Merck & Co - expenditure on research and development 2006-2022

American pharmaceutical company Merck & Co. increased its research and development (R&D) expenses significantly during the pandemic years 2020-2022 to approximately 13.5 billion U.S. dollars.

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 was 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 13.5 billion dollars in 2022. In 2022, Merck & Co. had approximately 69,000 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 102 billion U.S. dollars on R&D in 2021, with expenditure within the United States accounting for a share of nearly 80 percent . The pharmaceutical industry is one of the biggest investors in R&D: PhRMA members spent over 21 percent of their consolidated worldwide revenues on R&D in 2021.