Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - Merck & Co., Inc. | a19-3795_18ka.htm |
MERCK & CO., INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 1a
|
|
|
2018 |
|
2017 |
|
% Change |
| ||||||||||||||||||||||||||||
|
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
4Q |
|
Full Year |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Sales |
|
$ |
10,037 |
|
$ |
10,465 |
|
$ |
10,794 |
|
$ |
10,998 |
|
$ |
42,294 |
|
$ |
9,434 |
|
$ |
9,930 |
|
$ |
10,325 |
|
$ |
10,433 |
|
$ |
40,122 |
|
5 |
% |
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Costs, Expenses and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Cost of sales |
|
3,184 |
|
3,417 |
|
3,619 |
|
3,289 |
|
13,509 |
|
3,049 |
|
3,116 |
|
3,307 |
|
3,440 |
|
12,912 |
|
-4 |
% |
5 |
% | ||||||||||
|
Selling, general and administrative |
|
2,508 |
|
2,508 |
|
2,443 |
|
2,643 |
|
10,102 |
|
2,472 |
|
2,500 |
|
2,459 |
|
2,643 |
|
10,074 |
|
— |
|
— |
| ||||||||||
|
Research and development |
|
3,196 |
|
2,274 |
|
2,068 |
|
2,214 |
|
9,752 |
|
1,830 |
|
1,782 |
|
4,413 |
|
2,314 |
|
10,339 |
|
-4 |
% |
-6 |
% | ||||||||||
|
Restructuring costs |
|
95 |
|
228 |
|
171 |
|
138 |
|
632 |
|
151 |
|
166 |
|
153 |
|
306 |
|
776 |
|
-55 |
% |
-19 |
% | ||||||||||
|
Other (income) expense, net |
|
(291 |
) |
(48 |
) |
(172 |
) |
110 |
|
(402 |
) |
(71 |
) |
(73 |
) |
(207 |
) |
(149 |
) |
(500 |
) |
* |
|
-20 |
% | ||||||||||
|
Income Before Taxes |
|
1,345 |
|
2,086 |
|
2,665 |
|
2,604 |
|
8,701 |
|
2,003 |
|
2,439 |
|
200 |
|
1,879 |
|
6,521 |
|
39 |
% |
33 |
% | ||||||||||
|
Taxes on Income |
|
604 |
|
370 |
|
707 |
|
826 |
|
2,508 |
|
447 |
|
488 |
|
251 |
|
2,917 |
|
4,103 |
|
|
|
|
| ||||||||||
|
Net Income (Loss) |
|
741 |
|
1,716 |
|
1,958 |
|
1,778 |
|
6,193 |
|
1,556 |
|
1,951 |
|
(51 |
) |
(1,038 |
) |
2,418 |
|
* |
|
* |
| ||||||||||
|
Less: Net Income (Loss) Attributable to Noncontrolling Interests |
|
5 |
|
9 |
|
8 |
|
(49 |
) |
(27 |
) |
5 |
|
5 |
|
5 |
|
8 |
|
24 |
|
|
|
|
| ||||||||||
|
Net Income (Loss) Attributable to Merck & Co., Inc. |
|
$ |
736 |
|
$ |
1,707 |
|
$ |
1,950 |
|
$ |
1,827 |
|
$ |
6,220 |
|
$ |
1,551 |
|
$ |
1,946 |
|
$ |
(56 |
) |
$ |
(1,046 |
) |
$ |
2,394 |
|
* |
|
* |
|
|
Earnings (Loss) per Common Share Assuming Dilution (1) |
|
$ |
0.27 |
|
$ |
0.63 |
|
$ |
0.73 |
|
$ |
0.69 |
|
$ |
2.32 |
|
$ |
0.56 |
|
$ |
0.71 |
|
$ |
(0.02 |
) |
$ |
(0.39 |
) |
$ |
0.87 |
|
* |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Average Shares Outstanding Assuming Dilution (1) |
|
2,710 |
|
2,696 |
|
2,678 |
|
2,634 |
|
2,679 |
|
2,766 |
|
2,752 |
|
2,727 |
|
2,715 |
|
2,748 |
|
|
|
|
| ||||||||||
|
Tax Rate |
|
44.9 |
% |
17.8 |
% |
26.5 |
% |
31.7 |
% |
28.8 |
% |
22.3 |
% |
20.0 |
% |
125.5 |
% |
155.2 |
% |
62.9 |
% |
|
|
|
| ||||||||||
* 100% or greater
Sum of quarterly amounts may not equal year-to-date amounts due to rounding.
