Merck & Co. - revenues by region 2019-2023

In 2023, approximately 47 percent of Merck & Co.’s total revenue was generated from the company’s domestic market in the United States. Sales revenue in the Asia Pacific region, when including China and Japan, stood at 13.2 billion U.S. dollars.

Emerging markets: the risks and rewards

Merck’s business operations in China have grown in recent years, and the company is starting to reap the rewards. However, investment in emerging markets can come with an element of risk due to the financial instability of domestic economies: companies may face barriers in the form of trade restrictions or pricing controls, for example. A failure to operate in these markets could negatively impact the future of the business, but there are no guarantees that efforts to expand will succeed.

Why are drug patents important?

The cancer-fighting drug Keytruda was Merck’s top-selling product in 2023, generating sales revenue of approximately 25 billion U.S. dollars. Around 60 percent of the Keytruda sales were in the United States, where the product has key patent protection until 2028. Patents can cover the marketing of a product, but also its pharmaceutical formulations and the processes involved in its manufacture. The expiration of a patent normally results in significant competition from generic versions, which can quickly impact the revenues of a product.