10-K 0000310158-26-000063 (2026-02-24) vs 10-K 0001628280-25-007732 (2025-02-25)
| Section | Compared text | Words now | Changed |
| Risk Factors | Item 1A | 11,138 |
14.8% |
| MD&A | Item 7 | 20,058 |
34.5% |
| Legal Proceedings | Item 3, via Note 10 – Contingencies and Environmental Liabilities | 6,366 |
42.1% |
| Accounting Policies | Item 8, Note 2 – Summary of Accounting Policies | 4,394 |
6.0% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 372 words changed in this paragraph; it is 48% similar to last year's version.
Global efforts toward health care cost containment continue to exert pressure on product pricing and market access worldwide. Changes to the U.S. health care system as part of health care reform, as well as increased purchasing power of entities that negotiate on behalf of Medicare, Medicaid, and private sector beneficiaries, have contributed to pricing pressure. In 2021, the U.S. Congress passed the American Rescue Plan Act, which included a provision that eliminated the statutory cap on rebates drug manufacturers pay to Medicaid beginning in January 2024. As a result of this provision, the Company paid state Medicaid programs more in rebates than it received on Medicaid sales of Januvia, Janumet and Janumet XR in 2024. In 2022, the U.S. Congress passed the Inflation Reduction Act (IRA), which made significant changes to how drugs are covered and paid for under the Medicare program, including the creation of financial penalties for drugs whose prices rise faster than the rate of inflation, redesign of the Medicare Part D program to require manufacturers to bear more of the liability for certain drug benefits (which has taken went into effect in 2025), and government price setting for certain Medicare Part D drugs (starting in 2026) and Medicare Part B drugs (starting in 2028). Government price setting may also impact pricing in the private market negatively affecting the Company’s performance. In 2023, the The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), selected Januvia in 2023 for the first year of the IRA’s “Drug Price Negotiation Program” (Program). (Program), and selected Janumet and Janumet XR in 2025 for the second year of the IRA’s Program. Pursuant to the IRA’s Program, the government set a government price was set for Januvia, which became effective on January 1, 2026, and set a price for Janumet and Janumet XR, which will become effective on January 1, 2026. 2027. In addition, in January 2025, the U.S. Department of HHS, through the CMS, 2026, HHS announced that Janumet and Janumet XR would be in included in the second year of the IRA’s Program, with Lenvima has been selected for government price setting to setting, the set price for which will become effective on January 1, 2027. 2028. Furthermore, the Company expects that Keytruda will be selected in 2027 for government price setting, which would become effective on January 1, 2029. Government price setting may also impact pricing in the private market negatively affecting the Company’s performance. The Company has sued the U.S. government regarding the IRA’s Program (see Note 10 to the consolidated financial statements). Additionally, increased utilization of the 340B Federal Drug Discount Program and restrictions on the Company’s ability to identify inappropriate discounts are having a negative impact on Company performance. Furthermore, the Executive Branch and Congress continue to discuss legislation designed to control health care costs, including the cost of drugs. In several international markets, government-mandated pricing actions have reduced prices of generic and patented drugs. In addition, the Company’s sales performance in 2024 was negatively affected by other cost-reduction measures taken by governments and other third parties to lower health care costs. The Company anticipates all of these actions and additional actions in the future will continue to negatively affect sales and profits.
Source: Item 7, 10-K 0000310158-26-000063 vs Item 7, 10-K 0001628280-25-007732
Risk Factors 239 words changed in this paragraph; it is 58% similar to last year's version.
