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Merck & Co., Inc. (Merck) is a global healthcare company that operates through two main segments: Pharmaceutical and Animal Health. The company develops and sells human health pharmaceutical and vaccine products, primarily by prescription, for the treatment of human disorders, as well as veterinary pharmaceutical and vaccine products for livestock and companion animals . Merck's revenue growth is driven by strong performance in oncology, vaccines, and animal health, with significant contributions from products like Keytruda and Gardasil/Gardasil 9 .
- Pharmaceutical - Develops and sells human health pharmaceutical and vaccine products, primarily by prescription, for the treatment of human disorders. Key products include Keytruda and Gardasil/Gardasil 9, which are major contributors to revenue growth.
- Animal Health - Focuses on veterinary pharmaceutical and vaccine products, as well as health management solutions for livestock and companion animals. Includes digitally connected identification, traceability, and monitoring products.
- Livestock Products - Provides pharmaceutical and vaccine products for livestock health management.
- Companion Animal Products - Offers pharmaceutical and vaccine products for the health of companion animals.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Robert M. Davis ExecutiveBoard | Chairman, CEO, and President | Board Member at Duke Energy | Joined Merck in 2014. Previously CFO and EVP. Became CEO in 2021 and Chairman in 2022. Extensive management and financial expertise. | View Report → |
Betty D. Larson Executive | EVP and Chief Human Resources Officer | None | Joined Merck in 2024. Leads HR strategy and operations. Previously at GE HealthCare. | |
Caroline Litchfield Executive | EVP and Chief Financial Officer | None | CFO since 2021. Oversees financial strategy and operations. Previously held senior finance roles at Merck. | |
Chirfi Guindo Executive | Chief Marketing Officer | None | Joined Merck in 2022. Oversees global marketing strategy. Previously at Biogen. | |
Cristal Downing Executive | EVP and Chief Communications Officer | None | Joined Merck in 2021. Leads global communications and public affairs. | |
Dalton Smart Executive | SVP Finance – Global Controller | None | Joined Merck in 2009. Promoted to SVP in 2023. Oversees global financial reporting and compliance. | |
David M. Williams Executive | EVP, Chief Information and Digital Officer | None | Joined Merck in 2017. EVP since 2020. Leads IT and digital transformation. | |
Dean Li, M.D., Ph.D. Executive | EVP and President, Merck Research Labs | None | Leads Merck Research Labs. Joined Merck in 2017. EVP since 2021. Focuses on R&D and innovation. | |
Jennifer Zachary Executive | EVP and General Counsel | None | General Counsel since 2018. Oversees legal and compliance functions. | |
Johannes J. Oosthuizen Executive | SVP and President, U.S. Human Health | None | Leads U.S. Human Health since 2022. Previously led global oncology and MSD Japan. | |
Michael A. Klobuchar Executive | EVP and Chief Strategy Officer | None | Joined Merck in 2009. EVP since 2021. Leads corporate strategy and business development. | |
Richard R. DeLuca, Jr. Executive | EVP and President, Merck Animal Health | None | Leads Merck Animal Health since 2011. Oversees global animal health operations. | |
Sanat Chattopadhyay Executive | EVP and President, Merck Manufacturing | None | Leads global manufacturing and supply chain operations. Joined Merck in 2010. EVP since 2016. | |
Christine E. Seidman Board | Director | Investigator at Howard Hughes Medical Institute, Professor at Harvard | Director since 2020. Renowned geneticist and physician. Expertise in molecular medicine. | |
Inge G. Thulin Board | Director | None | Director since 2018. Former CEO of 3M. Expertise in innovation and governance. | |
Kathy J. Warden Board | Director | Chair, CEO, and President of Northrop Grumman | Director since 2020. Leads Northrop Grumman. Expertise in cybersecurity and technology. | |
Mary Ellen Coe Board | Director | Chief Business Officer at YouTube | Director since 2019. Leads global business operations at YouTube. Former President of Google Customer Solutions. | |
