Merck Reports Strong Fourth-Quarter and Full-Year 2024 Financial Results
Merck, known as MSD outside of the United States and Canada, has reported its financial results for the fourth quarter and full year of 2024, highlighting significant growth and key developments in its pharmaceutical and healthcare portfolios. Despite market volatility, the company remained resilient and continued to expand its position through strategic investments and research improvements.
Merck reported fourth-quarter revenues of $15.6 billion, a 7% rise over the same period in 2023, with a 9% growth rate excluding foreign exchange impacts. Full-year revenues totalled $64.2 billion, representing a 7% annual increase and a 10% growth rate on a constant currency basis.
Keytruda, one of Merck's main medications, continues to boost revenue with sales of $29.5 billion in 2024, up 18% year over year. Sales climbed by 22%, excluding currency variations. Merck's Winrevair, a therapy for pulmonary arterial hypertension (PAH), generated $419 million in sales, adding to the company's expanding cardiovascular portfolio. The Animal Health division also performed well, with sales increasing 4% to $5.9 billion, or 8% when adjusted for currency.
However, sales of Merck's HPV vaccination, Gardasil/Gardasil 9, fell 3% to $8.6 billion. On a constant currency basis, the decline was 2%, highlighting market issues in this sector.
Merck's fourth-quarter GAAP profits per share (EPS) were $1.48, while non-GAAP EPS was $1.72. Full-year GAAP EPS was $6.74, while non-GAAP EPS was $7.65. These results include a $0.23 per share charge related to business development transactions.
Merck expects global sales to range between $64.1 billion and $65.6 billion in 2025. Non-GAAP EPS is expected to range from $8.88 to $9.03, taking into account a one-time $0.09 per share charge related to an anticipated milestone payment to LaNova.
Merck's sustained pipeline advancements and regulatory milestones demonstrate the company's dedication to innovation across numerous therapeutic areas. In oncology, the company strengthened its position as a leader in immuno-oncology with positive results from a major Phase 3 trial of subcutaneous pembrolizumab plus berahyaluronidase alfa. This development improves the accessibility and ease of one of Merck's primary cancer medicines. Meanwhile, in the realm of vaccines and infectious illnesses, the FDA's acceptance of a Biologics License Application for clesrovimab is a significant step towards protecting children from RSV sickness and demonstrates Merck's commitment to preventive healthcare solutions.
The company has also made a lot of progress in heart disease treatment. For example, the Phase 3 ZENITH study of WINREVAIR in adults with pulmonary arterial hypertension (PAH) showed that it worked well. This development boosts Merck's position in treating critical cardiovascular problems and is consistent with its plan to diversify beyond oncology. Along with these regulatory accomplishments, Merck proactively strengthened its pipeline through exclusive license arrangements. The acquisition of MK-2010, an investigational anti-PD-1/VEGF bispecific antibody from LaNova, broadens its immunotherapy portfolio, while MK-4082, an oral GLP-1 receptor agonist from Hansoh, expands its footprint in metabolic diseases, an area of growing global healthcare demand.
Merck strengthened its market presence by obtaining regulatory approval in China for GARDASIL's use in men, broadening the vaccine's accessibility and highlighting its global influence in HPV prevention. These results show Merck's full strategy for long-term growth and the development of new medicines in key areas of healthcare. This strategy includes both internal innovation and partnerships with other companies.
Merck CEO Robert M. Davis underlined the company's ongoing innovation and commercial success. "In 2024, we achieved substantial growth, reflecting demand for our innovative portfolio, which includes Keytruda, the successful launch of WINREVAIR, and the robust performance of our Animal Health division. We are developing critical clinical programs and expanding our pipeline through strategic commercial growth."
Merck remains well-positioned for long-term growth, thanks to its diverse portfolio and anticipated clinical breakthroughs. Analysts anticipate ongoing solid performance, fuelled by oncology, cardiovascular therapies, and novel commercial tactics.
Merck's solid financial results for 2024 demonstrate its resiliency and dedication to innovation. The company's robust pipeline, significant acquisitions, and ongoing global development position it for long-term growth in 2025 and beyond. Investors and industry analysts will closely follow Merck's regulatory milestones and product performance in the coming year.