默沙東次季銷售增5%惟錄虧損 受累收購Terns一次性費用

EX-99.1
2
tm2621496d1_ex99-1.htm
EXHIBIT 99.1

 

 

Exhibit 99.1

 

- 1 -

 

 
 
 News Release

 
  
  

 

 

Merck & Co., Inc., Rahway, N.J., USA Announces
Second-Quarter 2026 Financial Results; Highlights Key Regulatory and Clinical Milestones Across Broad, Diverse Pipeline

 

Sales Growth Reflects Continued Strength in
Oncology, Including Initial Uptake of KEYTRUDA QLEX, and Animal Health, Plus Contributions From Launches Such as WINREVAIR

 

Financial Highlights

 

-Total Worldwide Sales Were $16.6 Billion (5% Growth; 4% Growth ex-FX)

oKEYTRUDA/KEYTRUDA QLEX1
Sales Were $8.4 Billion (5% Growth; 4% Growth ex-FX); Includes KEYTRUDA QLEX Sales of $463 Million

oWINREVAIR Sales Were $588 Million (75% Growth; 75% Growth ex-FX)

oAnimal Health Sales Were $1.8 Billion (8% Growth; 5% Growth
ex-FX)

-GAAP Loss per Share Was $0.54; Non-GAAP Loss per Share Was $0.13; GAAP and Non-GAAP Loss per Share Include a Charge of $2.31
per Share for the Acquisition of Terns

 

Pipeline & Portfolio Highlights

 

-Received U.S. FDA Approval for LIPFENDRA (enlicitide), the First and Only Once-Daily Oral PCSK9 Inhibitor To Reduce
LDL-C in Adults With Hypercholesterolemia

-Announced Positive Data From TroFuse-005 Trial Evaluating Sacituzumab Tirumotecan (sac-TMT) in Certain Patients With Advanced or Recurrent
Endometrial Cancer

-Announced Positive Phase 3 Results From Once-Weekly Investigational Oral HIV Treatment Regimen of Islatravir and Lenacapavir, in Collaboration
With Gilead

 

Full-Year 2026 Financial Outlook

 

-Narrows and Raises Expected Worldwide Sales Range To Be Between $66.3 Billion and $67.3 Billion

-Now Expects Non-GAAP EPS To Be Between $2.66 and $2.76; Outlook Includes Charges of $2.43 per Share for the Acquisition of Terns,
Comprised of a One-Time Charge of $2.31 per Share as Well as Costs of Approximately $0.12 per Share To Finance the Acquisition and Advance
MK-4208 (Formerly TERN-701)

 

 

1 Available in
some markets as KEYTRUDA SC.

 

  

 - 2 -

 

 

RAHWAY, N.J., Aug. 4, 2026 – Merck & Co., Inc., Rahway, N.J.,
USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the second quarter of 2026.

 

“We continued to make substantial progress
across our business this quarter, driven by strong execution and growing contributions from new product launches,” said Robert M.
Davis, chairman and chief executive officer. “The FDA approval of LIPFENDRA is an exciting moment for our company and for patients,
marking the latest milestone in our nearly 70-year legacy in cardiovascular disease. Together with key regulatory and clinical advances
across oncology, HIV and immunology, this achievement reflects the strength of our pipeline and portfolio transformation as we bring forward
the next wave of innovation. I am confident in the ongoing execution of our strategy as we deliver for patients and further enhance our
long-term growth trajectory.”

 

Financial Summary

 

 
   
  Second Quarter 

 
 $ in millions, except EPS amounts 
  2026  
  2025  
  Change  
  Change Ex-
Exchange 

 
 Sales 
 $16,607  
 $15,806  
  5% 
  4%

 
 GAAP net (loss) income2 
  (1,335) 
  4,427  
  N/M  
  N/M 

 
 Non-GAAP net (loss) income that
excludes certain items2,3* 
  (330) 
  5,366  
  N/M  
  N/M 

 
 GAAP EPS 
  (0.54) 
  1.76  
  N/M  
  N/M 

 
 Non-GAAP EPS that excludes certain items3* 
  (0.13) 
  2.13  
  N/M  
  N/M 

 

 

*Refer to table on page 7.

N/M - Not meaningful

 

For the second quarter of 2026, Generally Accepted
Accounting Principles (GAAP) loss / earnings per share (EPS) assuming dilution was a loss per share of $0.54 and non-GAAP loss per share
was $0.13. Both the GAAP and non-GAAP loss per share were due to a charge for the acquisition of Terns
Pharmaceuticals, Inc. (Terns) of $2.31 per share. Both GAAP and non-GAAP
EPS in the second quarter of 2025 include a charge of $0.07 per share for an upfront payment related to a license agreement with Jiangsu
Hengrui Pharmaceutical Co., Ltd. (Hengrui Pharma).

 

Non-GAAP EPS excludes acquisition- and divestiture-related
costs and costs related to restructuring programs, as well as income and losses from investments in equity securities. Non-GAAP EPS in
the second quarter of 2025 also excludes tax benefits primarily resulting from favorable audit reserve adjustments.

 

Year-to-date results can be found in the attached
tables.

 

 

2 Net (loss) income attributable
to the Company.

3 The Company is providing certain 2026 and 2025 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 this information enhances investors’ understanding of the Company’s
results because management uses non-GAAP results 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. This information should be
considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description
of the non-GAAP adjustments, see Table 2a attached to this release.

 

  

 - 3 -

 

 

Second-Quarter Sales Performance

 

The following table reflects sales of the Company’s
top products and significant performance drivers.

