Merck & Co. (MRK) 27 Oct 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Good morning. My name is Leo West and I will be your conference moderator today. At this time, I would like to welcome everyone to the Merck & Co. Q3 Sales and Earnings Conference Call. reminder, is a recorded. As Instructions] this being conference [Operator conference to Peter Relations. I like the over Investor would now of turn to President Dannenbaum, Vice go Please ahead.

you third to Thank morning. conference XXXX call. Merck’s good and quarter Welcome

today’s Officer; Litchfield, Li, Executive President on and Dr. Research Merck Officer; Caroline call Davis, Chief Rob Speaking President be Labs. Chief of and Financial Dean will

Before a few we items. get started, I’d like to point out

we such and that see have items. as certain charges, will our results, items You GAAP costs acquisition-related restructuring other in

have Reform these underlying of based like make press of from results materialize, provision we inaccurate you results and the that within are provide a actual statements are our that Litigation non-GAAP today some set forth note current in and forward-looking of Harbor and Securities forward-looking risks statements assumptions materially of may release. our significant the should in statements. differ You Such the Act we excluded uncertainties. Merck’s made beliefs considered XXXX. If the prove subject management statements that to meaning from U.S. our maybe the Safe those reconciliation of on uncertainties would I Private remind or the to

obligation XXXX filings, forward-looking statements company’s that made this XX-K, Our in publicly in Merck cautionary our any of to differ no projected update any results certain XA including materially and SEC to could risk factors Item actual forward-looking identify the the statements cause from statements. undertakes those morning.

I’d Relations over posted to accompany as Investor call section to SEC presentation, earnings well today’s presentation the today’s our With Merck’s the Rob. During website. turn The call, all are release slide our that, of speakers’ remarks. will like prepared a filings as to

and thank call. for Thanks Peter. today’s Good joining morning you

and strong progress our this in steady drivers our sustained growth reflects across Our pipeline. momentum key performance quarter

well we in momentum forward to beyond. building XXXX and close and out year look are the on We successfully positioned to this

operationally our and well across priorities commercially. and strategic scientifically, executing are We delivering

a our is advancing, intact, our business growth by on As healthy, turn financial With is performance We continued result, and our strong. keenly success is long-term patients are focused pillars results. to driving let’s our first that, delivering the and growth remain pipeline value to our shareholders. and sustaining

to and underlying earnings pleased exceptional this report are quarter. We again revenue growth

continue and for our human BRAVECTO. robust see We to GARDASIL, innovative KEYTRUDA, animal demand BRIDION and portfolios, such for health as products including

Our reflects growth. full updated expectation of truly our guidance standout year

multiple Acceleron suffering development. pulmonary sotatercept the results across of STELLAR I to top almost way Moving research made our arterial therapeutic with advance organization, and primary the the our considerable across in achieved In acquisition transform patients of this swiftly successful treatment am hypertension every following we evaluating research endpoint, trial moved disease. X last line secondary cardiovascular, the have outcomes progress areas. of Phase the year’s proud patients of from to has suggesting the potential organization sotatercept’s devastating to both

to for Fast our XI programs end-stage recently renal patients continue Factor cardiovascular our disease. FDA with including pipeline, We an received other which broad Track advance inhibitor, designation across

provide and agents. stages We broader our with in both efforts remain as for important across broad in VXXX enthusiastic we needs part to and helping forward combination benefits survival and potential of prevention. treatment our earlier reinforces the the KEYTRUDA durable In setting. certain we in progressing is in X in of are oncology, there that pediatric of setting in to of the strong disease data portfolio islatravir as VAXNEUVANCE about population-specific for cancer the our both encouraging to of other trial in launched adults, well treatment and component infants remain address vaccines, and pleased Phase HIV, trials ESMO KEYTRUDA are We to path committed pipeline. we a clinical at unmet our And Lynparza to presented protection patients. pneumococcal promising Turning results invasive adults. Long-term approach finally, of and an