Pamela J. Craig Board | Director | Director at Progressive Insurance, Corning Incorporated | Director since 2015. Former CFO of Accenture. Extensive financial and governance expertise. | |
Patricia F. Russo Board | Director | Chair at Hewlett Packard Enterprise, Lead Director at General Motors, KKR | Director since 1995. Former CEO of Alcatel-Lucent. Extensive governance and operational expertise. | |
Paul B. Rothman Board | Director | Director at Labcorp | Director since 2015. Former CEO of Johns Hopkins Medicine. Expertise in healthcare and governance. | |
Risa J. Lavizzo-Mourey Board | Director | Director at GE HealthCare Technologies, Intel Corporation | Director since 2020. Former CEO of Robert Wood Johnson Foundation. Expertise in health policy and governance. | |
Stephen L. Mayo Board | Director | Board Member at Sarepta Therapeutics, Allogene Therapeutics | Director since 2021. Renowned scientist in protein design. Professor at Caltech. | |
Surendralal Karsanbhai Board | Director | CEO of Emerson Electric, Deputy Chair of Federal Reserve Bank of St. Louis | Director since 2025. CEO of Emerson Electric. Expertise in global business and operations. | |
Thomas H. Glocer Board | Independent Lead Director | Board Member at Morgan Stanley, Publicis Groupe | Director since 2007. Former CEO of Thomson Reuters. Extensive governance expertise. |
- "You've mentioned that GARDASIL shipments to your partner in China have decreased and that inventory at Zhifei remains above historical levels ; what specific strategies are you implementing to address the demand challenges in China, and how confident are you in achieving your goal of over $11 billion in GARDASIL sales by 2030 ?"
- "Operating expenses have increased significantly due to strategic investments and charges related to acquisitions like EyeBio and Curon ; can you provide more detail on how these investments will contribute to your long-term growth and justify the increased expenditure ?"
- "Given the decline in GARDASIL sales in China and the anticipated similar level of shipments in the fourth quarter , how do you plan to mitigate the impact on your overall revenue growth and what other markets are you focusing on to offset this shortfall ?"
- "You have stated that your Phase III pipeline has nearly tripled over the past three years to more than 20 unique assets ; can you elaborate on the timing of these assets reaching the market and how they will contribute to revenue in the face of upcoming patent expirations, especially for KEYTRUDA ?"
- "In terms of capital allocation, you mentioned you have capacity to do 'pretty much anything of any size' but are focusing on deals in the $1 billion to $15 billion range ; with the increasing competition in the obesity market, why are you limiting your deal size, and how will this approach enable you to remain competitive in high-growth therapeutic areas ?"
| Customer | Relationship | Segment | Details |
|---|---|---|---|
McKesson Corporation | Major drug wholesaler | All | 21% of total accounts receivable as of December 31, 2024 |
Cencora, Inc. | Major drug wholesaler | All | 21% of total accounts receivable as of December 31, 2024 |
Cardinal Health, Inc. | Major drug wholesaler | All | 13% of total accounts receivable as of December 31, 2024 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
MK‑1045 (from Curon Biopharmaceutical) | 2024 | Merck acquired MK‑1045 for an upfront payment of $700 million as an asset acquisition, with additional contingent milestone payments (up to $300 million each for developmental and regulatory milestones, plus third‑party contingent payments and tiered royalties). The acquisition supports the expansion of its pipeline targeting B‑cell malignancies and autoimmune diseases, with MK‑1045 currently in early‑stage trials. |
Eyebiotech Limited (EyeBio) | 2024 | Merck acquired EyeBio for $1.2 billion (plus $207 million in transaction costs) as an asset acquisition that includes potential future contingent payments (up to $200 million, $1.0 billion, and $500 million for various milestones). The acquisition enhances its ophthalmology portfolio, centering on the lead candidate Restoret (MK‑3000), currently in clinical development for diabetic macular edema and neovascular age‑related macular degeneration. |
