Merck & Co., Inc. reported significant financial results for the third quarter and the first nine months of 2024, reflecting both growth in sales and notable changes in profitability compared to the previous fiscal period. For the three months ended September 30, 2024, Merck's sales reached $16,657 million, a 4% increase from $15,962 million in Q3 2023. For the nine months, sales totaled $48,544 million, up from $45,485 million in the same period last year.
Despite the sales growth, net income for Q3 2024 decreased to $3,161 million, down from $4,750 million in Q3 2023. This decline was attributed to increased research and development (R&D) expenses, which surged to $5,716 million in Q3 2024, compared to $3,183 million in the same quarter of 2023. The nine-month net income showed a stark contrast, rising to $13,389 million from $1,603 million in the prior year, largely due to the impact of acquisitions and a favorable tax rate.
Key product lines contributed to the revenue growth, particularly the oncology franchise, with Keytruda sales increasing 17% to $7,429 million in Q3 2024. However, sales from the diabetes franchise, including Januvia and Janumet, fell significantly, reflecting competitive pressures and pricing challenges. The vaccines segment also experienced a decline, particularly in sales of Gardasil and Gardasil 9.
Merck's strategic developments included several acquisitions aimed at enhancing its product pipeline. In September 2024, the company acquired MK-1045 from Curon Biopharmaceutical for $700 million, with potential future milestone payments. Additionally, Merck purchased the aqua business from Elanco for $1.3 billion and Eyebiotech Limited for $1.2 billion, incurring substantial R&D charges related to these acquisitions.
The company also initiated a restructuring program in January 2024, expected to incur cumulative pretax costs of approximately $4.0 billion by 2031, with anticipated annual net cost savings of about $750 million. For the first nine months of 2024, restructuring costs totaled $701 million, up from $532 million in the same period of 2023.
Merck's cash and cash equivalents significantly increased to $14,593 million as of September 30, 2024, compared to $6,841 million at the end of 2023. The company reported a net cash provided by operating activities of $18,018 million for the first nine months of 2024, a notable rise from $12,760 million in the same period of 2023.
Overall, while Merck's sales showed positive growth, the impact of increased R&D expenses and strategic acquisitions influenced profitability, reflecting a dynamic period for the company.
About Merck & Co., Inc.
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