
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders
$2.01 $1.87 
(1)    Issuable primarily under share-based compensation plans.
For the first quarter of 2025 and 2024, 10 million and 3 million, respectively, of common shares issuable under share-based compensation plans were excluded from the computations of earnings per common share assuming dilution because the effect would have been antidilutive.
v3.25.1
Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss)
Changes in each component of other comprehensive income (loss) are as follows:
Three Months Ended March 31,
($ in millions)DerivativesEmployee
Benefit
Plans		Foreign Currency
Translation
Adjustment		Accumulated Other
Comprehensive
Loss
Balance January 1, 2024, net of taxes
$(24)$(2,793)$(2,344)$(5,161)
Other comprehensive income (loss) before reclassification adjustments, pretax209 5 (225)(11)
Tax(44)(4)(13)(61)
Other comprehensive income (loss) before reclassification adjustments, net of taxes165 1 (238)(72)
Reclassification adjustments, pretax(44)
(1)
(15)
(2)
— (59)
Tax9 9 — 18 
Reclassification adjustments, net of taxes(35)

(6)

— (41)
Other comprehensive income (loss), net of taxes130 (5)(238)(113)
Balance March 31, 2024, net of taxes
$106 $(2,798)$(2,582)$(5,274)
Balance January 1, 2025, net of taxes
$242 $(2,327)$(2,860)$(4,945)
Other comprehensive income (loss) before reclassification adjustments, pretax(201)(1)200 (2)
Tax42 — 15 57 
Other comprehensive income (loss) before reclassification adjustments, net of taxes(159)(1)215 55 
Reclassification adjustments, pretax(73)
(1)
(10)
(2)
— (83)
Tax15 (7)— 8 
Reclassification adjustments, net of taxes(58)

(17)

— (75)
Other comprehensive income (loss), net of taxes(217)(18)215 (20)
Balance March 31, 2025, net of taxes
$25 $(2,345)$(2,645)$(4,965)
(1)    Primarily relates to foreign currency cash flow hedges that were reclassified from AOCL to Sales.
(2)    Includes net amortization of prior service cost, actuarial gains and losses, settlements and curtailments included in net periodic benefit cost (see Note 9).
v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s operations are principally managed on a product basis and include two operating segments, Pharmaceutical and Animal Health, both of which are reportable segments.
The Pharmaceutical segment includes human health pharmaceutical and vaccine products. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. Human health vaccine products consist of preventive pediatric, adolescent and adult vaccines. The Company sells these human health vaccines primarily to physicians, wholesalers, distributors and government entities. A large component of pediatric and adolescent vaccine sales are made to the U.S. Centers for Disease Control and Prevention Vaccines for Children program, which is funded by the U.S. government. Additionally, the Company sells vaccines to the Federal government for placement into vaccine stockpiles.
The Animal Health segment discovers, develops, manufactures and markets a wide range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all major livestock and companion animal species. The Company also offers an extensive suite of digitally connected identification, traceability and monitoring products. The Company sells its products to veterinarians, distributors, animal producers, farmers and pet owners.
Sales of the Company’s products were as follows:
Three Months Ended March 31,
20252024
 ($ in millions)U.S.Int’lTotalU.S.Int’lTotal
Pharmaceutical:
Oncology
Keytruda$4,308 $2,897 $7,205 $4,119 $2,828 $6,947 
Alliance revenue-Lynparza (1)
145 168 312 135 157 292 
Alliance revenue-Lenvima (1)
186 72 258 173 82 255 
Welireg123 15 137 77 7 85 
Alliance revenue-Reblozyl (2)
101 18 119 58 12 71 
Vaccines
Gardasil/Gardasil 9
536 790 1,327 488 1,761 2,249 
ProQuad/M-M-R II/Varivax
423 116 539 438 133 570 
Vaxneuvance139 92 230 161 58 219 
RotaTeq164 64 228 149 67 216 
Capvaxive
106 1 107 — — — 
Pneumovax 23
(2)42 41 6 55 61 
Hospital Acute Care
Bridion378 63 441 329 111 440 
Prevymis102 106 208 74 100 174 
Dificid72 11 83 68 5 73 
Zerbaxa42 28 70 33 23 56 
Cardiovascular
Winrevair
268 12 280 — — — 
Alliance revenue-Adempas/Verquvo (3)
97 9 106 90 8 98 
Adempas— 68 68 — 70 70 
Virology
Lagevrio35 67 102 45 305 350 
Isentress/Isentress HD
51 39 90 50 61 111 
Delstrigo
15 52 67 12 44 56 
Pifeltro
32 13 45 29 13 42 
Neuroscience
Belsomra13 37 50 15 32 46 
Immunology
Simponi— — — — 184 184 
Remicade— — — — 39 39 
Diabetes
Januvia344 204 549 183 236 419 
Janumet65 182 247 39 212 251 
Other pharmaceutical (4)
184 545 729 165 467 632 
Total Pharmaceutical segment sales7,927 5,711 13,638 6,936 7,070 14,006 
Animal Health:
Livestock194 730 924 166 683 850 
Companion Animal308 356 664 308 354 661 
Total Animal Health segment sales502 1,086 1,588 474 1,037 1,511 
Total segment sales8,429 6,797 15,226 7,410 8,107 15,517 
Other (5)
93 210 303 68 190 258 
 $8,522 $7,007 $15,529 $7,478 $8,297 $15,775 
U.S. plus international may not equal total due to rounding.
(1)    Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 3).
(2)    Alliance revenue for Reblozyl represents royalties (see Note 3).
(3)    Alliance revenue for Adempas/Verquvo 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 (see Note 3).
(4)    Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(5)    Other is primarily comprised of miscellaneous corporate revenue, including revenue hedging activities which increased sales by $58 million and $54 million for the three months ended March 31, 2025 and 2024, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon & Co.). Other for the three months ended March 31, 2025 and 2024 also includes $95 million and $61 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.
Product sales are recorded net of the provision for discounts, including chargebacks, which are customer discounts that occur when a contracted customer purchases through an intermediary wholesale purchaser, and rebates that are owed based upon definitive contractual agreements or legal requirements with private sector and public sector (Medicaid and Medicare Part D) benefit providers, after the final dispensing of the product by a pharmacy to a benefit plan participant. These discounts, in the aggregate, reduced U.S. sales by $2.1 billion and $3.2 billion for the three months ended March 31, 2025 and 2024, respectively.
Consolidated sales by geographic area where derived are as follows:
Three Months Ended
March 31,
($ in millions)20252024
United States$8,522 $7,478 
Europe, Middle East and Africa3,454 3,563 
Latin America792 796 
China702 1,772 
Asia Pacific (other than China and Japan)689 724 
Japan669 821 
Other701 621 
 $15,529 $15,775 
A reconciliation of segment profits to Income Before Taxes is as follows:
Three Months Ended March 31,
20252024
($ in millions)
Pharmaceutical
Animal HealthTotal
Pharmaceutical
Animal HealthTotal
Segment sales$13,638 $1,588 $15,226 $14,006 $1,511 $15,517 
Less segment costs: (1)
Cost of sales1,573 600 1,706 613 
Selling, general and administrative1,402 260 1,429 252 
Research and development (2)
— 95 — 90 
Other segment items (3)
(49)(1)(33)1 
Total segment profits10,712 634 11,346 10,904 555 11,459 
Other profits202 146 
Unallocated:
Interest income109 73 
Interest expense(313)(303)
Amortization(597)(473)
Depreciation(441)(452)
Research and development(3,477)(3,851)
Restructuring costs(69)(123)
Other unallocated, net(857)(806)
$5,903 $5,670 
(1)    The significant expense categories and amounts align with the segment level information that is regularly provided to the chief operating decision maker.
(2)    Human health-related research and development expenses incurred by Merck Research Laboratories are not allocated to segment profits as noted below.
(3)    Includes equity (income) loss from affiliates and other miscellaneous non-operating expenses.
Pharmaceutical segment profits are comprised of segment sales less standard costs, as well as selling, general and administrative expenses directly incurred by the segment. Animal Health segment profits are comprised of segment sales, less all cost of sales, as well as selling, general and administrative expenses and research and development costs directly incurred by the segment. The chief operating decision maker (Merck’s Chief Executive Officer) uses segment profit to allocate resources predominately during the planning and forecasting process. For internal management reporting presented to the chief operating decision maker, Merck does not allocate the remaining cost of sales not included in segment profits as described above, research and development expenses incurred by Merck Research Laboratories, the Company’s research and development division that focuses on human health-related activities, or general and administrative expenses not directly incurred by the segments, nor the cost of financing these activities. Separate divisions maintain responsibility for monitoring and managing these costs, including depreciation related to fixed assets utilized by these divisions and, therefore, they are not included in segment profits. In addition, costs related to restructuring activities, as well as the amortization of intangible assets and amortization of purchase accounting adjustments are not allocated to segments.
Other profits are primarily comprised of miscellaneous corporate profits, as well as operating profits (losses) related to third-party manufacturing arrangements.
Other unallocated, net, includes expenses from corporate and manufacturing cost centers, intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration, and other miscellaneous income or expense items.
Equity income from affiliates and depreciation included in segment profits is as follows:
Three Months Ended March 31,
20252024
($ in millions)PharmaceuticalAnimal HealthTotalPharmaceuticalAnimal HealthTotal
Equity income from affiliates
$58 $— $58 $48 $— $48 
Depreciation
1 60 61 1 58 59 
Property, plant and equipment, net, by geographic area where located is as follows:
($ in millions)
March 31, 2025December 31, 2024
United States$14,891 $14,724 
Europe, Middle East and Africa8,402 7,548 
Asia Pacific (other than China and Japan)
973 982 
China198 202 
Japan145 143 
Latin America135 133 
Other49 47 
$24,793 $23,779 
The Company does not disaggregate assets on a products and services basis for internal management reporting and, therefore, such information is not presented.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net Income Attributable to Merck & Co., Inc. $ 5,079 $ 4,762
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Merck & Co., Inc. (Merck or the Company) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States (U.S.) for complete consolidated financial statements are not included herein. These interim statements should be read in conjunction with the audited financial statements and notes thereto included in Merck’s Form 10-K filed on February 25, 2025.
The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. In the Company’s opinion, all adjustments necessary for a fair statement of these interim statements have been included and are of a normal and recurring nature.
Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
Recently Issued Accounting Standards Not Yet Adopted
Recently Issued Accounting Standards Not Yet Adopted
In December 2023, the Financial Accounting Standards Board (FASB) issued guidance intended to improve the transparency of income tax disclosures by requiring consistent categories and disaggregation of information in the effective income tax rate reconciliation and income taxes paid disclosures by jurisdiction. The guidance also includes other amendments to improve the effectiveness of income tax disclosures by removing certain previously required disclosures. The guidance is effective for 2025 annual reporting. The guidance will result in incremental disclosures within the footnotes to the Company’s financial statements.