Elanco Animal Health (Aqua Business) | 2024 | Merck acquired the aqua business for $1.3 billion in a business combination with no contingent payments, gaining an innovative portfolio including vaccines (e.g., Clynav) and anti‑parasitic treatments (e.g., Imvixa) for aquatic species, along with manufacturing and research facilities in Canada, Vietnam, and Chile. This bolsters its Animal Health portfolio in the aquaculture market. |
Harpoon Therapeutics, Inc. | 2024 | Merck acquired Harpoon Therapeutics for $765 million (with $56 million in transaction costs) as an asset acquisition, gaining its clinical‑stage lead candidate MK‑6070, a T‑cell engager for SCLC and neuroendocrine tumors, with no future contingent payments. The deal supports Merck's immuno‑oncology strategy, reflected in a recorded R&D charge and net asset recognition. |
Prometheus Biosciences, Inc. | 2023 | Merck acquired Prometheus for approximately $11.0 billion (including cash of $200 per share and share‑based awards) as an asset acquisition that strengthens its immunology capabilities through a precision medicine approach for immune‑mediated diseases, centered on lead candidate MK‑7240. The deal, completed in 2023, involved no future contingent payments and resulted in significant R&D expenses recorded. |
Imago BioSciences, Inc. | 2023 | Merck acquired Imago BioSciences for $1.35 billion (including share‑based equity settlements and $60 million in transaction costs) as an asset acquisition, primarily for its lead candidate bomedemstat (MK‑3543), which is in multiple Phase 2 clinical trials for various hematologic conditions. The acquisition recorded net assets of $219 million and a corresponding R&D charge, with no future contingent payments. |
Vence | 2022 | Merck acquired Vence, a pioneer in virtual fencing for rotational grazing and livestock management, to complement its broad Animal Health portfolio. While financial or operational specifics were not provided, the acquisition strategically enhances Merck's offerings in veterinary solutions. |
Recent press releases and 8-K filings for MRK.
- Sino Biopharm agreed to acquire the remaining 95.09% stake in LaNova Medicines for up to $951 million, making it an indirect wholly owned subsidiary; net payment estimated at $501 million after accounting for LaNova’s $450 million cash balance
- LaNova’s pipeline includes multiple clinical-stage assets and deals, notably LM-299 (PD-1×VEGF bispecific) licensed to Merck with $588 million upfront and potential $2.7 billion milestones, and LM-305 ADC licensed to AstraZeneca with a $55 million upfront in a deal worth up to $600 million
- The deal, announced after market hours on July 15, 2025, must close within 30 business days and follows Sino’s prior $20 million investment for a 4.91% stake in November 2024
- Announcement drove a 3.6% increase in Sino Biopharm’s share price by market close, marking one of the largest pharma transactions in the Asia-Pacific this year
- The BaxHTN Phase III trial enrolled 796 patients, randomized 1:1:1 to 1 mg, 2 mg of baxdrostat or placebo, and met all primary and secondary endpoints with significant reductions in mean seated systolic blood pressure.
- Baxdrostat was well tolerated with a favorable safety profile, highlighting its potential for uncontrolled or treatment-resistant hypertension.
- AstraZeneca acquired baxdrostat via its $500 million purchase of CinCor Pharma in February 2023, including a $10 per share contingent value right upon NDA submission in the US or Europe.
- The positive trial results boosted AstraZeneca’s stock by ~2% and will be presented at the European Society of Cardiology Congress in August 2025.
- Merck & Co. agreed to acquire Verona Pharma for $10 billion, aiming to diversify its portfolio ahead of Keytruda’s impending patent expiration.
- The anticipated patent cliff for Keytruda amounts to a $30 billion revenue shortfall for Merck.
- Verona’s lead COPD therapy, launched last year, generated $70 million in first-quarter sales.
- Peak sales for the COPD drug are estimated at $4 billion, with upside potential in additional lung disease indications.
- The FDA granted priority review for Merck’s supplemental BLA to update the Winrevair label, with an October 25, 2025 target decision date.
- The review follows the phase 3 ZENITH trial showing a 76% reduction in major morbidity and mortality vs placebo, prompting early trial termination.