access, our Moving to commitment we review value shareholders. inventions employees underway to our we mission, as always our we in delivering health, that possible. creates To to our talented our provides through society strong strategy, our ensuring access the to and as published a to empowerment sustainability our report, efforts ideas to our around against our on which discovering for turn to sustainability, vaccines, ESG patients and demonstrating medicines values. with priorities, responsibly to and ethics value execute progress diverse we with our longstanding Consistent and which progress and In reach and forward manufacturing continue of on are August, of our annual comprehensive are further initiatives focused committed bringing best many enable goals. operating

and the initiatives through of doses advancing and XX.X countries, an partnerships inaugural neutrality priority our in Gavi-supported to Some $X bond. our carbon our HPV include vaccines to projects issuance commitment billion by XXXX providing areas a in million of achieve sustainability of supporting goal

of Ken, employees end in November. patients Board the equity our and speak on be with and that everywhere, sustainability Board also the creating Chairman leadership, company This Our to of engaging helps that in deepest society and our for around evening, health value our global from principal business enable as with I shareholders. our science, citizen, behalf his approach contributions for I role expressing to to announced makes a Yesterday respect propel and entire Merck’s communities and us for priorities. align operating Fraser strategy appreciation passion of the for commitment Directors retired we and Ken ways better his of know at for will company world.

support for to am I personally, provided inspiration, deeply Ken mentorship has Speaking me. the and grateful

have our forward to Ken’s medicines creation. as the legacy am growth life-changing into call move leading-edge we that with exemplified and to to lives we developing working science of continuing Board fundamental all I forward This am dedicated around short improve and save in look to confident to With Moving by the and of we on place ahead, look to achieve I value talented building using the in who continue scientists role drive is to new are our outlook long-term our progress purpose blocks I that, as will my as and future. in sustainable share to of to the the vaccines. core our team globally. delivering and confident and I and colleagues build the world and over company discovering, very turn I Caroline. Chairman

continues our Rob. XXXX you, for to Thank be Good year business. excellent performance morning. of a

for and strategy, our growth reinforce our enabled achieved our commitment across These science-led we again earnings revenue portfolio. underlying the to flawless colleagues dedicated This results execution quarter, exceptional by our innovative by globe. driven demand the of

to $XX the increase deliver XX%. to short-term, confident in while billion, revenues maximize disciplined value of patients for company investments are to make our we an We Total continue were and long-term in ability shareholders.

delivered revenue foreign business higher on Underlying exchange. Excluding growth of will comments an of The percentage X remainder LAGEVRIO, the ex-exchange growth points growing headwind my was basis. strong XX%. be from given the

Our pillars. Human across of Health our growth LAGEVRIO, business by continued excluding its momentum key driven XX% XX%, with strength or

sales companion a animal Our business our increased quarter livestock both in as products. and solid Animal delivered X% Health

aggressive all indications. to billion grew stage to from which having cell cancer. and performance quarter cancer effect why to high-risk, cancer with breast adjuvant, cancer better renal position disease. patients carcinoma. XX% in demand as the including the demand impact in indications, of for cancer with key the having certain we Lynparza for year. PARP types In Now, markets of breast maintained melanoma. the European is in this off well head KEYTRUDA renal across potential leadership Outside lung to certain Notably, strong Recently strong be is in tumor cancer on is its testament setting, global its metastatic as early-stage neck profound benefit grew earlier triple-negative continued by and provides is of Intervening in by breast outcomes, KEYTRUDA a launches growth to are a patient non-small into In driven oncology, cell third cancer, continues approved well triple-negative our driven neoadjuvant, as this of excited U.S., uptake carcinoma earlier cancers, continued as the remain to patients in cancers. brands. U.S., of $X.X be by in uptake leadership the key KEYTRUDA the there start turning to early-stage non-small maintaining these types renal carcinoma, the new and KEYTRUDA In form cell types and key triple-negative expansion very continues earlier progression and strong earlier lung including high-risk, following KEYTRUDA early-stage inhibitor cell stage cell class. KEYTRUDA

