How Does Merck Make its Money?
Merck is one of the world’s largest pharmaceutical companies, best known for its blockbuster cancer immunotherapy Keytruda, which has become the best-selling drug in the world. The company operates in two segments: Pharmaceutical and Animal Health (through its Organon spinoff, Merck retained the animal health business). Merck’s pipeline spans oncology, vaccines, cardiovascular, and infectious disease, with Keytruda alone generating nearly half of total revenue. As Keytruda faces patent expiration in 2028, Merck has been actively acquiring assets to diversify its portfolio.
Merck (MRK) Business Model
Merck operates in the pharmaceuticals sector. Below is a summary of Merck’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Merck’s 2024 fiscal year filings with the SEC.
Merck Competitors
Merck’s key competitors and comparable public companies in the pharmaceuticals sector include Eli Lilly, Pfizer, Johnson & Johnson, and Amgen. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Merck stacks up by comparing their revenue breakdown, margins, and growth metrics.
Merck Competitors
Merck’s key competitors and comparable public companies in the pharmaceuticals sector include Eli Lilly, Pfizer, Johnson & Johnson, and Amgen. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Merck stacks up by comparing their revenue breakdown, margins, and growth metrics.
Merck Competitors
Merck’s key competitors and comparable public companies in the pharmaceuticals sector include Eli Lilly, Pfizer, Johnson & Johnson, and Amgen. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Merck stacks up by comparing their revenue breakdown, margins, and growth metrics.
Merck Competitors
Merck’s key competitors and comparable public companies in the pharmaceuticals sector include Eli Lilly, Pfizer, Johnson & Johnson, and Amgen. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Merck stacks up by comparing their revenue breakdown, margins, and growth metrics.
Merck Competitors
Merck’s key competitors and comparable public companies in the pharmaceuticals sector include Eli Lilly, Pfizer, Johnson & Johnson, and Amgen. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Merck stacks up by comparing their revenue breakdown, margins, and growth metrics.
Merck Competitors
Merck’s key competitors and comparable public companies in the pharmaceuticals sector include Eli Lilly, Pfizer, Johnson & Johnson, and Amgen. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Merck stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Keytruda (oncology) | $29,500 | $25,000 | +18.0% |
| Gardasil (HPV vaccine) | $5,600 | $8,900 | -37.1% |
| Lagevrio (COVID-19) | $600 | $2,100 | -71.4% |
| Januvia/Janumet (diabetes) | $2,100 | $2,800 | -25.0% |
| Animal Health | $5,600 | $5,600 | +0.0% |
| Other Pharmaceuticals | $21,000 | $15,700 | +33.8% |
| Total Revenue | $64,200 | $60,100 | +6.8% |
Keytruda (oncology) — 46% of Revenue
Gardasil (HPV vaccine) — 9% of Revenue
Lagevrio (COVID-19) — 1% of Revenue
Januvia/Janumet (diabetes) — 3% of Revenue
Animal Health — 9% of Revenue
Other Pharmaceuticals — 33% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $64,200 | $60,100 |
| Cost of Revenue | $20,700 | $19,500 |
| Gross Profit | $43,500 | $40,600 |
| Operating Expenses | $27,400 | $26,200 |
| Operating Income | $16,100 | $14,400 |
| Net Income | $13,200 | $300 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 67.8%
- Operating Margin: 25.1%
- Revenue Growth: 6.8%
Is Merck Profitable?
Yes, Merck is profitable. The company reported net income of $13,200 on total revenue of $64,200. With an operating margin of 25.1%, Merck demonstrates solid profitability for the pharmaceuticals sector. The gross margin of 67.8% reflects Merck’s pricing power and cost structure.
What to Watch
- Post-Keytruda strategy: pipeline assets and acquisitions to offset 2028 patent cliff
- Gardasil demand recovery in China after significant inventory destocking
- Winrevair (pulmonary arterial hypertension) launch as a potential next blockbuster
- Integration of Prometheus Biosciences and other recent M&A deals
Merck (MRK) Financial Summary
Merck (MRK) is a pharmaceuticals company that generated $64,200 in total revenue in fiscal year 2024. Revenue grew 6.8% year-over-year. The company earned $13,200 in net income, making it profitable. For a deeper look at Merck’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.