In November 2024, the FASB issued guidance intended to improve financial reporting by requiring entities to disclose additional information about specific expense categories at interim and annual reporting periods. The guidance is effective for 2027 annual reporting and 2028 interim reporting. Early adoption is permitted. The guidance, which can be applied on a prospective or retrospective basis, will result in incremental disclosures within the footnotes to the Company’s financial statements.
Legal Costs Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable.
v3.25.1
Collaborative Arrangements (Tables)
 3 Months Ended
Mar. 31, 2025
Collaborative Arrangements [Abstract]  
Collaboration Arrangements
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Alliance revenue - Lynparza$312 $292 
Alliance revenue - Koselugo44 38 
Total alliance revenue$356 $330 
Cost of sales (1)
83 82 
Selling, general and administrative32 39 
Research and development12 20 
($ in millions)March 31, 2025December 31, 2024
Receivables from AstraZeneca included in Other current assets
$358 $424 
Payables to AstraZeneca included in Accrued and other current liabilities (2)
15 713 
(1)    Represents amortization of capitalized milestone payments.
(2)    Balance at December 31, 2024 includes accrued milestone payments.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Alliance revenue - Lenvima$258 $255 
Cost of sales (1)
60 60 
Selling, general and administrative31 39 
Research and development5 8 
($ in millions)March 31, 2025December 31, 2024
Receivables from Eisai included in Other current assets
$263 $257 
(1)    Represents amortization of capitalized milestone payments.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Alliance revenue - Adempas/Verquvo$106 $98 
Net sales of Adempas recorded by Merck68 70 
Net sales of Verquvo recorded by Merck9 5 
Total sales$183 $173 
Cost of sales (1)
58 62 
Selling, general and administrative29 33 
Research and development24 28 
($ in millions)March 31, 2025December 31, 2024
Receivables from Bayer included in Other current assets
$160 $160 
Payables to Bayer included in Accrued and other current liabilities
83 82 
(1)    Includes amortization of intangible assets, cost of products sold by Merck, as well as Bayer’s share of profits from sales in Merck’s marketing territories.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Net sales of Lagevrio recorded by Merck
$102 $350 
Cost of sales (1)
53 191 
Selling, general and administrative
13 16 
Research and development
8 (5)
($ in millions)March 31, 2025December 31, 2024
Payables to Ridgeback included in Accrued and other current liabilities (2)
$43 $68 
(1)    Includes cost of products sold by Merck, Ridgeback’s share of profits, royalty expense, amortization of capitalized milestone payments and inventory reserves.
(2)    Includes accrued royalties.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Selling, general and administrative $9 $3 
Research and development
128 69 
($ in millions)March 31, 2025December 31, 2024
Receivables from Daiichi Sankyo included in Other current assets
$13 $8 
Payables to Daiichi Sankyo included in Accrued and other current liabilities (1)
803 817 
(1) Includes accrued continuation payment.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
March 31,
($ in millions)20252024
Selling, general and administrative $6 $2 
Research and development
86 69 
($ in millions)March 31, 2025December 31, 2024
Payables to Moderna included in Accrued and other current liabilities
$37 $57 
v3.25.1
Restructuring (Tables)
 3 Months Ended
Mar. 31, 2025
Restructuring and Related Activities [Abstract]  
Charges Related to Restructuring Program Activities by Type of Cost
The following tables summarize the charges related to restructuring program activities by type of cost:
 Three Months Ended March 31, 2025
($ in millions)
Accelerated Depreciation
Separation Costs
Other Exit Costs
Total
Cost of sales$41 $— $(5)$36 
Restructuring costs— 1 68 69 
$41 $1 $63 $105 
 Three Months Ended March 31, 2024
($ in millions)
Accelerated Depreciation
Separation Costs
Other Exit Costs
Total
Cost of sales$65 $— $51 $116 
Selling, general and administrative— — 5 5 
Research and development— — 2 2 
Restructuring costs— 92 31 123 
$65 $92 $89 $246 
Charges and Spending Relating to Restructuring Activities by Program
The following table summarizes the charges and spending relating to restructuring program activities for the three months ended March 31, 2025:
($ in millions)
Accelerated Depreciation
Separation
Costs
Other Exit Costs
Total
Restructuring reserves January 1, 2025
$— $564 $— $564 
Expenses41 1 63 105 
(Payments) receipts, net— (8)(55)(63)
Non-cash activity(41)— (8)(49)
Restructuring reserves March 31, 2025
$— $557 $— $557 
v3.25.1
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Effect of Net Investment Hedges on OCI and the Consolidated Statement of Operations
The effects of the Company’s net investment hedges on OCI and the Condensed Consolidated Statement of Income are shown below:
Amount of Pretax Loss (Gain) Recognized in Other Comprehensive Income (1)
Amount of Pretax Gain Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing
Three Months Ended March 31,Three Months Ended March 31,
($ in millions)2025202420252024
Net Investment Hedging Relationships
Foreign exchange contracts$27 $(2)$(3)$— 
Euro-denominated notes130 (62)— — 
(1)    No amounts were reclassified from AOCL into income related to the sale of a subsidiary.
Summary of Interest Rate Swaps Held
At March 31, 2025, the Company was a party to seven pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of a portion of fixed-rate notes as detailed in the table below.
March 31, 2025
($ in millions)
Par Value of Debt
Number of Interest Rate Swaps Held
Total Swap Notional Amount
4.50% notes due 2033
$1,500 6 $1,500 
    5.00% notes due 2053
1,500 1 250
Amounts Recorded on Balance Sheet Related to Fair Value Hedges
The table below presents the location of amounts recorded in the Condensed Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount of Hedged Liabilities
Cumulative Amount of Fair Value Hedging Adjustment Increase Included in the Carrying Amount
($ in millions)
March 31, 2025December 31, 2024March 31, 2025December 31, 2024
Balance Sheet Caption
Long-Term Debt
$1,794 $1,509 $56 $17 
Fair Value of Derivatives on a Gross Basis Segregated between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments:
  March 31, 2025December 31, 2024
  Fair Value of DerivativeU.S. Dollar
Notional		Fair Value of DerivativeU.S. Dollar
Notional
($ in millions)AssetLiabilityAssetLiability
Derivatives Designated as Hedging InstrumentsBalance Sheet Caption
Interest rate swap contracts
Other Assets
$56 $— $1,750 $17 $— $1,500 
Foreign exchange contractsOther current assets121 — 6,816 323 — 8,662 
Foreign exchange contractsOther Assets45 — 2,915 66 — 2,125 
Foreign exchange contractsAccrued and other current liabilities— 58 2,339 — 1 162 
Foreign exchange contractsOther Noncurrent Liabilities— 1 18 — 1 16 
  $222 $59 $13,838 $406 $2 $12,465 
Derivatives Not Designated as Hedging InstrumentsBalance Sheet Caption      
Foreign exchange contractsOther current assets$188 $— $13,218 $323 $— $12,544 
Foreign exchange contractsAccrued and other current liabilities— 209 15,304 — 343 13,551 
  $188 $209 $28,522 $323 $343 $26,095 
  $410 $268 $42,360 $729 $345 $38,560 
Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis The following table provides information on the Company’s derivative positions subject to these master
netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes:
 March 31, 2025December 31, 2024
($ in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the condensed consolidated balance sheet$410 $268 $729 $345 
Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet(239)(239)(299)(299)
Cash collateral received
(23)— (165)— 
Net amounts$148 $29 $265 $46 
Location and Amount of Pretax Gains and Losses of Derivatives
The table below provides information regarding the location and amount of pretax gains and losses of derivatives designated in fair value or cash flow hedging relationships:
Three Months Ended March 31,
($ in millions)202520242025202420252024
Financial Statement Caption in which Effects of Fair Value or Cash Flow
Hedges are Recorded		Sales
Other (income) expense, net (1)
Other comprehensive income (loss)
$15,529 $15,775 $(35)$(33)$(20)$(113)
Loss (gain) on fair value hedging relationships:
Interest rate swap contracts
Hedged items— — 38 (30)— — 
Derivatives designated as hedging instruments— — (39)30 — — 
Impact of cash flow hedging relationships:
Foreign exchange contracts
Amount of (loss) gain recognized in OCI on derivatives
— — — — (201)209 
Increase in Sales as a result of AOCL reclassifications
74 44 — — (74)(44)
(1)    Interest expense is a component of Other (income) expense, net.
Income Statement Effects of Derivatives Not Designated as Hedging Instruments
The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments:
Amount of Derivative Pretax (Gain) Loss Recognized in Income
Three Months Ended March 31,
($ in millions)20252024
Derivatives Not Designated as Hedging InstrumentsIncome Statement Caption
Foreign exchange contracts (1)
Other (income) expense, net$(20)$65 
Foreign exchange contracts (2)
Sales16 (10)
(1)    These derivative contracts primarily mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates.
(2)    These derivative contracts serve as economic hedges of forecasted transactions.
Information on Investments in Debt and Equity Securities
Information on investments in debt and equity securities is as follows:
 March 31, 2025December 31, 2024
 Amortized
Cost		Gross UnrealizedFair
Value		Amortized
Cost		Gross UnrealizedFair
Value
($ in millions)GainsLossesGainsLosses
Commercial paper$599 $— $— $599 $348 $— $— $348 
U.S. government and agency securities91 — — 91 188 — — 188 
Total debt securities$690 $— $— $690 $536 $— $— $536 
Publicly traded equity securities (1)
1,033 920 
Total debt and publicly traded equity securities$1,723 $1,456 
(1)    Unrealized net gains of $115 million were recorded in Other (income) expense, net in the first quarter of 2025 on equity securities still held at March 31, 2025. Unrealized net gains of $143 million were recorded in Other (income) expense, net in the first quarter 2024 on equity securities still held at March 31, 2024.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
Fair Value Measurements UsingFair Value Measurements Using
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
($ in millions)March 31, 2025December 31, 2024
Assets
Investments
Commercial paper$— $599 $— $599 $— $348 $— $348 
U.S. government and agency securities— — — — — 99 — 99 
Publicly traded equity securities616 — — 616 463 — — 463 
 616 599 — 1,215 463 447 — 910 
Other assets (1)
U.S. government and agency securities91 — — 91 89 — — 89 
Publicly traded equity securities (2)
417 — — 417 457 — — 457 
508 — — 508 546 — — 546 
Derivative assets (3)
Forward exchange contracts— 246 — 246 — 499 — 499 
Purchased currency options— 108 — 108 — 213 — 213 
Interest rate swaps
— 56 — 56 — 17 — 17 
 — 410 — 410 — 729 — 729 
Total assets$1,124 $1,009 $— $2,133 $1,009 $1,176 $— $2,185 
Liabilities
Other liabilities
Contingent consideration$— $— $70 $70 $— $— $193 $193 
Derivative liabilities (3)
Forward exchange contracts— 252 — 252 — 338 — 338 
Written currency options— 16 — 16 — 7 — 7 
— 268 — 268 — 345 — 345 
Total liabilities$— $268 $70 $338 $— $345 $193 $538 
(1)    Investments included in other assets are restricted as to use, including for the payment of benefits under employee benefit plans.