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performing option certain with consistent tumors. with is significant VHL-associated to unmet expectations, providing treatment a our patients need Lastly, of WELIREG the

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key Excluding compared payments, by operating to lower our pipeline. approximately expenses was these pension investments expense driven grew growth Other and drivers $XXX increased expense million, XX%, year. which reflects last to support

rate tax was Our XX.X%.

charges earned of licensing collaboration Taken $X.XX share, per related includes $X.XX to together, significant we which and agreement.

charges, growth. we these underlying had Excluding exceptional

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in XX% projected resulting nearly a foreign an impact growth incremental Our of represents year from of X%. exchange to negative guidance X% range headwind of impact revenue full XX%. mid-October using The includes rates, approximately increased

and growth of Excluding LAGEVRIO, expect foreign XX%. approximately exchange we

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recent We our $XXX principally Moderna. collaboration vaccine option a personalized to by develop of payment part to a expense exercise cancer ongoing billion, operating jointly related million with and projection our $XX.X billion $XX.X our are narrowing the of driven increasing to as to

transactions. does assume potential reminder, development a significant As our additional not business guidance

$XXX We approximately million. continue to assume other expense of

We full X.XX approximately to year XX%. tax We expect be billion rate shares outstanding. assume our

in EPS in midpoint. our we Taken guidance. momentum our led and our increased would increase $X.XX of approximately The the narrowed together, to business at an to $X.XX an expected range have increase have operational $X.XX to $X.XX,

partially headwind foreign of from by and payments offset X% incremental nearly it Moderna rates. an is the However, being in option using exchange mid-October

reflects guidance in underlying strength confidence the of business. Our our

demand underlying and We pillars, continue including KEYTRUDA, durable Health. GARDASIL our to expect key demonstrate strong momentum and Animal across

you mind. there few are keep As a in to your consider items model,

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includes Organon. revenue sales supply other the to addition, In

as in allocation adult in saw our remain our continues We committed the is the particularly priorities. experiencing conjugate pressure, to As newer U.S. market results, vaccines. to PNEUMOVAXXX pneumococcal towards shift you capital

to will our in pipeline and continue near portfolio. business to and We growth across long-term investments prioritize drive our

across has that pipeline We our Dean the growth. revenue drive sustainable potential speak which to significant progress made have to will

value-enhancing science invest to We promise products. are augmenting steering will in by the business these our through we which realize best pipeline of external development, the

We continue breadth full development business to consider landscape. the the of

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to It’s Caroline. the my provide pleasure update progress you, on our second Thank call. quarter an since

In pipeline of XI are business as my momentum [indiscernible] rigor cardiology, and expanding across the In of opportunity we areas, established of growing modalities, opportunities. This making vaccines. our the patients’ in suite build Orion, to portfolio across to Moderna. recently, and speed development across have we reinforces progress are programs, and arterial We well are Factor in pipeline strong therapeutic recent candidates across partnerships as several established with our vaccines, the presented development in we our lives. partnerships most pulmonary headway and spectrum in and on positively PCSKX impact approval by internal hypertension to confidence and stages moving strengthens with In pneumococcal VAXNEUVANCE a the poised and tailored me program. oncology,

month, from noted, this treatment significant make X cardiovascular hypertension. disease. As impact Earlier we we to in results evaluating top for Phase the of an Rob see STELLAR the announced arterial sotatercept opportunity trial, line pulmonary

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GARDASIL-X. Next and specifically vaccine to

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[Operator please will Leo, Session Thank you, Question-and-Answer start you Instructions] Q&A. the Dean.

with And JP our [Operator question Pleas is Chris Instructions] Schott go from first Morgan. ahead.

question my Hi, was I so capital great. much. on guess Thanks deployment.

progression consider if on the the mentioned of down BD at you’d I the pipeline, some in repo prepared think doesn’t the materialize line. remarks point based that you

the business actionability your I know I or debate deals how – Merck are obviously about you on on it’s the story. year. as gone larger type this has kind at that point of on point? guess tuck-ins So big landscape kind we evolved through thinking Acceleron a front, And of preference development of versus overall I of have this guess

kind love point kind just landscape. hear to I at of to that the makes the your just of thinking accumulating be given repo And kind getting latest So on BD we seems where maybe a to of closer sense are cash company? Thank you.

