Merck & Co. (MRK) 2 Feb 232022 Q4 Earnings call transcript

[Started Abruptly]

…Q4 Sales and Earnings Conference Call. At this time, all participants are on a listen-only mode until the question-and-answer session of today’s conference. [Operator Instructions]

This call is being recorded.

objections, disconnect any this have you you at may time. If the now to like would call to I turn over Mr. Peter Dannenbaum, Vice President, Investor Relations. begin. may you Sir,

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

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

a we started, get items. I’d Before like few 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 these press from we results that provide a our non-GAAP note in and release. should You excluded our reconciliation

I Act of provision may Harbor would we XXXX. of meaning like be to statements today Safe Reform remind the of you the the that make within of the some U.S. considered Private statements forward-looking Litigation that Securities

current actual If assumptions our materially may to Merck’s on are and management based materialize, subject underlying from uncertainties. statements. set Such in statements uncertainties significant results made and or the beliefs of forward-looking risks forth differ those inaccurate the prove are

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

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

With over Rob. I’d to that, to turn like call the

Peter. call. year joining Merck. XXXX today’s morning was you exceptional thank for for Thanks, an Good and

commercially our of couldn’t I Our team working be science-led and is has scientifically, delivered operationally. proud what and more strategy

of do. and on patient keeping focusing at the what everything center the We matters we are

strategic in made collaborations with our acquisitions, a XXXX and of portfolio important internal We pipeline, partnerships. success complemented by progress broad significant advancing

pipeline, have including that with patients leverage and and creating transparency GARDASIL, innovation for the to and enter of sustainable we position both that We provided engine opportunities, cardiovascular confidence are long-term we We in greater forth even our drive our for from a leadership that newer bring value strong Oncology. shareholders over and and assets have moved generate long-term. our for XXXX urgency with increased will more several recently, progress speed into

Turning business first to our experienced performing pillars. results. record have fundamental a well. strength growth XXXX we key from sustained de-risked is extremely reflects our The of The in track growth

underlying impact We are reflect last pandemic the year year during strong the initial confidence this to growth, guidance. that of our account maintain height the begin pleased and taking LAGEVRIO we in significant with into will this had after the XXXX

significant Importantly, our several programs. pipeline is advancing late-stage across with progress

including patients. there research where In we for efforts, is favorable earlier treatment longer into more our term have Oncology, outcomes stage higher to move expansive for potential settings ambition

encouraging Moderna, partner vaccine our highly cancer announce with with along were December, X In pleased combination treatment in the results personalized adjuvant we melanoma. Phase for of a in to therapeutic mRNA KEYTRUDA

a types. We that have of are this may range by potential combination for across patients tumor the excited

resection of cancer to. certain chemotherapy, we FDA with stage week, and KEYTRUDA lung patients receive cell last pleased the treatment speak And for will and were Caroline early approval Dean following to non-small for which platinum-based

discuss Cardiology from from a substantial and candidates year made we will these across from arterial American exploring just Phase our the the programs. trial MK-XXXX, trial STELLAR we event will to have an also data evaluating of broad and PCSKX conference, inhibitor College sotatercept hypertension of Cardiovascular, of in host investor At and In range are X the pulmonary progress oral we ago. diseases one present

our our topline development, dengue. results very prevention candidate efforts These public will of health future we this collaborating encouraging are to Butantan reported vaccine, vaccine Vaccines, address of inform in data and VXXX, challenge. for development Instituto whom In their Brazil, critical for with for the dengue

through Finally, of XXXX latter the three in which which programs trial efforts, into and opportunity have have phase four this development decade next. we starts the in growth and half during will the brought to our business contribute meaningful

following we will and disciplined our act align. and approach opportunity to business when are We development value scientific

We XXXX have benefits to in more we to efforts we I very that believe do, turn good patients about progress all will the but and shareholders. lead made these feel for in real and of for

deliver the sustainable into with next innovation building patients We well ability our XXXX engine confidence we the in decade. value enter are and for to

We assets our pipeline. execute will act grow to and on our de-risked to continue advance and with urgency

closely an approach this providing long-term with We to the is and our confident short- in all are overall I company, outlook am future that our to to forward of very sustainability doing updates. I aligned of strategy. look business and

With call that, over to I Caroline. turn the will

morning. you, Thank Rob. Good

as LAGEVRIO. As from was Rob driven Vaccines year XX% well pillars significant a growth of across for by key our excellent noted, topline We Hospital, XXXX of Oncology, an contribution exceptional as company. delivered our and strength

business was a Our operational these growth, dedicated offset impact are innovations. on medicines who are to teams vaccines enabled to profound exchange. and with results having are globally, foreign important our by Animal excellence patients These executing Health by are our which deliver delivered the strong testament which

strong business our We and health in are confident growth. outlook continued the underlying in our of for

revenues our were increase of X%. $XX.X quarter results. to company Now, billion, turning fourth Total an

from comments business The foreign X%. operational strong on exchange, ex-exchange delivered be of impact will Excluding basis. growth my the of an remainder the revenue

