MRK · 10-Q · 2026Q2 · Full report

Research and Development Expense

Merck & Co., Inc. · 2026-08-07 · Importance 58 · Surprise 42 · Matches filing data

R&D expense increased in 2026 because of higher clinical development spending, unfavorable foreign exchange, and $14.7 billion of Terns and Cidara acquisition charges across the first six months. Merck’s direct Merck Research Laboratories costs were $2.8 billion in the second quarter and $5.3 billion in the first six months of 2026, including $200 million and $400 million of benefits from the Blackstone funding agreement. Other R&D-related costs were $7.0 billion in the second quarter of 2026 versus $1.2 billion in the second quarter of 2025, and $17.0 billion in the first six months versus $2.3 billion. Blackstone funding reduced R&D expense by $200 million in the second quarter and $400 million year to date.

Key facts

• Research and development expenses increased to $9,741 million in Q2 2026 and $22,333 million in the first six months of 2026, compared with $4,048 million and $7,669 million in Q2 and YTD 2025, primarily due to higher charges for business development activity. source
• Merck recorded a charge of $5.7 billion to Research and development expenses in the second quarter and first six months of 2026 related to the Terns acquisition, or $2.31 per share. source
• Merck recorded a charge of $9.0 billion to Research and development expenses in the first six months of 2026 related to the Cidara acquisition (which primarily represented acquired IPR&D with no alternative future use). source

Impact estimates