EX-99.2 3 tm2521736d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

MERCK & CO., INC., RAHWAY, N.J., USA

CONSOLIDATED STATEMENT OF INCOME - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2025									2024																		% Change
	1Q			2Q			June YTD			1Q			2Q			June YTD			3Q			4Q			Full Year			2Q			June YTD
Sales	$	15,529		$	15,806		$	31,335		$	15,775		$	16,112		$	31,887		$	16,657		$	15,624		$	64,168			-2	%		-2	%

Costs, Expenses and Other
Cost of sales		3,419			3,557			6,976			3,540			3,745			7,285			4,080			3,828			15,193			-5	%		-4	%
Selling, general and administrative		2,552			2,649			5,202			2,483			2,739			5,221			2,731			2,864			10,816			-3	%		0	%
Research and development		3,621			4,048			7,669			3,992			3,500			7,492			5,862			4,585			17,938			16	%		2	%
Restructuring costs		69			560			629			123			80			202			56			51			309			*			*
Other (income) expense, net		(35	)		(7	)		(43	)		(33	)		42			12			(162	)		126			(24	)		*			*
Income Before Taxes		5,903			4,999			10,902			5,670			6,006			11,675			4,090			4,170			19,936			-17	%		-7	%
Income Tax Provision		818			571			1,388			903			545			1,447			929			425			2,803
Net Income		5,085			4,428			9,514			4,767			5,461			10,228			3,161			3,745			17,133			-19	%		-7	%
Less: Net Income Attributable to Noncontrolling Interests		6			1			8			5			6			11			4			2			16
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA	$	5,079		$	4,427		$	9,506		$	4,762		$	5,455		$	10,217		$	3,157		$	3,743		$	17,117			-19	%		-7	%

Earnings per Common Share Assuming Dilution	$	2.01		$	1.76		$	3.77		$	1.87		$	2.14		$	4.02		$	1.24		$	1.48		$	6.74			-18	%		-6	%

Average Shares Outstanding Assuming Dilution		2,531			2,513			2,522			2,544			2,544			2,544			2,541			2,537			2,541
Tax Rate		13.9	%		11.4	%		12.7	%		15.9	%		9.1	%		12.4	%		22.7	%		10.2	%		14.1	%

* 100% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

MERCK & CO., INC., RAHWAY, N.J., USA

THREE AND SIX MONTHS ENDED JUNE 30, 2024 GAAP TO NON-GAAP RECONCILIATION

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

	GAAP			Acquisition and Divestiture-Related Costs ⁽¹⁾			Restructuring Costs ⁽²⁾			(Income) Loss from Investments in Equity Securities			Certain Other Items			Adjustment Subtotal			Non-GAAP
Second Quarter
Cost of sales	$	3,745			606			66									672		$	3,073
Selling, general and administrative		2,739			24			31									55			2,684
Research and development		3,500			20												20			3,480
Restructuring costs		80						80									80			–
Other (income) expense, net		42			(17	)					(49	)					(66	)		108
Income Before Taxes		6,006			(633	)		(177	)		49						(761	)		6,767
Income Tax Provision (Benefit)		545			(129	)⁽³⁾		(30	)⁽³⁾		11	⁽³⁾		(259	)⁽⁴⁾		(407	)		952
Net Income		5,461			(504	)		(147	)		38			259			(354	)		5,815
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA		5,455			(504	)		(147	)		38			259			(354	)		5,809
Earnings per Common Share Assuming Dilution	$	2.14			(0.20	)		(0.06	)		0.02			0.10			(0.14	)	$	2.28

Tax Rate		9.1	%																	14.1	%

June YTD
Cost of sales	$	7,285			1,069			182									1,251		$	6,034
Selling, general and administrative		5,221			45			36									81			5,140
Research and development		7,492			36			2									38			7,454
Restructuring costs		202						202									202			–
Other (income) expense, net		12			(21	)					(165	)					(186	)		198
Income Before Taxes		11,675			(1,129	)		(422	)		165						(1,386	)		13,061
Income Tax Provision (Benefit)		1,447			(221	)⁽³⁾		(72	)⁽³⁾		36	⁽³⁾		(259	)⁽⁴⁾		(516	)		1,963
Net Income		10,228			(908	)		(350	)		129			259			(870	)		11,098
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA		10,217			(908	)		(350	)		129			259			(870	)		11,087
Earnings per Common Share Assuming Dilution	$	4.02			(0.35	)		(0.14	)		0.05			0.10			(0.34	)	$	4.36

Tax Rate		12.4	%																	15.0	%

Only the line items that are affected by non-GAAP adjustments are shown.

