Merck & Co. Inc: 130 years of innovation in medicine and vaccines

Merck & Co., Inc (Merck) is an American multinational pharmaceutical company with a legacy of inventing medicines and vaccines for over 130 years. Founded in the United States by George Merck on 1 January 1891, the company originally distributed fine chemicals across New York and neighbouring regions.

History of Merck & Co. Inc

Merck published its first manual in 1899, which became one of the most widely used medical references. Aptly titled Merck Manual, it contained information about various treatments. These included bloodletting for acute bronchitis, arsenic for impotence, and almond bread for diabetes.

By 1925, George W. Merck, the founder’ son was appointed President of the company. In 1936, Merck became the first company to synthesize vitamin B1.

In the following years, Merck’s leadership focused on isolating and synthesizing other vitamins. This made them more accessible to the public.

Merck’s Pioneering Medical Innovations

In the 1940s, Merck funded the discovery of streptomycin. This breakthrough antibiotic became the first effective treatment for tuberculosis.

The company entered the animal health market with sulfaquinoxaline, which treated a parasitic poultry disease called coccidiosis

In 1950, Merck developed CORTONE (cortisone) to treat rheumatoid arthritis, rheumatic fever, and other related chronic diseases.

In 1957, the Merck Foundation was established and has contributed millions of dollars to nonprofit organizations since then.

The launch of DIURIL (chlorothiazide) in 1958 marked the company’s rise as a leader in cardiovascular medicine. Since then, Merck has remained at the forefront of developing innovative treatments for high blood pressure and heart disease.

Merck’s Legacy of Medical Breakthroughs

In 1971 the distribution of the MMR vaccine by the company began. More widely known as the measles-mumps-rubella vaccine, it was a combination of “ATTENUVAX, an updated version of Merck’s measles vaccine; MERUVAX, a rubella vaccine; and MUMPSVAX, Merck’s mumps vaccine.”

The next three decades saw groundbreaking medical developments. These included the launch of the pneumonia vaccine PNEUMOVAX and the recombinant hepatitis B vaccine, RECOMBIVAX HB.

Also approved by the FDA was CRIXIVAN (INDINAVIR SULFATE), for the treatment of HIV.

As well as SINGULAIR (montelukast sodium) for the prevention and treatment of asthma.

Merck’s GARDASIL [human papillomavirus quadrivalent (types 6, 11, 16, 18) vaccine, recombinant] for the prevention of cervical cancer caused by certain HPV types was approved in 2006, and more recently in 2019 the FDA approved the ERVEBO® (Ebola Zaire Vaccine, Live) for the prevention of disease caused by Zaire ebolavirus in individuals 18 years of age and older.

Today, Merck describes itself as a global health care company. She delivering innovative solutions through medicines, vaccines, biologic therapies, and animal health products. We’re focused on discovering new solutions for today and the future.”

Market capitalisation and shareholding

Merck trades on the New York Stock Exchange (NYSE) under the ticker ‘MRK. The company typically issues 4 dividends per year (excluding specials). Merck has a current market cap of $298.7 billion, with a revenue of $62.48 billion and a net income of $13.74 billion.

Merck announces 2^nd quarter 2024 Financial Results

On 30 July 2024, Merck announced its 2nd quarter 2024 financial results. The announcement reported that total worldwide sales reached $16.1 billion. This marking a 7% increase from the second quarter of 2023, and 11% growth when excluding the impact of foreign exchange.

KEYTRUDA sales grew by 16% to $7.3 billion, with a 21% increase excluding foreign exchange effects. GAAP EPS stood at $2.14, while non-GAAP EPS was $2.28. The company successfully launched WINREVAIR in the U.S. and received a positive EU CHMP opinion for adults with PAH.

Vaccine programs achieved key milestones, including the CDC’s ACIP unanimously recommending CAPVAXIVE for pneumococcal vaccination in certain adults after FDA approval.

Also positive results from the Phase 2b/3 trial of Clesrovimab (MK-1654). An investigational RSV preventative monoclonal antibody for infants.

In July 2024, the company completed acquisitions of EyeBio and Elanco’s Aqua business. The full-year 2024 financial outlook raised the expected worldwide sales range to between $63.4 billion and $64.4 billion, with non-GAAP EPS.

Now expected to be between $7.94 and $8.04, reflecting a negative impact from a one-time charge of approximately $1.3 billion, or $0.51 per share, for the EyeBio acquisition.

Merck and Covid-19 controversy

Critics often accuse the American pharmaceutical industry of profiting excessively. They argue that drugs are priced much higher in the U.S. than abroad. This burdens consumers with inflated costs for medicines funded by their taxes.

Merck has been caught up in this issue, with the Guardian reporting that the company planned to charge Americans $712 for a Covid drug.

It only cost $17.74 to produce, despite the American government subsidizing its development. This highlighted the broader issue of price gouging in the pharmaceutical industry.

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