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In 2025, Merck & Co. reported R&D expenditures of about ** billion U.S. dollars. American pharmaceutical company Merck & Co. increased its research and development (R&D) expenses significantly during the pandemic years 2020-2022 to approximately **** billion U.S. dollars. However, 2023 saw a massive increase up to **** billion dollars, mostly due to higher charges for business development transactions and increased development spending, particularly in the therapeutic areas of oncology, cardiovascular, infectious diseases, and vaccines. 

Finding a cure for rising research costs

To increase the quality of its innovation, Merck & Co. has entered into arrangements with other companies, and lower payments made to its collaborative partners were one reason for the reduction in R&D costs in 2018. But in the course of the following two years, R&D spending became again increasingly important and reached a record high of **** billion dollars in 2023. In 2025, Merck & Co. had approximately 75,000 employees worldwide, with around one-fifth employed in research activities.

How much does the pharma industry spend on research?

Merck & Co. is a member of the trade group PhRMA (Pharmaceutical Research and Manufacturers of America). Members of the group spent a collective ** billion U.S. dollars on R&D in 2023, with expenditure within the United States accounting for a share of around ** percent. The pharmaceutical industry is one of the biggest investors in R&D: PhRMA members spent over ** percent of their consolidated worldwide revenues on R&D in 2023.