Chris. I’ll just Thanks the question, in on for to and Great, side of portfolio repurchase to look comment question. at. Yes. the the share and see are to, the ask BD continue we specifically opportunities Caroline we are of interested continuing for frankly, But a landscape,

of as That to has creation on our we urgency do what we to do. best business, not believe in play. is thing to and we Obviously, we’re to for future which in of here BD. the priority fruition value our a in development our we pipeline through continue list the invest business of do because We our potential sit is do long-term which is both the through we today, the can places internally to focus, to changed. working investing sustainability bring see So them got

committed But cash. we also do that’s see our obviously, remain to So And hold I not opportunities. priority.

So that, comment Caroline maybe specifically on let repurchase. the with I’ll share

Robert dividend we repurchases, business as need as as in we our a to business grow, shareholders the balance and seek provide So both capital unchanged. to growth, we are while expect will strategies, the through as pay return development Chris, in in well our competitive through just our to that share our priorities invest We well driving outlined. as allocation

with to not on we our desire our opportunistically BD sheet, of excess assessment at Given that where are, share will development, business on balance we the based buybacks pipeline. our create on cash focus look

you, Great. Thank Chris.

Leo. Next please, question

Next go question Graybosch from Securities. ahead. with is SVB Daina Please

compete with wonder more how talk you could that you ultimately increase to and novel if strategy, VXXX think a competitor I your VXXX vaccines little that serotype will pneumococcal in vaccine and Yes. their about bit X? continue

and This for much Dean. question. take that, very is I’ll you thank the

is top one just that is size the does emphasize always I fit and line serotype So not more better that is, our all. would view not

Our had right case, right in view view for that right and the right vaccine I the when medicine, at the the it’s or, patient practice medicine I’ve time. this the

So you to it’s for first X, but a our if when that is is in which then look And in XX recurrent years where valent, first the serotype life, you and asset also look look at especially have disease, you is at adult epidemiology pneumococcal that [indiscernible], the curve section, X at the has the at really in VAXNEUVANCE, XX you really which responses there of bimodal increasing year important. XX, realize XX. of life, XX, of

curve. bimodal is a there So

If between you serotypes different down also lay the the serotypes, are quite different the two.

vaccine for at patient time. the So that’s the the why we right right right it’s believe

an first and vaccine. of laid relationship of that’s ACIP VXXX, In coverage the of view really for great XX-valent our is clear on other might differentiation differentiation, very questions us detailed suggest important X of a in to enthusiasm and can’t in we insight been to pediatric serotypes has some give year. that, There we that we that but gone VXXX through. study. pediatric to terms have date ability a are differentiation is And pediatrics, relationship have data we don’t the And that’s confident serotypes in Now gives know adult in vaccines, some comment what out. to to great this has our There top substantial discussion sort relationship real serotype exactly what that the which market, and line until been X we data. in

that important targeted the specifically for the one serotypes adult. are for that Now is

look And of vaccines residual targeting the XX has invasive anyone would residual if the emphasize adult XX also and reason in vaccine serotypes at don’t disease, So data, it’s know disease. shared recent that targeting PCVXX. that not are that the invasive Phase X, that disease. And pneumococcal or is I we a the would but XX-valent, – but on X focused the else in of I pneumococcal I we’re Phase just XX% I that’s for valent X XX% with Phase are VXXX is by

the one the So right patient more does all is not better, at size not time. the right fit right vaccine,

Thank you, Daina.