 

 
   
  Second Quarter  
  

 
 $ in millions 
  2026  
  2025  
  Change  
  Change Ex-
Exchange  
 Commentary

 
 Total Sales 
 $16,607  
 $15,806  
  5% 
  4% 
  

 
 Pharmaceutical 
  14,760  
  14,050  
  5% 
  4% 
 Increase primarily driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by a decline in diabetes.

 
 KEYTRUDA/ KEYTRUDA QLEX 
  8,366  
  7,956  
  5% 
  4% 
 Growth primarily driven by strong global uptake in earlier-stage indications, including triple-negative breast cancer (TNBC), cervical cancer, head and neck cancer and bladder cancer, as well as higher global demand in metastatic indications, including urothelial cancer. Sales of KEYTRUDA QLEX were $463 million.

 
 GARDASIL/GARDASIL 9 
  1,169  
  1,126  
  4% 
  3% 
 Increase primarily due to higher demand in Asia Pacific and Europe, as well as favorable timing of tenders in Europe, partially offset by lower demand in certain other international markets.

 
 PROQUAD, M-M-R II and VARIVAX 
  592  
  609  
  -3% 
  -3% 
 Decrease primarily reflects lower demand in the U.S., partially offset by higher net pricing in the U.S., higher demand in Europe and favorable private-sector purchasing patterns for M-M-R II in the U.S.

 
 WINREVAIR 
  588  
  336  
  75% 
  75% 
 Growth primarily reflects continued uptake in the U.S. and early launch uptake in certain international markets, particularly in Japan and Europe.

 
 BRIDION 
  497  
  461  
  8% 
  8% 
 Growth primarily due to higher demand and net pricing in the U.S.

 
 JANUVIA/JANUMET 
  429  
  623  
  -31% 
  -31% 
 Decline primarily due to lower demand and net pricing in the U.S. due to competition, as well as lower demand in China and most other international markets due to ongoing generic competition.

 
 Lynparza* 
  365  
  370  
  -1% 
  -2% 
 Relatively flat compared with prior year.

 
 PREVYMIS 
  295  
  228  
  29% 
  28% 
 Increase primarily due to higher demand in the U.S. and certain European markets, reflecting in part the launch of new indications.

 
 Lenvima* 
  283  
  265  
  7% 
  6% 
 Growth primarily due to higher demand in the U.S., partially offset by lower net pricing.

 

 

  

 - 4 -

 

 

   
  Second Quarter  
  

 $ in millions 
  2026  
  2025  
  Change  
  Change Ex-
Exchange  
 Commentary

 WELIREG 
  271  
  162  
  67% 
  67% 
 Growth primarily driven by higher demand in the U.S. and continued launch uptake in several international markets, particularly in Japan, as well as favorable wholesaler purchasing patterns in the U.S. 

 
 OHTUVAYRE 
  204  
  -  
  -  
  -  
 Product obtained as part of the Company’s October 2025 acquisition of Verona Pharma plc. Includes a benefit from the timing of specialty pharmacy purchases in the U.S.

 
 CAPVAXIVE 
  184  
  129  
  42% 
  40% 
 Increase primarily driven by launch uptake in several international markets, particularly in Asia Pacific and Europe, as well as in the U.S.

 
 VAXNEUVANCE 
  148  
  229  
  -35% 
  -36% 
 Decline primarily due to favorable prior period public-sector activity in the U.S., which increased sales in that period, as well as lower demand in the U.S. and in most international markets in the current period due to competitive pressure.

 
 LAGEVRIO 
  5  
  83  
  -95% 
  -95% 
 Decline largely due to lower demand in Japan and the U.S.

 
 Animal Health 
  1,775  
  1,646  
  8% 
  5% 
 Growth attributable to both Livestock and Companion Animal product portfolios.

 
 Livestock 
  1,041  
  961  
  8% 
  6% 
 Growth primarily driven by higher demand for ruminant and poultry products.

 
 Companion Animal 
  734  
  685  
  7% 
  5% 
 Growth primarily due to new product launches. Sales of BRAVECTO line of products were $359 million and $335 million in the current and prior-year quarters, respectively, which represents an increase of 7%, or 4% excluding impact of foreign exchange.

 
 Other Revenues** 
  72  
  110  
  -35% 
  -34% 
 Decline primarily due to lower revenue from third-party manufacturing arrangements.

 

*Alliance revenue for this product represents the
Company’s share of profits, which are product sales net of cost of sales and commercialization costs.

**Other revenues are comprised primarily of revenues
from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities.

 

  

 - 5 -

 

 

Second-Quarter Expense and Related Information

 

The table below presents selected expense information.

 

 
 $ in millions 
 GAAP  
 Acquisition- and Divestiture- Related 
Costs4  
 Restructuring Costs  
 (Income) Loss From Investments in Equity Securities  
 Non- GAAP3 

 
 Second Quarter 2026 
    
    
    
    
   

 
 Cost of sales 
 $4,395  
 $1,067  
 $184  
 $-  
 $3,144 

 
 Selling, general and administrative 
  2,904  
  17  
  -  
  -  
  2,887 

 
 Research and development 
  9,741  
  6  
  (1) 
  -  
  9,736 

 
 Restructuring costs 
  151  
  -  
  151  
  -  
  - 

 
 Other (income) expense, net 
  99  
  -  
  -  
  (191) 
  290 

 
   
     
     
     
     
    

 
 Second Quarter 2025 
     
     
     
     
    

 
 Cost of sales 
 $3,557  
 $576  
 $165  
 $-  
 $2,816 

 
 Selling, general and administrative 
  2,649  
  15  
  1  
  -  
  2,633 

 
 Research and development 
  4,048  
  3  
  53  
  -  
  3,992 

 
 Restructuring costs 
  560  
  -  
  560  
  -  
  - 

 
 Other (income) expense, net 
  (7) 
  -  
  -  
  (61) 
  54 

 

 

GAAP Expense, EPS and Related Information

 

Gross margin was 73.5% for the second quarter of
2026 compared with 77.5% for the second quarter of 2025. The decrease was primarily due to higher amortization
of intangible assets and inventory write-downs. 

