Merck & Co. (MRK) 1 Feb 242023 Q4 Earnings call transcript

Thank you for standing by. Welcome to the Merck & Co. Q4 Sales and Earnings Conference Call. [Operator Instructions] This call is being recorded.

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

Welcome Thank Quarter Fourth everyone. you, and good Ivy, to XXXX Merck's morning, Conference Call.

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

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

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

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

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

I'd the of prepared release, to to accompany will posted SEC that, Rob. speakers' today's Relations are our presentation remarks. and the Investor slides, remarks filings, slide a the website. With our like call, call today's section prepared along These turn During with over earnings to Merck's all

of to strong I'm for morning which the another develop year We and and call. therapies for transformative made people the were and thank that half extremely will medicines alone, with than last our Merck. Thanks, year around today's donations. reached save progress lives was joining million improve more we've by Peter. over help deliver world. Good vaccines you and XXXX pleased XXX very through

investments substantial certain to our made the of impactful to over the including in cost and also research forward total, of next collaborations. bring innovations, discover in generation acquisitions in $XX development patients and billion effort We ongoing and

in important the The we our Daiichi confident with we as take excellence strategy, and we promising confident business momentum unwavering innovations augmented clinical focus the lead sustained XXXX, Sankyo. long-term Prometheus key term of and to such benefits by the global make focused In dedication operational that our decisions with As to development, of our and our that and advanced the value acquisition priorities. I'm I'm we Guided actions in enables and while serve business our pipeline disciplined forward, continue, of team. We're strategic and our move underpinned the strong by our and long for sustainable the shareholders. value term. deliver will the programs science-led growth we and will patients our execution of benefits the realizing for collaboration talented we for pipeline commercial our us invest new tangible short strengthen on

our to XXXX to driven robust continued to will Turning reflecting innovative demand speak demand XXXX, products, for momentarily. for initial growth underlying expect Caroline XXXX. I'm in portfolio. growth in results We strong which delivered our excellent and pleased our that outlook by share for we

remain across and unmet our keenly advancing we're need currently areas in and with on across Turning we research. more of high to at focused pipeline, pursuing more making This progress any time programs year, which than recent broad application modalities set diverse in our by diverse the health will pulmonary a memory. therapeutic critical We're will the we're transform commercial excited hypertension. the to for believe opportunity. In treatment very potential have suffering that in arterial blockbuster many cardiometabolic, journey States, which action for needs the and launches patients address anticipated from sotatercept the has we on X United includes FDA

are expect. prepared and for strong fully manufacturing uptake we the Our teams commercial

an compelling pipeline, address which has vaccines, long-term first to accepted adults cancers in specifically filing of cardiometabolic ages to we our this older. component be expand as become disease on priority of forward earlier would for If potential. In stages and our majority new to preventative believe invasive progress oncology, certain designed option of well tumor is believe into potential Sotatercept it We growing XX Based in significant VXXX. profile, of VXXX potential important approved, VXXX review pipeline share for FDA has adults, an pneumococcal its vaccine our the to the can increasingly we broad setting. in important approval additional novel types as June. And and candidates. market for in the a look majority continue achieve we the in

are animal set confident positioned well will late-stage are keeps of success transformative in center I'm which further our science-led by is at progress delivering patients our patients in engine year expanding of in in increased taken of of do, to. exciting the meaningful we important and innovation over team neurosciences, opportunities. substantial summary, to pipelines, future potential Dean of resulted to our position We've commercial progress We've growth in its notably leadership expect programs long-term our for substantially advancements oncology Merck one steps oncology health prepared and a the our deepest sustain development. provide have sustainable helping across diversify to which oncology innovation everything and discovery patient for in with expanded ourselves dramatically and to the to leadership has promising energized sustained strategy, the outside robust know year pipelines company. and advance across future. and cardiometabolic science-led to we on made is bring and add Merck's HIV us I also which his that past the We from build also programs, and speak building set important diversification through development broadest to innovation in and the we've pipeline and and programs our and pipeline, immunology. Further, beyond. In achieved and advancing into history while well considerable had business to recent our a XXXX benefit late-stage build vaccines, a Dean early-phase this and

