Collaborative Arrangements (Tables)

9 Months Ended

Sep. 30, 2023

Collaborative Arrangements [Abstract]

Collaboration Arrangements

Summarized financial information related to this collaboration is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2023		2022		2023		2022
Alliance revenue - Lynparza	$	299	$	284	$	884	$	825
Alliance revenue - Koselugo	26		10		74		43
Total alliance revenue	$	325	$	294	$	958	$	868
Cost of sales (1)	82		64		230		425
Selling, general and administrative	44		45		143		135
Research and development	23		28		65		79
($ in millions)					September 30, 2023		December 31, 2022
Receivables from AstraZeneca included in Other current assets					$	337	$	303
Payables to AstraZeneca included in Accrued and other current liabilities (2)					257		123
Payables to AstraZeneca included in Other Noncurrent Liabilities (2)					600		600

(1)    Represents amortization of capitalized milestone payments. Amount in the first nine 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 September 30,				Nine Months Ended September 30,
($ in millions)	2023		2022		2023		2022
Alliance revenue - Lenvima	$	260	$	202	$	734	$	660
Cost of sales (1)	137		53		320		159
Selling, general and administrative	46		42		145		115
Research and development	5		24		61		128
($ in millions)					September 30, 2023		December 31, 2022
Receivables from Eisai included in Other current assets					$	260	$	214
Payables to Eisai included in Accrued and other current liabilities (2)					125		—

(1)    Represents amortization of capitalized milestone payments. Amounts in the third quarter and first nine months of 2023 include $81 million and $154 million, respectively, of cumulative amortization catch-up expense as noted above.

(2)    Represents an accrued milestone payment.

Summarized financial information related to this collaboration is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2023		2022		2023		2022
Alliance revenue - Adempas/Verquvo	$	92	$	88	$	259	$	258
Net sales of Adempas recorded by Merck	65		57		189		181
Net sales of Verquvo recorded by Merck	8		6		24		15
Total sales	$	165	$	151	$	472	$	454
Cost of sales (1)	53		55		165		158
Selling, general and administrative	33		42		100		107
Research and development	26		18		76		52
($ in millions)					September 30, 2023		December 31, 2022
Receivables from Bayer included in Other current assets					$	157	$	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 September 30,				Nine Months Ended September 30,
($ in millions)	2023		2022		2023		2022
Net sales of Lagevrio recorded by Merck	$	640	$	436	$	1,236	$	4,859
Cost of sales (1)(2)	348		244		762		2,586
Selling, general and administrative (2)	21		48		72		117
Research and development (2)	8		18		33		74
($ in millions)					September 30, 2023		December 31, 2022
Payables to Ridgeback included in Accrued and other current liabilities (3)					$	242	$	348

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

(2)    Expenses include an allocation for overhead charges.

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