 

Selling, general and administrative (SG&A)
expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The
increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support
of product launches.

 

Research and development (R&D) expenses were
$9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a
$5.7 billion charge for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction
in R&D expenses as part of a funding agreement with Blackstone Life Sciences (Blackstone). R&D expenses in the second quarter
of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma.

 

Other (income) expense, net, was $99 million of
expense in the second quarter of 2026 compared with $7 million of income in the second quarter of 2025. The
unfavorability was primarily due to higher net interest expense, partially offset by higher net income from investments in equity securities.

 

 

4 Reflects expenses
related to business combinations, including the amortization of intangible assets, intangible asset impairment charges, and expense or
income related to changes in the estimated fair value measurement of liabilities for contingent consideration. Also includes integration,
transaction and certain other costs associated with acquisitions and divestitures, as well as amortization of intangible assets related
to collaborations, licensing arrangements and asset acquisitions, and recognition of fair value step-up to inventories for asset acquisitions.

 

  

 - 6 -

 

 

The income tax provision for the second quarter
of 2026 was $654 million on a pretax loss of $683 million, resulting in an effective income tax rate of (95.9)%.
This effective income tax rate includes a 108.9 percentage point unfavorable impact of the charge for the acquisition of Terns, for which
no tax benefit was recorded.

 

GAAP loss per share was $0.54 for the second quarter
of 2026 compared with earnings per share of $1.76 for the second quarter of 2025, largely due to higher charges for business development
transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per
share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma.

 

Non-GAAP Expense, EPS and Related Information

 

Non-GAAP gross margin was 81.1% for the second
quarter of 2026 compared with 82.2% for the second quarter of 2025. The decrease was primarily due to higher
inventory write-downs. 

 

Non-GAAP SG&A expenses were $2.9 billion in
the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily
due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches.

 

Non-GAAP R&D expenses were $9.7 billion in
the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge
for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses
as part of a funding agreement with Blackstone. R&D expenses in the second quarter of 2025 include a $200 million charge for an upfront
payment related to a license agreement with Hengrui Pharma.

 

Non-GAAP other (income) expense, net, was $290
million of expense in the second quarter of 2026 compared with $54 million of expense in the second quarter of 2025. The
unfavorability was primarily due to higher net interest expense.

 

The non-GAAP income tax provision for the second
quarter of 2026 was $882 million on pretax income of $550 million, resulting in a non-GAAP effective income
tax rate of 160.3%. This effective income tax rate includes a 146.2 percentage point unfavorable impact of the charge for the acquisition
of Terns, for which no tax benefit was recorded.

 

Non-GAAP loss per share was $0.13 for the second
quarter of 2026 compared with earnings per share of $2.13 for the second quarter of 2025, largely due to higher charges for business development
transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per
share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma.

 

  

 - 7 -

 

 

A reconciliation of GAAP to non-GAAP net (loss)
income and EPS is provided in the table that follows.

 
   
  Second Quarter 

 
 $ in millions, except EPS amounts 
  2026  
  2025 

 
 EPS 
     
    

 
 GAAP EPS 
 $(0.54) 
 $1.76 

 
 Difference 
  0.41  
  0.37 

 
 Non-GAAP EPS that excludes items listed below3 
 $(0.13) 
 $2.13 

 
   
     
    

 
 Net (Loss) Income 
     
    

 
 GAAP net (loss) income2 
 $(1,335) 
 $4,427 

 
 Difference 
  1,005  
  939 

 
 Non-GAAP net (loss) income that excludes items listed below2,3 
 $(330) 
 $5,366 

 
   
     
    

 
 Excluded Items: 
     
    

 
 Acquisition- and divestiture-related costs4 
 $1,090  
 $594 

 
 Restructuring costs 
  334  
  779 

 
 Income from investments in equity securities 
  (191) 
  (61)

 
 Increase to net loss / decrease to net income before taxes 
  1,233  
  1,312 

 
 Estimated income tax benefit5 
  (228) 
  (373)

 
 Increase to net loss / decrease to net income 
 $1,005  
 $939 

 

 

Pipeline and Portfolio Highlights

 

In the second quarter, the Company achieved key
regulatory milestones across the portfolio while continuing to advance its broad and diverse pipeline.

 

·Oncology:

oU.S. Food and Drug Administration (FDA) approved KEYTRUDA and KEYTRUDA QLEX, each with WELIREG, for the adjuvant treatment of certain
patients with clear cell renal cell carcinoma (ccRCC), based on Phase 3 LITESPARK-022 trial.

