Collaborative Arrangements (Tables)

6 Months Ended

Jun. 30, 2023

Collaborative Arrangements [Abstract]

Collaboration Arrangements

Summarized financial information related to this collaboration is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Alliance revenue - Lynparza	$	310	$	275	$	585	$	541
Alliance revenue - Koselugo	25		24		48		33
Total alliance revenue	$	335	$	299	$	633	$	574
Cost of sales (1)	78		62		148		361
Selling, general and administrative	51		46		98		90
Research and development	22		25		43		51
($ in millions)					June 30, 2023		December 31, 2022
Receivables from AstraZeneca included in Other current assets					$	332	$	303
Payables to AstraZeneca included in Accrued and other current liabilities (2)					260		123
Payables to AstraZeneca included in Other Noncurrent Liabilities (2)					600		600

(1)    Represents amortization of capitalized milestone payments. Amount in the first six months of 2022 includes $250 million of cumulative amortization catch-up expense as noted above.

(2)    Includes accrued milestone payments.

Summarized financial information related to this collaboration is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Alliance revenue - Lenvima	$	242	$	231	$	474	$	459
Cost of sales (1)	57		53		183		106
Selling, general and administrative	48		42		99		73
Research and development	17		47		56		104
($ in millions)					June 30, 2023		December 31, 2022
Receivables from Eisai included in Other current assets					$	242	$	214

(1)    Represents amortization of capitalized milestone payments. Amount in the first six months of 2023 includes $72 million of cumulative amortization catch-up expense as noted above.

Summarized financial information related to this collaboration is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Alliance revenue - Adempas/Verquvo	$	68	$	98	$	167	$	170
Net sales of Adempas recorded by Merck	65		63		125		124
Net sales of Verquvo recorded by Merck	9		6		16		9
Total sales	$	142	$	167	$	308	$	303
Cost of sales (1)	56		54		113		103
Selling, general and administrative	34		42		67		65
Research and development	25		17		50		34
($ in millions)					June 30, 2023		December 31, 2022
Receivables from Bayer included in Other current assets					$	144	$	143
Payables to Bayer included in Accrued and other current liabilities					82		80

(1)    Includes amortization of intangible assets.

Summarized financial information related to this collaboration is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Net sales of Lagevrio recorded by Merck	$	203	$	1,177	$	595	$	4,424
Cost of sales (1)(2)	193		615		414		2,341
Selling, general and administrative (2)	24		34		51		69
Research and development (2)	10		30		26		56
($ in millions)					June 30, 2023		December 31, 2022
Receivables from Ridgeback included in Other current assets (3)					$	51	$	—
Payables to Ridgeback included in Accrued and other current liabilities (4)					30		348

(1)    Includes royalty expense, amortization of capitalized milestone payments and inventory reserves.

(2)    Expenses include an allocation for overhead charges.

(3)    Includes partner advances.

(4)    Includes accrued royalties. Amount at December 31, 2022 also includes an accrued milestone payment.