Merck & Co.

What does Merck & Co. own?
Merck & Co. owns a portfolio of pharmaceutical products, vaccines, and animal health products. The company's major brands include Keytruda (oncology immunotherapy), Gardasil (HPV vaccine), Winrevair (pulmonary arterial hypertension), Januvia/Janumet (diabetes), Bridion (anesthesia reversal), Ohtuvayre (COPD), and various other prescription medicines. Merck also operates an animal health division under the Merck Animal Health brand, providing veterinary medicines and vaccines.

Is Merck & Co. publicly traded?
Yes. Merck & Co., Inc. trades on the New York Stock Exchange under ticker symbol MRK. The company has no controlling shareholder, with ownership distributed among institutional investors including Vanguard Group, BlackRock, and State Street.

What is Merck's annual revenue?
In FY2024, Merck reported worldwide sales of $64.2 billion, a 7% increase from FY2023. The Pharmaceutical segment generated approximately $57.4 billion and the Animal Health segment approximately $5.8 billion. Keytruda alone accounted for approximately $29.5 billion in FY2024 sales.

Who is Merck's CEO?
Robert M. Davis has served as Chairman and Chief Executive Officer of Merck & Co. since 2021, succeeding Kenneth Frazier. Davis has led the company's strategy of building a post-Keytruda pipeline through acquisitions and internal research investment.

What is Keytruda and why is it important to Merck?
Keytruda (pembrolizumab) is a PD-1 immune checkpoint inhibitor approved for more than 40 cancer indications. It is the world's best-selling prescription medicine, generating approximately $29.5 billion in FY2024 sales, representing roughly 46% of Merck's total revenue. Keytruda's primary U.S. patent expires in 2028, which will allow biosimilar competition and represents the company's most significant strategic challenge.

What is the difference between Merck & Co. and Merck KGaA?
Merck & Co., Inc. (NYSE: MRK) is an American pharmaceutical company headquartered in Rahway, New Jersey, known as MSD outside the United States and Canada. Merck KGaA is a separate German pharmaceutical and chemical company headquartered in Darmstadt, Germany. The two companies have had no ownership relationship since 1917, when the U.S. government seized German-owned assets and the American entity was incorporated as an independent company.

What is Winrevair?
Winrevair (sotatercept) is a treatment for pulmonary arterial hypertension approved by the FDA in March 2024. It was acquired through Merck's $11.5 billion acquisition of Acceleron Pharma in 2021. Winrevair generated $419 million in FY2024 sales and is expected to become a significant revenue contributor as it addresses a rare disease with limited treatment options.

The Merck name traces to 1668, when Friedrich Jacob Merck purchased an apothecary in Darmstadt, Germany. The business grew over subsequent generations into a pharmaceutical manufacturer. In 1891, George Merck, a descendant of the founding family, established a U.S. subsidiary in New York to import and distribute Merck products in the American market.

When the United States entered World War I in 1917, the U.S. government seized German-owned assets in America, including the Merck U.S. subsidiary. The American business was sold to George W. Merck, the founder's grandson, who incorporated it as an independent American company. The German parent, Merck KGaA, and the American Merck & Co. have operated as entirely separate companies since that separation.

Merck & Co. grew substantially through the mid-20th century, developing streptomycin (the first antibiotic effective against tuberculosis) in collaboration with Rutgers University in the 1940s, and later producing cortisone, vitamin B12, and other landmark medicines. The company became one of the most respected pharmaceutical manufacturers in the United States, known for its research-driven culture.

In 1953, Merck merged with Sharp & Dohme, a Philadelphia-based pharmaceutical company, creating a significantly larger entity and the basis for the MSD name used internationally. The combined company expanded its global operations and research capabilities throughout the 1950s and 1960s.

Merck's vaccine development capabilities became a major competitive strength in the latter half of the 20th century. The company developed the measles, mumps, and rubella (MMR) vaccine, the hepatitis B vaccine, and the varicella (chickenpox) vaccine, among others. Maurice Hilleman, a Merck virologist, is credited with developing more than 40 vaccines during his career at the company, more than any other scientist in history.

In 1999, Merck launched Vioxx (rofecoxib), a pain reliever that became one of the best-selling drugs in the world. In 2004, Merck voluntarily withdrew Vioxx from the market after a clinical trial showed it doubled the risk of heart attack and stroke in long-term users. The withdrawal triggered thousands of lawsuits and resulted in Merck paying approximately $4.85 billion in settlements in 2007. The Vioxx episode significantly damaged Merck's reputation and financial position and prompted a major reassessment of the company's research and commercialization practices.