On January 1, 2018, the company adopted a new accounting standard related to defined benefit plans that requires the components of net benefit cost/credit (other than service costs) be presented in the statement of income outside of operating expenses. Upon adoption, net periodic benefit cost/credit other than service cost was reclassified to Other (income) expense, net from the previous classifications within Cost of sales, Selling, general and administrative expenses and Research and development costs. Previously reported amounts have been reclassified to conform to the new presentation. There was no impact to net income as a result of adopting the new standard.
(1) No potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive.
MERCK & CO., INC.
GAAP TO NON-GAAP RECONCILIATION
FOURTH QUARTER 2017
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2c
|
|
|
GAAP |
|
Acquisition and |
|
Restructuring |
|
Certain Other |
|
Adjustment |
|
Non-GAAP |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cost of sales |
|
$ |
3,440 |
|
737 |
|
17 |
|
|
|
754 |
|
$ |
2,686 |
|
|
Selling, general and administrative |
|
2,643 |
|
4 |
|
(1 |
) |
|
|
3 |
|
2,640 |
| ||
|
Research and development |
|
2,314 |
|
221 |
|
|
|
|
|
221 |
|
2,093 |
| ||
|
Restructuring costs |
|
306 |
|
|
|
306 |
|
|
|
306 |
|
— |
| ||
|
Other (income) expense, net |
|
(149 |
) |
1 |
|
|
|
(7 |
) |
(6 |
) |
(143 |
) | ||
|
Income Before Taxes |
|
1,879 |
|
(963 |
) |
(322 |
) |
7 |
|
(1,278 |
) |
3,157 |
| ||
|
Income Tax Provision (Benefit) |
|
2,917 |
|
(140 |
)(3) |
(50 |
)(3) |
2,623 |
(4) |
2,433 |
|
484 |
| ||
|
Net (Loss) Income |
|
(1,038 |
) |
(823 |
) |
(272 |
) |
(2,616 |
) |
(3,711 |
) |
2,673 |
| ||
|
Net (Loss) Income Attributable to Merck & Co., Inc. |
|
(1,046 |
) |
(823 |
) |
(272 |
) |
(2,616 |
) |
(3,711 |
) |
2,665 |
| ||
|
(Loss) Earnings per Common Share Assuming Dilution |
|
$ |
(0.39 |
) |
(0.31 |
) |
(0.10 |
) |
(0.96 |
) |
(1.37 |
) |
$ |
0.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Tax Rate |
|
155.2 |
% |
|
|
|
|
|
|
|
|
15.3 |
% | ||
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 this information enhances investors’ understanding of the company’s results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information 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 recognized as a result of business acquisitions. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions and divestitures. Amounts included in research and development expenses reflect $230 million of in-process research and development (IPR&D) impairment charges, partially offset by a reduction of expenses related to a decrease in the estimated fair value measurement of liabilities for contingent consideration. Amounts included in other (income) expense, net reflect goodwill and intangible asset impairment charges related to a business in the Healthcare Services segment, largely offset by royalty income related to the termination of the Sanofi-Pasteur MSD joint venture.
(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) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.
(4) Includes the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments, as well as a $2.6 billion provisional charge related to the enactment of U.S. tax legislation.
MERCK & CO., INC.
