Slide 1: Third-Quarter 2025 Sales and Earnings
Third-Quarter 2025 Sales and Earnings Merck & Co., Inc., Rahway, N.J., USA October 30, 2025
Slide 2: Agenda
Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer Agenda Agenda Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories Question
Slide 3: Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA
Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA This presentation of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These state
Slide 4: Strategy and Business Update
Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer 4
Slide 5: Delivering value through innovative portfolio of medicines and vaccines
Delivering value to patients and customers through innovative portfolio of medicines and vaccines Advancing strongest and deepest pipeline in recent memory with ~80 Phase 3 trials underway Fueling portfolio transformation and growth with investment in over 20 current and future launch opportunities
Slide 6: Q3 Worldwide Sales: Strength in Oncology and Animal Health
Strength in Oncology and Animal Health with increasing contributions from new launches Q3 Worldwide Sales $17.3B +4% nominal +3% ex-FX 6 ¹Weber Shandwick/KCR Research, 2020 / AMO 2019
Slide 7: Driving value by progressing innovative pipeline
Driving value by progressing innovative pipeline Announced positive topline results for enlicitide in Phase 3 CORALreef Lipids study Presented full results for WINREVAIR in recently diagnosed adults with PAH in HYPERION study Cardiopulmonary Received FDA approval for updated indication for WINREVAIR
Slide 8: Completed strategic acquisition of Verona Pharma in October
Completed strategic acquisition of Verona Pharma in October First novel inhaled maintenance treatment for adults with COPD in more than 20 years Multibillion dollar commercial opportunity with potential to positively impact patients and drive both near- and long-term revenue growth 8
Slide 9: Delivering the next wave of innovation to transform our portfolio
Delivering the next Well positioned to drive next chapter of wave of innovation to success transform our portfolio Advancing Early- and Late-Phase Pipeline Tripled late-phase pipeline since 2021 Launching New Growth Drivers >$50B commercial opportunity by mid-2030s from recent launches and late-phas
Slide 10: Financial Results and Outlook
Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer 10
Slide 11: Q3 performance driven by demand for our innovative portfolio
Q3 performance driven by demand for our innovative portfolio WORLDWIDE SALES1 Human Health Animal Health $17.3B +4% nominal $15.6B +4% nominal +3% ex-FX +8% ex-GARDASIL China2 nominal, $1.6B +9% nominal +7% ex-FX +3% ex-FX +7% ex-FX +7% ex-GARDASIL China2, nominal & ex-FX 11 1. Worldwide Sales inclu
Slide 12: Oncology: KEYTRUDA continues to benefit patients and drive growth
Oncology: KEYTRUDA continues to benefit patients and drive growth KEYTRUDA sales of $8.1B increased 8%, driven by strong demand from metastatic indications and robust uptake in earlier-stage cancers ‒ Growth driven by usage in tumors predominantly affecting women, including those $8.1B with certain
Slide 13: Oncology: Continued growth across broad portfolio
Oncology: Continued growth across broad portfolio $196M WELIREG sales grew 41%, driven by demand $54M $139M +41% in the U.S. and continued launch uptake in +43% +157% certain European markets Lynparza1 sales grew 12%, primarily due to 3Q23 3Q24 3Q25 higher demand in the U.S. and certain internationa
Slide 14: Vaccines: GARDASIL protecting lives from HPV-related cancers
Vaccines: GARDASIL protecting lives from HPV-related cancers GARDASIL sales of $1.7B decreased 25%, driven primarily by China ‒ Excluding China, decline of 3% driven by lower sales in Japan following expiration of reimbursement for catch-up cohort, partially offset by growth of 13% $2.6B in the U.S.
Slide 15: Vaccines & Infectious Disease: Broad portfolio driving impact
Vaccines & Infectious Disease: Broad portfolio driving impact for patients CAPVAXIVE1 sales of $244M driven by demand from retail pharmacies and non-retail customers, $244M as well as expected seasonal inventory build VAXNEUVANCE sales of $226M decreased 7% ‒ In the U.S., competitive pressure offset
Slide 16: WINREVAIR: Continuing to benefit more patients with PAH
WINREVAIR: Continuing to benefit more patients with PAH In the U.S., continued growth in new patient starts and total prescriptions, partially offset by timing of distributor purchases ‒ ~1,500 new patients prescribed ‒ >24,000 total prescriptions dispensed ‒ >9,700 total patients prescribed since l
Slide 17: Animal Health: Strong growth driven by livestock portfolio
Animal Health: Strong growth driven by livestock portfolio Animal Health sales increased 7% to $1.6B ‒ Livestock sales grew 14%, driven by higher demand across all species and timing of sales ‒ Companion Animal sales declined 3% due to reduction in veterinary visits and competition in $1.6B parasiti
Slide 18: Q3 2025 non-GAAP financial results summary
Q3 2025 non-GAAP financial results summary1 $ in billions, except EPS amounts Change Q3 2025 Q3 2024 Change Ex-FX Sales $17.3 $16.7 +4% +3% Non-GAAP Gross Margin 81.9% 80.5% +1.4 pts +1.6 pts Non-GAAP Operating Expenses $6.6 $8.5 -22% -23% Non-GAAP Tax Rate 13.4% 21.9% -8.5 pts N/A Non-GAAP EPS2,3 $
