Merck & Co., Inc. (MRK): Business Model Canvas [June-2026 Updated]

This ready-made Business Model Canvas of Merck & Co., Inc. gives you a clear, research-based view of how a 75,000-person global pharmaceutical company creates value through late-stage drug R&D, clinical trials, regulatory filings, manufacturing, and deal-making, while partnering with Mayo Clinic, Moderna, Daiichi Sankyo, NVIDIA, and biotechnology targets. You'll quickly see how it reaches oncology patients, hospitals, governments, and animal health buyers; how it sells through sales forces, specialty pharmacies, public-sector channels, and distributors; and how it earns through prescription medicines, vaccines, animal health, and licensing while managing heavy R&D, trial, supply chain, commercial, and acquisition costs.

Merck & Co., Inc. - Canvas Business Model: Key Partnerships

Moderna V940 cancer vaccine partnership: $250 million upfront payment, up to $200 million in milestones, and a 50/50 split of development, manufacturing, and commercialization costs and profits. That structure makes the partnership a core external-innovation vehicle in Merck & Co., Inc.'s oncology model.

Mayo Clinic AI collaboration and NVIDIA KERMIT drug-discovery model are strategic capability partnerships with no publicly disclosed cash terms in the material available here. Their value is in access to clinical expertise, data, and AI compute rather than in an upfront purchase price.

Daiichi Sankyo ADC collaborations matter because antibody-drug conjugates combine a monoclonal antibody with a cytotoxic payload, which lets Company Name aim for targeted cancer killing. The strategic logic is simple: if a partner already has ADC chemistry, linker technology, or payload expertise, Company Name can shorten development time versus building each piece internally.

The partnership pattern also shows up in Merck & Co., Inc.'s external pipeline buildout through biotechnology acquisitions. The deal values below show how much Company Name has been willing to pay for pipeline access and platform science:

• $11.5 billion for Acceleron Pharmaceuticals
• $10.8 billion for Prometheus Biosciences
• $1.35 billion for Imago BioSciences
• $1.3 billion upfront for EyeBio
• $1.7 billion in potential milestones for EyeBio
• $680 million for Harpoon Therapeutics

Those numbers show a clear pattern: when Company Name wants control over a platform or late-stage asset, it uses multibillion-dollar M&A; when it wants shared risk on a single program, it uses partnership economics such as $250 million upfront and 50/50 cost sharing.

The Mayo Clinic AI link and the NVIDIA KERMIT model fit the same logic from a different angle. They lower scientific uncertainty before Merck & Co., Inc. commits a larger amount such as $1.35 billion, $10.8 billion, or $11.5 billion in an acquisition.

From a Business Model Canvas view, these partnerships sit in the Key Partnerships block because they support three numbers-driven priorities: reduce internal R&D risk, share cost on high-upside programs, and keep pipeline replacement flowing through assets that can be bought, licensed, or co-developed.

Merck & Co., Inc. - Canvas Business Model: Key Activities

Merck & Co., Inc. spent $17.9B on R&D in 2024 against $64.2B in revenue, which equals 27.9% of sales. The company's key activities are late-stage drug R&D, clinical trial execution, regulatory filings, global manufacturing and supply, and business development and M&A.

Late-stage drug R&D

Merck & Co., Inc. keeps a large share of capital inside late-stage programs rather than only early discovery. The $17.9B R&D bill in 2024 shows spending on phase 2/3 development, formulation work, toxicology, scale-up, and label-expansion programs. Compared with $64.2B in sales, the 27.9% R&D ratio shows that pipeline development is one of the company's biggest operating uses of cash.

• $17.9B R&D expense in 2024
• 27.9% of 2024 revenue
• $64.2B 2024 revenue base

Clinical trial execution

Clinical execution is the bridge between R&D spending and approval-ready data. In 2024, Merck & Co., Inc. converted late-stage work into 2 U.S. approvals: sotatercept-csrk and a 21-valent pneumococcal conjugate vaccine. That means the company's trial engine has to manage enrollment, endpoints, monitoring, and data quality across global sites, because each readout can decide whether a program becomes a commercial product.

• 2 U.S. approvals in 2024
• 21-valent pneumococcal conjugate vaccine
• sotatercept-csrk

Regulatory approvals and filings

Regulatory work is a separate activity because approval depends on more than efficacy data. Merck & Co., Inc. has to file clinical evidence, manufacturing data, and safety documentation with regulators such as the FDA, and the 2024 output was 2 approvals. For a Canvas analysis, this is the point where internal science becomes a formal license to sell, so filing quality directly affects launch timing and revenue timing.

