Merck acquired the aqua business of Elanco and Eyebiotech, expanding its portfolio in animal health and ophthalmology, respectively. These acquisitions are expected to contribute to future growth.

The co-development agreement with Orion Corporation for opevesostat was converted to an exclusive global license for Merck, giving Merck full control over development and commercialization.

Merck acquired Harpoon Therapeutics, a clinical-stage immunotherapy company, for $765 million, further bolstering its oncology pipeline with novel T-cell engagers.

The company approved a new restructuring program in January 2024 to optimize its manufacturing network, with cumulative pretax costs estimated at $4.0 billion and expected annual net cost savings of approximately $750 million by the end of 2031.

Global efforts toward health care cost containment continue to exert pressure on product pricing and market access worldwide. The company anticipates these actions will continue to negatively affect sales and profits.

SG&A expenses increased by 1% due to higher administrative costs, but was largely offset by lower promotional spending, reflecting the prioritization of spending on key growth products.

The company is involved in various claims and legal proceedings, including product liability, intellectual property, and commercial litigation, as well as governmental investigations. These matters could result in significant financial and reputational harm.

The company is involved in ongoing patent litigation, including challenges to key products like Bridion, Januvia, and Keytruda. Adverse outcomes could significantly shorten periods of exclusivity for these products.

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, including the Inflation Reduction Act, are expected to negatively affect sales and profits.

Keytruda sales continue to grow, driven by increased uptake across multiple indications. However, the company faces increasing competition in the oncology market.

The company is experiencing sales declines of Bridion in the EU and Japan due to the expiration of patents and the entry of generic competitors. Januvia and Janumet sales are also declining due to generic competition.

Vaxneuvance sales increased due to higher demand in Europe and Japan, as well as the beneficial impact of public sector buying patterns in the U.S., demonstrating its growing competitive position in the vaccine market.

The company's 2024 restructuring program is intended to optimize its manufacturing and supply network, with expected annual net cost savings of approximately $750 million by the end of 2031.

Gross margin improved due to a favorable product mix, including lower royalty rates related to Keytruda and Gardasil/Gardasil 9 sales. This suggests an improvement in operational efficiency.

The company is prioritizing spending on key growth products, which is reflected in lower promotional spending, indicating an effort to manage operating expenses.

The acquisitions of Elanco's aqua business, Eyebiotech, and Harpoon Therapeutics, as well as the collaboration agreement with Orion, demonstrate the company's focus on expanding its research pipeline through external innovation.

The company is actively developing new treatment modalities, including T-cell engagers, antibody drug conjugates, and mRNA-based therapies, reflecting its commitment to innovation.

The company continues to invest in clinical development, as evidenced by the ongoing trials for Keytruda and other candidates, demonstrating its commitment to bringing new therapies to market.

The company allocated significant capital to strategic acquisitions, including the aqua business of Elanco, Eyebiotech, and Harpoon Therapeutics, demonstrating its focus on external growth opportunities.

The company purchased $373 million of its common stock for its treasury, compared to $487 million in the prior year period, indicating a continued, but reduced, focus on share repurchases.

The company declared a quarterly dividend of $0.77 per share, demonstrating its commitment to returning capital to shareholders through consistent dividend payments.

The filing does not explicitly discuss any specific environmental, social, or governance initiatives undertaken by the company during this reporting period.

The company continues to face global pricing pressures due to governmental and third-party cost-containment measures, which are expected to negatively affect sales and profits.

The unfavorable effect of foreign exchange negatively impacted revenue growth by approximately 4 percentage points in both the second quarter and first six months of 2024, primarily due to the devaluation of the Argentine peso.

The company received several regulatory approvals for Keytruda and other products, expanding market opportunities and supporting future growth.