The Company is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the Company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

⁽¹⁾Amounts included in cost of sales primarily reflect expenses for the amortization of intangible assets. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. Amounts included in research and development expenses primarily reflect the amortization of intangible assets. Amounts included in other (income) expense, net, primarily reflect royalty income related to the prior termination of the Sanofi-Pasteur MSD joint venture.

⁽²⁾Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the Company's formal restructuring programs.

⁽³⁾ Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

⁽⁴⁾ Represents a benefit due to a reduction in reserves for unrecognized income tax benefits resulting from the expiration of the statute of limitations for assessments related to the 2019 federal tax return year.

MERCK & CO., INC., RAHWAY, N.J., USA

FRANCHISE / KEY PRODUCT SALES

SECOND QUARTER 2025

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3a

	Global						U.S.						International
	2Q 2025		2Q 2024		% Change		2Q 2025		2Q 2024		% Change		2Q 2025		2Q 2024		% Change
TOTAL SALES ⁽¹⁾	$	15,806	$	16,112		-2	$	8,836	$	7,876		12	$	6,969	$	8,236		-15
PHARMACEUTICAL		14,050		14,408		-2		8,328		7,399		13		5,722		7,009		-18
Oncology
Keytruda		7,956		7,270		9		4,749		4,412		8		3,207		2,858		12
Alliance Revenue – Lynparza ⁽²⁾		370		317		17		174		153		14		195		165		19
Alliance Revenue – Lenvima ⁽²⁾		265		249		6		183		177		3		83		73		14
Welireg		162		126		29		138		116		19		24		10		155
Alliance Revenue – Reblozyl ⁽³⁾		107		90		19		88		75		18		19		15		24
Vaccines ⁽⁴⁾
Gardasil/Gardasil 9		1,126		2,478		-55		545		536		2		581		1,941		-70
ProQuad/M-M-R II/Varivax		609		617		-1		481		490		-2		128		127		1
Vaxneuvance		229		189		21		136		99		38		93		90		3
Capvaxive		129				-		129				-
RotaTeq		121		163		-26		60		107		-44		61		56		9
Pneumovax 23		38		59		-36		5		11		-57		33		48		-31
Hospital Acute Care
Bridion		461		455		1		411		351		17		50		104		-52
Prevymis		228		188		21		115		90		27		113		98		16
Dificid		96		92		5		83		79		4		13		12		8
Zerbaxa		74		62		21		45		33		35		29		28		5
Cardiovascular
Winrevair		336		70		*		323		70		*		12				-
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		123		106		16		108		98		10		15		8		89
Adempas ⁽⁶⁾		80		72		10								80		72		10
Virology
Isentress/Isentress HD		86		89		-3		48		43		13		38		46		-18
Delstrigo		83		60		40		14		14		-5		70		45		55
Lagevrio		83		110		-25		30		15		103		52		95		-45
Pifeltro		41		39		5		25		27		-4		16		12		26
Neuroscience
Belsomra		40		53		-24		18		19		-1		21		34		-37
Immunology
Simponi				172		-100										172		-100
Remicade				35		-100										35		-100
Diabetes ⁽⁷⁾
Januvia		372		405		-8		216		177		22		155		227		-32
Janumet		251		224		12		68		17		*		184		208		-12
Other Pharmaceutical ⁽⁸⁾		584		618		-6		136		190		-28		450		430		5
ANIMAL HEALTH		1,646		1,482		11		499		455		9		1,147		1,027		12
Livestock		961		837		15		190		168		13		771		669		15
Companion Animal		685		645		6		309		287		8		376		358		5
Other Revenues ⁽⁹⁾		110		222		-50		9		22		-59		100		200		-50

*200% or greater

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown.