Merck acquired Schering-Plough in 2009 for approximately $41 billion, significantly expanding its pharmaceutical portfolio and international presence. The acquisition brought brands including Nasonex, Remicade (shared with Johnson & Johnson), and Singulair into Merck's portfolio.

Keytruda, approved by the FDA in 2014 initially for melanoma, transformed Merck's financial trajectory. The drug's mechanism of blocking the PD-1 pathway to allow the immune system to attack cancer cells proved effective across a wide range of tumor types, and its approved indications expanded rapidly. By 2023, Keytruda had surpassed Humira (AbbVie) to become the world's best-selling prescription medicine, a position it maintained in 2024.

In 2021, Merck acquired Acceleron Pharma for approximately $11.5 billion, gaining Sotatercept, which was subsequently approved as Winrevair for pulmonary arterial hypertension in 2024. Winrevair generated $419 million in FY2024 sales following its launch and is expected to become a significant revenue contributor.

Robert M. Davis became Chairman and CEO in 2021, succeeding Kenneth Frazier. Davis has led the company's strategy of building a post-Keytruda pipeline through acquisitions and internal research, with the 2028 Keytruda patent expiration representing the primary strategic challenge for the company.

In November 2024, Merck announced an agreement to acquire Verona Pharma for approximately $2.5 billion, gaining Ohtuvayre (ensifentrine), a first-in-class inhaled therapy for chronic obstructive pulmonary disease (COPD). The acquisition closed in 2025 and adds a new therapeutic area to Merck's portfolio.

Merck has established comprehensive sustainability initiatives focused on environmental responsibility, ethical business practices, and global health access. The company has committed to achieving carbon neutrality by 2040 and has integrated sustainability considerations across its research, manufacturing, and commercial operations. The company is not a certified B Corporation.

The company's environmental commitments include reducing greenhouse gas emissions from operations, increasing renewable energy usage in manufacturing facilities, and implementing sustainable packaging solutions. Merck has set science-based targets for emissions reduction and reports annually on its environmental performance and progress toward sustainability goals.

Water stewardship represents a key focus area, with Merck implementing water conservation programs at manufacturing facilities and investing in water treatment technologies. The company works to minimize water usage in pharmaceutical production processes and supports water access initiatives in communities where it operates.

Ethical business practices are emphasized through comprehensive compliance programs, clinical research ethics, and responsible marketing policies. Merck maintains strict standards for clinical trial conduct, data integrity, and transparent reporting of research results. The company's code of conduct governs employee behavior and business relationships globally.

Global health access programs focus on improving medicine availability in developing countries through tiered pricing, donation programs, and partnerships with global health organizations. Merck has committed to making its medicines and vaccines accessible to patients worldwide, regardless of their ability to pay.

• Fortune Most Admired Companies (2025): Merck was included in Fortune's World's Most Admired Companies ranking in the pharmaceutical industry
• Forbes World's Best Employers (2025): The company received recognition for employee satisfaction and workplace practices across its global workforce of approximately 72,000 people
• Pharmaceutical Innovation Awards: Merck regularly receives awards for drug discovery and development, particularly recognition for Keytruda's impact on cancer treatment and vaccine development achievements
• Science and Research Recognition: The company has received numerous awards for scientific research contributions, including recognition for breakthrough discoveries in oncology and vaccine development

The Vioxx withdrawal in 2004 remains the most significant controversy in Merck's recent history. The company's decision to continue marketing Vioxx after internal data suggested cardiovascular risks, and the subsequent withdrawal and litigation, resulted in approximately $4.85 billion in settlements and significant reputational damage. The episode prompted broader industry and regulatory discussions about clinical trial transparency and post-market surveillance.

Gardasil has been subject to ongoing controversy in some markets regarding its safety profile and the appropriateness of mandatory vaccination programs. Merck has maintained that the vaccine's safety and efficacy are well-established through extensive clinical and post-market data, and regulatory agencies in most major markets have continued to recommend the vaccine.

Drug pricing practices have drawn scrutiny from U.S. legislators and advocacy groups. Merck, like other large pharmaceutical companies, has faced criticism over the pricing of Keytruda and other high-cost medicines, particularly in the context of the U.S. healthcare system's drug pricing debates. The Inflation Reduction Act's Medicare drug price negotiation provisions create additional revenue pressure for high-cost medicines.

The Inflation Reduction Act (IRA) of 2022 includes provisions for Medicare to negotiate prices of certain high-cost drugs. Keytruda is among the drugs potentially subject to negotiation in future rounds, which could affect pricing and revenue in the U.S. market.