(2)    Includes securities with an aggregate fair value of $49 million and $81 million at March 31, 2025 and December 31, 2024, respectively, which were subject to a contractual sale restriction that expired in April 2025.
(3)    The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.
Information About the Changes in Liabilities for Contingent Consideration
Summarized information about the changes in the fair value of liabilities for contingent consideration associated with business combinations is as follows:
($ in millions)20252024
Fair value January 1$193 $354 
Changes in estimated fair value (1)
(7)(2)
Payments(116)(126)
Fair value March 31 (2)
$70 $226 
(1)    Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net. Includes cumulative translation adjustments.
(2)    Balance at March 31, 2025 includes $25 million of current liabilities.
v3.25.1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
Inventory, current
Inventories consisted of:
($ in millions)March 31, 2025December 31, 2024
Finished goods$2,129 $2,022 
Raw materials and work in process9,179 8,831 
Supplies290 289 
Total11,598 11,142 
Decrease to LIFO cost(846)(840)
 $10,752 $10,302 
Recognized as:
Inventories$6,196 $6,109 
Other Assets4,556 4,193 
Inventory, noncurrent
Inventories consisted of:
($ in millions)March 31, 2025December 31, 2024
Finished goods$2,129 $2,022 
Raw materials and work in process9,179 8,831 
Supplies290 289 
Total11,598 11,142 
Decrease to LIFO cost(846)(840)
 $10,752 $10,302 
Recognized as:
Inventories$6,196 $6,109 
Other Assets4,556 4,193 
v3.25.1
Equity (Tables)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Schedule of Equity
Three Months Ended March 31,
   Common StockOther
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		 Treasury StockNon-
controlling
Interests		Total
($ and shares in millions except per share amounts)SharesPar ValueSharesCost
Balance at January 1, 2024
3,577 $1,788 $44,509 $53,895 $(5,161)1,045 $(57,450)$54 $37,635 
Net income attributable to Merck & Co., Inc.
— — — 4,762 — — — — 4,762 
Other comprehensive loss, net of taxes— — — — (113)— — — (113)
Cash dividends declared on common stock ($0.77 per share)
— — — (1,960)— — — — (1,960)
Treasury stock shares purchased— — — — — 1 (122)— (122)
Share-based compensation plans and other— — 89 — — (2)127 1 217 
Net income attributable to noncontrolling interests— — — — — — — 5 5 
Balance at March 31, 20243,577 $1,788 $44,598 $56,697 $(5,274)1,044 $(57,445)$60 $40,424 
Balance at January 1, 2025
3,577 $1,788 $44,704 $63,069 $(4,945)1,049 $(58,303)$59 $46,372 
Net income attributable to Merck & Co., Inc.— — — 5,079 — — — — 5,079 
Other comprehensive loss, net of taxes
— — — — (20)— — — (20)
Cash dividends declared on common stock ($0.81 per share)
— — — (2,051)— — — — (2,051)
Treasury stock shares purchased— — — — — 13 (1,164)— (1,164)
Share-based compensation plans and other— — 112 — — (1)66 — 178 
Net income attributable to noncontrolling interests— — — — — — — 6 6 
Balance at March 31, 20253,577 $1,788 $44,816 $66,097 $(4,965)1,061 $(59,401)$65 $48,400 
v3.25.1
Pension and Other Postretirement Benefit Plans (Tables)
 3 Months Ended
Mar. 31, 2025
Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Net Benefit Costs
The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components: 
Three Months Ended
March 31,
20252024
($ in millions)U.S.InternationalU.S.International
Service cost$89 $54 $86 $61 
Interest cost141 71 134 74 
Expected return on plan assets(210)(143)(207)(139)
Amortization of unrecognized prior service credit
— (4)— (3)
Net loss amortization
13 3 10 1 
Termination benefits— — 3 — 
 $33 $(19)$26 $(6)
Other Postretirement Benefit Plans  
Defined Benefit Plan Disclosure [Line Items]  
Net Benefit Costs
The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net credit of such plans consisted of the following components: 
  Three Months Ended
March 31,
($ in millions)20252024
Service cost$10 $8 
Interest cost16 14 
Expected return on plan assets(14)(20)
Amortization of unrecognized prior service credit(10)(11)
Net gain amortization(10)(12)
 $(8)$(21)
v3.25.1
Other (Income) Expense, Net (Tables)
 3 Months Ended
Mar. 31, 2025
Other Income and Expenses [Abstract]  
Other (Income) Expense, Net
Other (income) expense, net, consisted of: 
 Three Months Ended
March 31,
($ in millions)20252024
Interest income$(109)$(73)
Interest expense313 303 
Exchange losses90 83 
Income from investments in equity securities, net (1)
(90)(143)
Net periodic defined benefit plan (credit) cost other than service cost(148)(160)
Other, net(91)(43)
 $(35)$(33)
(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.
v3.25.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Calculations of Earnings Per Share
The calculations of earnings per share are as follows:
 Three Months Ended
March 31,
($ and shares in millions except per share amounts)20252024
Net Income Attributable to Merck & Co., Inc.
$5,079 $4,762 
Average common shares outstanding2,523 2,533 
Common shares issuable (1)
8 11 
Average common shares outstanding assuming dilution 2,531 2,544 
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders
$2.01 $1.88 
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders
$2.01 $1.87 
(1)    Issuable primarily under share-based compensation plans.
v3.25.1
Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Changes in AOCI by Component
Changes in each component of other comprehensive income (loss) are as follows:
Three Months Ended March 31,
($ in millions)DerivativesEmployee
Benefit
Plans		Foreign Currency
Translation
Adjustment		Accumulated Other
Comprehensive
Loss
Balance January 1, 2024, net of taxes
$(24)$(2,793)$(2,344)$(5,161)
Other comprehensive income (loss) before reclassification adjustments, pretax209 5 (225)(11)
Tax(44)(4)(13)(61)
Other comprehensive income (loss) before reclassification adjustments, net of taxes165 1 (238)(72)
Reclassification adjustments, pretax(44)
(1)
(15)
(2)
— (59)
Tax9 9 — 18 
Reclassification adjustments, net of taxes(35)

(6)

— (41)
Other comprehensive income (loss), net of taxes130 (5)(238)(113)
Balance March 31, 2024, net of taxes
$106 $(2,798)$(2,582)$(5,274)
Balance January 1, 2025, net of taxes
$242 $(2,327)$(2,860)$(4,945)
Other comprehensive income (loss) before reclassification adjustments, pretax(201)(1)200 (2)
Tax42 — 15 57 
Other comprehensive income (loss) before reclassification adjustments, net of taxes(159)(1)215 55 
Reclassification adjustments, pretax(73)
(1)
(10)
(2)
— (83)
Tax15 (7)— 8 
Reclassification adjustments, net of taxes(58)

(17)

— (75)
Other comprehensive income (loss), net of taxes(217)(18)215 (20)
Balance March 31, 2025, net of taxes
$25 $(2,345)$(2,645)$(4,965)
(1)    Primarily relates to foreign currency cash flow hedges that were reclassified from AOCL to Sales.
(2)    Includes net amortization of prior service cost, actuarial gains and losses, settlements and curtailments included in net periodic benefit cost (see Note 9).
v3.25.1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Sales from Products
Sales of the Company’s products were as follows:
Three Months Ended March 31,
20252024
 ($ in millions)U.S.Int’lTotalU.S.Int’lTotal
Pharmaceutical:
Oncology
Keytruda$4,308 $2,897 $7,205 $4,119 $2,828 $6,947 
Alliance revenue-Lynparza (1)
145 168 312 135 157 292 
Alliance revenue-Lenvima (1)
186 72 258 173 82 255 
Welireg123 15 137 77 7 85 
Alliance revenue-Reblozyl (2)
101 18 119 58 12 71 
Vaccines
Gardasil/Gardasil 9
536 790 1,327 488 1,761 2,249 
ProQuad/M-M-R II/Varivax
423 116 539 438 133 570 
Vaxneuvance139 92 230 161 58 219 
RotaTeq164 64 228 149 67 216 
Capvaxive
106 1 107 — — — 
Pneumovax 23
(2)42 41 6 55 61 
Hospital Acute Care
Bridion378 63 441 329 111 440 
Prevymis102 106 208 74 100 174 
Dificid72 11 83 68 5 73 
Zerbaxa42 28 70 33 23 56 
Cardiovascular
Winrevair
268 12 280 — — — 
Alliance revenue-Adempas/Verquvo (3)
97 9 106 90 8 98 
Adempas— 68 68 — 70 70 
Virology
Lagevrio35 67 102 45 305 350 
Isentress/Isentress HD
51 39 90 50 61 111 
Delstrigo
15 52 67 12 44 56 
Pifeltro
32 13 45 29 13 42 
Neuroscience
Belsomra13 37 50 15 32 46 
Immunology
Simponi— — — — 184 184 
Remicade— — — — 39 39 
Diabetes
Januvia344 204 549 183 236 419 
Janumet65 182 247 39 212 251 
Other pharmaceutical (4)
184 545 729 165 467 632 
Total Pharmaceutical segment sales7,927 5,711 13,638 6,936 7,070 14,006 
Animal Health:
Livestock194 730 924 166 683 850 
Companion Animal308 356 664 308 354 661 
Total Animal Health segment sales502 1,086 1,588 474 1,037 1,511 
Total segment sales8,429 6,797 15,226 7,410 8,107 15,517 
Other (5)
93 210 303 68 190 258 
 $8,522 $7,007 $15,529 $7,478 $8,297 $15,775 
U.S. plus international may not equal total due to rounding.
(1)    Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 3).
(2)    Alliance revenue for Reblozyl represents royalties (see Note 3).
(3)    Alliance revenue for Adempas/Verquvo 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 (see Note 3).
(4)    Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(5)    Other is primarily comprised of miscellaneous corporate revenue, including revenue hedging activities which increased sales by $58 million and $54 million for the three months ended March 31, 2025 and 2024, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon & Co.). Other for the three months ended March 31, 2025 and 2024 also includes $95 million and $61 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.
Consolidated Sales by Geographic Area
Consolidated sales by geographic area where derived are as follows:
Three Months Ended
March 31,
($ in millions)20252024
United States$8,522 $7,478 
Europe, Middle East and Africa3,454 3,563 
Latin America792 796 
China702 1,772 
Asia Pacific (other than China and Japan)689 724 
Japan669 821 
Other701 621 
 $15,529 $15,775 
Reconciliation of Segment Profits to Income before Taxes
A reconciliation of segment profits to Income Before Taxes is as follows:
Three Months Ended March 31,
20252024
($ in millions)
Pharmaceutical
Animal HealthTotal
Pharmaceutical
Animal HealthTotal
Segment sales$13,638 $1,588 $15,226 $14,006 $1,511 $15,517 
Less segment costs: (1)
Cost of sales1,573 600 1,706 613 
Selling, general and administrative1,402 260 1,429 252 
Research and development (2)
— 95 — 90 
Other segment items (3)
(49)(1)(33)1 
Total segment profits10,712 634 11,346 10,904 555 11,459 
Other profits202 146 
Unallocated:
Interest income109 73 
Interest expense(313)(303)
Amortization(597)(473)
Depreciation(441)(452)
Research and development(3,477)(3,851)
Restructuring costs(69)(123)
Other unallocated, net(857)(806)
$5,903 $5,670 
(1)    The significant expense categories and amounts align with the segment level information that is regularly provided to the chief operating decision maker.