⁽²⁾ Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Total Vaccines sales were $2,370 million and $3,656 million on a global basis in the second quarter of 2025 and 2024, respectively.

⁽⁵⁾ Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁶⁾ Net product sales in the Company's marketing territories.

⁽⁷⁾ Total Diabetes sales were $704 million and $715 million on a global basis in the second quarter of 2025 and 2024, respectively.

⁽⁸⁾ Includes Pharmaceutical products not individually shown above.

⁽⁹⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of upfront and milestone payments for out-licensed products were $5 million and $15 million in the second quarter of 2025 and 2024, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

FRANCHISE / KEY PRODUCT SALES

JUNE YEAR-TO-DATE 2025

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

	Global						U.S.						International
	June YTD 2025		June YTD 2024		% Change		June YTD 2025		June YTD 2024		% Change		June YTD 2025		June YTD 2024		% Change
TOTAL SALES ⁽¹⁾	$	31,335	$	31,887		-2	$	17,359	$	15,354		13	$	13,977	$	16,533		-15
PHARMACEUTICAL		27,688		28,415		-3		16,254		14,336		13		11,434		14,079		-19
Oncology
Keytruda		15,161		14,217		7		9,057		8,531		6		6,104		5,686		7
Alliance Revenue – Lynparza ⁽²⁾		682		609		12		319		288		11		363		321		13
Alliance Revenue – Lenvima ⁽²⁾		523		504		4		368		349		5		155		155		-
Welireg		300		211		42		261		194		35		39		17		130
Alliance Revenue – Reblozyl ⁽³⁾		226		161		40		189		133		42		37		28		34
Vaccines ⁽⁴⁾
Gardasil/Gardasil 9		2,453		4,727		-48		1,082		1,024		6		1,371		3,702		-63
ProQuad/M-M-R II/Varivax		1,148		1,187		-3		903		928		-3		245		259		-6
Vaxneuvance		459		408		13		275		260		6		184		148		25
RotaTeq		349		379		-8		225		257		-12		125		123		2
Capvaxive		236				-		235				-		1				-
Pneumovax 23		79		120		-35		3		17		-82		76		103		-27
Hospital Acute Care
Bridion		902		895		1		789		680		16		113		215		-47
Prevymis		436		362		20		217		165		32		219		197		11
Dificid		179		165		8		155		147		5		24		17		39
Zerbaxa		145		118		23		87		67		31		57		51		12
Cardiovascular
Winrevair		615		70		*		591		70		*		24				-
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		229		203		12		205		188		9		23		16		50
Adempas ⁽⁶⁾		147		142		4								147		142		4
Virology
Lagevrio		185		460		-60		66		60		10		119		400		-70
Isentress/Isentress HD		176		200		-12		99		93		7		77		107		-28
Delstrigo		150		116		30		29		26		10		121		89		36
Pifeltro		86		81		6		57		56		2		29		25		14
Neuroscience
Belsomra		90		99		-9		31		33		-5		58		66		-12
Immunology
Simponi				356		-100										356		-100
Remicade				74		-100										74		-100
Diabetes ⁽⁷⁾
Januvia		921		824		12		561		361		55		360		463		-22
Janumet		498		475		5		133		55		140		366		420		-13
Other Pharmaceutical ⁽⁸⁾		1,313		1,252		5		317		354		-10		997		899		11
ANIMAL HEALTH		3,234		2,993		8		1,001		929		8		2,233		2,064		8
Livestock		1,885		1,686		12		384		334		15		1,501		1,352		11
Companion Animal		1,349		1,307		3		617		595		4		732		712		3
Other Revenues ⁽⁹⁾		413		479		-14		104		89		17		310		390		-21

*200% or greater

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown.

⁽²⁾ Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Total Vaccines sales were $4,977 million and $7,080 million on a global basis for June YTD 2025 and 2024, respectively.

⁽⁵⁾ Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁶⁾ Net product sales in the Company's marketing territories.

⁽⁷⁾ Total Diabetes sales were $1,580 million and $1,461 million on a global basis for June YTD 2025 and 2024, respectively.