and continued increasing Health X% respectively. their and strong Health growth Human X%, Animal businesses Our

as for global expansion fourth global the In Oncology, in-line our approvals. by Now, to brands. indications, turning KEYTRUDA key $X.X new to continued from performance of as XX% strong grew driven well quarter demand billion,

from renal key cancer, across earlier-stage breast and uptake certain all in triple including tumor types negative In KEYTRUDA continues cancers, grew well in U.S., cell to melanoma. types as and the as carcinoma benefit of

there to continues potential greater a for where have impact outcomes. cancers, in including patients, earlier-stage profound KEYTRUDA better on is

cancers. indication earlier-stage by We are in which approval KEYTRUDA’s KEYNOTE-XXX, recent represents the excited of seventh

remain rates to other routine. and screening programs cancer to improve unmet similar our others screening detection cancer an is to along It tumor breast, types, lung lung screening where need. with are levels such as important Early more ambition,

more addressing unmet indication. we need, uptake gradual to a anticipate this we are from this committed While near-term

In gives the the cell which us position leadership to are patients we in setting. well-positioned metastatic earlier its KEYTRUDA impact confidence that in non-small maintains lung setting, positively cancer,

growth KEYTRUDA be continues carcinoma. high-risk, and triple U.S., indications, as breast launches cancers, uptake renal cell and the driven types earlier-stage neck renal negative certain carcinoma, and in by lung Outside of head early-stage including cancer to cell recent cancer, in non-small as cell well metastatic cancer including

Lynparza grew early-stage certain due demand in to maintains the primarily continued revenue cancer. inhibitor Alliance class. its with XX% high-risk, leadership of breast PARP patients

driven in endometrial treatment carcinoma the patients cancer certain uptake with revenue grew U.S. advanced renal X%, by the of alliance cell in increased Lenvima and advanced

the proud are patients Lastly, WELIREG in-line with is on adult expectations impact and having is certain it our performing VHL-associated tumors. with we of

China. Our by Vaccines markets, to driven strong major portfolio particularly $X.X delivered billion, in growth, with increasing the sales X% demand patterns. due decreased ex-U.S. GARDASIL primarily U.S., In to purchasing CDC

the Vaccines VAXNEUVANCE, sales encouraging from also an also pediatric from to is start, benefitting revenues launch off of inventory with which benefited stocking.

in quarter increase agents market the fourth driven Acute portfolio, benefitted among sales In reversal Hospital our Care XXXX. X%, Hospital blockade in from neuromuscular sales by share of an also Care started ZERBAXA, surgical the procedures. in an increase resupply of which Acute and BRIDION grew

the ruminants products. XX% strategic Animal actions price animal challenges X% poultry driven Livestock impacted in Our solid quarter, which improved reduction a October, during demand negatively grew sales quarter. in vet increased vaccines another and in business for with sales volume by and were Health by delivered certain sales reflecting supply Companion growth. visits increasing and

to our basis. largely now income billion, will was comments favorable plan product you a capitalized which an portfolio non-GAAP walk I and remainder increase to my through increased million, our of reflecting XX.X%, exchange. by offset P&L the margin and mix X% foreign percentage of interest due X.X increased $XX Gross the Other and was be growing and points return net on will Operating support interest, assets was on investments expenses $X.X reflecting expense. pension pipeline. to

XX.X%. rate was tax Our

together, were share $X.XX. earnings per Taken

key non-GAAP revenue between to billion, and across our continue $X We to billion The be into now year. $XX.X project including Turning is strength LAGEVRIO. from expected guidance. to this XXXX billion our approximately pillars $XX.X

from an we growth negative rates, XX%. of impact Excluding impact mid-January using the to exchange LAGEVRIO strong X% of revenue negative and underlying foreign expect approximate X%

is approximately be to expected margin XX%. gross Our

expenses between are and our $XX.X development related expenses with of assumed which Kelun and research $XX.X of be billion and to to billion Operating the Biotech. billion, Imago our includes acquisition collaboration $X.X of expansion

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

tax million. assume outstanding. We Other to year and full XX% between a billion be shares approximately Income XX% rate X.XX and approximately is $XXX anticipated

impact expect a Taken from of together, includes to rates. range we X% foreign $X.XX. using This $X.XX negative exchange of approximately EPS mid-January

Oncology, continued the in confidence and reflects strong guidance Animal Vaccines across Health. growth Our

creates to opportunity the in Global levels particularly a are benefit long-term the few a positions we there improving this are to you of drive strong that in your GARDASIL, growth On immunization confident we low, demand to to patients prevents more As ability HPV-related revenues, markets. are are support international mind. expect supply, significant models, over and consider items which well today us cancers. for experiencing which keep and our remain tremendous we vaccine in

third-party reflecting $XXX projected manufacturing due significantly, also XXXX. to sales year, revenue U.S. which to lower is the Johnson is million Johnson. decline following in in be benefit an smaller strength primarily the benefit Revenue revenue dollar discontinuation approximate a hedges to resulted planned last of to Other and Other from expected