§Approvals represent first approved combination of a PD-1 and hypoxia-inducible factor-2 alpha inhibitor for these patients.

oIn July, FDA approved expanded use of KEYTRUDA and KEYTRUDA QLEX, each with Padcev, as treatment before and after surgery for adult
patients with muscle-invasive bladder cancer (MIBC), including cisplatin eligible patients based on Phase 3 KEYNOTE-B15 trial; the expansion
builds upon prior approval of this regimen for cisplatin ineligible patients based on Phase 3 KEYNOTE-905 trial.

oFDA approved KEYTRUDA and KEYTRUDA QLEX, each with Trodelvy, for the first-line treatment of PD-L1 positive (Combined Positive Score
[CPS] ≥10) advanced TNBC, based on Phase 3 KEYNOTE-D19/ASCENT-04 trial.

oFDA granted Breakthrough Therapy designation (BTD) for calderasib (MK-1084), an investigational oral specific KRAS G12C
inhibitor, in combination with KEYTRUDA, for the first-line treatment of patients with advanced or metastatic non-small cell lung cancer
(NSCLC) with KRAS G12C-mutation and expressing PD-L1 (tumor proportion score [TPS] ≥1%).

 

 

5 Includes the estimated income tax impacts on the reconciling items based on applying
the statutory rate of the originating territory of the non-GAAP adjustments for all periods presented. Amount in the second quarter of
2025 also includes a $146 million benefit primarily resulting from favorable audit reserve adjustments.

 

  

 - 8 -

 

 

oAnnounced that Phase 3 TroFuse-005 trial evaluating sac-TMT, an investigational anti-TROP2 antibody-drug conjugate (ADC) being developed
in collaboration with Kelun-Biotech, met its primary endpoints of overall survival (OS) and progression-free survival (PFS) in patients
with advanced or recurrent endometrial cancer who have progressed after platinum-based chemotherapy and anti-PD-1/L1 immunotherapy. 

§First Phase 3 results from the Company’s broad sac-TMT clinical development program, which includes 17 ongoing global Phase
3 trials across multiple tumor types.

oAt the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting, new research was presented across over 25 types of cancer,
reinforcing long-term impact of KEYTRUDA and momentum in the Company’s rapidly advancing oncology pipeline, including:

§Five-year follow-up data from Phase 2b KEYNOTE-942 trial, in collaboration with Moderna, underscoring continued potential of intismeran
autogene (mRNA-4157/V940) in combination with KEYTRUDA for patients with stage III/IV melanoma following complete resection.

§Data from Phase 3 OptiTROP-Lung05 trial, led by Kelun-Biotech, evaluating sac-TMT plus KEYTRUDA in China, adding to ongoing research
of novel treatment approaches for patients with NSCLC.

§Results from final analysis of KEYNOTE-522 evaluating KEYTRUDA in combination with chemotherapy, reporting a continued survival benefit
for patients with high-risk early-stage TNBC.

 

·Vaccines
and Infectious Diseases:

oIn July, presented new data for daily and weekly options across HIV treatment and prevention pipeline at 26th International
AIDS Conference (AIDS 2026). Hosted HIV investor event to highlight these data.

§In collaboration with Gilead, presented first Phase 3 results for islatravir/lenacapavir (ISL/LEN), an investigational oral once-weekly
single-tablet HIV treatment regimen, which maintained virological suppression in adults with HIV who switched antiretroviral therapy.
ISL/LEN has the potential to be the first approved oral, once-weekly HIV treatment.

§Presented first results from a Phase 2b study evaluating switch to investigational once-weekly oral islatravir
and ulonivirine (ISL/ULO) in adults with virologically suppressed HIV-1.

oReceived regulatory approvals in Japan and China for ENFLONSIA for the prevention of RSV lower respiratory tract disease in newborns
and infants who are born during or entering their first RSV season.

 

  

 - 9 -

 

 

·Cardiometabolic
and Respiratory:

oIn July, FDA approved LIPFENDRA (enlicitide), the first and only once-daily oral PCSK9 inhibitor, as an adjunct to diet and exercise,
to reduce LDL-C in adults with hypercholesterolemia, based on two Phase 3 trials from the CORALreef clinical program: CORALreef Lipids
and CORALreef HeFH.

§At week 24, LIPFENDRA significantly reduced LDL-C by a placebo-adjusted 56% and 59%, respectively.

 

·Immunology:

○Announced
positive topline results from Phase 3 ATLAS-UC induction-only study (Study 2) evaluating tulisokibart (MK-7240), an investigational humanized
monoclonal antibody targeting tumor necrosis factor-like cytokine 1A (TL1A), in patients with moderately to severely active ulcerative
colitis (UC).

oInitial topline results from primary analyses of two Phase 2
studies evaluating tulisokibart:

§In hidradenitis suppurativa (HS), the study met its primary and key secondary endpoints. Full results will be shared at an upcoming
medical meeting.

§In systemic sclerosis-associated interstitial lung disease (SSc-ILD), the study did not meet its primary endpoint and will be discontinued.
No new safety concerns were identified.

 

·Business
Development:

oCompleted acquisition of Terns for $6.8 billion.

§Added MK-4208, a novel investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor recently granted BTD by the FDA for
the treatment of certain adults with Philadelphia chromosome-positive chronic myeloid leukemia.

