EX-99.2 3 tm2420272d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2024									2023																		% Change
	1Q			2Q			June YTD			1Q			2Q			June YTD			3Q			4Q			Full Year			2Q			June YTD
Sales	$	15,775		$	16,112		$	31,887		$	14,487		$	15,035		$	29,522		$	15,962		$	14,630		$	60,115			7	%		8	%

Costs, Expenses and Other
Cost of sales		3,540			3,745			7,285			3,926			4,024			7,951			4,264			3,911			16,126			-7	%		-8	%
Selling, general and administrative		2,483			2,739			5,221			2,479			2,702			5,182			2,519			2,804			10,504			1	%		1	%
Research and development		3,992			3,500			7,492			4,276			13,321			17,597			3,307			9,628			30,531			-74	%		-57	%
Restructuring costs		123			80			202			67			151			218			126			255			599			-47	%		-7	%
Other (income) expense, net		(33	)		42			12			89			172			259			126			78			466			-76	%		-95	%
Income (Loss) Before Taxes		5,670			6,006			11,675			3,650			(5,335	)		(1,685	)		5,620			(2,046	)		1,889			*			*
Income Tax Provision (Benefit)		903			545			1,447			825			637			1,462			870			(821	)		1,512
Net Income (Loss)		4,767			5,461			10,228			2,825			(5,972	)		(3,147	)		4,750			(1,225	)		377			*			*
Less: Net Income Attributable to Noncontrolling Interests		5			6			11			4			3			7			5			1			12
Net Income (Loss) Attributable to Merck & Co., Inc.	$	4,762		$	5,455		$	10,217		$	2,821		$	(5,975	)	$	(3,154	)	$	4,745		$	(1,226	)	$	365			*			*

Earnings (Loss) per Common Share Assuming Dilution ⁽¹⁾	$	1.87		$	2.14		$	4.02		$	1.11		$	(2.35	)	$	(1.24	)	$	1.86		$	(0.48	)	$	0.14			*			*

Average Shares Outstanding Assuming Dilution ⁽¹⁾		2,544			2,544			2,544			2,551			2,539			2,539			2,546			2,533			2,547
Tax Rate		15.9	%		9.1	%		12.4	%		22.6	%		-11.9	%		-86.8	%		15.5	%		40.1	%		80.0	%

* 100% or greater

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

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

MERCK & CO., INC.

THREE AND SIX MONTHS ENDED JUNE 30, 2023 GAAP TO NON-GAAP RECONCILIATION

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

	GAAP			Acquisition and Divestiture-Related Costs ⁽¹⁾			Restructuring Costs ⁽²⁾			(Income) Loss from Investments in Equity Securities			Certain Other Items			Adjustment Subtotal			Non-GAAP
Second Quarter
Cost of sales	$	4,024			467			32									499		$	3,525
Selling, general and administrative		2,702			25			52									77			2,625
Research and development		13,321			9			1									10			13,311
Restructuring costs		151						151									151			-
Other (income) expense, net		172			(3	)					194						191			(19	)
Loss Before Taxes		(5,335	)		(498	)		(236	)		(194	)					(928	)		(4,407	)
Income Tax Provision (Benefit)		637			(91	)⁽⁴⁾		(38	)⁽⁴⁾		(44	)⁽⁴⁾					(173	)		810
Net Loss		(5,972	)		(407	)		(198	)		(150	)					(755	)		(5,217	)
Net Loss Attributable to Merck & Co., Inc.		(5,975	)		(407	)		(198	)		(150	)					(755	)		(5,220	)
Loss per Common Share Assuming Dilution⁽⁵⁾	$	(2.35	)		(0.16	)		(0.07	)		(0.06	)					(0.29	)	$	(2.06	)