- Winrevair (sotatercept-csrk) is approved in over 45 countries and was initially approved in 2024 to improve exercise capacity, WHO functional class, and reduce clinical worsening in PAH patients.
- Merck acquired Winrevair’s developer, Acceleron, for $11.5 billion; analysts assign an Outperform rating with a $100.39 average price target (implying 22.71% upside).
- The Phase 3 HYPERION trial of Winrevair (sotatercept-csrk) in newly diagnosed PAH patients met its primary endpoint, showing a statistically significant and clinically meaningful reduction in risk of clinical worsening versus placebo on background therapy.
- The study was stopped early for positive interim results, and all participants were offered enrollment in the SOTERIA open-label extension.
- Winrevair is already approved in over 45 countries and has demonstrated increased exercise capacity, improved WHO functional class, and reduced clinical worsening events.
- Results will be presented at a forthcoming medical meeting, with regulatory submissions planned to broaden global availability.
- Pipeline momentum: Merck provided updates on key asset developments, including two Phase III readouts for enlicitide oral PCSK9 with strong results and the FDA approval of clozrovimab RSV vaccine, setting the stage for diversified product launches and potential long-term revenue growth.
- Manufacturing investments: The company detailed its continued strategic shift to domestic production, having invested over $12B since 2018 and planning an additional $9B, highlighted by the groundbreaking of a new biologics facility in Delaware for Keytruda manufacturing.
- Policy and pricing dialogue: Merck emphasized ongoing constructive discussions with the U.S. administration on reformulating drug pricing models, notably around MFN strategies, to balance innovation economics and price reductions.
- The U.S. FDA approved Enflonsia, Merck’s monoclonal antibody, to prevent RSV lower respiratory tract disease in newborns and infants during their first RSV season.
- In clinical trials, a single 105 mg dose reduced RSV-associated lower respiratory infections by 61 % and hospitalizations by 84 %, with protection lasting up to five months.
- Enflonsia’s fixed-dose regimen (105 mg regardless of weight) simplifies dosing and is a first for infant RSV prevention options.
- It will be available before the fall RSV season and is positioned to compete with Sanofi and AstraZeneca’s Beyfortus, which experienced supply shortages last year.
- Merck’s investigational oral PCSK9 inhibitor enlicitide decanoate achieved significant LDL-C reductions in both the CORALreef HeFH and AddOn Phase 3 trials versus placebo and standard oral therapies.
- In the AddOn study, enlicitide outperformed ezetimibe, bempedoic acid, and their combination with superior LDL-C lowering.
- No clinically meaningful differences in adverse events were observed between enlicitide and comparators, supporting its favorable safety profile.
- The CORALreef program spans three Phase 3 trials with approximately 17,000 patients enrolled; full data will be presented at a future scientific congress.
- Following the announcement, Merck’s stock rose 1.6%, reflecting investor confidence and positioning Merck ahead of AstraZeneca in the race for an oral PCSK9 therapy.
- Keytruda remains central with its extensive use in oncology as Merck highlights 56 approved indications and over 3.4 million patients treated globally while driving new initiatives into earlier stage settings.
- Innovative clinical developments were discussed, including subcutaneous pembrolizumab and fixed-dose combination studies that demonstrated comparable pharmacokinetics and promising efficacy results in various cancer types.
- The company emphasized a robust pipeline with over 60 Phase III trials across 16 candidates and a non-risk adjusted commercial opportunity exceeding $25 billion, underscoring its strategic investments in ADCs and precision therapies.
- Merck is mitigating tariff and MFN policy risks through a strategic shift to U.S.-based manufacturing, including importing KEYTRUDA inventory for 2025 supply and investing over $12 billion in domestic production facilities, such as the new $1 billion Delaware biologics facility.
- Executives highlighted a focus on long-term pipeline and innovation, emphasizing no-regret moves to sustain breakthrough products and regulatory engagement despite evolving U.S. pricing and trade policies.
- The discussion underscored robust product development, notably the launch of subcutaneous KEYTRUDA and progress in ADC programs, which are positioned to drive future revenue growth.