 

  

 - 10 -

 

 

Notable recent news releases on the Company’s
pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company’s website to read
the releases.*

 

 
 Oncology
 FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With WELIREG, for Adjuvant Treatment of Certain Patients With ccRCC; Based on Results From Phase 3 LITESPARK-022 Trial

 
 FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Padcev, as Treatment Before and After Surgery for Adults With MIBC; Based on Results From Phase 3 KEYNOTE-B15 Trial, Combined With Previous Approvals Based on Phase 3 KEYNOTE-905 Trial

 
 FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Trodelvy, as First-Line Treatment of PD-L1+ Advanced TNBC; Based on Results From Phase 3 KEYNOTE-D19/ASCENT-04 Trial

 
 European Commission Approved KEYTRUDA Plus Padcev as First PD-1 Inhibitor Plus ADC Regimen for Adults With Cisplatin-Ineligible Resectable MIBC; Based on Results From Phase 3 KEYNOTE-905 Trial

 
 FDA Granted BTD for Calderasib (MK-1084), an Investigational KRAS G12C Inhibitor, for Certain Patients With Newly Diagnosed Metastatic KRAS G12C-Mutant NSCLC

 
 The Company Announced TroFuse-005 Trial Evaluating Sac-TMT Met Primary Endpoints of OS and PFS in Certain Patients With Advanced or Recurrent Endometrial Cancer  

 
 The Company and Moderna Presented 5-Year Data for Intismeran Autogene in Combination With KEYTRUDA in Patients With High-Risk Stage III/IV Melanoma Following Complete Resection at ASCO 2026

 
 KEYTRUDA as Monotherapy Significantly Improved PFS in Certain Patients With Advanced or Recurrent Endometrial Cancer With Mismatch Repair Deficient Tumors Compared to Chemotherapy; Results From Phase 3 KEYNOTE-C93 Trial

 
 The Company Highlighted New Long-Term Data and Advancements Across Broad Oncology Portfolio and Pipeline Research at ASCO 2026

 
 The Company Completed Acquisition of Terns 

 
 Vaccines and Infectious Diseases
 The Company, in Collaboration With Gilead, Announced That the Once-Weekly Investigational Oral HIV Treatment Regimen of Islatravir and Lenacapavir (ISL/LEN) Maintained Virological Suppression in People With HIV Who Switched Antiretroviral Therapy

 
 The Company Presented New Data on Daily, Weekly and Monthly Options Across its HIV Treatment and Prevention Pipeline at AIDS 2026

 
 The Company Announced Initial Access Plans for Alimatravir (MK-8527), Its Investigational Once-Monthly Oral Pre-Exposure Prophylaxis in Phase 3 Development; Multi-Faceted Strategy Aims To Enable Rapid, Broad and Sustainable Access to Alimatravir, if Approved, in Low- And Middle-Income Countries

 
 The Company Announced New Agreement With AIDS Drug Assistance Program Crisis Task Force To Improve Access and Care for People Living With HIV

 
 FDA Approved an Additional Indication for CAPVAXIVE in Children and Adolescents Aged 2 Through 17 at Increased Risk for Pneumococcal Disease; Based on Results From Phase 3 STRIDE-13 Trial

 
 Cardiometabolic and Respiratory
 FDA Approved LIPFENDRA, the First and Only Once-Daily Oral PCSK9 Inhibitor To Reduce LDL-C in Adults With Hypercholesterolemia; Based on Results From CORALreef Lipids and CORALreef HeFH Trials

 
 Immunology
 Tulisokibart Met Primary and Key Secondary Endpoints in the Phase 3 ATLAS-UC Induction-only Study in Patients With Moderately to Severely Active UC

 
 Animal Health
 The Company’s Animal Health Business Completed Acquisition of TARGAN, Broadening Its Commercial Poultry Portfolio Through TARGAN’s Innovative High-Speed Biodevice Technology

 
*References in the above news release titles have been modified for
the purpose of this announcement.

 

  

 - 11 -

 

 

Upcoming Investor Event

 

The Company will hold an Oncology Investor Event
to coincide with the European Society for Medical Oncology Congress 2026 on Monday, Oct. 26, 2026, at 6 p.m. CET / 1 p.m. EDT, during
which senior management will provide an update on the Company’s oncology strategy and program. The event will take place in Madrid,
Spain, and will be accessible via live audio webcast at this weblink.

 

Full-Year 2026 Financial Outlook

 

The following table summarizes the Company’s
full-year financial outlook.

 

 
   
 Full Year 2026

 
   
 Updated 
 Prior

 
 Sales* 
 $66.3 billion to $67.3 billion 
 $65.8 billion to $67.0 billion

 
 Non-GAAP Gross margin3 
 Approximately 81% 
 Approximately 82%

 
 Non-GAAP Operating expenses3** 
 $42.0 billion to $42.7 billion 
 $36.0 billion to $36.8 billion

 
 Non-GAAP Other (income) expense, net3 
 Approximately $1.4 billion expense 
 Approximately $1.3 billion expense

 
 Non-GAAP Effective income tax rate3 
 35.0% to 36.0% 
 23.5% to 24.5%

 
 Non-GAAP EPS3*** 
 $2.66 to $2.76 
 $5.04 to $5.16

 
 Share count (assuming dilution) 
 Approximately 2.48 billion 
 Approximately 2.48 billion

 

 

*The Company does not have any non-GAAP adjustments
to sales.

**Includes one-time R&D charges of $9.0 billion
for the acquisition of Cidara Therapeutics, Inc. (Cidara) and $5.7 billion for the acquisition of Terns. Outlook does not assume any additional
significant potential business development transactions.

***Includes one-time charges of $3.62 per share
for the acquisition of Cidara and $2.31 per share for the acquisition of Terns.

 

The Company has not provided a reconciliation of
forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective income tax
rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary
for such a reconciliation, including intangible asset impairment charges, legal settlements, and income and losses from investments in
equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are
inherently difficult to forecast and could have a significant impact on the Company’s future GAAP results.

 

The Company is raising and narrowing the range
for its full-year sales outlook and now anticipates full-year 2026 sales to be between $66.3 billion and $67.3 billion, including a positive
impact from foreign exchange of approximately 1% at mid-July 2026 exchange rates.

 

The Company now expects the full-year non-GAAP
effective income tax rate to be between 35.0% and 36.0%, including the impact of the non-tax deductible one-time charges for the acquisitions
of Cidara and Terns.

