AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

See which workplaces made this year's list.

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Employees say:&nbsp;"Senior leadership at Merck is committed to establishing a healthy work environment, and many mid-level managers set a positive example. I believe most Merck employees genuinely strive to make a meaningful impact, both within the work environment and in patient care. A good example is the various mentorship programs I have attended. Despite mentoring me being outside of their job responsibilities and not accounted for in their annual performance reviews, all my mentors have done their best to support me and provide constructive feedback."

Best Large Workplaces in Biotechnology and Pharmaceuticals

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Fortune Global 500

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 145,000 U.S. employees.

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Employees say:"Merck is outstanding at seeing the employee as a "whole person," as a valuable resource to the company and its patients. Over the past several years, I have seen how the company has put concerted effort into ensuring that employees take time away, care for themselves, care for their families, etc. To get the best out of employees, the employees need to BE at their best. And I certainly appreciate how Merck has pivoted and built that flexibility into the rhythms, and now expectations, of employment. It truly is a great place to work. Thank you!"

35 Best Large Workplaces in New York

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The top companies on our list have one thing in common: Staff largely trust leadership to see them as well-rounded people and reward them for a job well done.

Employees say: "I feel this company really invests in their people. I started out 25 years ago on a temporary assignment that was to last four days. As long as you have the drive and determination, your career at this company can make an impact and can grow significantly. They provide many tools and opportunities, but it is up to the employee to leverage them. I have a disabled husband who I have to take care of financially and physically, and this company has always been flexible and supportive, which allows me to maintain a great work-life balance and still efficiently get work done. They also support innovation, and I feel new ideas are encouraged and I have seen impact of change initiatives, by either myself, or that my team have brought up."

Fortune 100 Best Companies to Work For

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

Employees say:"This is more than a company, it is a huge family! Each person, regardless of their role, education, or experience is treated equally importantly. Since our first national meeting, I have repeatedly been acknowledged and never felt unimportant. This work environment is exceptional and each of us strives to work harder and more efficient as we feel appreciated and supported."

Best Large Workplaces for Parents

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Employees say:"Merck is outstanding at seeing the employee as a "whole person," as a valuable resource to the company and its patients. Over the past several years, I have seen how the Company has put concerted effort into ensuring that employees take time away, care for themselves, care for their families, etc. To get the best out of employees, the employees need to BE at their best. And I certainly appreciate how Merck has pivoted and built that flexibility into the rhythms. It truly is a great place to work. "

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Employees say:"The culture of support for the Employee Business Resource Groups creates a physical environment of care, community, and collaboration that fosters trust in both the EBRG teams as well as in the DE&amp;I journey within the greater company culture."

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are insurance and managed care, medical products and facilities, pharmacy services, and pharmaceutical companies.

Fortune Sector Leaders: Health Care

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 140,000 U.S. employees.

GPTW-2024-New-York-Large-Merck

Employees say:"The main thing that drives me is the sense of ethics and always putting patients first, and not profits. This makes me proud to work here and confident that everyone at the company is driven by the same north."

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-Merck

New Jersey–based pharmaceutical company Merck climbed 36 spots from No. 98 on last year’s Best Companies list, with about 75% of the company’s employees worldwide undergoing a pay equity study as of 2021, which grew to 90% in 2022. That 2022 study, by the way, showed that Merck had achieved over 99% pay equity for both women and men and white and non-white employees in the U.S. &nbsp;Merck’s diversity programs have worked to address gender pay disparities and representation of women in the workplace. The company’s board of directors has more gender diversity than the industry norm, consisting of 46% female representation, while women make up 33% of Merck’s executives. Merck’s Women’s Leadership Program and Emerging Women’s Leadership program provide professional development training for women employees.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-Merck

While Merck’s business focus revolves around using science to save lives and improve physical health, the company has made the mental health of its employees a priority as well. 
<ul> 
 	<li>Roughly 4,000 managers have been trained on how to connect their workers with well-being resources and educated on how to respond with compassion toward someone who may be struggling.</li> 
 	<li>Roughly 100 workers have completed Mental Health First Aid training and are available to help colleagues access mental health information and resources. It’s a grassroots project to reduce the stigma and raise awareness of mental health issues.</li> 
 	<li>Lyra, launched in 2021, ensures both employees and their families have quick access to high-quality evidence-based mental health care.</li> 
 	<li>Employees are provided with a membership to relaxation app Calm, as well as a flex day, time off to volunteer, and a generous parental leave program.</li> 
 	<li>“Merck shows that we are people, not just employees, with lives outside of work and honors that and promotes balancing work/home life,” said one worker.</li> 
</ul>

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 100,000 U.S. employees.