Tax Rate		-11.9	%																	-18.4	%

June YTD
Cost of sales	$	7,951			1,012			61									1,073		$	6,878
Selling, general and administrative		5,182			45			53									98			5,084
Research and development		17,597			19			1									20			17,577
Restructuring costs		218						218									218			-
Other (income) expense, net		259			12						(235	)		573	⁽³⁾		350			(91	)
(Loss) Income Before Taxes		(1,685	)		(1,088	)		(333	)		235			(573	)		(1,759	)		74
Income Tax Provision (Benefit)		1,462			(196	)⁽⁴⁾		(56	)⁽⁴⁾		51	⁽⁴⁾		(60	)⁽⁴⁾		(261	)		1,723
Net Loss		(3,147	)		(892	)		(277	)		184			(513	)		(1,498	)		(1,649	)
Net Loss Attributable to Merck & Co., Inc.		(3,154	)		(892	)		(277	)		184			(513	)		(1,498	)		(1,656	)
Loss per Common Share Assuming Dilution⁽⁵⁾	$	(1.24	)		(0.35	)		(0.11	)		0.07			(0.20	)		(0.59	)	$	(0.65	)

Tax Rate		-86.8	%																	2,328.4	%

Only the line items that are affected by non-GAAP adjustments are shown.

Merck is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

⁽¹⁾Amounts included in cost of sales primarily reflect expenses for the amortization of intangible assets. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. Amounts included in research and development expenses primarily reflect expenses for the amortization of intangible assets. Amounts included in other (income) expense, net, for the six-month period primarily reflect a $37 million loss on the sale of a business and an increase in the estimated fair value measurement of liabilities for contingent consideration related to the prior termination of the Sanofi-Pasteur MSD joint venture, partially offset by royalty income.

⁽²⁾Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company's formal restructuring programs.

⁽³⁾ Reflects a charge related to settlements with certain plaintiffs in the Zetia antitrust litigation.

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

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

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

SECOND QUARTER 2024

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3a

	Global						U.S.						International
	2Q 2024		2Q 2023		% Change		2Q 2024		2Q 2023		% Change		2Q 2024		2Q 2023		% Change
TOTAL SALES ⁽¹⁾	$	16,112	$	15,035		7	$	7,876	$	7,018		12	$	8,236	$	8,018		3
PHARMACEUTICAL		14,408		13,457		7		7,399		6,570		13		7,009		6,887		2
Oncology
Keytruda		7,270		6,271		16		4,412		3,863		14		2,858		2,408		19
Alliance Revenue – Lynparza ⁽²⁾		317		310		2		153		144		6		165		166		-1
Alliance Revenue – Lenvima ⁽²⁾		249		242		3		177		163		8		73		79		-7
Welireg		126		50		150		116		49		138		10		2		*
Alliance Revenue – Reblozyl ⁽³⁾		90		47		92		75		36		110		15		11		36
Vaccines ⁽⁴⁾
Gardasil / Gardasil 9		2,478		2,458		1		536		464		16		1,941		1,994		-3
ProQuad / M-M-R II/Varivax		617		582		6		490		447		10		127		135		-6
Vaxneuvance		189		168		13		99		147		-33		90		20		*
RotaTeq		163		131		25		107		93		15		56		37		50
Pneumovax 23		59		92		-36		11		23		-54		48		69		-30
Hospital Acute Care
Bridion		455		502		-9		351		299		17		104		203		-49
Prevymis		188		143		31		90		61		47		98		82		19
Dificid		92		76		20		79		68		16		12		8		56
Zerbaxa		62		54		14		33		30		12		28		24		17
Noxafil		45		55		-20				11		N/M		44		45		-1
Cardiovascular
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		106		68		56		98		70		41		8		-2		*
Adempas ⁽⁶⁾		72		65		11								72		65		11
Winrevair		70				-		70				-
Virology
Lagevrio		110		203		-46		15		2		*		95		201		-53
Isentress/Isentress HD		89		136		-35		43		56		-24		46		80		-42
Delstrigo		60		50		19		14		13		13		45		37		21
Pifeltro		39		38		3		27		27		-1		12		11		15
Neuroscience
Belsomra		53		63		-16		19		21		-12		34		42		-18
Immunology
Simponi		172		180		-4								172		180		-4
Remicade		35		48		-27								35		48		-27
Diabetes ⁽⁷⁾
Januvia		405		511		-21		177		243		-27		227		267		-15
Janumet		224		354		-37		17		82		-80		208		272		-24
Other Pharmaceutical ⁽⁸⁾		573		560		2		190		158		20		386		403		-4
ANIMAL HEALTH		1,482		1,456		2		455		475		-4		1,027		982		5
Livestock		837		807		4		168		165		2		669		643		4
Companion Animal		645		649		-1		287		310		-7		358		339		6
Other Revenues ⁽⁹⁾		222		122		82		22		-27		-181		200		149		34

*200% or greater

N/M - Not Meaningful

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown.