 

The Company now expects full-year 2026 non-GAAP
EPS to be between $2.66 and $2.76, including a positive impact from foreign exchange of approximately $0.15 per share at mid-July 2026
exchange rates. This range includes one-time charges of $9.0 billion, or $3.62 per share, related to the acquisition of Cidara and $5.7
billion, or $2.31 per share, related to the acquisition of Terns. This range also includes costs of approximately $0.12 per share to finance
the Terns acquisition and advance MK-4208. The charges related to Terns were not previously included in the outlook. In 2025, non-GAAP
EPS of $8.98 was negatively impacted by one-time charges of $0.20 per share in the aggregate related to certain business development transactions.

 

  

 - 12 -

 

 

Consistent with past practice, the financial outlook
does not assume additional significant potential business development transactions.

 

Earnings Conference Call

 

Investors, journalists
and the general public may access a live audio webcast of the call on Tuesday, Aug. 4, at 9 a.m.
EDT via this weblink. A replay of the webcast, along with the sales and earnings news release,
supplemental financial disclosures and slides highlighting the results, will be available on the Company’s website. 

 

All participants may join the call by dialing (800)
369-3351 (U.S. and Canada Toll-Free) or (517) 308-9448 and using the access code 9818590.

 

About Our Company

 

At Merck & Co., Inc., Rahway, N.J., USA, known
as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and
improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines
and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront
of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster
a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people
and communities.

 

Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J.,
USA

 

This news release 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 statements are based upon the current beliefs and expectations of
the Company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline
candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful.
If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set
forth in the forward-looking statements.

 

Risks and uncertainties include but are not limited
to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations;
the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward
health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product
development, including obtaining regulatory approval; the Company’s ability to accurately predict future market conditions; manufacturing
difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the Company’s
patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory
actions.

 

  

 - 13 -

 

 

The Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could
cause results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission
(SEC) available at the SEC’s Internet site (www.sec.gov).

 

Appendix 

 

Generic product names are provided below.

 

Pharmaceutical
BRIDION (sugammadex)
CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine)

ENFLONSIA (clesrovimab-cfor)

GARDASIL (Human Papillomavirus Quadrivalent [Types 6,
11, 16 and 18] Vaccine, Recombinant)
GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant)

JANUMET (sitagliptin and metformin HCl)
JANUVIA (sitagliptin)
KEYTRUDA (pembrolizumab)
KEYTRUDA QLEX (pembrolizumab and berahyaluronidase alfa-pmph)

LAGEVRIO (molnupiravir)
Lenvima (lenvatinib)

LIPFENDRA (enlicitide)
Lynparza (olaparib)
M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live)
OHTUVAYRE (ensifentrine)

PREVYMIS (letermovir)
PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live)

VARIVAX (Varicella Virus Vaccine Live)

VAXNEUVANCE (Pneumococcal 15-valent Conjugate Vaccine)

WELIREG (belzutifan)
WINREVAIR (sotatercept-csrk)

 

  

 - 14 -

 

 

Animal Health
BRAVECTO (fluralaner)

 

###

 

 

 
 Media Contacts:
 Investor Contacts:

 
  
  

 
 Michael Levey
 Peter Dannenbaum

 
 [email protected]
 (732) 594-1579

 
  
  

 
 John Cummins
 Steven Graziano

 
 [email protected]
 (732) 594-1583

 

 

  

  

 

 

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

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1

 

 
   
 GAAP  
    
 GAAP  
   

 
   
 2Q26  
 2Q25  
 % Change  
 June
 YTD
 2026  
 June
 YTD
 2025  
 % Change 

 
 Sales 
 $16,607  
 $15,806  
  5% 
 $32,893  
 $31,335  
  5%

 
   
     
     
     
     
     
    

 
 Costs, Expenses and Other 
     
     
     
     
     
    

 
 Cost of sales 
  4,395  
  3,557  
  24% 
  8,590  
  6,976  
  23%

 
 Selling, general and administrative 
  2,904  
  2,649  
  10% 
  5,604  
  5,202  
  8%

 
 Research and development 
  9,741  
  4,048  
  *  
  22,333  
  7,669  
  * 

 
 Restructuring costs 
  151  
  560  
  -73% 
  346  
  629  
  -45%

 
 Other (income) expense, net 
  99  
  (7) 
  *  
  237  
  (43) 
  * 

 
 (Loss) Income Before Taxes 
  (683) 
  4,999  
  *  
  (4,217) 
  10,902  
  * 

 
 Income Tax Provision 
  654  
  571  
     
  1,363  
  1,388  
    

 
 Net (Loss) Income 
  (1,337) 
  4,428  
  *  
  (5,580) 
  9,514  
  * 

 
 Less: Net (Loss) Income Attributable to Noncontrolling Interests 
  (2) 
  1  
     
  (5) 
  8  
    

 
 Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA 
 $(1,335) 
 $4,427  
  *  
 $(5,575) 
 $9,506  
  * 

 
   
     
     
     
     
     
    

 
 (Loss) Earnings per Common Share Assuming Dilution (1) 
 $(0.54) 
 $1.76  
  *  
 $(2.26) 
 $3.77  
  * 

 
   
     
     
     
     
     
    

 
 Average Shares Outstanding Assuming Dilution (1) 
  2,470  
  2,513  
     
  2,471  
  2,522  
    

 
 Tax Rate 
  -95.9% 
  11.4% 
     
  -32.3% 
  12.7% 
    

 

 

*
100% or greater 

 

(1) Because the Company recorded a net loss in both the second quarter and first six months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive. 