⁽⁸⁾ Includes Pharmaceutical products not individually shown above.

⁽⁹⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of upfront and milestone payments for out-licensed products were $100 million and $76 million on a global basis for June YTD 2025 and 2024, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

	2025									2024																		% Change
	1Q			2Q			June YTD			1Q			2Q			June YTD			3Q			4Q			Full Year			2Q		June YTD
TOTAL PHARMACEUTICAL	$	13,638		$	14,050		$	27,688		$	14,006		$	14,408		$	28,415		$	14,943		$	14,042		$	57,400			-2		-3
United States		7,927			8,328			16,254			6,936			7,399			14,336			8,227			7,728			30,290			13		13
% Pharmaceutical Sales		58.1	%		59.3	%		58.7	%		49.5	%		51.4	%		50.5	%		55.1	%		55.0	%		52.8	%
Europe ⁽¹⁾		2,384			2,551			4,935			2,555			2,572			5,128			2,620			2,498			10,246			-1		-4
% Pharmaceutical Sales		17.5	%		18.2	%		17.8	%		18.2	%		17.9	%		18.0	%		17.5	%		17.8	%		17.9	%
Japan		651			604			1,255			802			664			1,466			919			813			3,199			-9		-14
% Pharmaceutical Sales		4.8	%		4.3	%		4.5	%		5.7	%		4.6	%		5.2	%		6.2	%		5.8	%		5.6	%
Latin America		589			654			1,243			601			661			1,262			730			680			2,672			-1		-2
% Pharmaceutical Sales		4.3	%		4.7	%		4.5	%		4.3	%		4.6	%		4.4	%		4.9	%		4.8	%		4.7	%
Asia Pacific (other than China and Japan)		535			609			1,144			580			595			1,175			669			612			2,457			2		-3
% Pharmaceutical Sales		3.9	%		4.3	%		4.1	%		4.1	%		4.1	%		4.1	%		4.5	%		4.4	%		4.3	%
China ⁽²⁾		668			407			1,075			1,744			1,790			3,534			996			864			5,394			-77		-70
% Pharmaceutical Sales		4.9	%		2.9	%		3.9	%		12.5	%		12.4	%		12.4	%		6.7	%		6.2	%		9.4	%
Eastern Europe/Middle East/Africa		435			451			886			395			353			747			400			348			1,495			28		19
% Pharmaceutical Sales		3.2	%		3.2	%		3.2	%		2.8	%		2.4	%		2.6	%		2.7	%		2.5	%		2.6	%
Canada		125			135			261			138			143			281			133			144			558			-6		-7
% Pharmaceutical Sales		0.9	%		1.0	%		0.9	%		1.0	%		1.0	%		1.0	%		0.9	%		1.0	%		1.0	%
Other		324			311			635			255			231			486			249			355			1,089			35		31
% Pharmaceutical Sales		2.4	%		2.1	%		2.4	%		1.9	%		1.6	%		1.8	%		1.5	%		2.5	%		1.7	%

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾ Europe represents all European Union countries, the European Union accession markets and the United Kingdom.

⁽²⁾ Gardasil/Gardasil 9 sales in China were $193 million and $0 in the first and second quarter of 2025, respectively, and $1,253 million, $1,312 million, $517 million and $446 million in the first, second, third and fourth quarter of 2024, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

OTHER (INCOME) EXPENSE, NET

	2Q25			2Q24			June YTD 2025			June YTD 2024
Interest income	$	(69	)	$	(69	)	$	(178	)	$	(141	)
Interest expense		305			310			618			613
Exchange losses		78			60			167			144
Income from investments in equity securities, net ⁽¹⁾		(100	)		(56	)		(189	)		(200	)
Net periodic defined benefit plan (credit) cost other than service cost		(152	)		(159	)		(300	)		(319	)
Other, net		(69	)		(44	)		(161	)		(85	)
Total	$	(7	)	$	42		$	(43	)	$	12

⁽¹⁾Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds. Unrealized gains and losses from investments that are directly owned are determined at the end of the reporting period, while gains and losses from ownership interests in investment funds are accounted for on a one quarter lag.