the research, to stakeholder and Caroline. value. confident value I operational like would in impact and As continued forward well I'll a teams long-term on that well to concerted on decade. I deliver short- year increasingly the again strong With commitment to patient thank next focus and for our very creation are commercial result, we execution. to positioned drive and into to a we're global ability this and achieving confident future progress call look updates to excellence, that, providing over turn impact. With I'm our our their

We our revenue performance Thank another long-term shareholders. morning. our strong term while delivered ability remain impactful to year excluding for of you, across Growth and results drive company. deliver strong We innovative Oncology, patients exchange. in investments which for XXXX was confident LAGEVRIO Animal XX%, to by growth making foreign driven Vaccines robust and will Good and in Rob. science, in was value continue Health. disciplined the near

revenues Now our results. turning Total billion. $XX.X company quarter were to fourth

business and exchange on LAGEVRIO will be of from basis. an impact growth strong the following comments foreign exchange, XX%. the ex Excluding delivered revenue The

its business sustained Health Our momentum. Human

Excluding and X% Sales business animal Health our LAGEVRIO, driven XX% companion by Vaccines. Oncology by driven in growth products. Animal was increased

metastatic to more was international cell carcinoma, with cancers, with recent by in the also Oncology, driven earlier-stage the growth Global global indications. particularly of due performance these by need our cancer growth In strong important renal grew the to uptake was patients KEYTRUDA of of brands. to increased Turning launches key markets and in breast including strong XX% of sales $X.X driven disease. Growth billion. triple-negative

continue cell increased certain U.S., our progress the to further improve have be We have rates on our in drug made helping lung the setting. considerable In having leadership earlier-stage are position positive the patients we treatment approvals by cancer. adjuvant non-small in to and with encouraged recent impact

advanced potential feedback approval, of and has clinical patients these grew X% transform Based outstanding the positive received to of is indicated urothelial also KEYTRUDA $XX health recent XX% launch for patients. Alliance this PADCEV million combination urothelial this cisplatin grew Lynparza in regimen With eligibility. in increased WELIREG the cancer. now we care advanced the on Lenvima following cancer We for revenue of providers by first-line with from driven KEYNOTE-AXX care to standard the uptake data, and tumors. sales in believe X%, respectively. regardless from VHL-associated

LITESPARK-XXX provide We cell renal advanced following patients on are to option the approval based with previously by study. certain recent for the a new opportunity excited treated carcinoma, the treatment

GARDASIL to uptake U.S., the billion, indication $X.X GARDASIL, demand, driven launches U.S. Our In grew million patterns. VAXNEUVANCE by increased global Vaccines the excellent China. Europe led purchasing of benefited to portfolio by the particularly sales which delivered continued and in driven by in from CDC in growth XX% pediatric ongoing $XXX sales

As declined markets, generic sales impact the reversal quarter in offset international blockade for from X%. market sales a agents in U.S. our benefited BRIDION pediatric more was U.S. reminder, preparation Increased in the among inventory portfolio, in the fourth stocking particularly acute share the entrants hospital neuromuscular by of care XXXX than launch. In in Europe.