 

  

  

 

 

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

THREE AND SIX MONTHS ENDED JUNE 30, 2026 GAAP TO NON-GAAP RECONCILIATION 

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a

 

 
   
 GAAP  
 Acquisition- and
 Divestiture-Related
 Costs (1)  
 Restructuring
 Costs (2)  
 (Income) Loss
 from
 Investments in
 Equity
 Securities  
 Adjustment
 Subtotal  
 Non-GAAP 

 
 Second Quarter 
     
     
     
     
     
    

 
 Cost of sales 
 $4,395  
  1,067  
  184  
     
  1,251  
 $3,144 

 
 Selling, general and administrative 
  2,904  
  17  
     
     
  17  
  2,887 

 
 Research and development 
  9,741  
  6  
  (1) 
     
  5  
  9,736 

 
 Restructuring costs 
  151  
     
  151  
     
  151  
  – 

 
 Other (income) expense, net 
  99  
     
     
  (191) 
  (191) 
  290 

 
 Loss Before Taxes 
  (683) 
  (1,090) 
  (334) 
  191  
  (1,233) 
  550 

 
 Income Tax Provision (Benefit) 
  654  
  (219)(3) 
  (50)(3) 
  41(3) 
  (228) 
  882 

 
 Net Loss 
  (1,337) 
  (871) 
  (284) 
  150  
  (1,005) 
  (332)

 
 Net Loss Attributable to Merck & Co., Inc., Rahway, N.J., USA 
  (1,335) 
  (871) 
  (284) 
  150  
  (1,005) 
  (330)

 
 Loss per Common Share Assuming Dilution (4) 
 $(0.54) 
  (0.35) 
  (0.12) 
  0.06  
  (0.41) 
 $(0.13)

 
   
     
     
     
     
     
    

 
 Tax Rate 
  -95.9% 
     
     
     
     
  160.3%

 
   
     
     
     
     
     
    

 
 June YTD 
     
     
     
     
     
    

 
 Cost of sales 
 $8,590  
  2,081  
  421  
     
  2,502  
 $6,088 

 
 Selling, general and administrative 
  5,604  
  49  
     
     
  49  
  5,555 

 
 Research and development 
  22,333  
  6  
  33  
     
  39  
  22,294 

 
 Restructuring costs 
  346  
     
  346  
     
  346  
  – 

 
 Other (income) expense, net 
  237  
     
     
  (371) 
  (371) 
  608 

 
 Loss Before Taxes 
  (4,217) 
  (2,136) 
  (800) 
  371  
  (2,565) 
  (1,652)

 
 Income Tax Provision (Benefit) 
  1,363  
  (421)(3) 
  (135)(3) 
  80(3) 
  (476) 
  1,839 

 
 Net Loss 
  (5,580) 
  (1,715) 
  (665) 
  291  
  (2,089) 
  (3,491)

 
 Net Loss Attributable to Merck & Co., Inc., Rahway, N.J., USA 
  (5,575) 
  (1,715) 
  (665) 
  291  
  (2,089) 
  (3,486)

 
 Loss per Common Share Assuming Dilution (4) 
 $(2.26) 
  (0.70) 
  (0.27) 
  0.12  
  (0.85) 
 $(1.41)

 
   
     
     
     
     
     
    

 
 Tax Rate 
  -32.3% 
     
     
     
     
  -111.3%

 

 

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 reflect expenses for the amortization of intangible assets, as well as the recognition of fair value step-up of inventories related to the 2025 Verona Pharma plc acquisition. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. 

 

(2) Amounts primarily include employee separation costs, accelerated depreciation and asset impairment charges associated with facilities to be closed or divested, as well as contractual termination costs, associated with 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) Because the Company recorded a net loss in both the second quarter and first six months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive.  

 

  

  

 

 

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

FRANCHISE
/ KEY PRODUCT SALES

(AMOUNTS
IN MILLIONS)

(UNAUDITED)

Table
3

 

 
   
 2026 
  2025 
 2Q  
 June
 YTD 

 
   
 1Q 
 2Q 
 June
 YTD 
 1Q 
 2Q 
 June
 YTD 
 3Q 
 4Q 
 Full
 Year 
 Nom
 % 
 Ex-Exch
 % 
 Nom
 % 
 Ex-Exch
 % 

 
 TOTAL
 SALES (1)  
 $16,286 
 $16,607 
 $32,893 
 $15,529 
 $15,806 
 $31,335 
 $17,276 
 $16,400 
 $65,011 
  5 
  4 
  5 
  3 

 
 PHARMACEUTICAL 
  14,349 
  14,760 
  29,109 
  13,638 
  14,050 
  27,688 
  15,611 
  14,843 
  58,142 
  5 
  4 
  5 
  3 

 
 Oncology 
    
    
    
    
    
    
    
    
    
    
    
    
    

 
 Keytruda 
  7,906 
  7,904 
  15,810 
  7,205 
  7,956 
  15,161 
  8,142 
  8,337 
  31,641 
  -1 
  -2 
  4 
  2 

 
 Keytruda Qlex 
  128 
  463 
  590 
    
    
    
  5 
  35 
  40 
  - 
  - 
  - 
  - 

 
 Alliance
 Revenue – Lynparza (2) 
  341 
  365 
  706 
  312 
  370 
  682 
  379 
  389 
  1,450 
  -1 
  -2 
  4 
  2 

 
 Alliance
 Revenue – Lenvima (2) 
  256 
  283 
  539 
  258 
  265 
  523 
  258 
  272 
  1,053 
  7 
  6 
  3 
  2 