(2)    Human health-related research and development expenses incurred by Merck Research Laboratories are not allocated to segment profits as noted below.
(3)    Includes equity (income) loss from affiliates and other miscellaneous non-operating expenses.
Equity Loss from Affiliates and Depreciation Included in Segment Profits
Equity income from affiliates and depreciation included in segment profits is as follows:
Three Months Ended March 31,
20252024
($ in millions)PharmaceuticalAnimal HealthTotalPharmaceuticalAnimal HealthTotal
Equity income from affiliates
$58 $— $58 $48 $— $48 
Depreciation
1 60 61 1 58 59 
Property, Plant and Equipment, Net by Geographic Area
Property, plant and equipment, net, by geographic area where located is as follows:
($ in millions)
March 31, 2025December 31, 2024
United States$14,891 $14,724 
Europe, Middle East and Africa8,402 7,548 
Asia Pacific (other than China and Japan)
973 982 
China198 202 
Japan145 143 
Latin America135 133 
Other49 47 
$24,793 $23,779 
v3.25.1
Acquisitions, Research Collaborations and Licensing Agreements - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Jun. 30, 2025
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Business Acquisition [Line Items]            
Research and development       $ 3,621.0 $ 3,992.0  
Property, plant and equipment, net $ 24,793.0     24,793.0   $ 23,779.0
HRS-5346 , Jiangsu Hengrui Pharmaceuticals Co., Ltd. | Forecast            
Business Acquisition [Line Items]            
Consideration transferred, asset acquisition     $ 200.0      
Research and development     200.0      
Jiangsu Hengrui Pharmaceuticals Co., Ltd. | Forecast            
Business Acquisition [Line Items]            
Future contingent developmental milestone payments (up to)     92.5      
Future regulatory milestone payments (up to)     177.5      
Maximum aggregate sales-based milestone payments     $ 1,500.0      
WuXi Vaccines' facility            
Business Acquisition [Line Items]            
Consideration transferred, asset acquisition 437.0          
WuXi Vaccines' facility | Asset under Construction            
Business Acquisition [Line Items]            
Property, plant and equipment, net $ 759.0     $ 759.0    
Harpoon Therapeutics, Inc.            
Business Acquisition [Line Items]            
Consideration transferred, asset acquisition   $ 765.0        
Research and development         656.0  
Asset acquisition, transaction costs   $ 56.0        
Net assets acquired         $ 165.0  
v3.25.1
Collaborative Arrangements - AstraZeneca PLC - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Lynparza | Licenses and Other    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Finite-lived intangible assets $ 1,100,000,000  
Koselugo | Licenses and Other    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Finite-lived intangible assets 48,000,000  
AstraZeneca | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Sales based milestone payments 700,000,000  
AstraZeneca | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Lynparza    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Sales based milestone payments 600,000,000  
Eligible future contingent sales-based milestone payments (up to) 2,000,000,000.0  
Regulatory milestone payments   $ 245,000,000
Eligible future contingent regulatory milestone payments (up to) 0  
AstraZeneca | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Koselugo    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Sales based milestone payments $ 100,000,000  
v3.25.1
Collaborative Arrangements - AstraZeneca PLC (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Cost of sales $ 3,419 $ 3,540  
Selling, general and administrative 2,552 2,483  
Research and development 3,621 3,992  
Other current assets 35,503   $ 38,782
Accrued and other current liabilities 12,772   15,694
AstraZeneca | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Revenue from collaborative arrangement 356 330  
Cost of sales 83 82  
Selling, general and administrative 32 39  
Research and development 12 20  
Other current assets 358   424
Accrued and other current liabilities 15   $ 713
AstraZeneca | Alliance revenue - Lynparza | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Revenue from collaborative arrangement 312 292  
AstraZeneca | Alliance revenue - Koselugo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Revenue from collaborative arrangement $ 44 $ 38  
v3.25.1
Collaborative Arrangements - Eisai Co., Ltd. - Narrative (Details) - Alliance revenue - Lenvima - USD ($)
 3 Months Ended
Jun. 30, 2024
Mar. 31, 2025
Licenses and Other    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Finite-lived intangible assets   $ 382,000,000
Eisai | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Sales based milestone payments $ 125,000,000  
Eligible future contingent sales-based milestone payments (up to)   2,300,000,000
Eligible future contingent regulatory milestone payments (up to)   $ 0
v3.25.1
Collaborative Arrangements - Eisai Co., Ltd. (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Cost of sales $ 3,419 $ 3,540  
Selling, general and administrative 2,552 2,483  
Research and development 3,621 3,992  
Other current assets 35,503   $ 38,782
Eisai | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Revenue from collaborative arrangement 258 255  
Cost of sales 60 60  
Selling, general and administrative 31 39  
Research and development 5 $ 8  
Other current assets $ 263   $ 257
v3.25.1
Collaborative Arrangements - Bayer AG (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Sales $ 15,529,000,000 $ 15,775,000,000  
Cost of sales 3,419,000,000 3,540,000,000  
Selling, general and administrative 2,552,000,000 2,483,000,000  
Research and development 3,621,000,000 3,992,000,000  
Other current assets 35,503,000,000   $ 38,782,000,000
Accrued and other current liabilities 12,772,000,000   15,694,000,000
Bayer AG | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Eligible future contingent sales-based milestone payments (up to) 0    
Revenue from collaborative arrangement 106,000,000 98,000,000  
Sales 183,000,000 173,000,000  
Cost of sales 58,000,000 62,000,000  
Selling, general and administrative 29,000,000 33,000,000  
Research and development 24,000,000 28,000,000  
Other current assets 160,000,000   160,000,000
Accrued and other current liabilities 83,000,000   $ 82,000,000
Adempas | Bayer AG | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Sales 68,000,000 70,000,000  
Adempas | Licenses and Other      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Finite-lived intangible assets 353,000,000    
Verquvo | Bayer AG | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Sales 9,000,000 $ 5,000,000  
Verquvo | Licenses and Other      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Finite-lived intangible assets $ 42,000,000    
v3.25.1
Collaborative Arrangements - Ridgeback Biotherapeutics LP (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Sales $ 15,529 $ 15,775  
Cost of sales 3,419 3,540  
Selling, general and administrative 2,552 2,483  
Accrued and other current liabilities 12,772   $ 15,694
Ridgeback Biotherapeutics LP | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Cost of sales 53 191  
Selling, general and administrative 13 16  
Research and development 8 (5)  
Accrued and other current liabilities 43   $ 68
Ridgeback Biotherapeutics LP | Lagevrio | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Sales $ 102 $ 350  
v3.25.1
Collaborative Arrangements - Daiicho Sankyo - Narrative (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Aug. 31, 2024
USD ($)
Mar. 31, 2025
USD ($)
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 31, 2023
USD ($)
candidate
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Research and development   $ 3,621 $ 3,992    
Daiichi Sankyo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Number of antibody drug conjugates obtained right and obligations | candidate         3
Aggregate upfront payments due upon execution in collaborative arrangement         $ 4,000
Refundable upfront payments in collaborative arrangement         1,000
Maximum aggregate contingent milestone payments, per product, in collaborative arrangement         $ 5,500
Research and development   $ 128 $ 69 $ 5,500  
Sales based royalty percentage         5.00%
Upfront cash payment $ 170        
Daiichi Sankyo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Ifinatamab Deruxtecan          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Refundable upfront payments in collaborative arrangement         $ 500
Daiichi Sankyo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Patritumab Deruxtecan          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Refundable upfront payments in collaborative arrangement         500
Aggregate upfront payments due upon lapse of time in collaborative arrangement         750
Daiichi Sankyo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Raludotatug Deruxtecan          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Aggregate upfront payments due upon lapse of time in collaborative arrangement         $ 750
Liable contracted portion of research and development expenses to incur costs for in collaborative arrangement, percentage         75.00%
Liable contracted portion of research and development expenses to incur costs for in collaborative arrangement         $ 2,000
Daiichi Sankyo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Patritumab Deruxtecan and Ralduotatug Deruxtecan          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Aggregate upfront payments due upon lapse of time in collaborative arrangement       $ 1,500  
v3.25.1
Collaborative Arrangements - Daiicho Sankyo (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Selling, general and administrative $ 2,552 $ 2,483    
Research and development 3,621 3,992    
Other current assets 9,289     $ 8,706
Accrued and other current liabilities 12,772     15,694
Daiichi Sankyo | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Selling, general and administrative 9 3    
Research and development 128 $ 69 $ 5,500  
Other current assets 13     8
Accrued and other current liabilities $ 803     $ 817
v3.25.1
Collaborative Arrangements - Moderna, Inc. - Narrative (Details)
$ in Millions
Mar. 31, 2025
USD ($)
Moderna, Inc. | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement  
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Capitalization of shared costs $ 228
v3.25.1
Collaborative Arrangements - Moderna, Inc. (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Selling, general and administrative $ 2,552 $ 2,483  
Research and development 3,621 3,992  
Accrued and other current liabilities 12,772   $ 15,694
Moderna, Inc. | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Selling, general and administrative 6 2  
Research and development 86 $ 69  
Accrued and other current liabilities $ 37   $ 57
v3.25.1
Collaborative Arrangements - Bristol Meyers Squibb Company - Narrative (Details) - Bristol Myers Squibb Company - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Licensing Agreements    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Royalty rate, deduction 0.50  
Licensing Agreements | Alliance Revenue - Reblozyl    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Eligible future contingent sales-based milestone payments (up to) $ 80  
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Revenue from collaborative arrangement $ 119 $ 71
Minimum | Licensing Agreements    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Royalty rate 20.00%  
Maximum | Licensing Agreements    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Royalty rate 24.00%  
v3.25.1
Restructuring - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs $ 105 $ 246
Restructuring Program, 2024    
Restructuring Cost and Reserve [Line Items]    
Expected restructuring and related cost $ 4,000  
Estimate of cumulative pre tax costs that will be noncash 60.00%  
Total pretax restructuring costs $ 105 $ 246
Cumulative costs since program inception $ 1,200  
v3.25.1
Restructuring - Charges Activities by Type of Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs $ 105 $ 246