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Employees say: 
 
"The organization operates with integrity on all levels. Merck is mission-driven and highly principled. Management genuinely cares about employees as individuals—promotes work-life balance and health and wellness, and celebrates diversity. My management listens and follows up on issues brought to their attention and consistently works to remove barriers in processes to help support me and my colleagues in my department to be successful in our jobs."

GPTW 2023 best workplaces pharma LARGE

Employees say: 
 
"The people who work here are amazing and inspiring—people push me to better myself and remind me of what is important and why we do what we do!"

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

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The pharmaceutical firm that makes commonly used drugs, including HPV vaccine Gardasil, has held strong in its 69th year on the Fortune 500 list. 
<ul> 
 	<li>Merck surpassed expectations in 2022, bringing in $59.3 billion in revenue and $14.5 billion in profit.</li> 
 	<li>In April 2023, Merck announced plans to acquire Prometheus Biosciences for $10.8 billion. It is one of a few deals of its kind, but analysts say it could signal the beginning of a period of intense M&amp;A for biotech companies.</li> 
 	<li>Merck, along with Moderna, is making progress toward a cancer vaccine for melanoma patients. The immunotherapy drug Keytruda, Merck’s top seller, is part of the vaccine and was a strong growth driver.</li> 
 	<li>Sales of the COVID oral antiviral drug Lagevrio reported robust sales in 2022, but the company expects a significant slowdown in 2023.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC 2022 41 Merck

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

The companies on this year's list stand out for celebrating innovation, promoting cooperation, and more.

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Employees say: 
 
“The number of available opportunities/modalities for personal and professional development is truly astounding. Additionally, employees have the opportunity to participate in secondments (away from their hired position) of up to 6 months to work in and learn about another functional area/role. To me, this really emphasizes our company's investment in the PERSON.” 
 
Read the Great Place to Work review .

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Employees say: 
 
“The company work culture is very inclusive and compassionate. Everyone is very caring and makes new people feel welcome. It's also very easy to move around departments and working groups. They put a great focus on professional development and networking for everyone.”

Fortune's annual list dedicated to the idea that business is uniquely suited to address society’s biggest challenges.

CTW.1122.Merck Gardasil

Merck’s Gardasil is a potent vaccine against HPV, a sexually transmitted disease that can cause cervical cancer. But until recently, cost and production constraints limited its reach. Merck has now committed more than $1 billion to expand capacity, with a focus on underserved countries. Merck more than doubled global supply of Gardasil between 2017 and 2020 and is on track to do so again by 2023.

Change the World

This year’s Fortune 500 marks the 68th running of the list.

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Pharmaceutical company Merck fell six spots on the list in its first year with CEO Robert Davis at the helm. But that modest slide masks a successful year in which profits jumped 85%, to $13 billion. Excluding revenue from Organon, the women’s health company whose spinoff was completed in June 2021, Merck’s sales overall increased 17%, including a 20% gain for the company’s hallmark cancer drug Keytruda and a 44% increase in sales for HPV vaccine Gardasil. Merck also registered nearly $1 billion in sales for molnupiravir, an oral antiviral treatment for COVID that received emergency use authorization from the FDA in December 2021.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-37-Merck

Our 2021 list of the 100 best companies to work for, as ranked by their employees. See which companies made the list.

100 Best companies-100-Merck

New to our list this year, this 130-year-old pharma giant has long devoted itself to the mission: “Save and improve lives.” Though Merck shelved its own vaccine development, President Biden announced in March that the company would help produce J&amp;J’s one-shot COVID vaccine. <a href="https://coins2day.com/longform/fortune-500-black-ceos-business-history/">When current CEO Ken Frazier departs</a> at the end of June, CFO Robert Davis will take the reins. Employees say that during a difficult year, it meant a lot that Merck managed to increase benefits to employees. That included the addition of “LifeCare” specialists who can provide help in hiring a nanny or search for virtual tutors to support e-learning.The company has “stepped up,” notes an employee.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

