Merck & Co., Inc. (MRK): history, ownership, mission, how it works & makes money (2024)

A Brief History of Merck & Co., Inc. (MRK)

Merck & Co., Inc., known as Merck Sharp & Dohme (MSD) outside of the United States and Canada, is a global pharmaceutical company that has significantly influenced the medical and pharmaceutical industries. The company's roots can be traced back to the 17th century in Germany, but it evolved into its current form in the United States in the late 19th century.

Merck was originally founded in 1668 in Darmstadt, Germany, by Friedrich Jacob Merck. The company started as a small apothecary shop. In 1891, George Merck, a descendant of Friedrich Jacob Merck, expanded the business to the United States, opening Merck & Co. in New York City.

• 1899: Merck publishes the first edition of the Merck Manual, a comprehensive medical reference book for doctors and healthcare professionals.
• 1917: During World War I, Merck & Co. was confiscated by the U.S. government and operated as an independent American company.
• 1942: Merck was involved in the large-scale production of penicillin, which played a crucial role in treating infections during World War II.

• 1953: Merck merged with Sharp & Dohme, Inc., creating one of the largest pharmaceutical companies in the world.
• 1985: The company launches Mectizan, a drug used to treat river blindness, and donates it to affected populations in developing countries.
• 1996: Merck is a key player in the development of the HPV vaccine, Gardasil, which helps prevent cervical cancer.

• 2009: Merck acquires Schering-Plough, significantly expanding its product portfolio and research capabilities.
• 2014: Merck launches Keytruda (pembrolizumab), an immunotherapy drug that has been revolutionary in treating various forms of cancer.
• 2020: Amid the COVID-19 pandemic, Merck collaborates with other pharmaceutical companies and research institutions to develop vaccines and treatments.

Throughout its history, Merck & Co., Inc. has been a significant player in the pharmaceutical industry, known for its groundbreaking research, innovative products, and a strong commitment to public health.

Who Owns Merck & Co., Inc. (MRK)

Merck & Co., Inc. (MRK) is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol MRK. As a publicly traded company, ownership of Merck is distributed among a diverse group of shareholders. These shareholders can be categorized into several key groups:

• Institutional Investors: A significant portion of Merck's shares is owned by institutional investors. These include mutual funds, pension funds, hedge funds, and other large financial organizations. Some of the notable institutional investors in Merck & Co., Inc. include Vanguard Group, BlackRock, and State Street Corporation.
• Individual Investors: Apart from institutional investors, individual investors also hold shares in Merck. These individual shareholders can range from private investors to high-net-worth individuals who purchase shares through brokerage accounts.
• Company Insiders: Company insiders, including executives and board members, also own shares in Merck. Insider ownership reflects the personal investments of the company's leadership in its success, aligning their interests with those of the shareholders.

Ownership of Merck & Co., Inc. can also be assessed by examining its largest shareholders. For example:

• Vanguard Group: One of the largest asset management companies globally, Vanguard Group holds a significant number of Merck shares, exerting considerable influence over the company's governance and strategy.
• BlackRock: Another major player in asset management, BlackRock, is also a substantial shareholder in Merck, contributing to its strategic direction through its investments.
• Capital Research and Management Company: This investment management firm is another key shareholder, with substantial stakes in the company.

Overall, the ownership of Merck & Co., Inc. is characterized by a mix of institutional investors, individual shareholders, and company insiders. This diversified ownership structure helps ensure a balanced approach to corporate governance and strategic decision-making.

Merck & Co., Inc. (MRK) Mission Statement

At Merck & Co., Inc., also known as MSD outside the United States and Canada, the mission is inspired by the core values and beliefs that drive the company. Merck's mission statement is to:

• Save and improve lives by discovering, developing, and delivering innovative health solutions.
• Operate with the highest standards of ethics and integrity in all aspects of the business.
• Advance scientific and medical knowledge to benefit society and enhance healthcare outcomes globally.
• Prioritize the needs of patients and customers in the development and delivery of products and services.
• Foster a culture of inclusion and diversity to drive creativity and innovation within the company.
• Be a responsible corporate citizen through environmental stewardship, economic development, and support of communities where they operate.