GAAP TO NON-GAAP RECONCILIATION
FULL YEAR 2017
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Table 2d
|
|
|
GAAP |
|
Acquisition and |
|
Restructuring |
|
Certain Other |
|
Adjustment |
|
Non-GAAP |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cost of sales |
|
$ |
12,912 |
|
3,187 |
|
138 |
|
|
|
3,325 |
|
$ |
9,587 |
|
|
Selling, general and administrative |
|
10,074 |
|
44 |
|
2 |
|
|
|
46 |
|
10,028 |
| ||
|
Research and development |
|
10,339 |
|
510 |
|
11 |
|
2,350 |
|
2,871 |
|
7,468 |
| ||
|
Restructuring costs |
|
776 |
|
|
|
776 |
|
|
|
776 |
|
— |
| ||
|
Other (income) expense, net |
|
(500 |
) |
19 |
|
|
|
(16 |
) |
3 |
|
(503 |
) | ||
|
Income Before Taxes |
|
6,521 |
|
(3,760 |
) |
(927 |
) |
(2,334 |
) |
(7,021 |
) |
13,542 |
| ||
|
Income Tax Provision (Benefit) |
|
4,103 |
|
(604 |
)(4) |
(182 |
)(4) |
2,304 |
(5) |
1,518 |
|
2,585 |
| ||
|
Net Income |
|
2,418 |
|
(3,156 |
) |
(745 |
) |
(4,638 |
) |
(8,539 |
) |
10,957 |
| ||
|
Net Income Attributable to Merck & Co., Inc. |
|
2,394 |
|
(3,156 |
) |
(745 |
) |
(4,638 |
) |
(8,539 |
) |
10,933 |
| ||
|
Earnings per Common Share Assuming Dilution |
|
$ |
0.87 |
|
(1.15 |
) |
(0.27 |
) |
(1.69 |
) |
(3.11 |
) |
$ |
3.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Tax Rate |
|
62.9 |
% |
|
|
|
|
|
|
|
|
19.1 |
% | ||
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 this information enhances investors’ understanding of the company’s results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information 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 $3.1 billion of expenses for the amortization of intangible assets recognized as a result of business acquisitions, as well as intangible asset impairment charges of $134 million. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions and divestitures. Amounts included in research and development expenses reflect $483 million of in-process research and development (IPR&D) impairment charges, as well as $27 million of expenses related to an increase in the estimated fair value measurement of liabilities for contingent consideration. Amounts included in other (income) expense, net reflect goodwill and intangible asset impairment charges related to a business in the Healthcare Services segment, as well as expenses related to changes in the estimated fair value measurement of liabilities for contingent consideration, partially offset by royalty income related to the termination of the Sanofi-Pasteur MSD joint venture.
(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) Amount included in research and development expenses represents a charge related to the formation of a collaboration with AstraZeneca PLC.
(4) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.
(5) Includes the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. Also includes a $2.6 billion provisional charge related to the enactment of U.S. tax legislation, as well as a $234 million net tax benefit related to the settlement of certain federal income tax issues and an $88 million tax benefit related to the settlement of a state income tax issue.
MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
FOURTH QUARTER 2018
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3a
|
|
|
Global |
|
U.S. |
|
International |
| ||||||||||||||||||
|
|
|
4Q 2018 |
|
4Q 2017 |
|
% Change |
|
4Q 2018 |
|
4Q 2017 |
|
% Change |
|
4Q 2018 |
|
4Q 2017 |
|
% Change |
| ||||||
|
TOTAL SALES (1) |
|
$ |
10,998 |
|
$ |
10,433 |
|
5 |
|
$ |
4,787 |
|
$ |
4,328 |
|
11 |
|
$ |
6,211 |
|
$ |
6,105 |
|
2 |
|
|
PHARMACEUTICAL |
|
9,830 |
|
9,290 |
|
6 |
|
4,402 |
|
3,967 |
|
11 |
|
5,427 |
|
5,323 |
|
2 |
| ||||||
|
Oncology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Keytruda |
|
2,151 |
|
1,297 |
|
66 |
|
1,243 |
|
787 |
|
58 |
|
907 |
|
510 |
|
78 |
| ||||||
|
Emend |
|
126 |
|
143 |
|
-12 |
|
73 |
|
85 |
|
-14 |
|
53 |
|
58 |
|
-7 |
| ||||||
|
Temodar |
|
56 |
|
73 |
|
-24 |
|
3 |
|
12 |
|
-72 |
|
52 |
|
62 |
|
-15 |
| ||||||
|
Alliance Revenue - Lenvima |
|
71 |
|
|
|
|
|
46 |
|
|
|
|
|
25 |
|
|
|
|
| ||||||
|
Alliance Revenue - Lynparza |
|
62 |
|
16 |
|
* |
|
39 |
|
|
|
|
|
24 |
|
16 |
|
51 |
| ||||||
|
Vaccines (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Gardasil / Gardasil 9 |
|
835 |
|
633 |
|
32 |
|
450 |
|
370 |
|
22 |
|
384 |
|
262 |
|
47 |
| ||||||
|
ProQuad / M-M-R II / Varivax |
|
455 |
|
403 |
|
13 |
|
333 |
|
316 |
|
5 |
|
122 |
|
88 |
|
39 |
| ||||||
|
Pneumovax 23 |
|
322 |
|
263 |
|
22 |
|
232 |
|
189 |
|
23 |
|
89 |
|
74 |
|
21 |
| ||||||
|
RotaTeq |
|
188 |
|
160 |
|
17 |
|
112 |
|
104 |
|
7 |
|
76 |
|
56 |
|
35 |
| ||||||
|
Zostavax |
|
54 |
|
121 |
|
-55 |
|
6 |
|
66 |
|
-90 |
|
48 |
|
55 |
|
-13 |
| ||||||
|
Hospital Acute Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Bridion |
|
256 |
|
209 |
|
23 |
|
114 |
|
76 |
|
49 |
|
142 |
|
132 |
|
7 |
| ||||||
|
Noxafil |
|
191 |
|
179 |
|
7 |
|
96 |
|
89 |
|
8 |
|
95 |
|
90 |
|
6 |
| ||||||
|
Cubicin |
|
80 |
|
92 |
|
-13 |
|
41 |
|
40 |
|
1 |
|
39 |
|
52 |
|
-25 |
| ||||||
|
Cancidas |
|
69 |
|
95 |
|
-27 |
|
2 |
|
3 |
|
-33 |
|
67 |
|
92 |
|
-27 |
| ||||||
|
Invanz |
|
59 |
|
157 |
|
-62 |
|
1 |
|
93 |
|
-99 |
|
58 |
|
64 |
|
-8 |
| ||||||
|
Primaxin |
|
53 |
|
74 |
|
-28 |
|
1 |
|
3 |
|
-75 |
|
52 |
|
71 |
|
-26 |
| ||||||
|
Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Simponi |
|
220 |
|
217 |
|
1 |
|
|
|
|
|
|
|
220 |
|
217 |
|
1 |
| ||||||
|
Remicade |
|
123 |
|
186 |
|
-34 |
|
|
|
|
|
|
|
123 |
|
186 |
|
- 34 |
| ||||||
|
Neuroscience |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Belsomra |
|
69 |
|
60 |
|
16 |
|
20 |
|
26 |
|
-23 |
|
49 |
|
33 |
|
47 |
| ||||||
|
Virology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Isentress / Isentress HD |
|
280 |
|
308 |
|
-9 |
|
130 |
|
143 |
|
-9 |
|
150 |
|
165 |
|
-9 |
| ||||||
|
Zepatier |
|
108 |
|
296 |
|
-64 |
|
|
|
88 |
|
-100 |
|
108 |
|
208 |
|
-48 |
| ||||||
|
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Zetia |
|
162 |
|
323 |
|
-50 |
|
11 |
|
54 |
|
-80 |
|
151 |
|
269 |
|
-44 |
| ||||||
|
Vytorin |
|
83 |
|
186 |
|
-55 |
|
(1 |
) |
11 |
|
-109 |
|
84 |
|
176 |
|
-52 |
| ||||||
|
Atozet |
|
89 |
|
54 |
|
64 |
|
|
|
|
|
|
|
89 |
|
54 |
|
64 |
| ||||||
|
Adempas |