Global manufacturing and supply

Manufacturing is a core activity because Merck & Co., Inc. has to supply 2 new approved products from 2024 while keeping its existing portfolio in stock. The work includes process validation, batch release, quality control, packaging, and distribution. For biologics and vaccines, supply execution matters because delays at the plant can slow launches even when trial data are already positive.

• 2 new approvals in 2024 added supply-chain load
• 2024 included both a biologic approval and a 21-valent vaccine approval

Business development and M&A

Merck & Co., Inc. uses acquisitions to add assets faster than internal R&D alone can do. In 2024, it announced Harpoon Therapeutics for $680M and EyeBio for $1.3B upfront plus up to $1.7B in milestone payments. Earlier deal values stayed large too: Prometheus Biosciences at $10.8B and Imago Biosciences at $1.35B. Relative to the $17.9B R&D budget, the EyeBio upfront payment was 7.3%, Harpoon was 3.8%, Prometheus was 60.3%, and Imago was 7.5%.

Merck & Co., Inc. - Canvas Business Model: Key Resources

Merck & Co., Inc. depended on $29.5B Keytruda sales, $64.2B total 2024 sales, 75,000 employees, and $17.9B in 2024 research and development expense.

• $29.5B Keytruda sales in 2024
• $25.0B Keytruda sales in 2023
• $4.5B year-over-year increase
• 18% year-over-year growth
• 45.9% of $64.2B company sales
• 75,000 employees worldwide

Keytruda franchise: $29.5B in 2024 sales, $25.0B in 2023 sales, $4.5B in absolute growth, and 18% year-over-year growth.

Global late-stage pipeline: $17.9B in research and development expense in 2024, compared with $13.5B in 2023, a difference of $4.4B and 32.6%.

75,000-person workforce: 75,000 employees worldwide in 2024, alongside $64.2B in sales.

Manufacturing network and research hubs: $17.9B in 2024 research and development expense and 75,000 employees supported development, scale-up, and supply.

Patents, AI tools, and data platforms: 45.9% of 2024 sales came from Keytruda, equal to $29.5B, while total 2024 sales were $64.2B.

Merck & Co., Inc. - Canvas Business Model: Value Propositions

Merck & Co., Inc. built its value proposition around $25.0B Keytruda sales, $8.9B Gardasil 9 sales, $5.6B Animal Health revenue, and $60.1B total revenue in 2023. Winrevair added a new cardiovascular franchise with a 40.8-meter treatment effect at 24 weeks in a 323-patient phase 3 trial.

Leading immuno-oncology therapies

Keytruda is the center of Merck's oncology value proposition. It generated $25.0B in 2023, which was 41.6% of Merck's $60.1B total revenue. That scale matters because one drug funded nearly half of company sales and gave Merck a large recurring cash base from oncology use across multiple cancers.

• $25.0B Keytruda revenue in 2023
• 41.6% of Merck's $60.1B total revenue
• PD-1 immuno-oncology platform
• Single-product revenue scale above $20B

High-margin patent-protected medicines

Merck's patent-protected medicine value proposition shows up in the gap between total company revenue and its biggest products. After Keytruda's $25.0B, Merck still reported $35.1B from the rest of the business in 2023. That gives the company a portfolio with multiple protected revenue pools instead of one product only.

Vaccines for major infectious diseases

Merck's vaccine value proposition is built on multivalent coverage. Gardasil 9 covers 9 HPV types and is indicated for females and males ages 9 through 45 years in the United States. Vaxneuvance is a 15-valent pneumococcal conjugate vaccine. M-M-R II covers 3 diseases, ProQuad covers 4 diseases, and RotaTeq is a 5-valent rotavirus vaccine.

• Gardasil 9: 9 HPV types
• Gardasil 9: ages 9 to 45
• Vaxneuvance: 15 serotypes
• M-M-R II: 3 diseases
• ProQuad: 4 diseases
• RotaTeq: 5 rotavirus types
• Gardasil 9 revenue in 2023: $8.9B

Animal health products and services

Merck Animal Health generated $5.6B in 2023, equal to 9.3% of Merck's $60.1B revenue. The segment spans 5 major end markets: cattle, swine, poultry, companion animals, and equine. That mix gives Merck revenue from recurring animal care needs rather than only from human prescription cycles.

• $5.6B Merck Animal Health revenue in 2023
• 9.3% of total company revenue
• 5 end markets
• 1 non-human health platform with diversified demand

Emerging cardiovascular and HIV treatments

Winrevair received FDA approval in 2024. In the STELLAR trial, the 6-minute walk distance treatment effect was 40.8 meters at 24 weeks in 323 adults. That gives Merck a new specialty franchise outside oncology and vaccines.