⁽²⁾ Alliance Revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Total Vaccines sales were $3,656 million in the second quarter of 2024 and $3,557 million in the second quarter of 2023.

⁽⁵⁾ Alliance Revenue represents Merck's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁶⁾ Net product sales in Merck's marketing territories.

⁽⁷⁾ Total Diabetes sales were $715 million in the second quarter of 2024, and $951 million in the second quarter of 2023.

⁽⁸⁾ Includes Pharmaceutical products not individually shown above.

⁽⁹⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of upfront and milestone payments for out-licensed products were $15 million in the second quarter of 2024 and $3 million in the second quarter of 2023.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

JUNE YEAR-TO-DATE 2024

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

	Global						U.S.						International
	June YTD 2024		June YTD 2023		% Change		June YTD 2024		June YTD 2023		% Change		June YTD 2024		June YTD 2023		% Change
TOTAL SALES ⁽¹⁾	$	31,887	$	29,522		8	$	15,354	$	13,676		12	$	16,533	$	15,846		4
PHARMACEUTICAL		28,415		26,179		9		14,336		12,688		13		14,079		13,491		4
Oncology
Keytruda		14,217		12,065		18		8,531		7,348		16		5,686		4,718		21
Alliance Revenue – Lynparza ⁽²⁾		609		585		4		288		286		1		321		299		7
Alliance Revenue – Lenvima ⁽²⁾		504		474		6		349		316		10		155		158		-2
Welireg		211		92		128		194		90		116		17		3		*
Alliance Revenue – Reblozyl ⁽³⁾		161		90		80		133		66		102		28		24		17
Vaccines ⁽⁴⁾
Gardasil/Gardasil 9		4,727		4,430		7		1,024		880		16		3,702		3,550		4
ProQuad/M-M-R II/Varivax		1,187		1,109		7		928		868		7		259		242		7
Vaxneuvance		408		274		49		260		241		8		148		33		*
RotaTeq		379		428		-11		257		273		-6		123		155		-21
Pneumovax 23		120		188		-36		17		63		-73		103		125		-17
Hospital Acute Care
Bridion		895		989		-9		680		576		18		215		413		-48
Prevymis		362		273		33		165		116		42		197		157		26
Dificid		165		141		16		147		130		13		17		11		54
Zerbaxa		118		104		13		67		57		17		51		47		9
Noxafil		101		116		-13		8		25		-67		92		91		2
Cardiovascular
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		203		167		22		188		153		23		16		14		11
Adempas ⁽⁶⁾		142		125		14								142		125		14
Winrevair		70				-		70				-
Virology
Lagevrio		460		595		-23		60				-		400		595		-33
Isentress/Isentress HD		200		259		-23		93		108		-14		107		151		-29
Delstrigo		116		94		23		26		24		11		89		70		27
Pifeltro		81		72		13		56		51		9		25		21		20
Neuroscience
Belsomra		99		119		-17		33		37		-10		66		82		-19
Immunology
Simponi		356		359		-1								356		359		-1
Remicade		74		99		-25								74		99		-25
Diabetes ⁽⁷⁾
Januvia		824		1,062		-22		361		514		-30		463		548		-15
Janumet		475		683		-30		55		138		-60		420		544		-23
Other Pharmaceutical ⁽⁸⁾		1,151		1,187		-3		346		328		5		807		857		-6
ANIMAL HEALTH		2,993		2,947		2		929		956		-3		2,064		1,991		4
Livestock		1,686		1,656		2		334		338		-1		1,352		1,318		3
Companion Animal		1,307		1,291		1		595		618		-4		712		673		6
Other Revenues ⁽⁹⁾		479		396		21		89		32		178		390		364		7

*200% or greater

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown.