actions of demand P&L, favorable you onetime sales from solid billion, my increased flat, Gross related BRAVECTO sales to Health margin animal collaboration of product increase were and LAGEVRIO. walk the an expenses $XX.X on now largely purchases. by of Operating the sales and to with due price X.X of sales line reflecting XX% our a mix, the purchases. I Daiichi was quarter Animal another including driven billion to of increasing basis. with ruminant non-GAAP XX.X%, $X.X including percentage offset points Livestock of a business be our will benefit due Sankyo. charge underlying Companion through by strong a lower product Our remainder comments delivered product favorable will grew X%. to timing timing

investment operating and this X%, early- was pipeline grew charge, $XXX support expenses reflecting expansive key our of disciplined drivers. million. in late-phase expense Other growth and Excluding

the approximately to rate Sankyo. impact Daiichi XXX%, charge reflects tax was Our the related of which

tax charge, the this XX.X%. Excluding underlying rate was

which from $X.XX impact negative related earnings per share Taken Daiichi charge Sankyo. $X.XX, together, the were to a includes

Now to our XXXX guidance. turning non-GAAP

We we between growth representing market and growth project sotatercept of impactful key products, launches due is be and includes to driven and Argentine VXXX. as with be peso, to growth new which practice. This marketed such of price We expect billion, exchange The to the consistent rates. increases, offset a another X% devaluation anticipated $XX.X year approximately the impact largely the products, from inflation-related mid-January of to negative X% of by strong billion $XX.X of X%. revenue begin benefit using will headwind by from expect primarily foreign we'll

$XX.X between reduced which billion and which GARDASIL. approximately Operating assumption benefit XX.X%, onetime KEYTRUDA acquisition are Therapeutics. related million on to the gross includes and of is $XXX Harpoon margin Our approximate from charge be billion, expenses an $XX.X to announced royalties includes assumed paid the

development As outstanding. additional a assume between approximately significant expected does $XXX shares approximately reminder, assume X.XX a We guidance be business our rate full is XX.X%. to tax billion transactions. Other expense million. year and potential assume We XX.X% not

expect to impact we which EPS an is the using charge $X.XX range $X.XX Argentina. planned Therapeutics, related Harpoon approximate of mid-January impact rates, together, the $X.XX negative to exchange of from Taken not including of share per This from $X.XX. foreign acquisition approximately includes the and tax-deductible,

Now turning to where unchanged. our remains allocation, capital strategy

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

increase unmet given initiation our We this time. trials by it transactions the in excited science-driven, significant priority. made over flow development maintain to going augment are multiple candidates, We which dividend to rating pipeline plan remains to Business high significant additional our capacity to needs. We XXXX. pursue will innovative and our has value-enhancing has remain late-stage and of our advance to important progress medical clinical across novel strong credit and each more investment-grade XXXX, address increase In forward. potential ample investment, of including team committed we a the cash

repurchases. To remain pipeline. for execute We innovative and of expansive modest our we business in are medicines conclude, outlook will near continue in vaccines demand term. strong, to the about our confidence and our Global enter excited we level the a share for long with and XXXX

lives position in strength patients operational the a improve financial of the are science of of order our long-standing We commitment serve. as a direct and we to result in to

deliver and well continued I'd patients, like innovation now Our to the in over that, to into will the excellent call to investment turn us to enable customers execution shareholders future. With Dean. and value

Oncology. notable the across provide late-phase and Good earnings Caroline. our with early- programs areas. Starting I you, summary since a Thank morning. and will brief last Today, multiple therapeutic Progress of pipeline accomplishments. strong. is R&D XXXX Momentum updates remains both spanning call in

with portfolio KEYNOTE-XXX. based targeting needs the our the and immuno-oncology, combination European immuno-oncology, gastroesaphageal with the in gemcitabine approvals and development unresectable fourth tissue both diversifying adults and biliary on care one KEYNOTE-AXX; targeting. is cancer we to FDA are based further in Commission we unresectable HERX-negative chemotherapy remain of locally advanced, broadly treatment gastric indications: in patients. In for or X on cisplatin executing of the metastatic combination junction certain and and on molecular patients adenocarcinoma X We of received cancer pillars: gastrointestinal committed In with our from metastatic or to which the for locally tract first-line based on another strategy, and precision treatment or with transforming of strategic advanced, quarter, the the address KEYTRUDA