Leo. please, question Next

Next ahead. UBS. go Bristow with Colin Please is

on good just of had? specify is on just one-time base And then I impact Hey, on talk you supply the ‘XX. and just where the to quantify from the this great you about supply wanted for in congrats still and sort Can ‘XX coming you. the online CDC track? touch morning, Thank that ‘XX, timing. GARDASIL, you And additional Is results. the level quarter the A of impact geographically? could of coming purchase but

Caroline. shot is answering your question. a take I’ll at This

continues to to of will world’s the vaccinated. date company long eligible be our into strong very and the So still X% growth only be given population a are driver GARDASIL for future

terms buy-in quarter the $XXX of was quarter the in of buy-in the the of XXXX, S., the U. was the an $XXX by there quarter approximate timing. which third by driven million. we saw there was largely growth results, In In ‘XX, of million CDC an approximate In third CDC.

to do by come in the out growth to quarter of contributed tune the fourth of We million to approximately expect the CDC majority $XXX that year-over-year, the So plus. the buy-in during quarter. third that

including ‘XX, long the ability confident be more doubling to drive we in XXXX. that, capacity growth satisfy to were as remain into coming opportunity and of come where our protect supported GARDASIL in ‘XX. at many future, ‘XX to and very have expect the commencing the will can going forward revenue look of over and protect supply demand online as the additional the increased therefore, XXXX XXXX. And that lives our we lives, As we year we we by to in course online will supply that And we global we compared the

you, Colin. Thank Great.

Next Leo. please question

with Fernandez Seamus Please go ahead. is Guggenheim. Next

the much for Thanks so question.

ask benefit So, on I really wanted to and feedback a that did the that endpoints sotatercept was suggests perhaps most. from and worsening a surprise question thought the you coming as The are on we is actually getting clinical that early it as leaders genuine surprised upside. the

Thanks. earlier-stage where what for in studies that forward are and perhaps of some Just wondering, to you Dean, fit of you the discussion in sotatercept? clinical point looking

question. that for much very you Thank

we gave line top results. yes, So,

speed just to were myself of step to those and authorities unique mechanism We at because want we rebalance was back, every I drawn moving to action. It’s throughout. present others But it to activin sotatercept and mechanism are remind, and with to the BMP – the signaling. just least regulatory a that data

have of for and But mechanisms largely mechanism in modifying. viewed it could would the program would and would response [indiscernible] expect potentially we the disease best other the The expect medicine. sotatercept, you action you strong reprogram as cellular vasodilatory, be action a trying be to very essentially of make

results. We was statistically profound on the worsening, there you to important We are that time and they all a walk. meaningful But and clinically effect clinical know about multi-components came as significant. in six-minute emphasized, really excited are these

I STELLAR individuals results individuals reported trial ones that be hopeful that must the that access is we we that because who emphasize So, is results to XXXX the But I into see are. in the have we that PAH. sure that about a important me why were talk very continued who which reason recruited those the VICTORIA, opportunity the want VICTORIA, on we see, HYPERION, is That’s would potentially is were are that in open-label to have we STELLAR program. I And will an given sotatercept. venous of the how make trial, can the effects CADENCE. are we to treatment much meeting which get reshape the and to follow-on important where think the likely really

you, Thank Seamus.

Leo. please question Next

with ahead. Please Scala Steve Cowen. is go Next

you might more And we haven’t think expected pharma. more have have quickly? I comments done to to disappointments? greatest made is been this smallest second be so, why Do the you now especially a given time? global your you been pipeline, the months fair if accomplishments think greatest the be Merck’s quickly CEO have to during do and XX this What are took when view as changed you over, build And what is Thank in the pipeline things Rob, you you. more Thank you Chairman. you. assertion? for going since

us months the – Yes. business. very role. given of and brought team spin-off has One, months of, structures, several the successful, But the in it’s really the for think about. the has more or in one focus as a organization am Steve, was more the very I more together way I would Organon, I fast come good things. that feel most thanks question. I been Obviously, Obviously, simple say XX focus six proud what

the continued we of exceptional out would be everyone results our STELLAR business way just of I commercially, on really also to that flawlessly, execute is team feel and then I obviously, you study, has scientifically, couldn’t with the doing. progress prouder the But overall fact just very Our development, really Acceleron moved what say so operational, quickly what about. proud coming just heard are

