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Merck
🇺🇸 NYSE:MRK
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Dec 31, 2023

Merck Q4 2023 Earnings Report

Merck reported mixed results due to a charge related to the collaboration with Daiichi Sankyo, while sales were driven by oncology, vaccines, and hospital acute care products.

Key Takeaways

Merck's fourth-quarter earnings were impacted by a $5.5 billion charge related to a collaboration with Daiichi Sankyo, leading to a GAAP loss per share of $0.48 and non-GAAP EPS of $0.03. Full-year pharmaceutical sales grew, driven by oncology, vaccines and hospital acute care products, offset by lower sales of LAGEVRIO and JANUVIA/JANUMET.

GAAP loss per share was $0.48, while non-GAAP EPS was $0.03, impacted by a charge related to the Daiichi Sankyo collaboration.

Full-year pharmaceutical sales grew 3% to $53.6 billion, driven by oncology, vaccines, and hospital acute care products.

R&D expenses increased significantly due to the Daiichi Sankyo collaboration and acquisitions of Prometheus and Imago.

Merck anticipates full-year 2024 sales to be between $62.7 billion and $64.2 billion.

Total Revenue
$14.6B
Previous year: $13.8B
+5.8%
EPS
$0.03
Previous year: $1.62
-98.1%
KEYTRUDA Sales
$6.58B
Previous year: $5.5B
+19.6%
GARDASIL Sales
$1.66B
Previous year: $1.5B
+10.5%
Gross Profit
$10.7B
Previous year: $9.63B
+11.3%
Cash and Equivalents
$6.84B
Previous year: $12.7B
-46.1%
Total Assets
$107B
Previous year: $109B
-2.3%

Merck

Merck

Merck Revenue by Segment

Forward Guidance

Merck anticipates full-year 2024 sales to be between $62.7 billion and $64.2 billion, with non-GAAP EPS expected to be between $8.44 and $8.59.

Positive Outlook

  • Full-year 2024 sales are expected to be between $62.7 billion and $64.2 billion.
  • Non-GAAP EPS is expected to be between $8.44 and $8.59.
  • Merck's full-year non-GAAP effective income tax rate is expected to be between 14.5% and 15.5%.
  • The outlook for operating expenses reflects incremental R&D spending to advance the development of promising programs.
  • The company expects inflation-related price increases to offset the negative impact of the devaluation of the Argentine peso.

Challenges Ahead

  • Sales include a negative impact of foreign exchange of approximately 2%.
  • Non-GAAP EPS includes a negative impact of foreign exchange of approximately $0.25 per share.
  • Non-GAAP EPS includes a one-time charge of approximately $0.26 per share related to the Harpoon acquisition.
  • Outlook does not assume any additional significant potential business development transactions.
  • The devaluation of the Argentine peso is expected to negatively impact sales, although this is expected to be offset by inflation-related price increases.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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