history outcomes. on date, IVa focus effective treatment KEYTRUDA studies all as III with that October, the adjuvant in III forward KEYNOTE-XXX to that cancer significant with support FDA Phase We opportunity inhibitors, Society scan. are a to patient notable annual in and significant fecal of continue treatment earlier low-dose American of a the certain of trial. we we the has patients month, an smoking followed more guidance help patients have with on a treatment the KEYNOTE-XXX is potential certain potential where we demonstrated This expands only new benefit of cancers cell intervention survival care. To also for released regimen the an range believe the resectable screening. standard the may post-surgery combination with cancer of chemo timely, stages become look Cancer adjuvant for earlier-stage disease, KEYNOTE-XXX age statistically CT based a increased with carcinoma. Since radiotherapy is that KEYTRUDA, important conducted lung risk. the improve to guidance Stage and for in individuals recommending non-small regimen As lung harness research by through approval Last KEYTRUDA-based certain the with cervical cancer cell overall identification option to as undergo for part and impact patients for The the regimens: provides announced significantly patients neoadjuvant at renal approval that we KEYNOTE-AXX checkpoint post-surgery the of of have advancement it an

Detailed advanced, patients at partner, IV treatment X-year presented ASCO the the adjuvant metastasis-free from resectable demonstrating our melanoma ASCO in KEYNOTE-XXX GU. Also and for resection. the from GU KEYNOTE-XXX VXXX, presented an were KEYTRUDA locally survival with overall along also and data conference Additional data last demonstrating III week. urothelial muscle-invasive evaluating complete survival setting, KEYTRUDA therapy, and the localized, benefit for survival a at carcinoma announced combination of benefit with of findings neoantigen were individualized treatment we in recurrent-free disease-free with versus for adjuvant our Moderna, distant earlier-stage observation following survival Stage

The the the are oncology. decade for advanced non-small and of nearly HIFX for durability with inhibitor their lung the setting drug the marks and our patients diagnosis. new cell of the PD-X cell with in or the a advanced continues Hippel-Lindau for in observed III in treatment therapeutic tumors. for following a actively certain melanoma a a impact Phase by VEGF RCC for treatment patients certain class to approval FDA carcinoma encouraged adults in the and are regimen earlier responses in adults on this PD-LX renal first XXXX with for inhibitor disease-associated with eligible alpha von approved cancer adjuvant enrolling. Progress TKI, patients builds of WELIREG, The precision the approval and We potential trials

WELIREG, cell settings, of adjuvant and/or the renal in treatment the and combination of ongoing. in III lenvatinib advanced types for studies with carcinoma certain Phase for are KEYTRUDA Additional

ADC PADCEV, the on demonstrated space. of tissue survival the versus results results for These in gemcitabine FDA in delivery KEYTRUDA cisplatin or moving KEYNOTE-AXX. well locally Together for Seagen, tumor Finally, the and with a carboplatin and Pfizer, our to with targeting from benefit enable patients of chemotherapy pioneering reinforcing combining work with an treatment Nectin-X-targeting first-line extend cancer based to tissue. as KEYTRUDA the urothelial the to Astellas now or targeted to superior advanced ADC approval announced value plus with chemotherapy metastatic we as a overall combination

have systemic action set patients of therapies. with The a and advanced or of cell well cancer EGFR-mutated FDA the collaboration October, of tissue-targeting novel of to humanized Following cell we more investigation with ADCs. in portfolio X which announcement has and in engager Sankyo the as opportunity lung the Sankyo the is T are for Harpoon tumors. cell pipeline an review for established ligand Therapeutics programs, non-small And our of receive of MK-XXXX, Daiichi recently HPN-XXX, with a previously acquisition our own target patritumab treated most date cancer X complement XX. Through our pleased fully help the June engagers, Kelun Daiichi by from significant our T to small as delta-like approach deruxtecan, agreements investigational with our and we announced providing neuroendocrine a a lung priority robust discovery being evaluated strengthen agency anti-HERX ADC targeting or provides of cell

agents on patients immuno-oncology positions even Our the long have diverse future. and into profound portfolio impact more of us well molecular strong precision a tissue-targeting to