Merck's HIV value proposition includes 2 marketed oral products, Pifeltro and Delstrigo. Delstrigo is a 3-drug single-tablet regimen, and both products are taken 1 time daily. Lower pill burden matters because adherence is tied to treatment success.

• Winrevair FDA approval: 2024
• STELLAR trial: 323 adults
• 6-minute walk distance effect: 40.8 meters
• Endpoint timing: 24 weeks
• HIV portfolio: 2 marketed oral products
• Delstrigo: 3 drugs
• Once-daily dosing: 1 time per day

Merck & Co., Inc. - Canvas Business Model: Customer Relationships

Merck & Co., Inc. customer relationships were anchored in $64.2 billion of 2024 sales, with Keytruda at $29.5 billion and Gardasil/Gardasil 9 at $8.6 billion. Those two products alone were $38.1 billion, or 59.3% of total sales.

Physician and hospital engagement: Keytruda at $29.5 billion in 2024 meant oncology centers, hospitals, and infusion sites were the main relationship nodes. The 3-week and 6-week dosing cadence keeps the customer relationship repeated instead of one-time.

• Keytruda contributed 45.9% of total 2024 sales.
• Keytruda dosing used 200 mg every 3 weeks or 400 mg every 6 weeks.
• Combined with Gardasil/Gardasil 9, these two products accounted for 59.3% of total sales.

Payer and government negotiations: Merck & Co., Inc. had $64.2 billion of 2024 sales, so reimbursement terms and government pricing decisions affected very large dollar amounts. Keytruda and Gardasil/Gardasil 9 together were $38.1 billion, which made payer access a core relationship issue.

• Keytruda represented 45.9% of 2024 sales.
• Gardasil/Gardasil 9 represented 13.4% of 2024 sales.
• The combined share was 59.3%.

Public-sector vaccine procurement: Gardasil/Gardasil 9 generated $8.6 billion in 2024 sales. The product is 9-valent, with a 2-dose schedule for ages 9-14 and a 3-dose schedule for ages 15-45.

• $8.6 billion of sales came from Gardasil/Gardasil 9 in 2024.
• The vaccine covers 9 HPV types.
• The age bands were 9-14 and 15-45.

Long-term patient access programs: Merck & Co., Inc. reported $17.9 billion of R&D spending in 2024. That level of investment supports future labels, longer treatment lifecycles, and more patient touchpoints through dosing intervals of 6 weeks and 2-dose or 3-dose vaccine schedules.

• R&D spending was $17.9 billion in 2024.
• Keytruda dosing included 6-week intervals.
• Gardasil 9 used 2-dose and 3-dose schedules.

Animal health customer support: Bravecto's protection interval of 12 weeks creates recurring contact with veterinarians and pet owners. That 12-week cycle turns customer support into a repeat-service relationship instead of a single purchase event.

• Bravecto protection lasted 12 weeks.
• 12 weeks equals 4 quarterly follow-up points per year.

Merck & Co., Inc. - Canvas Business Model: Channels

Merck & Co., Inc. built its channel model on $64.2 billion in 2024 net sales, approximately 73,000 employees worldwide, and sales in more than 140 countries.

• $64.2 billion 2024 net sales
• Approximately 73,000 employees worldwide
• More than 140 countries
• 3 large U.S. wholesalers in the prescription market

Global pharmaceutical sales force uses local field teams to reach hospitals, physician groups, and payer decision makers. At a business scale of $64.2 billion, direct selling matters because access delays can move large amounts of revenue across quarters.

Hospitals and specialty pharmacies are the right channel for products that need prior authorization, infusion-site administration, cold-chain handling, or patient onboarding. This channel usually carries more administrative steps than retail pharmacy, so speed of approval and refill persistence matter as much as order volume.

Public health and tender channels become more important when the buyer is a government, ministry, or national program instead of an individual prescriber. Merck's reach across more than 140 countries makes tender pricing, supply reliability, and regulatory compliance central to channel performance.

Wholesale and distributor networks are the main physical bridge between manufacturer and pharmacy in the U.S. prescription market. The concentration around 3 large national wholesalers means Merck depends on a small number of counterparties for inventory flow and accounts receivable discipline.

MSD international commercial network gives Merck local execution outside the U.S. across more than 140 countries. That network matters because pricing, reimbursement, tax, and tender rules change country by country, so one global product portfolio still needs local channel control.

Merck & Co., Inc. - Canvas Business Model: Customer Segments

Merck & Co., Inc. reported $64.2 billion in 2024 revenue. The late-2025 customer base centers on 5 groups: oncology, cardiovascular and specialty care, vaccines, governments and public health systems, and Animal Health.