The Company depends upon patents to provide it with exclusive marketing rights for its products for some period of time. Loss of patent protection for one of the Company’s products typically leads to a significant and rapid loss of sales for that product as lower priced generic or biosimilar versions of that drug become available. In the case of products that contribute significantly to the Company’s sales, the loss of market exclusivity can have a material adverse effect on the Company’s business, cash flows, results of operations, financial condition and prospects. The Company lost market exclusivity for Bridion in Europe and Japan in 2023 and 2024, respectively, and the Company has experienced a substantial decline in Bridion sales in those markets. Bridion will lose market exclusivity in the U.S. in July 2026 (subject at which time the Company anticipates a significant and rapid decline in U.S. sales of Bridion. The Company expects to patent litigation discussed below) discontinue U.S. sales of Bridion by the end of 2026. In addition, Januvia and Janumet will lose market exclusivity in the U.S. in May 2026 and Janumet XR will lose market exclusivity in the U.S. in July 2026. The Company expects a significant decline in sales of Januvia in the first half of 2026 reflecting the impact of government price setting noted above and subsequently, following loss of market exclusivity in May 2026, the Company anticipates it will lose nearly all U.S. sales of Januvia and Janumet. Also, the Company expects that sales of Bridion Keytruda will be materially negatively impacted by biosimilar competition between 2028 and 2029. As previously disclosed, while two patents in the U.S. will decline substantially thereafter. In addition, Keytruda composition of matter patent family expire in May and November of 2029, respectively, the Company expects U.S. sales these patents to be the subject of Keytruda to decline beginning litigation and, thus, biosimilar competition could begin in January December 2028 upon implementation of government pricing under when the IRA, and to further decline upon loss of market exclusivity following expiration of the U.S. primary compound patent in December 2028. expires. The Company also expects to lose market exclusivity in Europe for Keytruda in 2031 following compound patent expiration. There may, however, be attempts by one or more companies to challenge the patent or launch a biosimilar product despite the patent in some European jurisdictions following the expiration of data exclusivity in Europe in July 2026.
Source: Item 1A, 10-K 0000310158-26-000063 vs Item 1A, 10-K 0001628280-25-007732
Legal Proceedings 165 words changed in this paragraph; it is 57% similar to last year's version.
As previously disclosed, in January 2020, the Company was served with a complaint in the U.S. District Court for the District of New Jersey. Following motion practice, the plaintiffs filed a third amended complaint in August 2024, seeking to certify a nationwide class action as well as five statewide classes of purchasers or users of Bravecto (fluralaner) products in from its launch through the U.S. or its territories between May 1, 2014 and July 1, 2021. present. Plaintiffs contend Bravecto causes neurological events in dogs and cats and alleges violations of the consumer fraud statutes of certain of their home states (Connecticut, New Jersey Consumer Fraud Act, York, Florida and Texas), Breach of Warranty, Product Liability, and related theories. The Company moved to dismiss or, alternatively, to strike the class allegations from the third amended complaint, and that motion was granted in part and denied in part. The Company sought permission from the court to file a motion for summary judgment directed at the named plaintiffs’ claims and that motion is pending. The Company anticipates that plaintiffs will file a motion for class certification in March 2026 and that it will oppose plaintiffs’ motion thereafter. A similar case was filed in Quebec, Canada in May 2019. The Superior Court certified a class of dog owners in Quebec who gave Bravecto Chew to their dogs between February 16, 2017 and November 2, 2018 whose dogs experienced one of the conditions in the post-marketing adverse reactions section of the labeling approved on November 2, 2018. The Company and plaintiffs each appealed the class certification decision. The Court of Appeal of Quebec amended the class period to start July 2,
Source: Item 3, via Note 10 – Contingencies and Environmental Liabilities, 10-K 0000310158-26-000063 vs Item 3, via Note 10 – Contingencies and Environmental Liabilities, 10-K 0001628280-25-007732
Accounting Policies 117 words changed in this paragraph; it is 37% similar to last year's version.
Recently Adopted Accounting Standards — In August 2023, September 2025, the Financial Accounting Standards Board (FASB) FASB issued amended guidance that requires to reduce the complexity of evaluating whether contracts are derivatives by adding a newly formed joint venture scope exception (which may apply to recognize and initially measure its assets and liabilities at fair value upon formation. The amended guidance includes exceptions certain R&D funding arrangements) to fair value measurement exclude from derivative accounting non-exchange-traded contracts with variables (underlyings) that are consistent with based on operations or activities specific to one of the accounting for business combinations guidance. parties to the contract. The Company adopted the guidance on October 1, 2025, effective July 1, 2024 for full year 2025 on a prospective basis. There The Company did not have any contracts that were affected by the adoption of this new standard; therefore, there was no impact to the Company’s consolidated financial statements upon adoption.
