Revenue during the quarter went down marginally by 0.98 percent to $10,115 million from $10,215 million in the previous year period. Gross margin for the quarter expanded 475 basis points over the previous year period to 67.06 percent. Total expenses were 78.20 percent of quarterly revenues, down from 83.16 percent for the same period last year. This has led to an improvement of 496 basis points in operating margin to 21.80 percent.

Operating income for the quarter was $2,205 million, compared with $1,720 million in the previous year period.

"The performance of Merck's broad and balanced portfolio allows us to remain committed to biomedical innovation that saves and improves lives and delivers long-term value to shareholders," said Kenneth C. Frazier, chairman and chief executive officer, Merck. "The momentum behind our pipeline and key product launches, including the continued growth and expansion of KEYTRUDA into new indications and markets around the world, further reinforces our company's strategic direction."

For fiscal year 2017, Merck & Co., Inc. forecasts revenue to be in the range of $38,600 million to $40,100 million. It forecasts adjusted revenue to be in the range of $38,600 million to $40,100 million. It expects diluted earnings per share to be in the range of $2.47 to $2.62. It expects diluted earnings per share to be in the range of $3.72 to $3.87 on adjusted basis for the same period.