Oncology patients and providers

Keytruda generated $29.5 billion in 2024, so oncology is the largest and most valuable customer segment for Merck & Co., Inc. The buyer is usually a hospital, oncology clinic, or physician group, while the end user is a cancer patient. The scale of this segment makes reimbursement, guideline placement, and specialist prescribing central to revenue stability.

Cardiovascular and specialty care patients

This segment is narrower than oncology because it is concentrated in adults and specialist prescribers. The main late-2025 anchor is a 2024 launch in pulmonary arterial hypertension, which keeps demand tied to specialty centers rather than mass-market prescribing. That makes the segment smaller in patient count but important in showing Merck & Co., Inc. is adding adult specialty therapy alongside oncology.

Adult and pediatric vaccine recipients

Vaccine demand comes from multiple age bands. Gardasil 9 covers ages 9 through 45, Capvaxive covers adults 18 years and older, and M-M-R II and Varivax reach patients starting at 12 months. Merck & Co., Inc. recorded $8.6 billion in Gardasil franchise sales in 2024, so this segment is both broad and financially material.

• 9 through 45: adolescent and adult HPV vaccination demand
• 18 years and older: adult pneumococcal vaccination demand
• 12 months and older: pediatric measles, mumps, rubella, and varicella demand

Governments and public health systems

Public buyers matter because vaccines move through annual and multi-year procurement programs, not only through individual retail sales. The relevant numeric gates are 12 months, 9 years, and 18 years and older, which align with school entry, adolescent catch-up, and adult protection schedules. This segment is important because large public orders can shift volume quickly across a full country or region.

Livestock and companion animal owners

Merck & Co., Inc. reported $6.1 billion of Animal Health sales in 2024, split across 2 end markets: livestock and companion animals. That split matters because livestock demand is driven by herd economics and biosecurity, while companion-animal demand is driven by pet ownership, preventive care, and repeat purchases through veterinarians and distributors.

• 2 end markets: livestock and companion animals
• $6.1 billion: 2024 Animal Health sales
• Veterinarians as the main prescribing and dispensing channel

Merck & Co., Inc. - Canvas Business Model: Cost Structure

Merck & Co., Inc. reported $64.2 billion of revenue in 2024, with $17.9 billion in research and development and $9.7 billion in SG&A; R&D was 27.9% of revenue and SG&A was 15.1%.

Research and development expense

Merck's $17.9 billion R&D bill in 2024 is the main fixed cost tied to pipeline growth. At 27.9% of revenue, it is the single biggest operating cost bucket in the canvas model and it is the line most exposed to trial starts, new programs, and licensing activity.

Clinical trial and regulatory costs

Clinical trial, submission, and regulatory work sit inside the $17.9 billion R&D figure. Merck did not publish a separate dollar line for these costs, so the relevant number for this bucket is the full R&D spend.

• $17.9 billion covers trial design, patient enrollment, site payments, data work, and filing activity.
• $10.8 billion of Prometheus acquired IPR&D in 2023 shows how development spending can jump from one transaction.
• $1.3 billion for EyeBio in 2024 shows the same pattern at a smaller scale.

Manufacturing and supply chain costs

Manufacturing, packaging, quality control, freight, and royalty-linked production costs are embedded in cost of sales. Using $64.2 billion of revenue, every 1% move in sales-level cost structure equals about $642 million.

SG&A and commercial spending

Merck reported $9.7 billion of SG&A in 2024, equal to 15.1% of revenue. This bucket covers the sales force, marketing, medical affairs, corporate functions, and other commercial overhead.

• $9.7 billion in SG&A was $8.2 billion lower than R&D.
• $9.7 billion was about 54.2% of the $17.9 billion R&D line.

Acquisition and integration charges

Merck recorded a $10.8 billion acquired in-process research and development charge for Prometheus Biosciences in 2023.

Merck also paid $1.3 billion upfront for EyeBio in 2024.

These amounts can move reported R&D by billions in a single period and are a major part of the cost structure when Merck pursues external pipeline expansion.

Merck & Co., Inc. - Canvas Business Model: Revenue Streams

$64.2B total sales in 2024, with $62.5B product sales, $29.5B Keytruda sales, $8.6B Gardasil/Gardasil 9 sales, $6.1B Animal Health sales, and $1.7B alliance and license revenue.

Prescription pharmaceutical sales: $62.5B in 2024 product sales.

• $29.5B Keytruda
• $8.6B Gardasil/Gardasil 9

Keytruda and oncology revenue: $29.5B in 2024, equal to 46.0% of total sales.

Vaccine sales: $8.6B from Gardasil/Gardasil 9 in 2024, equal to 13.4% of total sales.

Animal health sales: $6.1B in 2024, equal to 9.5% of total sales.

Licensing and milestone-related income: $1.7B of alliance and license revenue in 2024, equal to 2.6% of total sales.