Next to our Vaccine pipeline.

for X the designed XX-valent new our Disease for pneumococcal of and clinical the by presented West Congress noted, trial in new the Phase patient STRIDE be trials would adult in older, the Vaccine XX STRIDE-X World approved, age as to address vaccine-naive supported evaluating population. Results both to STRIDE-X and pneumococcal-conjugate multiple XX% for at notable responsible Coast pneumococcal and first making priority advancements studies biologics be Congress were will of vaccine III disease. additional Rob International specifically invasive are in well VXXX from XXXX. in results vaccine-experienced X, Pneumonia designed with for from years presented We November as from adults specifically and population-specific has for Pneumococcal conjugate at serotypes March. If from disease X VXXX, application according our data and as data license approximately accepted pneumococcal VXXX of Society XXXX to The the pneumococcal about program vaccine FDA vaccine, CDC review

by X unique currently disease serotypes set XX. to June of options. vaccine VXXX according CDC XX% pneumococcal target of which not includes account a Importantly, These for licensed date same action the data. FDA The covered has serotypes, are

in cardiometabolic pipeline. the programs to Turning disease

patients to treatment for pulmonary We are eager target of date has arterial bring sotatercept to a set important an XX. as The option hypertension. action FDA March

Beyond data disease from STELLAR evaluating advanced their are which disease with studies, ZENITH have journey. HYPERION III sotatercept patients the those the Phase earlier in trial, we on and more and

In Phase on Group type will CADENCE WHO of hypertension disease. a evaluate II addition, focused II pulmonary clot trial the blood

and As approvals important modalities highlight areas is multiple across out execution well major in it have than regulatory we more development transactions. business progress markets. our therapeutic close as XXXX, the we In significant and to XX as year,

initiated our cancer in certain with Moderna collaboration We MK-XXXX lymphocytic leukemia MK-XXXX, and melanoma collaboration and in in non-small TROPX trials with Phase XX of including ADC lung immunology, Telisa multiple CYPXXAX studies inhibitor treatment for ulcerative LSDX Kibar lymphocytic for new VXXX hypercholesterolemia. colitis; adjuvant in BTK our in cell also carcinoma; inhibitor in with castrate-resistant of ORION lung inhibitor on across Kelun Bammadensta, types classes thrombocythemia; of endometrial disease cancer; our in with in with metastatic in small oncology non-small prostate assets, lymphoma; multiple in in cardiometabolic cell and finally, collaboration with the cancer; our MK-XXXX, first-line also over chronic of nemtibrutinib, III in essential

we depth of for organization initiate As greater my XXXX. and an to hard to and across a credit III number result even Considerable increasing of of pipeline, planning goes Phase in our breadth trials work colleagues are the their unwavering dedication. the

the on our on the now forward call progress to turn I look providing science-led will further are We year. And Peter. throughout executing strategy and our back to updates

to ready questions. Thank we're you. now take you, Instructions] Dean. [Operator Ivy, Thank

ISI. Evercore Our Umer come question will Raffat from line Instructions] the of [Operator first from

trial. a I for That's in due know LAG-X year, guys there's cancer. later colorectal you KEYFORM-XXX the pembrolizumab with trial this