 
 Welireg 
  199 
  271 
  470 
  137 
  162 
  300 
  196 
  220 
  716 
  67 
  67 
  57 
  56 

 
 Alliance
 Revenue – Reblozyl (3) 
  148 
  122 
  270 
  119 
  107 
  226 
  136 
  164 
  525 
  15 
  15 
  20 
  20 

 
 Vaccines
 (4) 
    
    
    
    
    
    
    
    
    
    
    
    
    

 
 Gardasil/Gardasil 9 
  1,069 
  1,169 
  2,238 
  1,327 
  1,126 
  2,453 
  1,749 
  1,031 
  5,233 
  4 
  3 
  -9 
  -10 

 
 ProQuad/M-M-R II/Varivax 
  538 
  592 
  1,130 
  539 
  609 
  1,148 
  684 
  619 
  2,451 
  -3 
  -3 
  -2 
  -3 

 
 Vaxneuvance 
  202 
  148 
  350 
  230 
  229 
  459 
  226 
  140 
  825 
  -35 
  -36 
  -24 
  -26 

 
 RotaTeq 
  206 
  134 
  340 
  228 
  121 
  349 
  204 
  119 
  673 
  10 
  9 
  -3 
  -4 

 
 Capvaxive 
  142 
  184 
  325 
  107 
  129 
  236 
  244 
  279 
  759 
  42 
  40 
  38 
  36 

 
 Enflonsia 
  1 
  2 
  3 
    
    
    
  79 
  21 
  100 
  - 
  - 
  - 
  - 

 
 Cardiometabolic & Respiratory 
    
    
    
    
    
    
    
    
    
    
    
    
    

 
 Winrevair 
  525 
  588 
  1,114 
  280 
  336 
  615 
  360 
  467 
  1,443 
  75 
  75 
  81 
  81 

 
 Ohtuvayre 
  131 
  204 
  335 
    
    
    
    
  178 
  178 
  - 
  - 
  - 
  - 

 
 Alliance
 Revenue - Adempas/Verquvo (5) 
  109 
  126 
  235 
  106 
  123 
  229 
  112 
  129 
  470 
  3 
  3 
  3 
  3 

 
 Adempas
 (6) 
  78 
  78 
  156 
  68 
  80 
  147 
  82 
  83 
  312 
  -2 
  -4 
  6 
  1 

 
 Infectious Diseases 
    
    
    
    
    
    
    
    
    
    
    
    
    

 
 Bridion 
  472 
  497 
  969 
  441 
  461 
  902 
  439 
  499 
  1,841 
  8 
  8 
  7 
  7 

 
 Prevymis 
  272 
  295 
  568 
  208 
  228 
  436 
  266 
  275 
  978 
  29 
  28 
  30 
  27 

 
 Delstrigo 
  75 
  101 
  176 
  67 
  83 
  150 
  77 
  79 
  306 
  21 
  17 
  17 
  10 

 
 Zerbaxa 
  82 
  77 
  159 
  70 
  74 
  145 
  81 
  87 
  312 
  4 
  2 
  10 
  8 

 
 Isentress/Isentress HD 
  59 
  60 
  119 
  90 
  86 
  176 
  82 
  67 
  325 
  -30 
  -31 
  -32 
  -33 

 
 Dificid 
  34 
  22 
  56 
  83 
  96 
  179 
  43 
  25 
  247 
  -77 
  -77 
  -69 
  -69 

 
 Lagevrio 
  28 
  5 
  32 
  102 
  83 
  185 
  138 
  57 
  380 
  -95 
  -95 
  -82 
  -83 

 
 Diabetes 
    
    
    
    
    
    
    
    
    
    
    
    
    

 
 Januvia 
  367 
  258 
  625 
  549 
  372 
  921 
  382 
  302 
  1,604 
  -31 
  -30 
  -32 
  -32 

 
 Janumet 
  207 
  171 
  378 
  247 
  251 
  498 
  243 
  199 
  940 
  -32 
  -33 
  -24 
  -25 

 
 Other
 Pharmaceutical (7) 
  774 
  641 
  1,416 
  865 
  703 
  1,568 
  1,004 
  770 
  3,340 
  -9 
  -9 
  -10 
  -11 

 
 ANIMAL HEALTH 
  1,791 
  1,775 
  3,566 
  1,588 
  1,646 
  3,234 
  1,615 
  1,505 
  6,354 
  8 
  5 
  10 
  6 

 
 Livestock 
  1,064 
  1,041 
  2,105 
  924 
  961 
  1,885 
  1,023 
  987 
  3,896 
  8 
  6 
  12 
  7 

 
 Companion Animal 
  727 
  734 
  1,461 
  664 
  685 
  1,349 
  592 
  518 
  2,458 
  7 
  5 
  8 
  4 

 
 Other
 Revenues (8) 
  146 
  72 
  218 
  303 
  110 
  413 
  50 
  52 
  515 
  -35 
  -34 
  -47 
  -6 

 

 

 
 Sum
 of quarterly amounts may not equal year-to-date amounts 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 $2,314 million and $2,361 million in the first and second quarter of 2026, respectively, and $2,607 million and $2,370
 million in the first and second quarter of 2025, 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) Includes
 Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $161 million and $10 million
 in the first and second quarter of 2026, respectively, and $44 million and $43 million in the first and second quarter of 2025, respectively.
 

 
 (8) 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 milestone payments for out-licensed products were $132 million and $0 million
 in the first and second quarter of 2026, respectively, and $95 million and $5 million in the first and second quarter of 2025, respectively.