Merck's commitment to its mission reflects its dedication to making a significant impact on public health and being a trusted partner in global healthcare.

How Merck & Co., Inc. (MRK) Works

Merck & Co., Inc. (MRK) is a global healthcare company that operates in the pharmaceutical industry. The company is engaged in the discovery, development, manufacturing, and marketing of a wide range of healthcare solutions. Merck's operations are structured around several key functions:

Merck places a strong emphasis on its Research and Development (R&D) efforts. The company's R&D division is responsible for identifying and developing new drugs and therapies. This includes:

• Conducting clinical trials to test the safety and efficacy of new drugs.
• Collaborating with academic institutions, research organizations, and other pharmaceutical companies.
• Investing heavily in biotechnological advancements and personalized medicine.

Merck's manufacturing and supply chain operations ensure that drugs and vaccines are produced efficiently and distributed globally. This involves:

• Operating state-of-the-art manufacturing facilities that comply with Good Manufacturing Practices (GMP).
• Managing a complex supply chain to distribute products to hospitals, pharmacies, and healthcare providers.
• Ensuring quality control and regulatory compliance at all stages of production.

Merck's commercial operations focus on bringing its products to market and maximizing their reach. This includes:

• Developing marketing strategies and campaigns to promote new and existing products.
• Engaging with healthcare professionals and institutions to educate them about new treatments and medical solutions.
• Utilizing a global sales force to reach diverse markets around the world.

Merck is committed to corporate social responsibility and sustainability. The company invests in initiatives that promote public health and address global challenges. This includes:

• Partnering with non-profit organizations to improve healthcare access in underserved communities.
• Implementing environmentally sustainable practices in its operations.
• Investing in educational programs and community development projects.

Merck's financial performance is driven by its diverse portfolio of products and strategic investments. Key aspects include:

• Generating revenue through the sales of prescription drugs, vaccines, and animal health products.
• Reinvesting profits into R&D to fuel future growth and innovation.
• Managing financial risks and opportunities to maintain long-term profitability.

How Merck & Co., Inc. (MRK) Makes Money

Merck & Co., Inc. (MRK) is one of the leading global healthcare companies, primarily generating revenue through the development, manufacturing, and distribution of pharmaceutical products. Below are the key ways in which Merck & Co., Inc. makes money:

• Prescription Medicines: The largest portion of Merck's revenue comes from its wide range of prescription medications. These include treatments for various therapeutic areas such as oncology, cardiovascular, diabetes, infectious diseases, and vaccines.
• Oncology Products: Merck's oncology segment, especially Keytruda (an immunotherapy for cancer), represents a significant revenue driver. Keytruda has been approved for various cancer types and continues to gain additional indications.
• Vaccines: Merck produces several well-known vaccines, including Gardasil (for HPV) and other vaccines for diseases like hepatitis and rotavirus. These vaccines contribute substantially to the company's revenue.
• Animal Health: Merck's Animal Health division develops and markets pharmaceuticals and vaccines for livestock, companion animals, and aquaculture. Products under this segment address a broad range of conditions affecting animals.
• Collaborations and Partnerships: Merck often engages in collaborations and partnerships with other pharmaceutical companies, academic institutions, and research organizations. These partnerships can include co-development and co-commercialization agreements, which bring in additional sources of revenue.
• Research and Development (R&D) Investments: Merck heavily invests in R&D to innovate and bring new drugs and treatments to market. Successful R&D efforts can lead to new, high-revenue-generating products.
• Licensing Revenues: Merck also licenses out some of its technologies and intellectual property to other companies, resulting in royalty payments and licensing fees.
• Geographic Diversification: Merck generates revenue globally, with significant sales in the United States, Europe, and emerging markets. This geographic diversification helps the company mitigate risks associated with market-specific challenges.

These key areas collectively contribute to the robust financial performance of Merck & Co., Inc., making it one of the most prominent players in the pharmaceutical industry.