Accelerated Depreciation    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 41 65
Separation Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 1 92
Other Exit Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 63 89
Cost of sales    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 36 116
Cost of sales | Accelerated Depreciation    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 41 65
Cost of sales | Separation Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 0 0
Cost of sales | Other Exit Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs (5) 51
Selling, general and administrative    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   5
Selling, general and administrative | Accelerated Depreciation    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   0
Selling, general and administrative | Separation Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   0
Selling, general and administrative | Other Exit Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   5
Research and development    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   2
Research and development | Accelerated Depreciation    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   0
Research and development | Separation Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   0
Research and development | Other Exit Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs   2
Restructuring costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 69 123
Restructuring costs | Accelerated Depreciation    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 0 0
Restructuring costs | Separation Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs 1 92
Restructuring costs | Other Exit Costs    
Restructuring Cost and Reserve [Line Items]    
Total pretax restructuring costs $ 68 $ 31
v3.25.1
Restructuring - Activities by Program (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Restructuring Reserve [Roll Forward]    
Restructuring reserve, beginning balance $ 564  
Expenses 105 $ 246
(Payments) receipts, net (63)  
Non-cash activity (49)  
Restructuring reserve, ending balance 557  
Accelerated Depreciation    
Restructuring Reserve [Roll Forward]    
Restructuring reserve, beginning balance 0  
Expenses 41 65
(Payments) receipts, net 0  
Non-cash activity (41)  
Restructuring reserve, ending balance 0  
Separation Costs    
Restructuring Reserve [Roll Forward]    
Restructuring reserve, beginning balance 564  
Expenses 1 92
(Payments) receipts, net (8)  
Non-cash activity 0  
Restructuring reserve, ending balance 557  
Other Exit Costs    
Restructuring Reserve [Roll Forward]    
Restructuring reserve, beginning balance 0  
Expenses 63 $ 89
(Payments) receipts, net (55)  
Non-cash activity (8)  
Restructuring reserve, ending balance $ 0  
v3.25.1
Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Derivative [Line Items]      
Derivative, notional amount $ 42,360 $ 38,560  
Pretax net unrealized gain on derivatives maturing within the next 12 months estimated to be reclassified from AOCI to sales 16    
Equity investments without readily determinable fair values 872   $ 851
Unrealized gains recognized on investments in equity securities without readily determinable fair value     4
Unrealized losses recognized on investments in equity securities without readily determinable fair values 11   5
Cumulative unrealized gains on investments 309    
Cumulative unrealized losses on investments 118    
Loss (income) from investments in equity securities, net (90)   (143)
Fair value of loans payable and long-term debt, including current portion 30,600 32,600  
Debt, carrying amount 34,800 37,100  
Factored accounts receivable 1,700 2,100  
Cash collateral received from counterparties 23 165  
Equity Funds      
Derivative [Line Items]      
Equity securities held through ownership interest in investments funds 249   396
Loss (income) from investments in equity securities, net 23   $ 2
Accounts Receivable Factoring Collections      
Derivative [Line Items]      
Restricted cash 39 55  
Level 2      
Derivative [Line Items]      
Cash equivalents 7,900 12,300  
Interest rate swap contracts | 4.50% note due 2033      
Derivative [Line Items]      
Derivative, notional amount 1,500    
Interest rate swap contracts | 5.00% note due 2053      
Derivative [Line Items]      
Derivative, notional amount 250    
Derivatives Designated as Hedging Instruments      
Derivative [Line Items]      
Derivative, notional amount 13,838 12,465  
Derivatives Not Designated as Hedging Instruments      
Derivative [Line Items]      
Derivative, notional amount $ 28,522 $ 26,095  
Maximum | Derivatives Designated as Hedging Instruments      
Derivative [Line Items]      
Maximum average period of maturities of contracts in years (less than) 2 years    
Maximum | Derivatives Not Designated as Hedging Instruments      
Derivative [Line Items]      
Maximum average period of maturities of contracts in years (less than) 6 months    
v3.25.1
Financial Instruments - Effect of Net Investment Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Foreign exchange contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Pretax Loss (Gain) Recognized in Other Comprehensive Income $ 27 $ (2)
Foreign exchange contracts | Other (income) expense, net    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Pretax Gain Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing 3 0
Euro-denominated notes    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Pretax Loss (Gain) Recognized in Other Comprehensive Income 130 (62)
Euro-denominated notes | Other (income) expense, net    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Pretax Gain Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing $ 0 $ 0
v3.25.1
Financial Instruments - Summary of Interest Rate Swaps Held (Details)
Mar. 31, 2025
USD ($)
interest_rate_swap
Dec. 31, 2024
USD ($)
Derivative [Line Items]    
U.S dollar notional amount $ 42,360,000,000 $ 38,560,000,000
4.50% note due 2033 | 4.50% note due 2033    
Derivative [Line Items]    
Stated interest rate 4.50%  
5.00% note due 2053 | 5.00% note due 2053    
Derivative [Line Items]    
Stated interest rate 5.00%  
Interest rate swap contracts    
Derivative [Line Items]    
Number of Interest Rate Swaps Held | interest_rate_swap 7  
Interest rate swap contracts | 4.50% note due 2033    
Derivative [Line Items]    
Par Value of Debt $ 1,500,000,000  
Number of Interest Rate Swaps Held | interest_rate_swap 6  
U.S dollar notional amount $ 1,500,000,000  
Interest rate swap contracts | 5.00% note due 2053    
Derivative [Line Items]    
Par Value of Debt $ 1,500,000,000  
Number of Interest Rate Swaps Held | interest_rate_swap 1  
U.S dollar notional amount $ 250,000,000  
v3.25.1
Financial Instruments - Amounts Recorded on Balance Sheet Related to Fair Value Hedges (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Long-Term Debt Long-Term Debt
Carrying Amount of Hedged Liabilities $ 1,794 $ 1,509
Cumulative Amount of Fair Value Hedging Adjustment Increase Included in the Carrying Amount $ 56 $ 17
v3.25.1
Financial Instruments - Fair Value of Derivatives Segregated between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Derivatives, Fair Value [Line Items]    
Fair value of derivative, asset $ 410 $ 729
Fair value of derivative, liability 268 345
U.S dollar notional amount 42,360 38,560
Derivatives Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Fair value of derivative, asset 222 406
Fair value of derivative, liability 59 2
U.S dollar notional amount 13,838 12,465
Derivatives Not Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Fair value of derivative, asset 188 323
Fair value of derivative, liability 209 343
U.S dollar notional amount $ 28,522 $ 26,095
Interest rate swap contracts | Derivatives Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets
Fair value of derivative, asset $ 56 $ 17
Derivative asset, notional amount $ 1,750 $ 1,500
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other current assets    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other current assets Other current assets
Fair value of derivative, asset $ 121 $ 323
Derivative asset, notional amount $ 6,816 $ 8,662
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Assets    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets
Fair value of derivative, asset $ 45 $ 66
Derivative asset, notional amount $ 2,915 $ 2,125
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued and other current liabilities Accrued and other current liabilities
Fair value of derivative, liability $ 58 $ 1
Derivative liability, notional amount $ 2,339 $ 162
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Noncurrent Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Noncurrent Liabilities Other Noncurrent Liabilities
Fair value of derivative, liability $ 1 $ 1
Derivative liability, notional amount $ 18 $ 16
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other current assets Other current assets
Fair value of derivative, asset $ 188 $ 323
Derivative asset, notional amount $ 13,218 $ 12,544
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued and other current liabilities Accrued and other current liabilities
Fair value of derivative, liability $ 209 $ 343
Derivative liability, notional amount $ 15,304 $ 13,551
v3.25.1
Financial Instruments - Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross amounts recognized in the consolidated balance sheet, asset $ 410 $ 729
Gross amount subject to offset in master netting arrangements not offset in the condensed balance sheet, asset (239) (299)
Cash collateral received, asset (23) (165)
Net amounts, asset 148 265
Gross amounts recognized in the consolidated balance sheet, liability 268 345
Gross amount subject to offset in master netting arrangements not offset in the condensed balance sheet, liability (239) (299)
Cash collateral received, liability 0 0
Net amounts, liability $ 29 $ 46
v3.25.1
Financial Instruments - Location and Amount of Pretax (Gains) Losses of Derivatives (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Derivative Instruments, Gain (Loss) [Line Items]    
Sales $ 15,529 $ 15,775
Other (income) expense, net (35) (33)
Other comprehensive income (loss) (20) (113)
Interest rate swap contracts | Other (income) expense, net    
Derivative Instruments, Gain (Loss) [Line Items]    
Hedged items 38 (30)
Derivatives designated as hedging instruments (39) 30
Foreign exchange contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gain (loss) recognized in OCI on derivatives (201) 209
Increase in Sales as a result of AOCL reclassifications (74) (44)
Foreign exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest    
Derivative Instruments, Gain (Loss) [Line Items]    
Sales $ 74 $ 44
v3.25.1
Financial Instruments - Income Statement Effects on Derivatives Not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Currency Swap | Other (income) expense, net    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Derivative Pretax (Gain) Loss Recognized in Income $ (20) $ 65
Foreign Exchange Future | Sales    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Derivative Pretax (Gain) Loss Recognized in Income $ 16 $ (10)
v3.25.1
Financial Instruments - Information on Available-for-sale Investments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]      
Debt securities, amortized cost $ 690   $ 536
Debt securities, unrealized gains 0   0
Debt securities, unrealized losses 0   0
Debt securities, fair value 690   536
Publicly traded equity securities, fair value 1,033   920
Total debt and publicly traded equity securities, fair value 1,723   1,456
Unrealized net gains 115 $ 143  
Commercial paper      
Debt Securities, Available-for-sale [Line Items]      
Debt securities, amortized cost 599   348
Debt securities, unrealized gains 0   0
Debt securities, unrealized losses 0   0
Debt securities, fair value 599   348
U.S. government and agency securities      
Debt Securities, Available-for-sale [Line Items]      
Debt securities, amortized cost 91   188
Debt securities, unrealized gains 0   0
Debt securities, unrealized losses 0   0
