Business Units or Product Lines

Merck & Co., Inc. operates through two primary segments: Pharmaceutical, including human health pharmaceutical products, and Animal Health, encompassing health products for a variety of animals. Key product lines include oncology, vaccines, hospital acute care, immunology, neuroscience, virology, diabetes, and cardiovascular care.

Business Models for Each Product Line

Merck's revenue is primarily generated through the sale of pharmaceutical products, which involves significant investment in R&D to bring new treatments to market. The Animal Health segment generates revenue from vaccines and pharmaceutical products for companion animals. Major expenses include research and development, manufacturing, distribution, and marketing costs.

Future Opportunities for Growth

Merck is focusing on expanding its oncology portfolio, particularly with its keytruda treatment, and advancing its pipeline to include innovative therapies in areas like infectious diseases and cardio-metabolic health. Geographical expansion, especially in emerging markets, offers additional growth potential.

Potential Major Risks

Merck faces significant risks including regulatory hurdles, patent expirations that could lead to increased generic competition, and market dynamics impacting drug pricing. Dependency on key drugs like Keytruda for substantial revenues also poses a risk if demand changes or adverse reactions occur.