Merck entered an exclusive license agreement with Jiangsu Hengrui Pharmaceuticals for HRS-5346, an investigational oral small molecule Lipoprotein(a) inhibitor. This agreement grants Merck exclusive rights to develop, manufacture, and commercialize HRS-5346 worldwide, excluding the Greater China region, for an upfront payment of $200 million.

Merck acquired the Dundalk, Ireland facility of WuXi Vaccines for $437 million, which, combined with previous consideration, resulted in $759 million being recorded as assets under construction. This acquisition will strengthen Merck's manufacturing capabilities.

Keytruda received approval in China for urothelial carcinoma and in Europe for malignant pleural mesothelioma. These approvals expand the potential market for Keytruda.

The company approved a restructuring program intended to optimize the human health and animal health manufacturing networks. The company expects to record charges of approximately $550 million in 2025 related to the restructuring program and anticipates annual net cost savings of approximately $750 million by the end of 2031.

The FDA issued a complete response letter for the BLA for patritumab deruxtecan due to findings pertaining to an inspection of a third-party manufacturing facility. Merck is working with Daiichi Sankyo to address FDA feedback.

In early 2025, Merck lowered the list price of the Januvia family of products to more closely align them with net prices. The lower list price has reduced the rebate amount Merck pays to Medicaid, resulting in higher realized net pricing.

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

The tariffs implemented to date will result in approximately $200 million of additional expenses in 2025, the vast majority of which relate to China, largely related to the importation of products into China. Future changes to tariffs could have a further adverse effect on the company's business.

Combined worldwide sales of Gardasil and Gardasil 9 declined 41% in the first quarter of 2025 primarily driven by lower demand in China. The company made a decision to temporarily pause shipments to China beginning in February 2025 through at least the middle of the year.

Keytruda sales growth in the U.S. reflects higher demand and pricing, partially offset by an approximate $250 million negative impact due to the timing of wholesaler purchases. Demand was driven by increased utilization across earlier-stage indications.

Worldwide sales of Vaxneuvance grew 5% in the first quarter of 2025 primarily due to continued uptake following launches in the pediatric indication in Europe and certain countries in the Asia Pacific region, partially offset by lower demand in the U.S. due to competitive pressure.

Worldwide sales of Bridion were nearly flat in the first quarter of 2025 as higher demand and pricing in the U.S. was offset by lower demand in several international markets due to generic competition, particularly in Japan and the EU.

Gross margin was 78.0% in the first quarter of 2025 compared with 77.6% in the first quarter of 2024. The gross margin improvement was primarily due to the favorable effects of product mix and lower restructuring costs.

Cost of sales declined 3% in the first quarter of 2025. Also included in Cost of sales are expenses associated with restructuring activities, which amounted to $36 million and $116 million in the first quarter of 2025 and 2024, respectively.

The Company expects to record charges of approximately $550 million in 2025 related to the 2024 Restructuring Program and anticipates the actions under the 2024 Restructuring Program will result in cumulative annual net cost savings of approximately $750 million by the end of 2031.

Research and development (R&D) expenses declined 9% in the first quarter of 2025 primarily due to a $656 million charge in the first quarter of 2024 for the acquisition of Harpoon Therapeutics, Inc. (Harpoon) and the favorable effect of foreign exchange.

The decline in R&D expenses was partially offset by higher compensation and benefit costs, as well as higher clinical development spending, and increased investment in discovery research and early drug development.

On April 24, 2025, Halozyme, Inc. filed a complaint in the U.S. District Court for the District of New Jersey alleging that the Company's activities related to subcutaneous pembrolizumab infringe or will infringe 15 patents belonging to the MDASE portfolio.

During the first three months of 2025, the Company purchased $1.2 billion (13 million shares) of its common stock for its treasury under this program. The Company expects the pace of share repurchases to continue at this level for the remainder of 2025.

In January 2025, Merck's Board of Directors authorized purchases of up to an additional $10 billion of Merck's common stock for its treasury. As of March 31, 2025, the Company's remaining share repurchase authorization was $11.2 billion.

Dividends paid to stockholders were $2.1 billion and $2.0 billion for the first three months of 2025 and 2024, respectively. In November 2024, Merck's Board of Directors declared a quarterly dividend of $0.81 per share on the Company's outstanding common stock for the first quarter that was paid in January 2025.

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Worldwide sales of Bridion were nearly flat in the first quarter of 2025 as higher demand and pricing in the U.S. was offset by lower demand in several international markets due to generic competition, particularly in Japan and the EU.

Worldwide sales of Vaxneuvance grew 5% in the first quarter of 2025 primarily due to continued uptake following launches in the pediatric indication in Europe and certain countries in the Asia Pacific region, partially offset by lower demand in the U.S. due to competitive pressure.

Gardasil 9 is currently indicated in the U.S. for a two-dose regimen in adolescents aged 9-14 and a three-dose regimen for those aged 15-45. The U.S. Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) has stated that at its meeting in June 2025 it intends to discuss and, potentially, vote on a change to the dose recommendation, which could include a reduction in the number of recommended doses.