Debt securities, fair value $ 91   $ 188
v3.25.1
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Dec. 31, 2023
Assets        
Investments $ 690 $ 536    
Publicly traded equity securities 1,033 920    
Other Assets 16,768 16,044    
Fair value of derivative, asset 410 729    
Liabilities        
Contingent consideration 70 193 $ 226 $ 354
Fair value of derivative, liability 268 345    
Commercial paper        
Assets        
Investments 599 348    
U.S. government and agency securities        
Assets        
Investments 91 188    
Fair Value, Measurements, Recurring        
Assets        
Investments 1,215 910    
Other Assets 508 546    
Fair value of derivative, asset 410 729    
Total assets 2,133 2,185    
Liabilities        
Contingent consideration 70 193    
Fair value of derivative, liability 268 345    
Total liabilities 338 538    
Fair Value, Measurements, Recurring | Foreign exchange contracts        
Assets        
Fair value of derivative, asset 246 499    
Liabilities        
Fair value of derivative, liability 252 338    
Fair Value, Measurements, Recurring | Interest rate swap contracts        
Assets        
Fair value of derivative, asset 56 17    
Fair Value, Measurements, Recurring | Currency options        
Assets        
Fair value of derivative, asset 108 213    
Liabilities        
Fair value of derivative, liability 16 7    
Fair Value, Measurements, Recurring | Level 1        
Assets        
Investments 616 463    
Other Assets 508 546    
Fair value of derivative, asset 0 0    
Total assets 1,124 1,009    
Liabilities        
Contingent consideration 0 0    
Fair value of derivative, liability 0 0    
Total liabilities 0 0    
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts        
Assets        
Fair value of derivative, asset 0 0    
Liabilities        
Fair value of derivative, liability 0 0    
Fair Value, Measurements, Recurring | Level 1 | Interest rate swap contracts        
Assets        
Fair value of derivative, asset 0 0    
Fair Value, Measurements, Recurring | Level 1 | Currency options        
Assets        
Fair value of derivative, asset 0 0    
Liabilities        
Fair value of derivative, liability 0 0    
Fair Value, Measurements, Recurring | Level 2        
Assets        
Investments 599 447    
Other Assets 0 0    
Fair value of derivative, asset 410 729    
Total assets 1,009 1,176    
Liabilities        
Contingent consideration 0 0    
Fair value of derivative, liability 268 345    
Total liabilities 268 345    
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts        
Assets        
Fair value of derivative, asset 246 499    
Liabilities        
Fair value of derivative, liability 252 338    
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap contracts        
Assets        
Fair value of derivative, asset 56 17    
Fair Value, Measurements, Recurring | Level 2 | Currency options        
Assets        
Fair value of derivative, asset 108 213    
Liabilities        
Fair value of derivative, liability 16 7    
Fair Value, Measurements, Recurring | Level 3        
Assets        
Investments 0 0    
Other Assets 0 0    
Fair value of derivative, asset 0 0    
Total assets 0 0    
Liabilities        
Contingent consideration 70 193    
Fair value of derivative, liability 0 0    
Total liabilities 70 193    
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts        
Assets        
Fair value of derivative, asset 0 0    
Liabilities        
Fair value of derivative, liability 0 0    
Fair Value, Measurements, Recurring | Level 3 | Interest rate swap contracts        
Assets        
Fair value of derivative, asset 0 0    
Fair Value, Measurements, Recurring | Level 3 | Currency options        
Assets        
Fair value of derivative, asset 0 0    
Liabilities        
Fair value of derivative, liability 0 0    
Fair Value, Measurements, Recurring | Commercial paper        
Assets        
Investments 599 348    
Fair Value, Measurements, Recurring | Commercial paper | Level 1        
Assets        
Investments 0 0    
Fair Value, Measurements, Recurring | Commercial paper | Level 2        
Assets        
Investments 599 348    
Fair Value, Measurements, Recurring | Commercial paper | Level 3        
Assets        
Investments 0 0    
Fair Value, Measurements, Recurring | U.S. government and agency securities        
Assets        
Debt securities, available-for-sale, current 0 99    
Debt securities, available-for-sale, noncurrent 91 89    
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 1        
Assets        
Debt securities, available-for-sale, current 0 0    
Debt securities, available-for-sale, noncurrent 91 89    
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 2        
Assets        
Debt securities, available-for-sale, current 0 99    
Debt securities, available-for-sale, noncurrent 0 0    
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 3        
Assets        
Debt securities, available-for-sale, current 0 0    
Debt securities, available-for-sale, noncurrent 0 0    
Fair Value, Measurements, Recurring | Publicly traded equity securities        
Assets        
Publicly traded equity securities 616 463    
Publicly traded equity securities 417 457    
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 1        
Assets        
Publicly traded equity securities 616 463    
Publicly traded equity securities 417 457    
Liabilities        
Securities subject to contractual sale restrictions 49 81    
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 2        
Assets        
Publicly traded equity securities 0 0    
Publicly traded equity securities 0 0    
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 3        
Assets        
Publicly traded equity securities 0 0    
Publicly traded equity securities $ 0 $ 0    
v3.25.1
Financial Instruments - Information About Changes in Liabilities for Contingent Consideration (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Fair value, beginning balance $ 193 $ 354
Changes in estimated fair value (7) (2)
Payments (116) (126)
Fair value, ending balance 70 $ 226
Current liability $ 25  
v3.25.1
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Finished goods $ 2,129 $ 2,022
Raw materials and work in process 9,179 8,831
Supplies 290 289
Total 11,598 11,142
Decrease to LIFO cost (846) (840)
Total current and noncurrent inventories 10,752 10,302
Recognized as:    
Inventories 6,196 6,109
Other Assets $ 4,556 $ 4,193
v3.25.1
Inventories - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Inventory [Line Items]    
Inventories classified in Other assets $ 4,556 $ 4,193
Inventories Not Expected to be Sold Within One Year    
Inventory [Line Items]    
Inventories classified in Other assets 4,000 3,800
Inventories Produced in Preparation for Product Launches    
Inventory [Line Items]    
Inventories classified in Other assets $ 544 $ 412
v3.25.1
Contingencies (Details)
$ in Millions
 1 Months Ended 3 Months Ended
Apr. 24, 2025
patent
Mar. 13, 2025
Mar. 15, 2024
Apr. 13, 2023
patent
Feb. 29, 2024
patent
Dec. 31, 2023
case
Jun. 30, 2023
Feb. 28, 2023
patent
Mar. 31, 2025
USD ($)
company
case
Mar. 21, 2025
plaintiff
Mar. 11, 2025
case
Dec. 31, 2024
USD ($)
Loss Contingencies [Line Items]                        
Number of plaintiffs in complaint | plaintiff                   7,000,000    
Legal Defense Costs                        
Loss Contingencies [Line Items]                        
Legal defense costs reserve | $                 $ 230     $ 225
Pending Litigation | Patents - PGR Petition | Subsequent Event                        
Loss Contingencies [Line Items]                        
Loss contingency, number of patents allegedly infringed | patent 11                      
Dr. Scholl's | U.S. | Pending Litigation                        
Loss Contingencies [Line Items]                        
Loss contingency, pending claims                 500      
Gardasil/Gardasil 9 | Non-US | Pending Litigation                        
Loss Contingencies [Line Items]                        
Loss contingency, pending claims                 15      
Gardasil/Gardasil 9 | U.S. | Pending Litigation                        
Loss Contingencies [Line Items]                        
Loss contingency, pending claims                 245      
Gardasil/Gardasil 9 | U.S. | Motion for Summary Judgement Granted                        
Loss Contingencies [Line Items]                        
Loss contingency, pending claims                     16  
Zetia | U.S. | Pending Litigation                        
Loss Contingencies [Line Items]                        
Loss contingency, number of cases remanded           4,000,000            
Bridion | Patents                        
Loss Contingencies [Line Items]                        
Loss contingency, claims settled | company                 5      
Bridion | Pending Litigation | Patents                        
Loss Contingencies [Line Items]                        
Loss contingency, pending claims | company                 2      
Postponement period resulting from litigation     30 months                  
Bridion | Settled Litigation | Patents                        
Loss Contingencies [Line Items]                        
Patent extension, term   5 years         5 years          
Pediatric exclusivity, term   6 months                    
Keytruda | Pending Litigation | Patents                        
Loss Contingencies [Line Items]                        
Loss contingency, number of patents allegedly infringed | patent       9                
Subcutaneous Pembrolizumab | Pending Litigation | Patents | Subsequent Event                        
Loss Contingencies [Line Items]                        
Loss contingency, number of patents allegedly infringed | patent 15                      
Lynparza | Pending Litigation | Patents                        
Loss Contingencies [Line Items]                        
Loss contingency, number of patents allegedly infringed | patent         1     1        
Januvia/Janumet                        
Loss Contingencies [Line Items]                        
Loss contingency, claims settled | company                 26      
v3.25.1
Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Common stock, beginning balance (in shares) 3,577,103,522  
Equity, beginning balance $ 46,372 $ 37,635
Treasury stock, beginning balance (in shares) 1,049,466,187  
Net income attributable to Merck & Co., Inc. $ 5,079 4,762
Other comprehensive income (loss), net of taxes (20) (113)
Cash dividends declared on common stock (2,051) (1,960)
Treasury stock shares purchased (1,164) (122)
Share-based compensation plans and other 178 217
Net income attributable to noncontrolling interests $ 6 5
Common stock, ending balance (in shares) 3,577,103,522  
Equity, ending balance $ 48,400 $ 40,424
Treasury stock, ending balance (in shares) 1,061,021,894  
Cash dividends declared on common stock (in dollars per share) $ 0.81 $ 0.77
  Common Stock    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Common stock, beginning balance (in shares) 3,577,000,000 3,577,000,000
Equity, beginning balance $ 1,788 $ 1,788
Common stock, ending balance (in shares) 3,577,000,000 3,577,000,000
Equity, ending balance $ 1,788 $ 1,788
Other Paid-In Capital    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Equity, beginning balance 44,704 44,509
Share-based compensation plans and other 112 89
Equity, ending balance 44,816 44,598
Retained Earnings    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Equity, beginning balance 63,069 53,895
Net income attributable to Merck & Co., Inc. 5,079 4,762
Cash dividends declared on common stock (2,051) (1,960)
Equity, ending balance 66,097 56,697
Accumulated Other Comprehensive Loss    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Equity, beginning balance (4,945) (5,161)
Other comprehensive income (loss), net of taxes (20) (113)
Equity, ending balance (4,965) (5,274)
 Treasury Stock    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Equity, beginning balance $ (58,303) $ (57,450)
Treasury stock, beginning balance (in shares) 1,049,000,000 1,045,000,000
Treasury stock shares purchased (in shares) 13,000,000 1,000,000