Source: Item 8, Note 2 – Summary of Accounting Policies, 10-K 0000310158-26-000063 vs Item 8, Note 2 – Summary of Accounting Policies, 10-K 0001628280-25-007732
Every change, by type
Sentences and paragraphs of MRK's Risk Factors and MD&A, 10-K 2026-02-24 against 10-K 2025-02-25.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
•The Company faces continued pricing pressure with respect to its products in the public and private sectors.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•changes in clinical preferences or standards of care, including competitor innovations, that diminish the value of the product;
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
The Company faces continued pricing pressure with respect to its products in the public and private sectors.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
The Company faces continued pricing pressure globally and, particularly in mature markets, from managed care organizations, government agencies and programs that could negatively affect the Company’s sales
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
Also, as noted above, in December 2025, the Company entered into the MFN Agreement with the U.S. government pursuant to which the Company will provide key products through a direct-to-patient program at affordable prices for eligible patients in the U.S. This currently includes Januvia, Janumet, and Janumet XR, and will be expanded in the future to include enlicitide decanoate pending FDA approval. The Company also agreed to offer its existing medicines at discounted prices to Medicaid, excluding certain products. In addition, the Company has agreed that products launched during the term of the MFN Agreement (with certain exceptions) will be subject to “most-favored-nation” pricing in reference to prices for such products in the MFN Countries.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
In addition, in the U.S., larger customers have received higher rebates on drugs in certain highly competitive categories. The Company must also compete to be placed on formularies of managed care organizations. Exclusion of a product from a formulary can lead to reduced usage in the managed care organization. The Company is also facing pricing pressure from purchasers of certain vaccines in highly competitive categories. Also, the Company expects that U.S. states will continue their focus on pharmaceutical pricing and may shift to more aggressive price control tools.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
In addition, it is possible that as a consequence of the MFN Agreement, certain of the Company’s products may not be launched in the MFN Countries or their launch may be delayed and as a result, the MFN Countries may take actions that adversely impact the Company.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
The Company’s business in China experienced significantly lower sales of Gardasil/Gardasil 9 in 2025. Due to above normal inventory levels at the Company’s commercialization partner in China, the Company made a decision to pause shipments to China beginning in February 2025 and has not resumed shipments to date. The Company will not resume shipments until inventory levels return to normal levels and it cannot predict when shipments to China will resume nor the levels of sales that the Company will achieve and as a result, the Company expects that sales of Gardasil/Gardasil 9 in China will not materially increase in 2026. In June 2025, a nine-valent HPV vaccine produced by a local manufacturer received regulatory approval in China for use in females 9-45 years of age.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
$1.1 billion, which represented 18% of the Company’s Animal Health segment sales. Any negative event with respect to the Bravecto family of products could have a material adverse effect on the Company’s Animal Health sales. If the Animal Health segment of the Company’s business becomes more significant, the impact of any such events on future results of operations could also become more significant.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•Biologics and vaccines require long manufacturing lead times, sometimes requiring planning years in advance of demand, which could increase the risk of inventory write-downs if that demand does not materialize.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
failure to maintain approval in any jurisdiction will prevent it from selling the products in that jurisdiction and realizing sales.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
The Company is subject to evolving and complex tax laws in the jurisdictions in which it operates. Significant judgment is required for determining the Company’s tax liabilities, and the Company’s tax returns are
Read it in 10-K 2026-02-24 at sec.gov ↗
RemovedRisk Factors
The U.S. government has announced plans to significantly increase tariffs on foreign imports into the U.S., particularly from Canada and Mexico and has already increased tariffs on imports from China. It is too early for the
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
Sustainability Reporting Directive (CSRD) and potentially the SEC’s climate-related reporting requirements (which are currently stayed), the legislation in California requiring reporting of GHG emissions and climate risk, and similar regulatory requirements in other jurisdictions outside the U.S. These evolving regulatory requirements are likely to result in increased costs and complexities of compliance in order to collect, measure and report on the relevant information.