as the cost, rate rest which the net higher assumption pension benefit more to and well the of will interest provision, joint increase impact tax settlement attributable expectation to capitalization the shift due income, is venture of an we from be to a R&D other the offset as lower is percentage that of impact point On as in related there expense primarily Imago. equity an unfavorable other P&L, to by income. an an no than well X This approximate as estimated project expense

our unchanged. priorities shifting capital to allocation, remain Now where

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

We and are pipeline excited about our progress the our has XXXX. team to advance made in augment significant

continue including next drive of wave that initiation many the candidates. address a in clinical XXXX, our needs In to broad of will medical opportunities invest unmet late-stage across will novel of trials company, we for set and growth important the

the committed goal of time. We dividend, it our to with over increasing remain

appropriately our augment continue and to invest pursue pipeline most We compelling science to to maximize will potential value-enhancing through will R&D the the of internal business programs. development our external

and the additional resume ample sheet, development, business pursue Given business our capacity we priority. higher the is ensuring we while strength which share maintain to plan balance to of repurchases,

have enter confident sustain innovation into conclude, we To execute on the XXXX the important business opportunities deliver our to to strong ability we to underlying well growth of patients the in and our future.

to like over With turn call Dean. to the that, I’d now

provide Thank call. earnings you, notable I last Today, Caroline. our since will updates

quarter fourth Oncology, The continue the a Diseases We milestones. progress marks advancements significant important to and made and achieve with Vaccines, across year end make Infectious of regulatory successful Cardiology.

disease. committed with Let me cancer We the transforming an earlier remain of focus Oncology. start treating ongoing therapy stages of on to with landscape

We chemotherapy for resection and results patients this by on PD-LX approval the adjuvant or approval with KEYTRUDA are with of of first and cancer IIIa the Stage patient pleased lung non-small following KEYNOTE-XXX. provides for adult time of regardless cell II Stage Ib Ib, of recent an very This adjuvant treatment option the the disease for status. population platinum-based based immunotherapy

patient undergoing evaluating we doublet in KEYNOTE-XXX cancer neoadjuvant with II tumor including, evaluating broader III adjuvant cancers resectable earlier are non-small with types, by as KEYTRUDA followed body studying disease. stages KEYLYNK-XXX IIIa additional Lynparza stages unresected melanoma. in lung therapy of These earlier Stage and combination part have Beyond ongoing such and Stage with in to platinum KEYTRUDA II, cell all in KEYNOTE-XXX, outcomes I IIIb trials patients our radiotherapy studies in effort or improve treat of as of and disease, KEYTRUDA across further stereotactic Stage chemotherapy disease, KEYNOTE-XXX

KEYTRUDA for announced The significant with improvement results statistically we alone. clinically in following the VXXX/mRNA-XXXX, combination recurrence Stage combination survival in positive free with meaningful complete a risk high patients with for of KEYTRUDA Moderna, adjuvant Together demonstrated resection. IV Phase in versus treatment melanoma III and and recurrence X of

trials mRNA upcoming unique technology tailored meeting. and tumors tumor. presented results in of at signature mutational year. This with medical multiple neoantigen will plan to initiate and therapy investigational is regulators patient’s the this personalized the We discuss X to target Detailed be Phase utilizes specifically an results each

first-line in positive overall KEYTRUDA We Phase chemotherapy. trial patients KEYNOTE-XXX for with from an biliary with cancer. combination the results unresectable or improvement This also demonstrated tract evaluating announced the in trial of X survival treatment advanced

or of In addition, patients for combination with locally Phase positive we junction metastatic treatment results evaluating or the unresectable announced trial X advanced HERX-negative topline gastric KEYTRUDA from with first-line KEYNOTE-XXX adenocarcinoma. the chemotherapy gastro-esophageal in

inhibitor. is we available Imago’s lead currently Biosciences, clinical to for multiple lysine-specific The myelofibrosis the clinical bomedemstat, and the continuing team closed Phase a trials evaluated first-in-class In Imago month. vera. is in is last polycythemia demethylase candidate, on announced thrombocythemia, X advance November, development essential of acquisition potentially of X now orally which It combined ongoing being focused programs. the treatment

At bomedemstat the an including, annual presented presented. in our of KEYTRUDA. drug our from antibody myelofibrosis non-covalent vedotin, nemtabrutinib, data Society conjugate, were Updated favezelimab, meeting, advanced multiple American zilovertamab thrombocythemia antibody, and X Phase Hematology candidates essential pipeline well targeting BTK inhibitor, as were data for as anti-LAGX reversible, oral ROR-X, also

certain prednisone, cancer abiraterone Astra the In with Union, Zeneca, prostate on announced PROpel regulatory on We the the patients results Lynparza, our treatment combination partner, and of trial. for with the our we based deliver strategy. castration-resistant approval continue with to the European for metastatic along in of

based China, high-risk, neoadjuvant KEYNOTE-XXX breast and triple and for negative KEYTRUDA carcinoma, of results adjuvant KEYNOTE-XXX, hepatocellular cancer on / received approvals In we the early-stage in respectively.