|
91 |
|
79 |
|
16 |
|
|
|
|
|
|
|
91 |
|
79 |
|
16 |
| ||||||
|
Diabetes (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Januvia |
|
930 |
|
938 |
|
-1 |
|
503 |
|
508 |
|
-1 |
|
427 |
|
430 |
|
-1 |
| ||||||
|
Janumet |
|
535 |
|
586 |
|
-9 |
|
185 |
|
223 |
|
-17 |
|
350 |
|
363 |
|
-4 |
| ||||||
|
Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NuvaRing |
|
216 |
|
188 |
|
15 |
|
171 |
|
139 |
|
23 |
|
45 |
|
49 |
|
-8 |
| ||||||
|
Implanon / Nexplanon |
|
169 |
|
183 |
|
-8 |
|
120 |
|
129 |
|
-7 |
|
48 |
|
54 |
|
-11 |
| ||||||
|
Diversified Brands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Singulair |
|
187 |
|
182 |
|
3 |
|
4 |
|
12 |
|
-65 |
|
183 |
|
170 |
|
8 |
| ||||||
|
Cozaar / Hyzaar |
|
105 |
|
125 |
|
-16 |
|
4 |
|
3 |
|
24 |
|
101 |
|
121 |
|
-17 |
| ||||||
|
Nasonex |
|
102 |
|
120 |
|
-15 |
|
15 |
|
37 |
|
-60 |
|
87 |
|
83 |
|
5 |
| ||||||
|
Arcoxia |
|
86 |
|
91 |
|
-5 |
|
|
|
|
|
|
|
86 |
|
91 |
|
- 5 |
| ||||||
|
Follistim AQ |
|
70 |
|
66 |
|
6 |
|
33 |
|
19 |
|
72 |
|
37 |
|
47 |
|
-20 |
| ||||||
|
Dulera |
|
65 |
|
77 |
|
-16 |
|
57 |
|
70 |
|
-18 |
|
8 |
|
7 |
|
5 |
| ||||||
|
Fosamax |
|
50 |
|
62 |
|
-18 |
|
1 |
|
(1 |
) |
* |
|
49 |
|
62 |
|
-21 |
| ||||||
|
Other Pharmaceutical (4) |
|
1,062 |
|
1,048 |
|
1 |
|
357 |
|
273 |
|
31 |
|
708 |
|
777 |
|
-9 |
| ||||||
|
ANIMAL HEALTH |
|
1,036 |
|
981 |
|
6 |
|
314 |
|
248 |
|
26 |
|
722 |
|
733 |
|
-1 |
| ||||||
|
Livestock |
|
684 |
|
668 |
|
2 |
|
144 |
|
112 |
|
29 |
|
540 |
|
556 |
|
-3 |
| ||||||
|
Companion Animals |
|
352 |
|
313 |
|
12 |
|
170 |
|
136 |
|
24 |
|
183 |
|
177 |
|
3 |
| ||||||
|
Other Revenues (5) |
|
132 |
|
162 |
|
-18 |
|
71 |
|
113 |
|
-37 |
|
62 |
|
49 |
|
26 |
| ||||||
* 200% or greater
(1) Only select products are shown.
(2) Total Vaccines sales were $2,008 million and $1,704 million on a global basis for fourth quarter 2018 and 2017, respectively.
(3) Total Diabetes sales were $1,485 million and $1,533 million on a global basis for fourth quarter 2018 and 2017, respectively.
(4) Includes Pharmaceutical products not individually shown above.
(5) Other Revenues are comprised primarily of Healthcare Services segment revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.
MERCK & CO., INC.
FRANCHISE / KEY PRODUCT SALES
FULL YEAR 2018
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3b
|
|
|
Global |
|
U.S. |
|
International |
| ||||||||||||||||||
|
|
|
Full Year |
|
Full Year |
|
|
|
Full Year |
|
Full Year |
|
|
|
Full Year |
|
Full Year |
|
|
| ||||||
|
|
|
2018 |
|
2017 |
|
% Change |
|
2018 |
|
2017 |
|
% Change |
|
2018 |
|
2017 |
|
% Change |
| ||||||
|
TOTAL SALES (1) |
|
$ |
42,294 |
|
$ |
40,122 |
|
5 |
|
$ |
18,212 |
|
$ |
17,424 |
|
5 |
|
$ |
24,083 |
|
$ |
22,698 |
|
6 |
|
|
PHARMACEUTICAL |
|
37,689 |
|
35,390 |
|
6 |
|
16,608 |
|
15,854 |
|
5 |
|
21,081 |
|
19,536 |
|
8 |
| ||||||
|
Oncology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Keytruda |
|
7,171 |
|
3,809 |
|
88 |
|
4,150 |
|
2,309 |
|
80 |
|
3,021 |
|
1,500 |
|
101 |
| ||||||
|
Emend |
|
522 |
|
556 |
|
-6 |
|
312 |
|
342 |
|
-9 |
|
210 |
|
213 |
|
-2 |