Read it in 10-K 2025-02-25 at sec.gov ↗
RewordedRisk Factors
Bridion will lose market exclusivity in the U.S. in July 2026 (subject to patent litigation discussed below) and at which time the Company expects that anticipates a significant and rapid decline in U.S. sales of Bridion in the U.S. will decline substantially thereafter. Bridion.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Events like these, such as the ongoing war between Russia and Ukraine, and the conflict in the Middle East, and/or policy changes with respect to international trade protection measures, could result in material adverse effects on macroeconomic conditions, currency exchange rates and financial markets, and may adversely affect the Company’s business, results of operations, cash flows and financial condition.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Further, court decisions relating to other companies’ patents, potential legislation in both the U.S. and certain foreign markets relating to patents, as well as regulatory initiatives may result in a more general weakening of intellectual property protection.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
In 2024, the Company The Company’s business in China experienced significantly lower sales of Gardasil/Gardasil 9 in China 2025 and the Company expects that sales of Gardasil/Gardasil 9 in China will decline significantly not materially increase in 2025. 2026.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
On In addition, in January 17, 2025, 2026, HHS announced that Janumet and Janumet XR have Lenvima has been selected for government price setting, the set price for which will become effective on January 1, 2027. 2028.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
The Company’s failure to obtain approval, significant delays in the approval process, or its failure to maintain approval in any jurisdiction will prevent it from selling the products in that jurisdiction and realizing sales.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Expected declines in sales of products after the loss of market exclusivity mean that the Company’s future success is dependent on its pipeline of new products, including new products that it may develop through collaborations and joint ventures and products that it is able to obtain through license or acquisition.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Ethical and legal challenges may arise, including biases or discrimination in AI outcomes, non-compliance with data protection regulations and emerging laws specifically governing the use of AI systems and tools, such as the European Union AI Act and lack of transparency. NIS2 Directive.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Other events could include loss of patent protection, selection for IRA price setting, lower than expected utilization of Keytruda Qlex, increased costs associated with manufacturing, generic generic, biosimilar or over-the-counter availability of the Company’s product or a competitive product, the discovery of previously unknown side effects, results of post-approval trials, increased competition from the introduction of new, more effective treatments and discontinuation or removal from the market of the product for any reason.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
On January 17, In 2025, HHS announced that selected Janumet and Janumet XR have been selected for government price setting, the set price for which will become effective on January 1, 2027.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
The Company continues to leverage new and innovative technologies across the enterprise to replace outmoded technology and is beginning a multi-year system upgrade of its SAP system and is working to improve the efficacy and efficiency of its business processes, including data acquisition, the use of which can create new risks.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
In 2022, Congress passed the IRA, which makes made significant changes to how drugs are covered and paid for under the Medicare program, including the creation of financial penalties for drugs whose prices rise faster than the rate of inflation, redesign of the Medicare Part D program to require manufacturers to bear more of the liability for certain drug benefits, which has taken effect in 2025, and government price setting for certain Medicare Part D drugs, starting in 2026, and Medicare Part B drugs starting in 2028.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
“Competition and the Health Care Environment,” in 2023, HHS selected Januvia for the first year of the IRA’s price setting program, which will result resulted in a government set price becoming effective on January 1, 2026.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
The Company cannot be sure certain that it will be able to attract and retain qualified personnel or that the costs of doing so will not materially increase.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
“Competition and the Health Care Environment,” in 2023, HHS selected Januvia for the first year of the IRA’s price setting program, which will result resulted in a government set price becoming effective on January 1, 2026.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
In 2025, Merck successfully advanced its science-led strategy through new product approvals and launches, strong clinical execution, important data readouts, and the addition of novel innovation through business development efforts. The Company also continued to return capital to shareholders, primarily through dividends.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•Entered into an agreement to acquire Cidara Therapeutics, Inc. (Cidara), a biotechnology company developing drug-Fc conjugate therapeutics, including a long-acting antiviral designed to prevent seasonal and pandemic influenza; this transaction closed in January 2026.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•Acquired Verona Pharma plc (Verona Pharma), a biopharmaceutical company focused on respiratory diseases, through which Merck obtained Ohtuvayre, a product approved for the maintenance treatment of chronic obstructive pulmonary disease (COPD).