are date With of supplemental applications agency conjugate partners, for to biologics urothelial of treatment locally The with targeting or first-line PDUFA patients and license XX, announced cancer eligible certain an cisplatin-containing XXXX the accepted a each for April who has KEYTRUDA PADCEV, advanced Nectin-X, Seagen, for with receive antibody-drug our set metastatic application. FDA Astellas chemotherapy. the we not

business on observed tissue the chemotherapy through in drug our on with have we conjugates, and combination with antibody Building development. candidates clinical KEYTRUDA benefits targeting focused augmenting

agreement this with are anticancer potential yield the antibody MK-XXXX, the disclosed candidates, generation candidates designed Biotech Phase seven potent with preclinical two conjugates. to This technology of leverages our the collaboration Kelun we new addition The investigational agents advance into follows expansion target X planning to targeting including of site. ADC announced TROPX up with an We drug to previously to year. for trials the to of precisely clinical deliver tumor and agreements a stage

improved PeptiDream We and of also technology with for conjugates. collaboration drug and selectivity discovery drug tumor permeability expanded This development include the to our targeting tissue. provides peptide in potentially

a the encouraged for Next the were in Vaccines candidate our scientists to clinicians We dengue and developing single Brazil in Butantan made registration progress Instituto in by portfolio. dose at Brazil. vaccine

our to dengue are in We the is analysis goal Phase VXXX X available team a to steps next outside of of collaborating populations dengue. to Merck’s candidate, development. these there vaccine Phase determine detailed for conduct results currently Brazil with for make at-risk positive, topline own for VXXX, X

field the remain As Caroline in noted, the we are receiving VAXNEUVANCE for positive disease. feedback of population recent setting and pneumococcal prevention of confident our from regarding strategy the pediatric the in launch specific

VAXNEUVANCE pneumococcal for This across year first with is incidence shared offers because immunity strong first important in robust greatest the serotypes. is all invasive in including of life, of and disease unique life of the protection, year the children.

this the Also, Phase our forward year. protection are to adults look the of and track X for program VXXX from we on results

in noteworthy others our the are trends reduce observation recently help that published that reduction report in impact cancer included XX% and was women cervical to goal years Cancer incidence. the with in annual XX in cancer old been industry, has Society’s real It facts years We, old on XXXX to the incidence cancer along American from making there remarkable through XXXX. XX a a

treatment forward to and that patients It to this further help devastating with disease. commitment prevention finding Merck’s is bringing of this reinforces type options

commitment, continues of in certain to role cervical the related this part As we HPV encouraged cancers. prevent by play helping to GARDASIL are

portfolio. to Turning the broader

to treatment of options impact COVID-XX on urgently healthcare in disease the burden systems. With of needed reduce and help the incidence are China, continued

in LAGEVRIO to use mild National a patients of and December, adult Medical have high for infection marketing COVID-XX China’s granted cases. pleased who by authorization were in conditional We Administration severe risk progressing moderate Products was to

and of for meeting wish results with the inhibitor, in arterial oral Phase Please at March X MK-XXXX, World the we hypertension our STELLAR something with Rob calendars findings where mentioned. in will pulmonary Cardiology College reinforce American of evaluating I PCSKX the patients Congress in the New Phase Cardiology present conjunction to mark detailed Xth trial of X your Orleans. for sotatercept

We will event live a also your to answer host investor questions.

sotatercept forward of treatment submission to to working patients look STELLAR an currently bringing the trial. as important towards option data from We are the and

the in submission on which in result likely about is to potential are with the a discussions in We approval data basis, FDA of rolling a early XXXX.

development progress we of of As business out and it multiple across modalities, to stages over XXXX, is close that we made areas, highlight strong important course year development the transactions. the therapeutic

stage Lynparza, earlier In Oncology, important a programs globally regimens. advanced we number well obtained as for several evaluating cancer and approvals KEYTRUDA regulatory of as

received VAXNEUVANCE. an we for pediatrics approval Vaccines, important In in

In in for recommendations active and GARDASIL. were China expanded addition, authorizations reinstated Japan we in were granted

HIV, In program development for islatravir. we clinical resumed our

cardiovascular arterial significant And finally across and hypertension hypercholesterolemia pulmonary programs. our disease, in we made progress

of to on continue across areas. we promising multiple together, our Taken candidates advancing deliver strategy therapeutic

strong momentum have on in progress We and forward XXXX. further to look across our our pipeline updates providing

I now turn will to the Peter. back call And

end we morning, Dean. intend please. X themselves so to question, limit one the call Thanks, to this analysts ready now. are take to that questions at Kelly, sharp We request

[Operator question from Gould is open. Barclays. Instructions] first Carter Carter, Our line from your is

this Hi. comment when adjuvant we the of from mature Maybe taking most there some question. in of just recent you reflect set comments sort might the around study update. just maybe Thank Can setting any year? label data sort after PEARLS and of you you Thank the uptake potentially sort see does the that assumptions made expectations for you. around

Yeah.

are KEYNOTE-XXX. speaking about believe I you So

and today tomorrow a I view. want to then take broad So just view the and view

count XXXX, remarkable. American that Society really it’s So in just would Cancer I the

been of are cancer moving suggest lung. and broad. XX%, XXXX we PD-LX a in is for reduction. between a of regardless early reduction and that and lung is the label to XX% massive where it It there’s story reflects we has clinical trial, The KEYTRUDA that XX% demonstrated in They critical XXXX, now and

what to But to with get pushing pembrolizumab our with to into means set very to other innovation need to get We and are push lines I for eager trials. scientific other need mean, for through these subcu earlier we make I [inaudible] this is we much think are We to it that’s things. subcu, easier more with two year. face KEYTRUDA why

United be need who to guidelines, also only currently lot or individuals to to in screened do the we which established of should a improve have X% But so adherence actually States.