Just curious into analysis. odds about how and any success that risk profile you're there's heading been interim the OS the and thinking of if

high, Umer, group the thank with CRC. is take to for dramatic this. there's recognize or I in MSI MSS point, CRC in been in much not in inhibitor MSS very shown you presence mean pembro I'll just this really we any cancer have that checkpoint larger strong population. colorectal impact question. there. a that At that's The

in of impact the interest a pembro would LAG-X our that a inhibitor innovation. to we that CRC. If have clearly, checkpoint CRC, positive we in role should beachhead in more and expand that, get in is a MSS requires a checkpoint could So is that inhibitors plus in to a meaningful driving of demonstrate MSS extend a use as that which place lot signal

keep there's of terms that's data when when In this, generally that we on we analysis to interim specific try it. share sharing, that's worth

we'll line from Trung of Next, UBS. to Huynh the go

for It So years August we sotatercept, date moved X has HYPERION XX. primary to on clinicaltrials.gov. XX That's earlier. noticed November the now was completion study

could you -- the for if change? one let in. us that I just Just And reason sneak could know

a transition there place clinic is inpatient from administration to self-administration? sotatercept Just to

me So question. first the let take

and a with trials relationships So there's series sotatercept. of

potential XXXX, for in think based that second relationship we approval position date And talk the for in FDA may a is about trial. of half decision a we on to March we be the the in by So the STELLAR the EU.

and you they out, have they trials, Those based especially other X ZENITH are point as We events. HYPERION. Phase on III are are trials, and

that it's sort when events So a define of tracking those happen. of

XXXX I ZENITH, August and like September now So HYPERION, XXXX. is think,

image to relationship treated. have we very well through be injector been place pipeline. an is just conversations auto highlight that's to how moving to fast for the in event-driven. In relationship treat patients But our of I'll FDA with best an best So just the where to patients, in we're that

up. end might that this So we you give sense a may of think where

Next, Graybosch Leerink line to from we'll the Partners. Daina go of

patients in into Phase I mutations? ARLBD that more MK-XXXX. III, first? assets the confidence talk in what for stat asset. that gives if of one you addition at Oncology hierarchy will the X the studies you statistically broad with design you One wonder segment Omaha the the prostate to it of the going demonstrate the about confirm prioritize look cancer, a And benefit mutation will new to could And can ORION on

Yes.

high everyone So growth this at androgen that way, the that XXXX the And that looking interest is and critical it be could patients. an ablate in especially out, it's very cancer. point just we have you contribution. Clearly, important in the think asset in is upstream, we're so been specific same in we're prostate broadly, in as but field there the -- both interested mutation medicines SIP

as so broad advancing well look subpopulation those trials that at be to as And we populations. will more

In teams the be sort in at with best probably a discussed analysis of would of that statistical different time. that's sort something that, I think clinical our terms of

Next, we'll Gould Carter to go from Barclays.

Maybe the following up commentary on on VXXX.

opportunity the imply about talked potential sort that of the What segment? around a to share. in or recommendation a potential a reach the potential ACIP adult catch-up does market majority You for

Yes.

So I'll ACIP, just by We're -- action June FDA so potential by followed again, followed MMWR. we're XXXX, about in about VXXX. talking talking

or -- going XX-plus relationship it's well. the to in see vaccinated. the data the but data in think you population you'll data are the and of in those that who to as see XX, there. STRIDE-X will presenting in And all you'll I and patient naive and STRIDE-X be as also vaccination population previously will versus throughout X, out I And the see to March in way that, between be think that we're X, STRIDE-X

ACIP, ACIP As but by those FDA, decision. that I digested, will by the importantly, makes is their data think the how probably data the both very guide

BMO we'll Markets. Seigerman Next, Evan Capital line to of the from go

on of some nuances guidance. I was could your the wondering if expand you of

you approval do from assuming revenues include this Specifically, or for they're VXXX? I'm some meaningful point sotatercept at year.