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<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Merck spent much of 2020 developing and testing two COVID-19 vaccine candidates but abandoned the projects in January. The company said in March that it would support the manufacturing and supply of Johnson &amp; Johnson’s COVID-19 vaccine instead. Merck’s worldwide sales increased 2% to $48 billion last year, led by a 30% increase in revenue ($14.4 billion) from its flagship cancer drug Keytruda. Despite the sales growth, Merck saw a 28% decrease in net income in 2020 compared with the prior year. And the numbers in 2021 aren’t exactly flashing green—at least so far: First-quarter sales were flat, and profit declined because of the continuing effects of the pandemic as well as increased competitive pressures for key Merck products. One more challenge for the venerable drugmaker: In June, longtime CEO Ken Frazier steps down after a stellar decade-long run leading the company. He will hand the reins to CFO Robert Davis.&quot;}" data-sheets-userformat="{&quot;2&quot;:14721,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}">Merck spent much of 2020 developing and testing two COVID-19 vaccine candidates but abandoned the projects in January. The company said in March that it would support the manufacturing and supply of Johnson &amp; Johnson’s COVID-19 vaccine instead. Merck’s worldwide sales increased 2% to $48 billion last year, led by a 30% increase in revenue ($14.4 billion) from its flagship cancer drug Keytruda. Despite the sales growth, Merck saw a 28% decrease in net income in 2020 compared with the prior year. And the numbers in 2021 aren’t exactly flashing green—at least so far: First-quarter sales were flat, and profit declined because of the continuing effects of the pandemic as well as increased competitive pressures for key Merck products. One more challenge for the venerable drugmaker: In June, longtime CEO Ken Frazier steps down after a stellar decade-long run leading the company. He will hand the reins to CFO Robert Davis.

These companies foster supportive cultures, where employees find opportunities for growth with help from their colleagues.

Best Large Workplaces New York 2021-Merck

Employees say: 
 
“Sense of approachability to direct management and genuine concern they show for both work and family life. The encouragement to learn and develop talents and abilities is a consistent focus.”

The best U.S. biotechnology and pharmaceutical companies, as ranked by their employees in the past year.

Best Workplaces Biotech Pharma 2021-Merck & Co

Employees say:  
 
“Benefits increased this year in response to the pandemic and I feel incredibly supported - child care, elder care, mental health support and more.” 
 
Read Great Place to Work review .

This year’s Fortune 500 marks the 67th running of the list.

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We surveyed tens of thousands of employees to create this list of millennials’ favorite workplaces.

Best Large Workplaces Millennials 2021-Merck

Employees say: 
 
“I appreciate the co-learning attitude within this company. Even though I might be younger and newer, I have the ability to make an impact and have a voice within the group.”

100 Best Large Workplaces for Millennials

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-Featured Image-Logo-2020

The pharma giant had a banner year in 2019, climbing 29 slots on the Global 500. Revenue rose almost 11%, to $46.8 billion, while profits leaped 58%, to $9.8 billion. Blockbuster cancer drug Keytruda, as well as an expanded line of animal medicines, have helped power Merck’s growth—though its share price has not seen as much of a lift as some competitors'. In the race to find a vaccine for COVID-19, Merck has adopted a slow pace compared to others in the industry. Rather than tout the company’s progress, CEO Kenneth Frazier has instead criticized industry “hype” and has warned that the process for developing an effective vaccine could take years

This year's Fortune 500 marks the 66th running of the list.

F500-2020-069-Merck

The pharma giant had a banner year in 2019, climbing seven slots on the Fortune 500. Revenue rose almost 11%, to $46.8 billion, while profits leaped 58%, to $9.8 billion. Blockbuster cancer drug Keytruda, as well as an expanded line of animal medicines, have helped power Merck’s growth—though its share price has not seen as much of a lift as some competitors'. More recently, Merck has been notably quiet in medical chatter about the novel coronavirus. But executives on a late April earnings call announced that the company has teams scanning its portfolio of antiviral candidates and vaccine assets for potential treatments.

As we face unprecedented collective challenges, cooperation has become a business superpower.

53.CTW20.Merck

Merck has doubled down on “impact” investing—taking stakes in smaller companies that aim to generate a measurable social good. Its portfolio currently commits about $39 million to entities working on projects including diagnostics, drug and vaccine R&amp;D, and health infrastructure. It’s a future play with present benefits: Merck estimates more than 9 million people benefited from its impact portfolio in 2019.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here’s our look at 57 companies that do well by doing good.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Change The World

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New Jersey–based Merck was founded in 1891 as the American affiliate of a German parent. Today, as a stand-alone company, it is one of the world’s biggest pharmas by revenue. It has produced numerous blockbuster medications, including the cancer treatment branded as Keytruda, which was the world’s bestselling drug in 2023, earning Merck $25 billion that year. Other high-profile medications have included diabetes treatments and anti-HIV drugs. Merck produces vaccines and has a large animal medicine business as well as a services segment whose offerings include analytics and clinical services.