I So, advance screened. really work it and available important getting who in to this should we that, to making be think, broadly with do to taking relationship have through individuals

So, Carter, little maybe about opportunity. commercial I can on bit a just add the

Dean diagnosed As get be have them said, the can more this drive slower will early ramp, we to they a we so need. that to people because get care

But of sizing you just some to give this.

were If at in cancer the who was U.S. until diagnosed about there people and with setting. of in XXX,XXX XXXX, you lung that metastatic were they diagnosed majority group are look the not

you early-stage is about Ib or and So to think will from if have a what IIIa, Stage have people a our about in which in which estimate indicates. be section we perspective, setting, quarter a would surgery minority the XXX,XXX it of the only label

to patients only half So population the you IO. of or then and about group, have XX,XXX looking receive on about historically, form patients the of those are that of would be at addressable treatment chemotherapy in gone who obviously,

it’s you that should you that’s the that not more KEYTRUDA outcome we something setting go only hope time to we if change because goal our over that think are So in forward, show pursue obviously will resected, we and segment. patients drive to as in

we the the get pre-metastatic, diagnosed obviously, can early expand population more time. people then over we actually will But,

that to opportunity time the this going Carter. you, existed we work Thank meaningful we in to a past. change as ramp So the paradigm as that’s us see long-term take to is

Kelly? Next question, please,

Baum going next Our come from Citi. Andrew is question from to

focus XX give Hi. revenues about plug to growth business A quickly just could have the timing the of high, your exit alternatively please perhaps to associated KEYVIBE-XXX. in some we from PD-LX Thank guidance know is on you it strategy? just on for you. Should the the XX demand XX trial the total than the whole for, analysis address strikes for the I for the reset greater the Thank us XXXX, subgroup? or me Dean, could you hole months? the and build analysis PFS but in less a think mere cohort with LOE finding that you you. rate it couple post-XXXX questions, may somewhere next greater as And on Merck’s separate you and KEYTRUDA expect PFS hole the instead than

if specific jump give period. Well, guidance will and United I given we to Andrew, and to Japan ground in KEYTRUDA Dean But obviously, in sense, States or exclusivity a LOE in to everyone and will off lose maybe, haven’t into you Europe in the Great. in. to It want XXXX in in But start and just leaves in China expectation in facts, the our XXXX. Caroline XXXX. it XXXX

but a of becoming, So, the spread increasingly know, is it out. as you obviously, XXXX, markets and KEYTRUDA shorthand, of reality by we refer the to global is product, over most it’s

would But say, sit today, have I where as we about the good progress we we feel look we made. at

that We points the growth few would just support do, a on we path into decade. to sustainable are we I more work that. Obviously, that next a point I you to think proof but to have confident to are

talked as we cardiovascular pipeline. months, last made in have the we XX our all, First progress of about in meaningful

the was between XXXX. are We seeing eight what from which sotatercept have STELLAR and is centerpiece just the of approvals quite and that XXXX phenomenal. potential really we Obviously, data,

those billion opportunity in see portfolio that the unrisk excess expect mid-XXXXs. as fact development the products, we to we be the that, at done. you deals approach recently look you adjusted business we an discussed If $XX on basis We have of of

get $XX think see we the as potential to a into apart revenue Imago, WELIREG, ADC those in more or from I space along as point new we themselves, you to these mechanisms, Lenvima would have KEYTRUDA, products, you that like and things We for mid-XXXXs. what apart the with have portfolio, the Lynparza, new in assets brought from and themselves Orion billion of early

the value patients sit starting make all we it around that to an KEYTRUDA. that on with response overall is, are great incremental doing rate only the an we today averaging and meaningful progress are excludes there we XX%. has as KEYTRUDA to expectation as to bring still work So Obviously,

response. drive deepen We and to need better

We on and KEYTRUDA. through that are find do to looking other improve means combinations through to to ways

to new continue a can give tumor believe expand are a actually as to into into we and people cancer we point looking types well point about chronic talk of life, where to and that earlier a start to extension move We an disease, a move fatal we lines not of clearly that can therapy to disease. hopefully, someday get we

to have have lot offering. efforts we Obviously, of is through in do with aspiration we that what are underway we subcutaneous more combinations IO IO/ADC do combinations, that to our but the doing there, and a

excited obviously, to for in in are are we while the about personalized studying we very we broader in KEYTRUDA, believe, obviously, recently that with with deal which potential is combination Moderna first think, then, really the move melanoma, cancer the we And vaccine, therapeutic into did a has we tumor.