| ||||||
|
Temodar |
|
214 |
|
271 |
|
-21 |
|
6 |
|
16 |
|
-64 |
|
209 |
|
256 |
|
-18 |
| ||||||
|
Alliance Revenue - Lynparza |
|
187 |
|
20 |
|
* |
|
127 |
|
|
|
|
|
61 |
|
20 |
|
196 |
| ||||||
|
Alliance Revenue - Lenvima |
|
149 |
|
|
|
|
|
95 |
|
|
|
|
|
54 |
|
|
|
|
| ||||||
|
Vaccines (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Gardasil / Gardasil 9 |
|
3,151 |
|
2,308 |
|
37 |
|
1,873 |
|
1,565 |
|
20 |
|
1,279 |
|
743 |
|
72 |
| ||||||
|
ProQuad / M-M-R II / Varivax |
|
1,798 |
|
1,676 |
|
7 |
|
1,430 |
|
1,374 |
|
4 |
|
368 |
|
303 |
|
21 |
| ||||||
|
Pneumovax 23 |
|
907 |
|
821 |
|
10 |
|
627 |
|
581 |
|
8 |
|
281 |
|
240 |
|
17 |
| ||||||
|
RotaTeq |
|
728 |
|
686 |
|
6 |
|
496 |
|
481 |
|
3 |
|
232 |
|
204 |
|
14 |
| ||||||
|
Zostavax |
|
217 |
|
668 |
|
-68 |
|
22 |
|
422 |
|
-95 |
|
195 |
|
246 |
|
-21 |
| ||||||
|
Hospital Acute Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Bridion |
|
917 |
|
704 |
|
30 |
|
386 |
|
239 |
|
61 |
|
531 |
|
465 |
|
14 |
| ||||||
|
Noxafil |
|
742 |
|
636 |
|
17 |
|
353 |
|
309 |
|
14 |
|
389 |
|
327 |
|
19 |
| ||||||
|
Invanz |
|
496 |
|
602 |
|
-18 |
|
253 |
|
361 |
|
-30 |
|
243 |
|
241 |
|
1 |
| ||||||
|
Cubicin |
|
367 |
|
382 |
|
-4 |
|
191 |
|
189 |
|
1 |
|
176 |
|
193 |
|
-9 |
| ||||||
|
Cancidas |
|
326 |
|
422 |
|
-23 |
|
12 |
|
20 |
|
-43 |
|
314 |
|
402 |
|
-22 |
| ||||||
|
Primaxin |
|
265 |
|
280 |
|
-5 |
|
7 |
|
10 |
|
-30 |
|
258 |
|
270 |
|
-4 |
| ||||||
|
Immunology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Simponi |
|
893 |
|
819 |
|
9 |
|
|
|
|
|
|
|
893 |
|
819 |
|
9 |
| ||||||
|
Remicade |
|
582 |
|
837 |
|
-31 |
|
|
|
|
|
|
|
582 |
|
837 |
|
-31 |
| ||||||
|
Neuroscience |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Belsomra |
|
260 |
|
210 |
|
24 |
|
96 |
|
98 |
|
-2 |
|
164 |
|
112 |
|
47 |
| ||||||
|
Virology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Isentress / Isentress HD |
|
1,140 |
|
1,204 |
|
-5 |
|
513 |
|
565 |
|
-9 |
|
627 |
|
639 |
|
-2 |
| ||||||
|
Zepatier |
|
455 |
|
1,660 |
|
-73 |
|
8 |
|
771 |
|
-99 |
|
447 |
|
888 |
|
-50 |
| ||||||
|
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Zetia |
|
857 |
|
1,344 |
|
-36 |
|
45 |
|
352 |
|
-87 |
|
813 |
|
992 |
|
-18 |
| ||||||
|
Vytorin |
|
497 |
|
751 |
|
-34 |
|
10 |
|
124 |
|
-92 |
|
487 |
|
627 |
|
-22 |
| ||||||
|
Atozet |
|
347 |
|
225 |
|
54 |
|
|
|
|
|
|
|
347 |
|
225 |
|
54 |
| ||||||
|
Adempas |
|
329 |
|
300 |
|
10 |
|
|
|
|
|
|
|
329 |
|
300 |
|
10 |
| ||||||
|
Diabetes (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Januvia |
|
3,686 |
|
3,737 |
|
-1 |
|
1,969 |
|
2,153 |
|
-9 |
|
1,718 |
|
1,584 |
|
8 |
| ||||||
|
Janumet |
|
2,228 |
|
2,158 |
|
3 |
|
811 |
|
863 |
|
-6 |
|
1,417 |
|
1,296 |
|
9 |
| ||||||
|
Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
NuvaRing |
|
902 |
|
761 |
|
19 |
|
722 |
|
564 |
|
28 |
|
180 |
|
197 |
|
-8 |
| ||||||
|
Implanon / Nexplanon |
|
703 |
|
686 |
|
2 |
|
495 |
|
496 |
|
|
|
208 |
|
191 |
|
9 |
| ||||||
|
Diversified Brands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Singulair |
|
708 |
|
732 |
|
-3 |
|
20 |
|
40 |
|