Q3 2025

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Q4 2024

Merck (U.S.) (MRK): Company Profile, Stock Price, News, Rankings

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Merck (U.S.)

merck (u.s.)

Welcome to the Merck & Co., Inc., Rahway, New Jersey, USA third quarter sales and earnings conference call. At this time, all participants are in a listen-only mode until the question-and-answer session of today's conference. At that time, to ask a question, press star one on your phone and record your name at the prompt. This call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to Mr. Peter Dannenbaum, Senior Vice President, Investor Relations. Sir, you may begin.

Thank you, Julie, and good morning, everyone. Welcome to the third quarter 2025 conference call for Merck & Company Incorporated, Rahway, New Jersey, USA. Speaking on today's call will be Rob Davis, Chairman and Chief Executive Officer, Caroline Litchfield, Chief Financial Officer, and Dr. Dean Li, President, Merck Research Laboratories. Before we get started, I'd like to point out that we have items in our GAAP results, such as acquisition-related charges, restructuring costs, and certain other items that we have excluded from our non-GAAP results. There is a reconciliation in our press release. I will also remind you that some of the statements that we make today may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

Such statements are made based on the current beliefs of our company's management and are subject to significant risks and uncertainties. If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Our SEC filings, including item 1A in the 2024 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck & Co., Inc., Rahway, New Jersey, USA, undertakes no obligation to publicly update any forward-looking statements. During today's call, a slide presentation will accompany our speaker's prepared remarks. These slides, along with the earnings release, today's prepared remarks, and our SEC filings are all posted to the Investor Relations section of our company's website. With that, I'd like to turn the call over to Rob.

Thank you, Peter. Good morning, and thank you for joining today's call. We continue to make meaningful progress in using the power of leading-edge science to save and improve lives around the world. We're delivering value to patients and customers today through our innovative portfolio of medicines and vaccines, and we're securing our future by making important investments in our pipeline, the strongest and deepest in recent memory. We now have approximately 80 phase 3 trials underway across a diverse array of therapeutic areas, with important readouts coming over the next year in cardiopulmonary, immunology, HIV, ophthalmology, and, of course, oncology. We're investing behind more than 20 compelling launch opportunities, some already underway. These programs will transform our commercial portfolio and fuel future growth, with over $50 billion of revenue opportunity by the mid-2030s.

We remain committed to the pursuit of disciplined, science, and value-driven business development to further augment our expansive pipeline. In the third quarter, we continue to successfully execute on our strategy with important pipeline advancements, significant approvals, and successful new product launches. Additionally, in October, we completed the strategic acquisition of Verona Pharma. This provides us yet another important growth driver with multi-billion-dollar commercial potential into the next decade. We're making strong progress across the business, and I remain confident in our ability to further broaden our impact to patients and deliver long-term growth and value for shareholders. With respect to U.S.

Healthcare policy, as I've said before, we share the administration's goal of decreasing patient out-of-pocket costs for our products in the U.S., while at the same time realizing greater prices for our medicines and vaccines in countries that have not been paying fair value for the innovation we provide. We're actively engaged with the administration in an effort to find a path forward that achieves these objectives. We also want to preserve our ability to invest in the breakthrough innovations we intend to bring to patients in the future while ensuring the sustainability of our business long-term, and we're optimistic about our ability to do so. We continue to make significant investments in manufacturing in the United States.

Last week, we announced a groundbreaking event at our Elkton, Virginia site as part of a broader plan that will result in the investment of more than $70 billion in expanded domestic manufacturing and R&D. These investments will support our plans to drive long-term growth and will strengthen the U.S. as a global leader in biopharmaceutical innovation. Turning to our third quarter results, we're pleased to deliver solid performance with continued strength across oncology and animal health, as well as increasing contributions from our new product launches: Winrevair, Capvaxive, and most recently, Influenzia. In research, several notable updates highlight our strong progress. In cardiovascular, we announced positive top-line results from the Coral Reef Lipids trial, the third and largest phase three study evaluating Enlicitide, our investigational oral PCSK9 inhibitor, and the treatment of hyperlipidemia.