So gives itself lot with and early it’s activities that are and we and similar with Lynparza, Lenvima, doing days. us in a of obviously, in WELIREG confidence of

of made So our into Vaccines that have I and what if we even there, as see we excitement at of total and have feel a lot we look like gotten the progress. portfolio you

I itself. drive really because that to KEYTRUDA a point, that’s be into the have to We build focus and more sustainable hear take you that engine decade growth am should next confident, me the we about talk well do, curve will how of LOE well, more why if do we the do but

Dean? So

Yeah.

So question there TIGIT program, plus was a our on TIGIT. KEYTRUDA

we ongoing trials. everyone, remind nine have to Just

Xs. Phase five have We

Phase In in which fact, KEYVIBE-XX, X opened just melanoma. up we is recently, early

which the TPS to are statistically added it KEYVIBE-XXX, and data, These clinically than and as I meaningful In relationship the event will question, the is endpoint. to appropriately. an drive events we announce we greater as XX% think driven,

Great. Andrew. Thank you,

Next please, question, Kelly.

Evan Seigerman from BMO. comes Our open. Evan, next your question is line from

what Hi, MK-XXXX you guys. TROPX fixed from targeting to better Also, Thank would do it’s in still to question. versus much those have seen taking for an and to difficult IO we for so and talk you plus Gilead believe ADC a I combine make that love combination? the ADC Astra too might that you. dose you Thank Daiichi.

Yeah.

let of X I will So be this whole question. trials I we a just Phase appreciate your -- starting really me state, series year.

inhibitor want where me, For an thing you really critical whether important. solid to or tumors, two RAS be ADC in the it in IO be advance tumors benefit important, combination them as been becomes the a has of especially it solid is, whether the

So forward to we are very be pushing our TROPX ADC. excited

TROPX I end in thinking play relationship the the But we Phase and been TROPX important killing payloads be when believe it’s important molecules have why that the of an We ADC, play ADC details but about it cancer the is that studies, the to linkers adding of to data an the as to into tumors. considerations and and solid our also sort think with year, the that agent. we and darts. think you can get to provide we in to our at mechanism any really, the IO that convincing will of thing be better the this of X is, I day, presenting will the most

Thank Great. you, Evan.

Next question Kelly. please,

from comes Chen Cantor. Louise, your is next Our line Louise question open. from

questions Hi. Thanks for taking my here.

competitive to wanted highlight your So of how advantages really PCSKX know you oral that Thank design for product? about thinking will your your and you. the how X trial are design Phase

Thank you much. very

sort relationship the want oral data PCSKX So, meeting our in where we have the showing Investor first, and to lowering just are least ahead to too X we we get to to much that are LDL I we for March accomplish emphasize to trying don’t trying trying sotatercept. of accomplish oral I lowering are pill is of the will we what most accomplish and what are potent cholesterol.

the in very very need oral would to should the access. would call branded not but what no it and healthcare easy should price little maximize we be medicine accessible, system, I in a the makes there which U.S. just point it And of be order very reach There a not be do interact co-chain, to globally. need with to at

how lowering because relationship general sort with it, you is is. In One of of clean X, would Phase view drive is set such a LDL a there’s that biomarker.

So at would that, be towards that’s same time, something. also also which outcomes, to is going But one drive the have important.

So is FDA’s outline field our what history Phase X has of sort been been trial informed and for have regulatory the the the design others. of by

Great. Thank you, Louise.

please, question, Next Kelly.

comes open. Anderson next Wolfe Tim your from is Our Research. Tim, from line question

human and Thank And you. on any even types positive ask you you of what vaccine, if have data those do a question you VXXX If I human melanoma, earlier can outside cancer don’t in stage? trials could you think Phase already are about tumor if obviously you animal you. XXXX I tumor Thank in starting X talk nonmelanoma that with am what may product? be data about have to any types, trying data?

very Thank you much.

that data melanoma. are that What have sometime presented So Phase near-term with we present the wonderful we be into That move the in cancer data where I want for personalized X. to the in about do data have to will that the in vaccine. topline just preface work Moderna released we to and melanoma have we everything. partnership speaking you we have is

just So we of lot a have in I -- work do melanoma. to

you tumors KEYTRUDA important. approach doing two have of I we speak which things about of about to going sort human watch the with out can sensitivity watch is that. that But outside development would that. really ahead the One would one immune to think data where to of clinical map are can of not am say one I a an and have

speak with would about The we when an that which strategy, about, neoantigen issue are IO-IO KEYTRUDA. therapy is I an emphasize that, talking as personalized view this strategy I IO-IO often people second

develop to interest and combination in want strategies that inhibitors, And cancer we see is, our early beginning useful that that to relationship but checkpoint in I view IO-IO a be to in the are related may personalized to there you is therapy. especially that reason neoantigen projects also in emphasize our stages

as so that, these is component actually are monotherapy that in do we be to think around creates advance and trials. a able to to we because to for that us us indications, And KEYTRUDA critical it to that’s advance the going clinical advance

you, Thank Great. Tim.

question please, Kelly. Next

open. Geoff, from Geoff America. Our your Bank is next of question -- line comes

the year sure for ultimately subcu of you cadence talk Thank And perspective, for data technologies? are wasn’t on kind across what and looking a evaluate Thanks from your strategic guys. Rob, you different can on IO? you. Dean, morning, program as question. feature, about Good this where priorities the risk/benefit you this I of ranks Great.