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•Closed an exclusive license agreement for MK-7262 (HRS-5346), an investigational oral small molecule Lipoprotein(a) inhibitor from Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui Pharma).
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•Closed an agreement with Dr. Falk Pharma GmbH (Falk) to acquire sole global rights to MK-8690, an investigational anti-CD30 ligand monoclonal antibody.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
During 2025, Merck continued its efforts to address unmet medical needs by launching Enflonsia in the U.S. for the prevention of respiratory syncytial virus (RSV) lower respiratory tract disease in neonates (newborns) and infants born during or entering their first RSV season. Also in 2025, the Company launched Keytruda Qlex, which was approved by the U.S. Food and Drug Administration (FDA) for subcutaneous administration across all solid tumor indications for Keytruda in the U.S., and the European Commission (EC) approved a new subcutaneous (SC) route of administration and a new pharmaceutical form (solution for injection) of Keytruda (to be marketed as Keytruda SC) for use across all Keytruda indications for adult patients in Europe. Additionally, in pulmonary arterial hypertension (PAH), the Company launched an expanded indication for Winrevair in the U.S. based on the results of the ZENITH trial.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•MK-8591A, doravirine/islatravir, is an investigational, once-daily, oral two-drug regimen for adults with HIV-1 infection that is virologically suppressed on antiretroviral therapy under review by the FDA. MK-8591A is also under review in Japan.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•MK-7962, Winrevair, an activin signaling inhibitor for the treatment of adults with PAH (World Health Organization [WHO] Group 1 pulmonary hypertension), is under review by the FDA in connection with a proposed update to the U.S. product label based on the results of the HYPERION trial.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•MK-3475, Keytruda (pembrolizumab), is an anti-PD-1 (programmed death receptor-1) therapy available for intravenous administration. MK-3475A, Keytruda Qlex, combines pembrolizumab with berahyaluronidase alfa to enhance dispersion and permeability to enable subcutaneous administration. Keytruda and Keytruda Qlex each are approved for the treatment of many cancers and continue to be studied in additional Phase 3 trials.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
◦Keytruda is also under review in the EU and Japan in combination with Pfizer, Inc.’s (Pfizer) and Astellas’ Padcev as neoadjuvant treatment, then continued after radical cystectomy as adjuvant treatment, for patients with MIBC who are ineligible for cisplatin-based chemotherapy.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
◦Keytruda and Keytruda Qlex are under review by the FDA in combination with Gilead Sciences Inc.’s (Gilead) sacituzumab govitecan (Trodelvy) for the first-line treatment of certain patients with unresectable locally advanced or metastatic triple-negative breast cancer (TNBC) whose tumors express programmed death-ligand 1 (PD‑L1).
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•MK-6482, Welireg, is Merck’s first-in-class oral hypoxia-inducible factor-2 alpha (HIF-2α) inhibitor.
Read it in 10-K 2026-02-24 at sec.gov ↗
RemovedMD&A
Merck’s performance during 2024 was driven by continued demand across its innovative portfolio, including for recently launched products, enabled by the operational and commercial execution of its science-led strategy. The Company maintained its focus on the pursuit of breakthrough science and innovation, making disciplined investments in compelling science to drive long-term value for patients, customers, and shareholders. Merck advanced its robust early- and late-phase pipeline which includes growing diversity across new therapeutic areas and modalities and completed several promising business development transactions. The Company continued to return capital to shareholders, primarily through dividends.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•Closed an exclusive global license to develop, manufacture and commercialize MK-2010 (LM-299), a novel investigational programmed death receptor-1 (PD-1)/vascular endothelial growth factor (VEGF) bispecific antibody from LaNova Medicines Ltd (LaNova).