We look forward to sharing these results at the American Heart Association meeting next week and submitting these data to regulatory authorities. In pulmonary arterial hypertension, full results from the Hyperion study in recently diagnosed patients reinforce our confidence in the practice-changing potential of Winrevair. Additionally, we secured FDA approval for our supplemental BLA for Winrevair based on the strong results of the Zenith trial. In oncology, we're pleased that the FDA approved subcutaneous pembrolizumab, or Keytruda QX, and that the CHMP granted a positive opinion. Keytruda QX will provide patients and providers an important new option that can be injected in as little as one minute. We're working relentlessly to continue to develop and deliver new treatment options for patients with cancer. At ESMO, we presented data across a broad range of oncology medicines and candidates, including important findings from breakthrough therapy-designated ADCs.

Finally, we continue to expand our efforts in immunology, including for another of our important late-stage candidates, tulisokibart, where we initiated phase 2b trials in three immune-mediated inflammatory diseases. These add to the phase 2 study already underway in SSc-ILD and the ongoing phase 3s in ulcerative colitis and Crohn's disease. We're pleased to welcome our new colleagues from Verona Pharma and look forward to adding our commercial capabilities and scale to accelerate the launch of Ohtuvayre, a novel first-in-class maintenance treatment for chronic obstructive pulmonary disease. Strategic business development remains a top priority. We're assessing potential targets with urgency given our desire to make additional compelling investments when both science and value align. In summary, we remain highly focused on building on the strong clinical and commercial progress we made in the quarter.

The investments we're making to advance and expand our pipeline are increasingly translating into positive clinical results and successful new product launches. This is giving us improved line of sight towards the transformation of our portfolio to one with a far more diversified set of growth drivers. With each milestone we achieve, including compelling strategic business development, my conviction that we're well-positioned to drive the next chapter of success for our company increases. I want to recognize the commitment and effort of our teams across the world. Together, I'm confident we'll achieve long-term growth and create sustainable value for both patients and shareholders. With that, I'll turn the call over to Caroline.

Thank you, Rob. Good morning. As Rob noted, we delivered solid performance in the quarter, with growth driven by continued strength in oncology and animal health, as well as increasing contributions from our many new product launches. These results reinforce the conviction we have in our science-led strategy and in our outlook for continued growth. We remain confident in our ability to deliver strong results in the near term and are committed to making disciplined investments in compelling science to drive long-term value for patients, customers, and shareholders. Now turning to our third quarter results, total company revenues were $17.3 billion, an increase of 4% or 3% excluding the impact of foreign exchange. The following revenue comments will be on an ex-FX basis. In oncology, sales of Keytruda increased 8% to $8.1 billion, with global growth driven by strong demand for metastatic indications and robust uptake in earlier stage cancers.

Usage in tumors that primarily affect women, including cervical, breast, and endometrial cancers, was a key contributor to growth. In addition, we saw increased use of Keytruda in combination with Padcef in first-line, locally advanced, or metastatic urothelial cancer. In the U.S., growth benefited by approximately $100 million from an extra Tuesday of shipments, partially offset by other channel movements. We are also excited by the recent FDA approval and launch of Keytruda QX, which occurred at the end of the quarter. Our broader oncology portfolio achieved another quarter of strong growth, driven by Welireg, with sales increasing 41% to $196 million, predominantly driven by increased use in certain patients with previously treated advanced renal cell carcinoma in the U.S., as well as continued uptake from ongoing launches in certain international markets. In vaccines, Gardasil sales were $1.7 billion, a decrease of 25%.

Excluding China, sales declined 3%, primarily due to lower sales in Japan, reflecting the expiration of reimbursement for the catch-up cohort, partially offset by sales growth of 13% in the U.S., which was attributable to price and CDC purchasing patterns. In pneumococcal, Capvaxive sales were $244 million, driven by demand from both retail pharmacies and non-retail customers, as well as the expected seasonal inventory build. We look forward to helping protect more adults from invasive pneumococcal disease and to driving continued growth of this important product. Vaxneuvance sales decreased 7% due to a competitor preferential recommendation in Japan, which more than offset growth in certain international markets. In the U.S., sales were roughly flat, as competitive pressures were largely offset by favorable CDC stockpile activity. In RSV, Influenzia sales of $79 million reflect initial stocking ahead of expected demand.

We look forward to helping protect infants born during or entering their first RSV season. In cardiovascular, Winrevair continued its strong momentum with global sales of $360 million. In the U.S., approximately 1,500 new patients received a prescription, and over 24,000 total prescriptions were dispensed in the quarter, a testament to the continued strong demand for this important treatment option. There was also an approximate $40 million negative impact from the timing of distributive purchases, which fully reversed in October. Compelling additional data from ongoing studies, which Dean will speak to in a moment, further support our outlook for steady new patient starts. Over time, we expect an increasing proportion of use in patients whose background therapies do not include a prostacyclin. Outside the U.S., we continue to make progress with securing approvals and reimbursement, including the recent launch in Japan, which is off to a good start.

