Merck closed several deals, including acquiring EyeBio, Harpoon Therapeutics, and licensing agreements with LaNova Medicines and Hansoh Pharma. These moves aim to bolster Merck's pipeline and expand its presence in key therapeutic areas.

Keytruda received over 25 regulatory approvals in major markets, expanding its use in various cancer types and combinations. This highlights Keytruda's continued importance as a growth engine for Merck.

Merck terminated development programs for MK-7684A (vibostolimab), favezelimab, and MK-2060 following review of clinical trial data. This reflects a strategic shift in resource allocation and portfolio management.

A new restructuring program was approved in January 2024, targeting optimization of the manufacturing network and supply chain. This initiative is expected to generate annual net cost savings of approximately $750 million by the end of 2031.

Merck is experiencing manufacturing delays related to Varivax and ProQuad, leading to supply constraints in 2025. The company is taking steps to mitigate the impact, including borrowing doses from the CDC.

Merck emphasizes continuous development of its workforce, promoting internal mobility and providing opportunities for employees to shape their career paths. These efforts are designed to attract and retain skilled personnel.

The company's dependence on patent rights is highlighted, and the risk of patent challenges or circumvention by third parties is emphasized. Loss of patent protection could lead to generic competition and a rapid decline in product sales.

The company faces increasing pricing pressure from managed care organizations, government agencies, and programs, including the Inflation Reduction Act (IRA), which could negatively affect sales and profit margins.

The company's significant global operations expose it to risks including currency fluctuations, governmental actions, and trade restrictions, which could have a material adverse effect on the company's results of operations and financial condition.

The company faces intense competition from both lower-cost generic and biosimilar products and competitors' products. The company must continue to innovate to stay ahead of the competition.

The company experienced lower sales of Gardasil/Gardasil 9 in China and expects that sales of Gardasil/Gardasil 9 in China will decline significantly in 2025. This is due to a slowdown in demand and elevated inventory levels at its distributor, Chongqing Zhifei Biological Products Co., Ltd.

The Company is diversifying its oncology portfolio and executing on its strategy which is broadly based on three strategic pillars: immuno-oncology, precision molecular targeting and tissue targeting. Merck has numerous Phase 3 oncology programs within these pillars.

In January 2024, the Company approved a new restructuring program intended to continue the optimization of the Company's Human Health global manufacturing network as the future pipeline shifts to new modalities and also optimize the Animal Health global manufacturing network to improve supply reliability and increase efficiency.

The Company is employing various technologies and techniques aimed at reducing its water footprint and improving operational performance. The Company's endorsement of the United Nations CEO Water Mandate enables alignment of the Company's water program with the mandate's principles.

The Company is working to reduce its Scope 3 emissions through a robust supplier engagement approach to drive collaboration upstream and downstream in its value chain. By engaging with its suppliers, the Company can identify key ways to reduce its GHG emissions and pinpoint additional tangible benefits for the business.

The Company is increasing its use of artificial intelligence (AI) systems to automate processes, analyze data, and support decision-making which poses inherent risks.

The Company believes that meeting its environmental sustainability goals is intrinsically linked to the creation of innovative, cost-efficient manufacturing processes with low environmental impact.

The Company utilizes an innovative "green-by-design" development strategy with a goal to progress from an initial early clinical supply route to a fully optimized and sustainable commercial manufacturing process.

Merck's capital allocation strategy continues to prioritize investments in its business to drive near- and long-term growth, including investing in the Company's key growth drivers and expansive pipeline of novel candidates.

In November 2024, Merck's Board of Directors approved an increase to the Company's quarterly dividend, raising it to $0.81 per share from $0.77 per share on the Company's outstanding common stock. In January 2025, Merck's Board of Directors authorized a new share repurchase program of up to an additional $10 billion of Merck's common stock for its treasury.

The Company plans to invest approximately $20 billion in capital projects from 2024-2028, more than $11 billion of which relates to investments in the U.S., including expanding manufacturing capacity for oncology, vaccine and animal health products.

In 2024, the Company committed to a net-zero target for its GHG emissions across its global operations (Scopes 1, 2 and 3) by 2045, aligned with the guidelines of the Science Based Targets initiative (SBTi).

The Company's climate goals include reducing Scope 1 and 2 operational GHG emissions 46% by 2030 (from a 2019 baseline), sourcing 100% of its purchased electricity from renewable sources by 2025, and reducing Scope 3 GHG emissions 30% by 2030 (from a 2019 baseline).

Globally, women comprise 52% of employees, and in the U.S. individuals from underrepresented ethnic groups comprise 37% of its workforce. Women comprise 46% of the members of the Board of Directors. Additionally, the Company's senior management team is made up of 39% women.

Global efforts toward health care cost containment continue to exert pressure on product pricing and market access. 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.

The Company is subject to a variety of U.S. and international laws and regulations. The Company is subject to evolving and complex tax laws, which may result in additional liabilities that may affect results of operations and financial condition.

The Company's worldwide business is subject to risks of currency fluctuations, governmental actions and other governmental proceedings abroad. The Company does not regard these risks as a deterrent to further expansion of its operations abroad.