Treasury stock shares purchased $ (1,164) $ (122)
Share-based compensation plans and other $ 66 $ 127
Share-based compensation plans and other (in shares) (1,000,000) (2,000,000)
Equity, ending balance $ (59,401) $ (57,445)
Treasury stock, ending balance (in shares) 1,061,000,000 1,044,000,000
Non- controlling Interests    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Equity, beginning balance $ 59 $ 54
Share-based compensation plans and other   1
Net income attributable to noncontrolling interests 6 5
Equity, ending balance $ 65 $ 60
v3.25.1
Pension and Other Postretirement Benefit Plans - Net Benefit Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Other Postretirement Benefit Plans    
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 10 $ 8
Interest cost 16 14
Expected return on plan assets (14) (20)
Amortization of unrecognized prior service credit (10) (11)
Net loss amortization (10) (12)
Net periodic benefit cost (8) (21)
U.S. | Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 89 86
Interest cost 141 134
Expected return on plan assets (210) (207)
Amortization of unrecognized prior service credit 0 0
Net loss amortization 13 10
Termination benefits 0 3
Net periodic benefit cost 33 26
International | Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 54 61
Interest cost 71 74
Expected return on plan assets (143) (139)
Amortization of unrecognized prior service credit (4) (3)
Net loss amortization 3 1
Termination benefits 0 0
Net periodic benefit cost $ (19) $ (6)
v3.25.1
Other (Income) Expense, Net - Schedule of Other (Income) Expense, Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Other Income and Expenses [Abstract]    
Interest income $ (109) $ (73)
Interest expense 313 303
Exchange losses 90 83
Loss (income) from investments in equity securities, net (90) (143)
Net periodic defined benefit plan (credit) cost other than service cost (148) (160)
Other, net (91) (43)
Other (income) expense, net $ (35) $ (33)
v3.25.1
Other (Income) Expense, Net - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Other Income and Expenses [Abstract]    
Interest paid $ 233 $ 217
v3.25.1
Income Taxes (Details) - USD ($)
 3 Months Ended 12 Months Ended
Apr. 21, 2025
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2025
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]        
Effective income tax rate   13.90% 15.90%  
Income tax rate, unfavorable discrete impact     1.60%  
Tax benefit resulting from acquisition charge     $ 0  
Subsequent Event | Internal Revenue Service (IRS)        
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]        
Income tax examination, estimate of possible loss $ 1,300,000,000      
Subsequent Event | Internal Revenue Service (IRS) | Penalties        
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]        
Income tax examination, estimate of possible loss $ 260,000,000      
Forecast        
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]        
Global minimum tax impact on effective tax rate, percentage increase       2.00%
v3.25.1
Earnings Per Share - Calculations of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share [Abstract]    
Net Income (Loss) Attributable to Merck & Co., Inc., basic $ 5,079 $ 4,762
Net Income (Loss) Attributable to Merck & Co., Inc., diluted $ 5,079 $ 4,762
Average common shares outstanding (in shares) 2,523 2,533
Common shares issuable (in shares) 8 11
Average common shares outstanding assuming dilution (in shares) 2,531 2,544
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) $ 2.01 $ 1.88
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) $ 2.01 $ 1.87
v3.25.1
Earnings Per Share - Narrative (Details) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share [Abstract]    
Antidilutive shares (in shares) 10 3
v3.25.1
Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Equity, beginning balance $ 46,372 $ 37,635
Other comprehensive income (loss), net of taxes (20) (113)
Equity, ending balance 48,400 40,424
Accumulated Other Comprehensive Loss    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Equity, beginning balance (4,945) (5,161)
Other comprehensive income (loss) before reclassification adjustments, pretax (2) (11)
Tax 57 (61)
Other comprehensive income (loss) before reclassification adjustments, net of taxes 55 (72)
Reclassification adjustments, pretax (83) (59)
Tax 8 18
Reclassification adjustments, net of taxes (75) (41)
Other comprehensive income (loss), net of taxes (20) (113)
Equity, ending balance (4,965) (5,274)
Derivatives    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Equity, beginning balance 242 (24)
Other comprehensive income (loss) before reclassification adjustments, pretax (201) 209
Tax 42 (44)
Other comprehensive income (loss) before reclassification adjustments, net of taxes (159) 165
Reclassification adjustments, pretax (73) (44)
Tax 15 9
Reclassification adjustments, net of taxes (58) (35)
Other comprehensive income (loss), net of taxes (217) 130
Equity, ending balance 25 106
Employee Benefit Plans    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Equity, beginning balance (2,327) (2,793)
Other comprehensive income (loss) before reclassification adjustments, pretax (1) 5
Tax 0 (4)
Other comprehensive income (loss) before reclassification adjustments, net of taxes (1) 1
Reclassification adjustments, pretax (10) (15)
Tax (7) 9
Reclassification adjustments, net of taxes (17) (6)
Other comprehensive income (loss), net of taxes (18) (5)
Equity, ending balance (2,345) (2,798)
Foreign Currency Translation Adjustment    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Equity, beginning balance (2,860) (2,344)
Other comprehensive income (loss) before reclassification adjustments, pretax 200 (225)
Tax 15 (13)
Other comprehensive income (loss) before reclassification adjustments, net of taxes 215 (238)
Reclassification adjustments, pretax 0 0
Tax 0 0
Reclassification adjustments, net of taxes 0 0
Other comprehensive income (loss), net of taxes 215 (238)
Equity, ending balance $ (2,645) $ (2,582)
v3.25.1
Segment Reporting - Narrative (Details)
$ in Billions
 3 Months Ended
Mar. 31, 2025
USD ($)
segment
Mar. 31, 2024
USD ($)
Segment Reporting [Abstract]    
Number of operating segments | segment 2  
Sales discounts | $ $ 2.1 $ 3.2
v3.25.1
Segment Reporting - Sales from Products (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Sales $ 15,529 $ 15,775
Increase in hedge revenue 58 54
Revenue related to the sale of the marketing rights 95 61
U.S.    
Segment Reporting Information [Line Items]    
Sales 8,522 7,478
Non-US    
Segment Reporting Information [Line Items]    
Sales 7,007 8,297
Operating Segments    
Segment Reporting Information [Line Items]    
Sales 15,226 15,517
Operating Segments | U.S.    
Segment Reporting Information [Line Items]    
Sales 8,429 7,410
Operating Segments | Non-US    
Segment Reporting Information [Line Items]    
Sales 6,797 8,107
Corporate, Non-Segment    
Segment Reporting Information [Line Items]    
Sales 303 258
Corporate, Non-Segment | U.S.    
Segment Reporting Information [Line Items]    
Sales 93 68
Corporate, Non-Segment | Non-US    
Segment Reporting Information [Line Items]    
Sales 210 190
Pharmaceutical | Operating Segments    
Segment Reporting Information [Line Items]    
Sales 13,638 14,006
Pharmaceutical | Operating Segments | U.S.    
Segment Reporting Information [Line Items]    
Sales 7,927 6,936
Pharmaceutical | Operating Segments | Non-US    
Segment Reporting Information [Line Items]    
Sales 5,711 7,070
Pharmaceutical | Operating Segments | Keytruda    
Segment Reporting Information [Line Items]    
Sales 7,205 6,947
Pharmaceutical | Operating Segments | Keytruda | U.S.    
Segment Reporting Information [Line Items]    
Sales 4,308 4,119
Pharmaceutical | Operating Segments | Keytruda | Non-US    
Segment Reporting Information [Line Items]    
Sales 2,897 2,828
Pharmaceutical | Operating Segments | Alliance revenue - Lynparza    
Segment Reporting Information [Line Items]    
Sales 312 292
Pharmaceutical | Operating Segments | Alliance revenue - Lynparza | U.S.    
Segment Reporting Information [Line Items]    
Sales 145 135
Pharmaceutical | Operating Segments | Alliance revenue - Lynparza | Non-US    
Segment Reporting Information [Line Items]    
Sales 168 157
Pharmaceutical | Operating Segments | Alliance revenue - Lenvima    
Segment Reporting Information [Line Items]    
Sales 258 255
Pharmaceutical | Operating Segments | Alliance revenue - Lenvima | U.S.    
Segment Reporting Information [Line Items]    
Sales 186 173
Pharmaceutical | Operating Segments | Alliance revenue - Lenvima | Non-US    
Segment Reporting Information [Line Items]    
Sales 72 82
Pharmaceutical | Operating Segments | Welireg    
Segment Reporting Information [Line Items]    
Sales 137 85
Pharmaceutical | Operating Segments | Welireg | U.S.    
Segment Reporting Information [Line Items]    
Sales 123 77
Pharmaceutical | Operating Segments | Welireg | Non-US    
Segment Reporting Information [Line Items]    
Sales 15 7
Pharmaceutical | Operating Segments | Alliance Revenue - Reblozyl    
Segment Reporting Information [Line Items]    
Sales 119 71
Pharmaceutical | Operating Segments | Alliance Revenue - Reblozyl | U.S.    
Segment Reporting Information [Line Items]    
Sales 101 58
Pharmaceutical | Operating Segments | Alliance Revenue - Reblozyl | Non-US    
Segment Reporting Information [Line Items]    
Sales 18 12
Pharmaceutical | Operating Segments | Gardasil/Gardasil 9    
Segment Reporting Information [Line Items]    
Sales 1,327 2,249
Pharmaceutical | Operating Segments | Gardasil/Gardasil 9 | U.S.    
Segment Reporting Information [Line Items]    
Sales 536 488
Pharmaceutical | Operating Segments | Gardasil/Gardasil 9 | Non-US    
Segment Reporting Information [Line Items]    
Sales 790 1,761
Pharmaceutical | Operating Segments | ProQuad/M-M-R II/Varivax    
Segment Reporting Information [Line Items]    
Sales 539 570
Pharmaceutical | Operating Segments | ProQuad/M-M-R II/Varivax | U.S.    
Segment Reporting Information [Line Items]    
Sales 423 438
Pharmaceutical | Operating Segments | ProQuad/M-M-R II/Varivax | Non-US    
Segment Reporting Information [Line Items]    
Sales 116 133
Pharmaceutical | Operating Segments | Vaxneuvance    
Segment Reporting Information [Line Items]    
Sales 230 219
Pharmaceutical | Operating Segments | Vaxneuvance | U.S.    
Segment Reporting Information [Line Items]    
Sales 139 161
Pharmaceutical | Operating Segments | Vaxneuvance | Non-US    
Segment Reporting Information [Line Items]    
Sales 92 58
Pharmaceutical | Operating Segments | RotaTeq    
Segment Reporting Information [Line Items]    
Sales 228 216
Pharmaceutical | Operating Segments | RotaTeq | U.S.    
Segment Reporting Information [Line Items]    
Sales 164 149
Pharmaceutical | Operating Segments | RotaTeq | Non-US    
Segment Reporting Information [Line Items]    
Sales 64 67
Pharmaceutical | Operating Segments | Capvaxive    
Segment Reporting Information [Line Items]    
Sales 107 0
Pharmaceutical | Operating Segments | Capvaxive | U.S.    
Segment Reporting Information [Line Items]    
Sales 106 0
Pharmaceutical | Operating Segments | Capvaxive | Non-US    
Segment Reporting Information [Line Items]    
Sales 1 0
Pharmaceutical | Operating Segments | Pneumovax 23    
Segment Reporting Information [Line Items]    
Sales 41 61
Pharmaceutical | Operating Segments | Pneumovax 23 | U.S.    
Segment Reporting Information [Line Items]    
Sales (2) 6
Pharmaceutical | Operating Segments | Pneumovax 23 | Non-US    
Segment Reporting Information [Line Items]    
Sales 42 55
Pharmaceutical | Operating Segments | Bridion    
Segment Reporting Information [Line Items]    
Sales 441 440
Pharmaceutical | Operating Segments | Bridion | U.S.    
Segment Reporting Information [Line Items]    
Sales 378 329
Pharmaceutical | Operating Segments | Bridion | Non-US    
Segment Reporting Information [Line Items]    
Sales 63 111
Pharmaceutical | Operating Segments | Prevymis    
Segment Reporting Information [Line Items]    
Sales 208 174
Pharmaceutical | Operating Segments | Prevymis | U.S.    