-50 |
|
688 |
|
692 |
|
-1 |
| ||||||
|
Cozaar / Hyzaar |
|
453 |
|
484 |
|
-6 |
|
23 |
|
18 |
|
26 |
|
431 |
|
466 |
|
-8 |
| ||||||
|
Nasonex |
|
376 |
|
387 |
|
-3 |
|
23 |
|
54 |
|
-57 |
|
353 |
|
333 |
|
6 |
| ||||||
|
Arcoxia |
|
335 |
|
363 |
|
-8 |
|
|
|
|
|
|
|
335 |
|
363 |
|
-8 |
| ||||||
|
Follistim AQ |
|
268 |
|
298 |
|
-10 |
|
115 |
|
123 |
|
-7 |
|
153 |
|
174 |
|
-12 |
| ||||||
|
Dulera |
|
214 |
|
287 |
|
-25 |
|
186 |
|
261 |
|
-29 |
|
28 |
|
26 |
|
8 |
| ||||||
|
Fosamax |
|
209 |
|
241 |
|
-13 |
|
4 |
|
6 |
|
-33 |
|
205 |
|
235 |
|
-13 |
| ||||||
|
Other Pharmaceutical (4) |
|
4,090 |
|
4,065 |
|
1 |
|
1,228 |
|
1,148 |
|
7 |
|
2,855 |
|
2,917 |
|
-2 |
| ||||||
|
ANIMAL HEALTH |
|
4,212 |
|
3,875 |
|
9 |
|
1,238 |
|
1,090 |
|
14 |
|
2,974 |
|
2,785 |
|
7 |
| ||||||
|
Livestock |
|
2,630 |
|
2,484 |
|
6 |
|
528 |
|
471 |
|
12 |
|
2,102 |
|
2,013 |
|
4 |
| ||||||
|
Companion Animals |
|
1,582 |
|
1,391 |
|
14 |
|
710 |
|
619 |
|
15 |
|
872 |
|
772 |
|
13 |
| ||||||
|
Other Revenues (5) |
|
393 |
|
857 |
|
-54 |
|
366 |
|
480 |
|
-24 |
|
28 |
|
377 |
|
-93 |
| ||||||
* 200% or greater
(1) Only select products are shown.
(2) Total Vaccines sales were $7,262 million and $6,547 million on a global basis for December YTD 2018 and 2017, respectively.
(3) Total Diabetes sales were $5,994 million and $5,922 million on a global basis for December YTD 2018 and 2017, respectively.
(4) Includes Pharmaceutical products not individually shown above.
(5) Other Revenues are comprised primarily of Healthcare Services segment revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.
MERCK & CO., INC.
PHARMACEUTICAL GEOGRAPHIC SALES
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3c
|
|
|
2018 |
|
2017 |
|
% Change |
|
% Change |
| ||||||||||||||||||||||||||
|
|
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full Year |
|
4Q |
|
Full Year |
| ||||||||||
|
TOTAL PHARMACEUTICAL |
|
$ |
8,919 |
|
$ |
9,282 |
|
$ |
9,658 |
|
$ |
9,830 |
|
$ |
37,689 |
|
$ |
8,185 |
|
$ |
8,759 |
|
$ |
9,156 |
|
$ |
9,290 |
|
$ |
35,390 |
|
6 |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
United States |
|
3,716 |
|
3,841 |
|
4,649 |
|
4,402 |
|
16,608 |
|
3,761 |
|
3,929 |
|
4,197 |
|
3,967 |
|
15,854 |
|
11 |
|
5 |
| ||||||||||
|
% Pharmaceutical Sales |
|
41.7 |
% |
41.4 |
% |
48.1 |
% |
44.8 |
% |
44.1 |
% |
45.9 |
% |
44.9 |
% |
45.8 |
% |
42.7 |
% |
44.8 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Europe (1) |
|
2,402 |
|
2,322 |
|
2,114 |
|
2,237 |
|
9,076 |
|
1,977 |
|
2,082 |
|
2,174 |
|
2,290 |
|
8,522 |
|
-2 |
|
7 |
| ||||||||||
|
% Pharmaceutical Sales |
|
26.9 |
% |
25.0 |
% |
21.9 |
% |
22.8 |
% |
24.1 |
% |
24.2 |
% |
23.8 |
% |
23.7 |
% |
24.7 |
% |
24.1 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Japan |
|
718 |
|
834 |
|
740 |
|
835 |
|
3,127 |
|
688 |
|
818 |
|
756 |
|
780 |
|
3,043 |
|
7 |
|
3 |
| ||||||||||
|
% Pharmaceutical Sales |
|
8.1 |
% |
9.0 |
% |
7.7 |
% |
8.5 |
% |
8.3 |
% |
8.4 |
% |
9.3 |
% |
8.3 |
% |
8.4 |
% |
8.6 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Asia Pacific |
|
1,112 |
|
1,224 |
|
1,054 |
|
1,199 |