So for question. thank much very that you

when to I on we this be -- in be starting Oncology, -- we clinical critical year. think component those just Phase XX will X will XX that is a and Phase starting it’s this subcu X about we program trials, talk to

Early space. where talked really seeking to I markedly can we that. cancer think, a are early cancer improve standpoint is I important What of from the patients. medical the space, can achieve? really we of have We just about outcomes intact

to innovation have with space, we to the neoadjuvant working are centers clinical my constantly the lung go doctors cancer scientific to and training, adjuvant, to early in from the oncologists, individuals you to going infusion to need If that. very and ability whether limit it’s important do or come need our is for

that’s anything think carefully in about X to to and In are else? Phase doing to did as that regimen drive we you our Rob, weeks trying optionality have give want much six what we answer how weeks to that, three through do subcu in to we trials.

I No. question, the appreciate Geoff.

important we think access very about to This of our drive lines is then earlier therapy which and and covered it overall strategy I well. part of a patients, important. Dean into is think very convenience for as moving

something fast it’s going we Geoff. to So as pursue Thanks, meaningful it’s and as can. are we

Kelly. please, question Next

Mohit, from from Fargo. Mohit line open. Wells comes question your Next Bansal is

you for Thank much my taking Great. very question.

Phase I strategies common there, with X studies why data Phase Phase criticism after were data failed than regarding that’s a as and development robust big they is to in of because big think combinations benefit at I show data question X many looking the in that, and are the single-arm started X. Phase picture IO-IO X, they have less mean these I well. your

and us So pembro wouldn’t control? are gives Phase you you you. better can where move to forward as be strategy the you have of -- trial help right what X do this kind just Thank is a understand it confidence some to you that

IO-IO I way have of strategies, Yeah. view that that to you to the is are IO-IO important begun general Thank develop very strategies just that a emphasize will my pursue. very as rule I much.

the therapies other strategies may plus could kill stage especially IO-IO the be in IO-IO quite think but early I that strategies be metastatic, that cancers in impactful. important

IO-IO as just our I have And so, advanced have we said, strategy.

and We will single TIGIT part. that KEYTRUDA. component KEYTRUDA of addition one CTLA-X have have so advanced it another that LAG-X, say this, I with would breadth just But to I don’t there’s the know

the space the selective especially been just IO-IO, a and metastatic in important. have not the of movement space, bit think become there will little in but I we early So

of your that And with into early first cancers. early-stage execute spaces in approved us earlier that the to IO-IO to IO-IO an that why requires and we be IO in are about because the allows strategy so KEYTRUDA, ability in moving excited space is to do that

Thanks, Mohit.

Next question Kelly. please,

line from open. Schott Our next Chris, your question comes is Chris JPMorgan. from

Great. Thanks very much.

you your it skewed share or collaboration. repo development commentary that towards business like are does I deals looking recent review maybe, mentioned smaller think of you seem and Rob, been to some has

quick into view an context have help kind leverage And cash can really we generation of towards about second should that me put just forward? level just for one, what So repo you going and maybe as I of Merck you as level on just the thinking be FX. going beyond appropriate

currencies should are out given your there so of there? mind keeping Are be we you I X% about the that stand much think a most weakening Thanks seeing in aren’t recent much. of headwind, peers any dollar. talking the

Caroline. is this Chris, Yeah.

opportunities previously, as talk business behind we as it’s well stated goal business the and cash, company, as to first company our as development. repurchase, to foremost, augment First deploy have the within share have a that we with to our

given repurchase the and generator balance but a the growth is business We priority be to program, have development, better have we on will capacity value strength ample and is of creation. of and we turned our ensuring our share which sheet, the pursue business highest

to in of that We test reviewing will be we have BD news that we sharing are some will do have and continue portfolio we a future.

So priority shareholders is remains return will excess really to investing in through the buyback. business, but that the to there the share we cash, extent,

an appropriate We will for leverage company. our maintain

are to We sustain forward. are rating expect at as comfortable the operating at level of go kind we credit very that would and we we

impact with our XXXX, perspective, underlying blunting business a in impact revenue we as successful our on of were extremely that a the but top on X% the hedging in foreign bottom. impact of hedging and in the on million exchange revenue on $XXX on program. the X% topline, to foreign brought the which XX% our approximately other The exchange revenue From to bottomline, XXXX foreign the the exchange with X% blunted line company was approximately of expected program,

foreign the impact given note, as around significant the from the you As that impacting be is rightly hedge be foreign we gains in on is percentage bottomline. look exchange at we the obviously don’t the the of as point top X% and expect to have guidance that expect expected XXXX, and we on top the we overall underlying which What impact XXXX, exchange year-over-year X% on to means bottom. is X

Chris. you, Thank Great.