Segment Reporting Information [Line Items]    
Sales 102 74
Pharmaceutical | Operating Segments | Prevymis | Non-US    
Segment Reporting Information [Line Items]    
Sales 106 100
Pharmaceutical | Operating Segments | Dificid    
Segment Reporting Information [Line Items]    
Sales 83 73
Pharmaceutical | Operating Segments | Dificid | U.S.    
Segment Reporting Information [Line Items]    
Sales 72 68
Pharmaceutical | Operating Segments | Dificid | Non-US    
Segment Reporting Information [Line Items]    
Sales 11 5
Pharmaceutical | Operating Segments | Zerbaxa    
Segment Reporting Information [Line Items]    
Sales 70 56
Pharmaceutical | Operating Segments | Zerbaxa | U.S.    
Segment Reporting Information [Line Items]    
Sales 42 33
Pharmaceutical | Operating Segments | Zerbaxa | Non-US    
Segment Reporting Information [Line Items]    
Sales 28 23
Pharmaceutical | Operating Segments | Winrevair    
Segment Reporting Information [Line Items]    
Sales 280 0
Pharmaceutical | Operating Segments | Winrevair | U.S.    
Segment Reporting Information [Line Items]    
Sales 268 0
Pharmaceutical | Operating Segments | Winrevair | Non-US    
Segment Reporting Information [Line Items]    
Sales 12 0
Pharmaceutical | Operating Segments | Alliance revenue - Adempas/Verquvo    
Segment Reporting Information [Line Items]    
Sales 106 98
Pharmaceutical | Operating Segments | Alliance revenue - Adempas/Verquvo | U.S.    
Segment Reporting Information [Line Items]    
Sales 97 90
Pharmaceutical | Operating Segments | Alliance revenue - Adempas/Verquvo | Non-US    
Segment Reporting Information [Line Items]    
Sales 9 8
Pharmaceutical | Operating Segments | Adempas    
Segment Reporting Information [Line Items]    
Sales 68 70
Pharmaceutical | Operating Segments | Adempas | U.S.    
Segment Reporting Information [Line Items]    
Sales 0 0
Pharmaceutical | Operating Segments | Adempas | Non-US    
Segment Reporting Information [Line Items]    
Sales 68 70
Pharmaceutical | Operating Segments | Lagevrio    
Segment Reporting Information [Line Items]    
Sales 102 350
Pharmaceutical | Operating Segments | Lagevrio | U.S.    
Segment Reporting Information [Line Items]    
Sales 35 45
Pharmaceutical | Operating Segments | Lagevrio | Non-US    
Segment Reporting Information [Line Items]    
Sales 67 305
Pharmaceutical | Operating Segments | Isentress/Isentress HD    
Segment Reporting Information [Line Items]    
Sales 90 111
Pharmaceutical | Operating Segments | Isentress/Isentress HD | U.S.    
Segment Reporting Information [Line Items]    
Sales 51 50
Pharmaceutical | Operating Segments | Isentress/Isentress HD | Non-US    
Segment Reporting Information [Line Items]    
Sales 39 61
Pharmaceutical | Operating Segments | Delstrigo    
Segment Reporting Information [Line Items]    
Sales 67 56
Pharmaceutical | Operating Segments | Delstrigo | U.S.    
Segment Reporting Information [Line Items]    
Sales 15 12
Pharmaceutical | Operating Segments | Delstrigo | Non-US    
Segment Reporting Information [Line Items]    
Sales 52 44
Pharmaceutical | Operating Segments | Pifeltro    
Segment Reporting Information [Line Items]    
Sales 45 42
Pharmaceutical | Operating Segments | Pifeltro | U.S.    
Segment Reporting Information [Line Items]    
Sales 32 29
Pharmaceutical | Operating Segments | Pifeltro | Non-US    
Segment Reporting Information [Line Items]    
Sales 13 13
Pharmaceutical | Operating Segments | Belsomra    
Segment Reporting Information [Line Items]    
Sales 50 46
Pharmaceutical | Operating Segments | Belsomra | U.S.    
Segment Reporting Information [Line Items]    
Sales 13 15
Pharmaceutical | Operating Segments | Belsomra | Non-US    
Segment Reporting Information [Line Items]    
Sales 37 32
Pharmaceutical | Operating Segments | Simponi    
Segment Reporting Information [Line Items]    
Sales 0 184
Pharmaceutical | Operating Segments | Simponi | U.S.    
Segment Reporting Information [Line Items]    
Sales 0 0
Pharmaceutical | Operating Segments | Simponi | Non-US    
Segment Reporting Information [Line Items]    
Sales 0 184
Pharmaceutical | Operating Segments | Remicade    
Segment Reporting Information [Line Items]    
Sales 0 39
Pharmaceutical | Operating Segments | Remicade | U.S.    
Segment Reporting Information [Line Items]    
Sales 0 0
Pharmaceutical | Operating Segments | Remicade | Non-US    
Segment Reporting Information [Line Items]    
Sales 0 39
Pharmaceutical | Operating Segments | Januvia    
Segment Reporting Information [Line Items]    
Sales 549 419
Pharmaceutical | Operating Segments | Januvia | U.S.    
Segment Reporting Information [Line Items]    
Sales 344 183
Pharmaceutical | Operating Segments | Januvia | Non-US    
Segment Reporting Information [Line Items]    
Sales 204 236
Pharmaceutical | Operating Segments | Janumet    
Segment Reporting Information [Line Items]    
Sales 247 251
Pharmaceutical | Operating Segments | Janumet | U.S.    
Segment Reporting Information [Line Items]    
Sales 65 39
Pharmaceutical | Operating Segments | Janumet | Non-US    
Segment Reporting Information [Line Items]    
Sales 182 212
Pharmaceutical | Operating Segments | Other pharmaceutical    
Segment Reporting Information [Line Items]    
Sales 729 632
Pharmaceutical | Operating Segments | Other pharmaceutical | U.S.    
Segment Reporting Information [Line Items]    
Sales 184 165
Pharmaceutical | Operating Segments | Other pharmaceutical | Non-US    
Segment Reporting Information [Line Items]    
Sales 545 467
Animal Health | Operating Segments    
Segment Reporting Information [Line Items]    
Sales 1,588 1,511
Animal Health | Operating Segments | U.S.    
Segment Reporting Information [Line Items]    
Sales 502 474
Animal Health | Operating Segments | Non-US    
Segment Reporting Information [Line Items]    
Sales 1,086 1,037
Animal Health | Operating Segments | Livestock    
Segment Reporting Information [Line Items]    
Sales 924 850
Animal Health | Operating Segments | Livestock | U.S.    
Segment Reporting Information [Line Items]    
Sales 194 166
Animal Health | Operating Segments | Livestock | Non-US    
Segment Reporting Information [Line Items]    
Sales 730 683
Animal Health | Operating Segments | Companion Animal    
Segment Reporting Information [Line Items]    
Sales 664 661
Animal Health | Operating Segments | Companion Animal | U.S.    
Segment Reporting Information [Line Items]    
Sales 308 308
Animal Health | Operating Segments | Companion Animal | Non-US    
Segment Reporting Information [Line Items]    
Sales $ 356 $ 354
v3.25.1
Segment Reporting - Consolidated Sales by Geographic Area (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue from External Customer [Line Items]    
Sales $ 15,529 $ 15,775
United States    
Revenue from External Customer [Line Items]    
Sales 8,522 7,478
Europe, Middle East and Africa    
Revenue from External Customer [Line Items]    
Sales 3,454 3,563
Latin America    
Revenue from External Customer [Line Items]    
Sales 792 796
China    
Revenue from External Customer [Line Items]    
Sales 702 1,772
Asia Pacific (other than China and Japan)    
Revenue from External Customer [Line Items]    
Sales 689 724
Japan    
Revenue from External Customer [Line Items]    
Sales 669 821
Other    
Revenue from External Customer [Line Items]    
Sales $ 701 $ 621
v3.25.1
Segment Reporting - Reconciliation of Segment Profits to Income before Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Sales $ 15,529 $ 15,775
Less segment costs:    
Cost of sales 3,419 3,540
Selling, general and administrative 2,552 2,483
Research and development (3,621) (3,992)
Other segment items 35 33
Total segment profits 5,903 5,670
Other profits 5,903 5,670
Unallocated:    
Interest income 109 73
Interest expense (313) (303)
Amortization (597) (473)
Depreciation (502) (511)
Research and development (3,621) (3,992)
Restructuring costs (69) (123)
Total segment profits    
Segment Reporting Information [Line Items]    
Sales 15,226 15,517
Less segment costs:    
Total segment profits 11,346 11,459
Other profits 11,346 11,459
Unallocated:    
Depreciation (61) (59)
Total segment profits | Pharmaceutical    
Segment Reporting Information [Line Items]    
Sales 13,638 14,006
Less segment costs:    
Cost of sales 1,573 1,706
Selling, general and administrative 1,402 1,429
Research and development 0 0
Other segment items (49) (33)
Total segment profits 10,712 10,904
Other profits 10,712 10,904
Unallocated:    
Depreciation (1) (1)
Research and development 0 0
Total segment profits | Animal Health    
Segment Reporting Information [Line Items]    
Sales 1,588 1,511
Less segment costs:    
Cost of sales 600 613
Selling, general and administrative 260 252
Research and development (95) (90)
Other segment items (1) 1
Total segment profits 634 555
Other profits 634 555
Unallocated:    
Depreciation (60) (58)
Research and development (95) (90)
Other profits    
Segment Reporting Information [Line Items]    
Sales 303 258
Less segment costs:    
Research and development (3,477) (3,851)
Total segment profits 202 146
Other profits 202 146
Unallocated:    
Interest income 109 73
Interest expense (313) (303)
Amortization (597) (473)
Depreciation (441) (452)
Research and development (3,477) (3,851)
Restructuring costs (69) (123)
Other unallocated, net $ (857) $ (806)
v3.25.1
Segment Reporting - Equity Income from Affiliates and Depreciation Included in Segment Profits (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Depreciation $ 502 $ 511
Operating Segments    
Segment Reporting Information [Line Items]    
Equity income from affiliates 58 48
Depreciation 61 59
Operating Segments | Pharmaceutical    
Segment Reporting Information [Line Items]    
Equity income from affiliates 58 48
Depreciation 1 1
Operating Segments | Animal Health    
Segment Reporting Information [Line Items]    
Equity income from affiliates 0 0
Depreciation $ 60 $ 58
v3.25.1
Segment Reporting - Property, Plant and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 24,793 $ 23,779
U.S.    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 14,891 14,724
Europe, Middle East and Africa    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 8,402 7,548
Asia Pacific (other than China and Japan)    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 973 982
China    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 198 202
Japan    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 145 143
Latin America    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 135 133
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 49 $ 47