Revenue during the quarter went up marginally by 1.31 percent to $9,434 million from $9,312 million in the previous year period. Gross margin for the quarter expanded 640 basis points over the previous year period to 68.04 percent. Total expenses were 78.15 percent of quarterly revenues, down from 82.04 percent for the same period last year. This has led to an improvement of 389 basis points in operating margin to 21.85 percent.

Operating income for the quarter was $2,061 million, compared with $1,672 million in the previous year period.

"Merck delivered solid performance across our broad range of products that address major disease categories and the needs of global health," said Kenneth C. Frazier, chairman and chief executive officer, Merck. "The continued momentum of KEYTRUDA in oncology, along with the strength of the vaccine and other franchises and animal health, helped to drive revenue growth in the quarter."

For fiscal year 2017, Merck & Co forecasts revenue to be in the range of $39,100 million to $40,300 million and adjusted revenue to be in the range of $39,100 million to $40,300 million. The company expects diluted earnings per share to be in the range of $2.51 to $2.63. It company expects diluted earnings per share to be in the range of $3.76 to $3.88 on adjusted basis.