I together about. really all proud and say We delivering am very things those have come of we I would for are

new by as having excess approvals a for of eight think the many we the making give some obviously into that and the cardiovascular lot ‘XX pipeline that And Acceleron. development, the today, fact $XX even what progress. we credit suite are a internally driving talk ago across some having be business the The developed won’t of be to year of did ‘XX mid-XXXXs timeframe, billion with could could we fact pipeline. as revenue On we like about by brought I actually assets, us itself, a whole in that

are I in very we are So, The seeing. good feel that. progress vaccines, we about what making

selectively be of then cover think notion is a in whether cause a real game more differently, out we is We infants, to really serotypes were those that There I of where changer. bespoke disease, VAXNEUVANCE that’s and able a underappreciated. it Dean think having in that approach laid the and adults.

strength I adding we immunology, and to pipeline. oncology could and and neuroscience go our in on, the in have are pipeline that growing to on Our continuing

we circular think no. are agents I promise think development and drive we future business made actually personalized alone, this think do continue have the more traditional then a cancer have to I important to need, vaccines confidence have progress I deals adding this do we all oncology mechanism, quarter those we technologies, technologies, going RNA me The three spanning that into did progress. year, mRNA company. are and So, we with in in a we to But fact gives great novel everything we that it have, really

good to far. confidence but do, have done More So, that. very so feel I about in what actually we

Thanks Steve.

Next question please Leo.

Please go ahead. Next is Mara Mizuho. Goldstein with

launch Great. question. right-sized or feel actually to pending applications wanted for the where in to maximize the the Thanks go, perspective since given needs that commercial to business cardiovascular Excuse be it I from you able that, so are was me. sotatercept organization a much you ask near-term? for about just And and to the sotatercept, mentioned.

Yes. Dean Maybe I can add or start that on. and Caroline can

look in you of if in history, memory organization. And and cardiovascular. if a – – has If still a in had lot you muscle actually exists will, the you history our back legacy Merck go strong the

confident very have what already we more am now But I importantly, So, in it PAH. takes. that right are out we there

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Verquvo. have We

drove we in So, people what have on what our also Recall commercially calling saw we doctors. to was these think what saw experience. about that but Acceleron pipeline, us we through

of we is world. many than we are And well way So, in necessarily used have have cases, are – I traditional thing care And the very this think capabilities. in is to not true drugs would the the drugs little seen these still also This the a we different are about other primary past. the out lot think is a we the do point They specialty I what of positioned. drugs.

to our So, ability I confidence deliver and this commercially. have no worries about

we in will do the it done have and again. We past, it

Great. Thank you, Mara.

please. question Next

Raffat Umer go ahead. is Please Evercore. with Next

subcu. Thanks taking Hi There to question. touch guys. trials, plus implies that confidence on ongoing in the is is particular. Thank feasible to oncology early on curious the to if subcu trial, if – that to an I or switched experience two your such assume KEYTRUDA gauge not? it’s wanted that them KEYTRUDA just of combination trial vast up curious versus And my KRASGXXC reasonable and a of IV. you. I was gets I majority for franchise also this

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attributes data with that. of we early the that have required inhibitor many think for and RAF We are our

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it’s to of And Umer, I generally, do to conversion, question the into see patient as too the say, early probably But the bringing of meaningful this get would we benefit. that. specific specifics

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is at we patients to deliver strategy the part extend as look it how franchise. continue we is the that of that totality we for our So, as of

the So, further that’s something details we but are road. get down more we as looking at,

Great.

Umer. Thanks

please. question Next

ahead. is Next Mohit Fargo. go with Please Bansal Wells

my question. the sotatercept, staying on especially taking And with for Thanks Great. CADENCE study.

patients excited similar there he So, of to approved of study going the you to given therapies frame a a doctor about this that was we are very these subset lot are endpoints are very expectations help after. study, because STELLAR. us Could you and no in of spoke the

efficacy of level care there lower or could standard no Thank the be is of expect similar you. you would given bar So, there?