|
4,589 |
|
889 |
|
946 |
|
994 |
|
1,054 |
|
3,883 |
|
14 |
|
18 |
| ||||||||||
|
% Pharmaceutical Sales |
|
12.5 |
% |
13.2 |
% |
10.9 |
% |
12.2 |
% |
12.2 |
% |
10.9 |
% |
10.8 |
% |
10.9 |
% |
11.3 |
% |
11.0 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
China |
|
459 |
|
530 |
|
488 |
|
601 |
|
2,077 |
|
328 |
|
353 |
|
377 |
|
439 |
|
1,497 |
|
37 |
|
39 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Latin America |
|
398 |
|
459 |
|
493 |
|
530 |
|
1,880 |
|
375 |
|
462 |
|
451 |
|
547 |
|
1,836 |
|
-3 |
|
2 |
| ||||||||||
|
% Pharmaceutical Sales |
|
4.5 |
% |
4.9 |
% |
5.1 |
% |
5.4 |
% |
5.0 |
% |
4.6 |
% |
5.3 |
% |
4.9 |
% |
5.9 |
% |
5.2 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Eastern Europe/Middle East Africa |
|
335 |
|
356 |
|
347 |
|
349 |
|
1,388 |
|
255 |
|
314 |
|
349 |
|
397 |
|
1,314 |
|
-12 |
|
6 |
| ||||||||||
|
% Pharmaceutical Sales |
|
3.8 |
% |
3.8 |
% |
3.6 |
% |
3.6 |
% |
3.7 |
% |
3.1 |
% |
3.6 |
% |
3.8 |
% |
4.3 |
% |
3.7 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Canada |
|
196 |
|
192 |
|
177 |
|
211 |
|
776 |
|
182 |
|
171 |
|
193 |
|
193 |
|
739 |
|
9 |
|
5 |
| ||||||||||
|
% Pharmaceutical Sales |
|
2.2 |
% |
2.1 |
% |
1.8 |
% |
2.1 |
% |
2.1 |
% |
2.2 |
% |
2.0 |
% |
2.1 |
% |
2.1 |
% |
2.1 |
% |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Other |
|
42 |
|
54 |
|
84 |
|
67 |
|
245 |
|
58 |
|
37 |
|
42 |
|
62 |
|
199 |
|
8 |
|
23 |
| ||||||||||
|
% Pharmaceutical Sales |
|
0.5 |
% |
0.6 |
% |
0.9 |
% |
0.7 |
% |
0.7 |
% |
0.7 |
% |
0.4 |
% |
0.5 |
% |
0.7 |
% |
0.6 |
% |
|
|
|
| ||||||||||
(1) Europe primarily represents all European Union countries and the European Union accession markets.
MERCK & CO., INC.
OTHER (INCOME) EXPENSE, NET - GAAP
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 4
OTHER (INCOME) EXPENSE, NET
|
|
|
4Q18 |
|
4Q17 |
|
FULL YEAR |
|
FULL YEAR |
| ||||
|
Interest income |
|
$ |
(86 |
) |
$ |
(101 |
) |
$ |
(343 |
) |
$ |
(385 |
) |
|
Interest expense |
|
203 |
|
191 |
|
772 |
|
754 |
| ||||
|
Exchange losses (gains) |
|
25 |
|
(17 |
) |
145 |
|
(11 |
) | ||||
|
Equity income from affiliates |
|
(34 |
) |
(32 |
) |
(127 |
) |
(42 |
) | ||||
|
Net periodic defined benefit plan (credit) cost other than service cost |
|
(128 |
) |
(130 |
) |
(512 |
) |
(512 |
) | ||||
|
Other, net |
|
130 |
|
(60 |
) |
(337 |
) |
(304 |
) | ||||
|
Total |
|
$ |
110 |
|
$ |
(149 |
) |
$ |
(402 |
) |
$ |
(500 |
) |
On January 1, 2018, the company adopted a new accounting standard related to defined benefit plans that requires the components of net benefit cost/credit (other than service costs) be presented in the statement of income outside of operating expenses. Upon adoption, net periodic benefit cost/credit other than service cost was reclassified to Other (income) expense, net from the previous classifications within Cost of sales, Selling, general and administrative expenses and Research and development costs. Previously reported amounts have been reclassified to conform to the new presentation. There was no impact to net income as a result of adopting the new standard.