Overall, we look forward to positively impacting the lives of more patients with PAH. Our animal health business again delivered strong growth, with sales increasing 7%. Livestock sales grew 14%, driven by higher demand across all species, as well as a benefit from timing of sales. Companion animal sales declined 3% due to a reduction in vet visits and competition in parasiticides, partially offset by price, improved supply, and new product launches. I will now walk you through the remainder of our P&L, and my comments will be on a non-GAAP basis. Gross margin was 81.9%, an increase of 1.4 percentage points driven by favorable product mix. Operating expenses decreased to $3.6 billion. There were $300 million in business development charges in the quarter, compared with $2.2 billion in charges a year ago.

Excluding these charges, operating expenses were flat, reflecting an increase in investments in support of our robust early and late-phase pipeline, as well as key growth drivers, offset by the timing of expenses. Other expense was $106 million. Our tax rate of 13.4% benefited from certain discrete items. Taken together, earnings per share were $2.58. Now turning to our 2025 non-GAAP guidance, which now includes the acquisition of Verona Pharma, as well as the restructured agreement for Koselugo. We expect full-year revenue to be between $64.5-$65 billion. This range represents growth of 1%-2%, excluding a negative impact from foreign exchange of approximately 0.5% using mid-October rates. Our gross margin assumption remains approximately 82%, including an updated estimate of less than $100 million in costs related to the impact of tariffs. Operating expenses are now assumed to be between $25.9-$26.4 billion.

This guidance does not assume additional significant potential business development transactions. Other expense is now expected to be between $400 and $500 million. We now assume a full-year tax rate between 14% and 15%. We assume approximately $2.51 billion shares outstanding. Taken together, our EPS guidance is $8.93 to $8.98. Relative to 2024, this range includes a negative impact from foreign exchange of approximately $0.15 using mid-October rates. Recall, our prior guidance midpoint was $8.92. Our current guidance midpoint of $8.96 reflects a benefit from the restructured agreement for Koselugo of $0.09, partially offset by an estimated negative impact related to the acquisition of Verona of $0.04. As you consider your models, there are a few items to keep in mind. For Keytruda, as previously communicated, year-over-year growth in the U.S.

In the fourth quarter is expected to be negatively impacted by approximately $200 million due to the timing of wholesaler purchases. For Influenzia, we are pleased with the initial purchases in the U.S. Keep in mind that most of this was stocking ahead of expected usage in this RSV season. Lastly, as Rob noted, we have one of the most robust pipelines in our recent history. Importantly, all of our major programs are advancing, and we are excited about the additional opportunities in front of us. As we have said before, we intend to fully invest behind these opportunities. And as we look to 2026, we expect an acceleration in underlying operating expense growth, driven by investment in both R&D and SG&A to fuel our pipeline and new launches, including more than $500 million of investment to maximize the potential of Ohtuvayre.

This will enable us to continue to bring forward innovative medicines and vaccines to make a difference in the lives of patients and drive growth for our company. Now turning to capital allocation, where our strategy remains unchanged. We will prioritize investments in our business to drive near and long-term growth. We will continue to invest in our key growth drivers and expansive pipeline of novel candidates, each of which has significant potential to address important unmet medical needs. We remain committed to our dividend, with the goal of increasing it over time. Business development remains a high priority, and we are well-positioned to pursue additional science-driven value-enhancing transactions. We are maintaining our increased pace of share repurchases and expect approximately $5 billion for the full year.

To conclude, as we finish the year, we are confident in the outlook of our business, driven by global demand for our innovative inline portfolio, the exciting progress we are seeing with our many product launches, and our exceptional pipeline. With continued investment in innovation and our ongoing focus on execution, we remain well-positioned to deliver value to patients, customers, and shareholders now and well into the future. With that, I'd now like to turn the call over to Dean.

Thank you, Caroline. Good morning, everyone. The third quarter was marked by several notable clinical and regulatory milestones. I will start with updates in oncology, followed by vaccines and infectious disease, immunology, ophthalmology, and then cover advancements in our cardiovascular and pulmonary programs. I will close by highlighting key upcoming events through the first half of 2026. Progress continues across our diverse oncology portfolio.

Merck (U.S.) (MRK) Q3 2025 Earnings Call Transcript

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