Next question please, Kelly.

is your Morgan Our Terence, open. next Terence Stanley. question from line Flynn comes from

Vaccine But a don’t talked the new the on wondering level taking much you about guidance, at Great. you for year. this also VAXNEUVANCE. guys you product I Thanks Obviously, for GARDASIL, was speak question. opportunity give level coming high have capacity I you Caroline. about if can your franchise for typically pediatric so know but

studies? know one will the or that on the So there data we you are FDA you. sotatercept, that, year. sufficient approval Are a wondering from is single still you confident should trial just this follow-up possibility for for be how Dean ongoing then you And think could talking other now. Thank need I to about those

for you question. Thank the

impact we key when of of XXXX XX% continued growth growth of foreign LAGEVRIO Lynparza you as in patients provided pillars and of exchange. KEYTRUDA, are revenue expect where and underpinned that is to drivers Oncology, guidance X% The that the by the to of indications for have our strong we Lenvima. So very driven growth portfolio exclude impact the we

you especially growth expect the acceleration an GARDASIL And the rightly have we continued we driven we acceleration expected in as the of new performance, note, Health as an well strong given have our growth supply coming as strong growth on setting. in for VAXNEUVANCE business. our by Animal pediatric in line, Vaccines, as data

that to against increased with talked and growth and LAGEVRIO in especially confident that are in we Vaccines expected, have the of with changes There we very our and Animal overall, Oncology, have Europe exchange some also in the in level with U.K. pricing anchored seen with headwinds But, of Health. an about business underlying foreign Germany. Dean?

Yeah.

be for discussed. trial will March data again, Xth, more clinical sotatercept So, fully

a indication think our point support and the we I readout to clinical trial need no FDA be at will very standpoint other impactful I it that have any will for XX%. to this a from data from filing

Thank you, Terence.

Next question please, Kelly.

from comes question line from Colin next open. Our UBS. Bristow Colin, your is

on and have some the a morning we data I year. Good recently this guess seen On we for Hey. Phase then questions. competitor TIGIT, taking some X I couple readout thanks others. piggyback the obviously and of will have competitive

in Thank give you. will with more are is terms and underpins additional second on you respect just of to any timing level and your levels this supply that online the on facility? then currently be of what coming able manufacturing the what granularity have new And to GARDASIL, just Just of for the enthusiasm class that data seen? we

Yeah. Well, mean, to In thank very I question. TIGIT, confident are that you relationship for our on molecule. we

As Phase I have boundaries or said, agent Pushing pembro PD-X what the of that’s we has field. something very can trials. five another X can the with been have for nine important IO do ongoing do

IO-IO in earlier stages And for simply about additional KEYVIBE molecule a that the way answer is, we confidence X study an study, can the the cancer I opened Phase combination. this of question your the just

we the of -- we and as two we have facilities have GARDASIL, XXXX. know, online the in driven new existing you XXXX, for coming course manufacturing we facilities productivity And over have

in I a reiterate but will XXXX. be growth will progressive our ramp, are during an expecting acceleration it So we

Great. Thank you, Colin.

please, question Kelly. Next

Our next your line is question comes Umer, from open. Umer Evercore. Raffat from

XXXX? XXX to this encompassed your estate has goes story taking only which for curious, Thanks you well is on York state guys. in types to a the patents patent reasonable I mentioned week, XXXX. KEYTRUDA, and question. you. last to Hi, earliest assume on speak a date was am of and patent KEYTRUDA estate There in since it Thank my that Times patent Merck past your patents XX-K Can the points patent of expiry XXX of true New

Yeah.

trying all tumor just elevate bit. do inhibitors would the concept question types. is a are cancers want of to we throughout little stages profound I trying to inhibition checkpoint are in what drive have in a So the of effect of to all really focus we The can

with property are routes these about different and saving are to in and stages, roots critically talk innovations life delivery, in of combination And deepen filed tissue sure that. and have benefit into we make extend where available. appropriate patients and frequent We innovations we expand confident important is for providing and types of indentation safety intellectual that to this it treatment for those sort -- of

Thank Last Kelly. you, Umer. question please,

Cowen. last Scala from comes is question from your open. Steve, Our Steve line

probably They because citing challenge. with Thank believes may infrequently poor make it point said a administered and you. cardiovascular is other yesterday moving towards issues PCSKX delivery a orals Novartis the very as the issues, that oral compliance Merck which treatment of GI good opposed could to with disease injectables orals. associated be have

indeed, assume you Thank So disagree oral you tolerated and clean PCSKX you. because is your is for or do reasons? well that other very disagree I

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someone had three other it of with as as that prescribing to ago. early, back pills would oral practices am who oral And lowering I personally as speaking, If be I then, individual. I four as prescribing the this recently LDL five pill years an late, an is PCSKX

you look Take your to thank for and additional you, in Steve, the thoughtful me team care. and we and staying forward Thank IR with everybody have questions. touch. if you anything follow-up Please

call. participating. today’s you for concludes That Thank

You may time. this disconnect at