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•Closed an exclusive global license to develop, manufacture and commercialize MK-4082 (HS-10535), an investigational preclinical oral small molecule GLP-1 receptor agonist from Hansoh Pharma (Hansoh).
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•Acquired global rights to MK-1045 (formerly CN201), a novel investigational clinical-stage bispecific antibody for the treatment of B-cell associated diseases from Curon Pharmaceutical (Curon).
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•Acquired Eyebiotech Limited (EyeBio), a privately held ophthalmology-focused biotechnology company developing candidates for the prevention and treatment of vision loss.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•Acquired Harpoon Therapeutics, Inc. (Harpoon), a clinical-stage immunotherapy company developing a novel class of T-cell engagers designed to harness the power of the body’s immune system to treat patients suffering from cancer and other diseases.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
During 2024, Merck continued its efforts to address unmet medical needs by launching new products with significant patient benefit, including the U.S. launches of Winrevair, for the treatment of certain adults with pulmonary arterial hypertension (PAH), and Capvaxive, for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults. Winrevair was also approved in the EU.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•MK-1022, patritumab deruxtecan, is a potential first-in-class HER3 directed DXd antibody drug conjugate (ADC), under review by the U.S. Food and Drug Administration (FDA) for the treatment of adult patients with locally advanced or metastatic epidermal growth factor receptor (EGFR)-mutated NSCLC previously treated with two or more systemic therapies. In June 2024, the FDA issued a complete response letter (CRL) for the Biologics License Application (BLA) due to findings pertaining to an inspection of a third-party manufacturing facility. The CRL did not identify any issues with the efficacy or safety data submitted. Patritumab deruxtecan (HER3-DXd) was discovered by Daiichi Sankyo and is
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
being jointly developed by Daiichi Sankyo and Merck. Merck is working with Daiichi Sankyo to address FDA feedback.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•MK-6482, Welireg, is under review in Japan both for the treatment of adults with VHL disease and for the treatment of certain adults with previously treated advanced renal cell carcinoma (RCC). Welireg is also under priority review in the U.S. for the treatment of certain patients with advanced, unresectable or metastatic pheochromocytoma and paraganglioma.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•V116, Capvaxive, a 21-valent pneumococcal conjugate vaccine designed to help prevent invasive pneumococcal disease and pneumococcal pneumonia caused by certain serotypes in adults, is under review in the EU and Japan.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
During 2024, the Company initiated more than 20 Phase 3 studies spanning cardiometabolic, immunology, infectious diseases, oncology, ophthalmology and vaccines.
Read it in 10-K 2025-02-25 at sec.gov ↗
RewordedMD&A
Keytruda received approval approvals for additional indications in the U.S. and/or internationally as monotherapy in the therapeutic areas of hepatocellular carcinoma (HCC), melanoma and urothelial carcinoma, certain markets, including in combination with chemotherapy in the therapeutic areas of biliary tract cancer, cervical cancer, endometrial carcinoma, gastric or gastroesophageal junction (GEJ) adenocarcinoma, adenocarcinoma and malignant pleural mesothelioma mesothelioma, in combination with Padcev (enfortumab vedotin) for locally advanced or metastatic urothelial carcinoma and non-small-cell lung for cisplatin-ineligible muscle-invasive bladder cancer (NSCLC), (MIBC), as well as in combination with Padcev (enfortunab vedotin-ejfv) radiotherapy with or without chemotherapy for advanced urothelial carcinoma. head and neck squamous cell carcinoma (HNSCC).
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
The Company pays an additional 2% royalty on worldwide net sales of Keytruda (and on Keytruda Qlex following regulatory approval) to another third party, the termination date of which varies by country; party; this royalty expired in the U.S. in September 2024 and will expire on varying dates 2024, expired in major European markets in the second half of 2025. 2025, but will continue to be paid on net sales of Keytruda and Keytruda Qlex in certain other international markets expiring at various dates through 2035.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
The Company used a portion of the $5.9 billion net proceeds from this the offering for general corporate purposes, including to fund a portion of the approximately $9.2 billion cash consideration paid for the January 2026 acquisition of Prometheus, Cidara, including related fees and expenses, and used expenses (see Note 3 to the remaining net proceeds for general corporate purposes including to repay commercial paper borrowings and other indebtedness with upcoming maturities. consolidated financial statements).
