What drove MRK's consistent EPS growth from Q1 to Q4 2024?

Merck KGaA's consistent EPS growth from Q1 to Q4 2024 can be attributed to several key factors: 1. **Revenue Growth in Key Segments**: Merck KGaA's revenue growth, particularly in the Human Health segment, was driven by strong sales in Oncology and Animal Health. For instance, the sales of KEYTRUDA, a cancer treatment, increased by 21% to $7.4 billion. Similarly, VAXNEUVANCE sales grew by 13% to $239 million. These growths, especially in high-margin products like KEYTRUDA, significantly boosted the company's profitability. 2. **Gross Margin Improvement**: The company's gross margin improved by 3.5 percentage points to 80.5%. This improvement reflects enhanced operational efficiency and a more favorable product mix, which directly contributes to higher EPS. 3. **Cost Management**: Merck KGaA managed its operating expenses effectively, including significant investments in growth initiatives while maintaining financial discipline. For example, the company incurred acquisition-related charges of $2.2 billion, which are essential for long-term growth but can impact short-term profitability. By managing these costs, the company ensured that its EPS growth was not overshadowed by increased expenses. 4. **Strategic Acquisitions and Licensing**: The company's strategic moves, such as the global license agreement for LM-299, a novel investigational PD-1/VEGF bispecific antibody, indicate a forward-looking growth strategy. These agreements can provide a boost to future EPS growth as they offer new revenue streams and expand the company's pipeline. In summary, Merck KGaA's consistent EPS growth from Q1 to Q4 2024 is a result of robust revenue growth in key segments, improved gross margins, effective cost management, and strategic investments in growth opportunities.