Slide 19: Updated 2025 financial outlook
Updated 2025 financial outlook Prior Guidance Updated Guidance Key Assumptions • Continues to assume ~0.5 percentage point FX headwind Revenue $64.3B to $65.3B $64.5B to $65.0B • Implies +1% nominal (+1% to +2% ex-FX) Non-GAAP • Includes updated estimate of <$100M of costs related to Gross Margin Ra
Slide 20: Key modeling considerations
Key modeling considerations YoY growth in 4Q expected to be negatively impacted by ~$200M due to timing of U.S. KEYTRUDA wholesaler purchases in 4Q 2024 ENFLONSIA Initial sales in 3Q reflect stocking ahead of expected use in this RSV season Operating Expect acceleration in underlying operating expen
Slide 21: Remain committed to balanced capital allocation strategy
Remain committed to balanced capital allocation strategy Q3 Spend ($ in billions)1 Capital allocation order of priority Continue to invest in our pipeline and business, as well as augment our pipeline with value-enhancing business $3.2 development, while returning cash to shareholders $2.0 $1.3 $1.0
Slide 22: Research Update
Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories 22
Slide 23: KEYTRUDA continues to expand benefits, including for earlier-stage patients
KEYTRUDA continues to expand benefits, including for earlier-stage patients ‒ Received FDA approval for subcutaneous pembrolizumab1 across all solid tumor indications approved for IV KEYTRUDA KEYTRUDA QLEX ‒ Subcutaneous administration in as little as one minute2 ‒ Potential to provide flexibility i
Slide 24: Continued momentum across diversified oncology portfolio in multiple tumor types
Continued momentum across diversified oncology portfolio in multiple tumor types KEYTRUDA Antibody Drug Conjugates WELIREG Data presented at ESMO in two Data presented at ESMO for Positive topline results announced from: Presidential Symposium sessions for: investigational ADCs including: • LITESPAR
Slide 25: Clinical progress across vaccines and infectious diseases
Clinical progress across vaccines and infectious diseases CAPVAXIVE ENFLONSIA HIV • Received MHLW approval in • Now available for infants born in or • Presented 48-week Phase 3 Japan for prevention of entering first RSV season results for DOR/ISL as once-daily, pneumococcal infections in elderly ora
Slide 26: Expanding and advancing late-stage programs in immunology and ophthalmology
Expanding and advancing late-stage programs in immunology and ophthalmology Immunology Indication Trial Phase 1 Phase 2 Phase 3 UC ATLAS-UC Enrollment Complete CD ARES-CD Tulisokibart SSc-ILD ATHENA-SSc-ILD TL1A HS MK-7240-012 Now enrolling r-axSpA MK-7240-014 Now enrolling RA MK-7240-013 Now enroll
Slide 27: Committed to alleviating burden of cardiopulmonary diseases
Committed to alleviating burden of cardiopulmonary diseases First-in-class selective dual inhibitor of Enlicitide a potential first-of-its-kind First and only activin signaling inhibitor PDE3 and PDE4 oral PCSK9 inhibitor • HYPERION: Phase 3 data in • Advancing ongoing work in non- • CORALreef Lipid
Slide 28: Many important upcoming milestones through 1H 2026
Many important upcoming milestones through 1H 2026 Oncology Immunology KEYTRUDA Tulisokibart • KEYNOTE-B96 PDUFA date February 20th • PCD in May for Phase 2 ATHENA trial in SSc-ILD • KEYNOTE-9051 PDUFA date April 7th Cardiopulmonary Infectious Disease WINREVAIR Doravirine/Islatravir • Presentation o
Slide 29: Q&A
Q&A Robert M. Davis Chairman and Chief Executive Officer Caroline Litchfield Executive Vice President and Chief Financial Officer Dr. Dean Y. Li Executive Vice President and President, Research Laboratories Peter Dannenbaum Senior Vice President, Investor Relations
Slide 30: Appendix
Appendix 30
Slide 31: Q3 2025 GAAP financial results summary
Q3 2025 GAAP financial results summary $ in billions, EPS amounts Q3 2025 Q3 2024 Change Change Ex-FX Sales $17.3 $16.7 +4% +3% Operating Expenses $6.9 $8.6 -20% -21% (SG&A and R&D)1 Tax Rate 14.2% 22.7% -8.5 pts N/A GAAP EPS2 $2.32 $1.24 +87% +88% 1. Q3 2025 GAAP results include $300 million charge
Slide 32: Executing upon balanced capital allocation strategy
Executing Capital allocation: upon balanced Trailingcapital twelveallocation months strategy Over the past 12 months $15 Capital allocation order of priority Well-positioned balance sheet with $12 capacity to fund additional $12.7 investments in R&D and Billions $9 $6 $8.1 manufacturing as well as v
Slide 33: Driving value for patients and shareholders by progressing our pipeline
Driving value for patients and shareholders by progressing our pipeline Notable regulatory milestones since the last earnings call: Notable data & clinical advancements since the last earnings call: In the U.S., the FDA: Presented data for: • Approved updated indication for WINREVAIR in adults with
Slide 34: Broad and innovative pipeline to address significant unmet medical needs
Broad and innovative pipeline to address significant unmet medical needs Phase Phase 22 Phase 3 Under regulatory review Oncology Cardiopulmonary Oncology Oncology MK-1022 (patritumab MK-5475 MK-1022 (patritumab deruxtecan)1 KEYTRUDA (MK-3475) KEYTRUDA (MK-3475) KEYTRUDA (MK-3475) PH-COPD Breast HCC