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
The Company used a portion of the $5.9 billion net proceeds from this the offering for general corporate purposes, including to fund a portion of the $10.4 billion cash consideration paid for the October 2025 acquisition of Prometheus, Verona Pharma, including related fees and expenses, and used expenses (see Note 3 to the remaining net proceeds for general corporate purposes including to repay commercial paper borrowings and other indebtedness with upcoming maturities. consolidated financial statements).
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
September 2024 Japan’s MHLW November 2025 FDA approval in combination with chemotherapy Padcev as a neoadjuvant treatment, treatment and then continued after cystectomy as monotherapy as an adjuvant treatment, for the treatment of adult patients with NSCLC, MIBC who are ineligible for cisplatin-based chemotherapy, based on the KEYNOTE-671 trial. KEYNOTE-905 trial conducted in collaboration with Pfizer and Astellas.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
September 2024 Japan’s MHLW November 2025 FDA approval in combination with chemotherapy Padcev, as a neoadjuvant treatment, treatment and then continued after cystectomy as monotherapy as an adjuvant treatment, for the treatment of adult patients with NSCLC, MIBC who are ineligible for cisplatin-based chemotherapy, based on the KEYNOTE-671 trial. KEYNOTE-905 trial conducted in collaboration with Pfizer and Astellas.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
Combined worldwide sales of Gardasil and Gardasil 9, vaccines to help prevent certain cancers and other diseases caused by certain types of human papillomavirus (HPV), HPV, declined 3% 39% in 2024 2025 primarily driven by lower demand in China. China (discussed below), and in Japan reflecting in part that the last date to initiate the first dose in Japan’s national immunization program catch-up cohort was in March 2025.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
While many jurisdictions in which Merck operates have adopted The effective income tax rates for 2025 and 2024 include the global minimum tax provision of the Organization for Economic Cooperation and Development (OECD) Pillar 2, effective which for tax years beginning in January 2024, it 2024 resulted in a minimal impact to the Company’s 2024 effective income tax rate due to the accounting for the tax effects of intercompany transactions.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
In June 2024, the FDA approved Capvaxive (Pneumococcal 21-valent Conjugate Vaccine) Sales of Capvaxive, a vaccine for the prevention of invasive pneumococcal disease and pneumococcal pneumonia caused by certain serotypes in individuals 18 years of age and older. older, increased to $759 million in 2025 primarily due to continued uptake following launch in the U.S. in 2024.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
Collaboration-Related License-Related Payments — At December 31, 2024, 2025, the Company has accrued liabilities for contingent sales-based milestone payments of $890 million related to a collaboration license agreement with AstraZeneca Alteogen Inc. where payment is dependent upon the related sales-based milestones were achieved, but payment was not yet due according to achievement of the payment terms. corresponding milestone.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
Global sales of Bridion, for the reversal of two types of neuromuscular blocking agents used during surgery, declined grew 4% in 2024 primarily driven 2025 as higher demand and net pricing in the U.S. was partially offset by lower demand in certain most international markets due to generic competition, particularly in the EU and the Asia Pacific region, including in Japan. competition.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
Also included in cost of sales are expenses associated with restructuring activities, which amounted to $1.5 billion in 2025 and $495 million in 2024 and $211 million in 2023, 2024, primarily reflecting accelerated depreciation and asset impairment charges related to the planned sale manufacturing facilities to be fully or closure of manufacturing facilities. partially closed or divested, as well as contractual termination costs.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesMD&A
The Company expects foreseeable liquidity and capital resource requirements to be met through existing cash and cash equivalents and anticipated cash flows from operations, as well as commercial paper borrowings and long-term borrowings if needed.
Read it in 10-K 2026-02-24 at sec.gov ↗