⁽²⁾ Alliance Revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Total Vaccines sales were $7,080 million and $6,690 million on a global basis for June YTD 2024 and 2023, respectively.

⁽⁵⁾ Alliance Revenue represents Merck's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁶⁾ Net product sales in Merck's marketing territories.

⁽⁷⁾ Total Diabetes sales were $1,461 million and $1,901 million on a global basis for June YTD 2024 and 2023, respectively.

⁽⁸⁾ Includes Pharmaceutical products not individually shown above.

⁽⁹⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of upfront and milestone payments for out-licensed products were $76 million and $54 million on a global basis for June YTD 2024 and 2023, respectively.

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

	2024									2023																		% Change
	1Q			2Q			June YTD			1Q			2Q			June YTD			3Q			4Q			Full Year			2Q		June YTD
TOTAL PHARMACEUTICAL	$	14,006		$	14,408		$	28,415		$	12,721		$	13,457		$	26,179		$	14,263		$	13,141		$	53,583			7		9

United States		6,936			7,399			14,336			6,117			6,570			12,688			7,153			6,698			26,539			13		13
% Pharmaceutical Sales		49.5	%		51.4	%		50.5	%		48.1	%		48.8	%		48.5	%		50.1	%		51.0	%		49.5	%
Europe ⁽¹⁾		2,555			2,572			5,128			2,326			2,401			4,727			2,497			2,491			9,715			7		8
% Pharmaceutical Sales		18.2	%		17.9	%		18.0	%		18.3	%		17.8	%		18.1	%		17.5	%		19.0	%		18.1	%
China		1,744			1,790			3,534			1,694			1,887			3,581			1,674			1,456			6,710			-5		-1
% Pharmaceutical Sales		12.5	%		12.4	%		12.4	%		13.3	%		14.0	%		13.7	%		11.7	%		11.1	%		12.5	%
Japan		802			664			1,466			737			652			1,390			1,062			629			3,081			2		6
% Pharmaceutical Sales		5.7	%		4.6	%		5.2	%		5.8	%		4.8	%		5.3	%		7.4	%		4.8	%		5.7	%
Latin America		601			661			1,262			470			566			1,036			696			596			2,328			17		22
% Pharmaceutical Sales		4.3	%		4.6	%		4.4	%		3.7	%		4.2	%		4.0	%		4.9	%		4.5	%		4.3	%
Asia Pacific (other than China and Japan)		580			595			1,175			703			705			1,409			636			616			2,661			-16		-17
% Pharmaceutical Sales		4.1	%		4.1	%		4.1	%		5.5	%		5.2	%		5.4	%		4.5	%		4.7	%		5.0	%
Eastern Europe/Middle East/Africa		395			353			747			381			370			751			301			299			1,351			-5		-1
% Pharmaceutical Sales		2.8	%		2.4	%		2.6	%		3.0	%		2.7	%		2.9	%		2.1	%		2.3	%		2.5	%
Canada		138			143			281			141			127			268			133			138			540			12		5
% Pharmaceutical Sales		1.0	%		1.0	%		1.0	%		1.1	%		0.9	%		1.0	%		0.9	%		1.1	%		1.0	%
Other		255			231			486			152			179			329			111			218			658			29		48
% Pharmaceutical Sales		1.9	%		1.6	%		1.8	%		1.2	%		1.6	%		1.1	%		0.9	%		1.5	%		1.4	%

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

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

MERCK & CO., INC.

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

OTHER (INCOME) EXPENSE, NET

	2Q24			2Q23			June YTD 2024			June YTD 2023
Interest income	$	(69	)	$	(109	)	$	(141	)	$	(221	)
Interest expense		310			277			613			519
Exchange losses		60			62			144			122
(Income) loss from investments in equity securities, net ⁽¹⁾		(56	)		175			(200	)		(274	)
Net periodic defined benefit plan (credit) cost other than service cost		(159	)		(111	)		(319	)		(226	)
Other, net		(44	)		(122	)		(85	)		339
Total	$	42		$	172		$	12		$	259

⁽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.