Merck & Co.’s Segment-Wise Performance in 4Q17
Merck’s 4Q17 revenues
Merck & Co.’s (MRK) products are classified into four business segments:
- Human Pharmaceutical
- Animal Health
- Healthcare Services
Merck & Co.’s revenues reported 3.0% growth in revenues to ~$10.4 billion in 4Q17, driven by 2.0% growth in operating revenues and a 1.0% favorable impact of foreign exchange. The chart below compares the quarterly segment-wise revenues for Merck since 1Q16.
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The Pharmaceutical segment includes various drugs and vaccines for human use from therapeutic areas like oncology, diabetes, acute care, and women’s health products. The Pharmaceutical segment is the largest revenue contributor for Merck & Co., with an ~89.0% contribution of total revenues in 4Q17.
The Pharmaceutical segment reported revenues of ~$9.3 billion in 4Q17, representing 4.0% growth compared to revenues of ~$8.9 billion in 4Q16. This growth includes 3.0% growth in operating revenues and a 1.0% favorable impact of foreign exchange.
In 4Q17, the growth in the Pharmaceutical segment was driven by strong sales of Keytruda, Zepatier, Januvia and Janumet, the Gardasil franchise, Pneumovax 23, Simponi, and Bridion. This growth was partially offset by lower sales of Zetia, Vytorin, and Isentress.
Merck’s Keytruda is approved for the treatment of advanced Non-Small Cell Lung Cancer (or NSCLC). Other drugs for the treatment of NSCLC include Bristol-Myers Squibb’s (BMY) Opdivo, AstraZeneca’s (AZN) Tagrisso, and Eli Lilly & Co.’s (LLY) Cyramza.
Animal Health segment
Merck’s Animal Health segment includes vaccines and other drugs for animals. The Animal Health segment reported revenues of $981.0 million in 4Q17 for 11.0% growth compared to revenues of $884.0 million in 4Q16. This growth includes an 8.0% increase in operating revenues and a 3.0% favorable impact of foreign exchange.
The growth in 4Q17 was driven by increased sales of companion animal products including Bravecto portfolio, companion animal vaccines, and the inclusion of Vallée SA.