Yes.

which is sotatercept, or, I for of are inhaled pulmonary sort our ask So, guanylate the pulmonary look arterial just in both drive example, you as lung you there diseases, places at soluble where failure disease. other yourself, PAH. would you mechanism and action, both into general is just same to to, hypertension, emphasize also such that are when aren’t we speak the let me look of willing diastolic but cyclase have diseases affect that sense, heart can But you we our at hypertension, it

is little has more in-house that is be could people us those mechanism diastolic impact certain molecular we soluble hypertension. And heart guanylate with failure. bit applicable heart confidence explore that whether to those who expectation rebalancing patients be moved mechanism a have unique and with seen that gives that want that to have our failure and to also diastolic its pulmonary pathways applied we of that Our sotatercept the Equivalent may sotatercept as PAH, given already cyclase. we

your will sorry, am in conference end I five minutes.

that those PAH, we pulmonary patients In with used have who also lung disease are molecule could whether in also be evaluating hypertension.

the step. at next confidence more us give results the So,

Mohit. Thank you, Great.

please Next question Leo.

with One and you Goldman go ahead Sachs. Shibutani Chris Chris. question may moment Next here

Thank of Steve’s to are on in about about. terms Rob question proud the response you. follow what To you most

capital structure little potential bit business. Talk to about terms your want business Organon the priorities, spinning views have You that talked strategic a Thank be the focus. would animal business. whether of to little fits a consider these a envision you. about you separate an in you step juxtapose the the the that that and that perhaps days question allocation to organization how for of of health bit and off a successful simpler implications having of I

Sure. the question. for Chris, thanks

from portfolio. in and shareholders. growth they that are that science both business the believe us. And directions. business the is the We to we for value access best Obviously, the the frankly, were for brings at structure and is what human our their continue with a ability key of animal the benefiting in a generate to on for asking have our health view, lot health looking always past, As said develop to always side. we driver are synergies, we long-term It

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So, businesses. these synergies two do in we see

the ability our optimize fully to that in is believe animal to to health invest continue there. opportunity We

believe demonstrated I capital would part we capital the Merck. off. and have the wasn’t that And don’t it business have to of think if I we capital that had have that paying grow deployed is it’s to

bring can it’s what So, to we them. benefiting from

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So, spinning plans look to no at it.

Chris. Thanks

Next question please.

Our next question Please is from go Luisa Hector with ahead. Berenberg.

a to you say forward question. reduction that is lymphocyte dose? confidence the think there resistance X the you bit to some development lower little Thanks taking Maybe see Phase is continue my when lymphocytes for with to given you. of about more development. the And any level how on risk Clearly, at regulator able we about Hello. of are Can islatravir, regulator on impact your some lower data? will happy. having should accept? the the might dose? we Is drug And Thank move more the the

that for much question. very you Thank

treatment and this suite And longer-acting the both the of molecules just very for for setting possibility to So, molecule really mentioned, emphasize is has importance that want of our space. islatravir in you molecule. NRTTI transforming we body of are setting. mechanism, one I interested as of the the it in prep And the and

we question, a of your large have to clinical as data range many… Specifically

We end in will are sorry, one your minute. conference

will continue past Leo, our Excuse X:XX a.m. conference me, Dean.

to happens, sir. sure that are attempting make We

you. Thank

to few We extra a are minutes. go prepared

have we of And plethora clinical data. so a

confident the will milligrams X.XX very be are We that effective.

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And so the that’s day. in Q

on hopefully, committed that I pills two-month who XX we think, the to take XX our emphasize also the with on oral. I focusing are moving want but dosing that for pills are the protocol to regimen Q a we of And be amending to just FDA. more, And with under very the week to year, get posted the will We high-risk patients PREP. mean continue guidance the in also interested and partner, begin Gilead. will are a year

have suite End of Q&A molecule different are we NRTTIs of our MK-XXXX, a We that... confident it and in is

We are sorry your Please conference is now. hang ending up.