the is for Caroline. question, This Evan. you Thank

As we've our the Health. we're business very across Oncology, Vaccines, confident momentum in underlying across across Animal for XXXX, guided in

are excited very potential for VXXX. also launches and about sotatercept We the

already that can are sotetecept of For there many are we and strong expecting for have clinical sitetercept, that given have, the significant patients treatments data who been launch. the understanding identified have on the they benefit a top we

we'll ACIP this publish, the For VXXX, end approval, with impact outlined, FDA then and for the year. to MMWR therefore, just have towards VXXX expect to as the Dean We'll of wait recommendation. coming expect

to of go Terence from Stanley. we'll line Flynn the Next, Morgan

A data given and the this development with linkers. Trop-X the strategy I for But TROPX need these technology, does strategy perhaps for some disappointing your are competitor impact lung. their recently a at recognize reported the all here? different in TROPXs or all line your ADC increase later lung biomarker

Thanks Dean. is question. that This Yes. for

to I'll now the and the understand it's to stage, earlier very stage, one this way. in our I care, have with beat is unclear for lung, any the clear and need one patient KEYNOTE-XXX And on populations, previously biomarker-selected minds, KEYNOTE-XXX. focus in I've in especially significant we a have patient in previously, that a one order in may standard impact we an said OS both in So have of back, it step population. to would just think as can broad have what are those And of that important ADC as in clearly said that is standard in advantage KEYNOTE-XXX care and data. What to that a the late is substantial roughly or XXX it's of ADC

And data so previously. And biomarker of important, discussed this. way out that It's does just that would there's where really doing data saw it's of people way retrospective that we've not are thinking there I in also change our the we thinking. the data add

strategy any need we world. efficacy patient that true biomarker in demonstrate the prospective throughout a and to us population, that one can is For be actionable easily

Anderson Research. line Wolfe from the Next, Tim we'll of go to

in This just that up Tim. Potentially, Merck China. recently doses ends people, was out approved if on Can wondering supply just regimen is doesn't, a as perspective many more Merck poses it across X-dose spread problem. that Adam means total. a and more for its if GARDASIL, in revenue gets On We're selling it here? share

Sure. for question. the Adam, thanks

actually that for the time some is with an large. actually market Chinese market. there's in competitors Chinese So been And offering

urban females, the over believe million X which little to We -- X in Tier women. cities, in just continue the about XXX million XXX a is to the Tier eligible is cohorts

so probably actually And that, have think received we of vaccination. about XX%

still million eligible So population. XXX you're at million, looking XXX

look as we we've maintaining you're most majority local the of than market. at the been really, we've to competitors time, seeing vast We're to a and private go to a in population seen the lower-tier over different and share this targeting. And As be of we very cities continue competitive.

will ourselves So the long our are and is change we we China our the not of about view in changing to that talking positioning potential But Obviously, continue continue there. does view. to succeed not term. to you're growth competition there, approval face

if I we the in authorities end GARDASIL also further At for our may, protect the have we females regulatory add, only males. to significant submitted China. XXXX, data is on opportunity The to of

to we're the in So introduce hopeful the Chinese future. in market that

line Next, we'll of Bansal Wells Mohit the go to from Fargo.

one VXXX Congrats Maybe well. on progress. question as on the

Pfizer recently comments adult So made has point. shrinking market at this around

you you're a on peak the VXXX then market? taking adult do how from could comment context shrinking share the So you of in see market shrinking opportunity for and

I others to don't as Yes. think at size comments, the market and I'll But to speak I then Caroline comments that look want start have jump made. well. in and can the as you

coverage, think, XX%. important understand it's example, at incremental PCVXX, to I closer about significant an look if versus, vaccine at bring as it's which a to, that as brings we XX% also think just I you

on impact to think disease. have both So which you're the coverage, how an can you at think catch-up about incremental cover significant looking I

causing have As serotypes disease, prepared which his us. of XX% is X covering we in comments, to is unique noted Dean what

XX plus of potentially that, catch-ups patients XX So and as will that able plus. versus have go be and we for implications both to terms to think in well as

if see us. as for So take all those very this a into account, opportunity of large we things you still

it's about billion is view of Our $X in We later pediatric growing over about actually 'XX. $XX anticipate with that an that XX%. market it be the is decade. billion the And in being segment to

looking piece. we're of adult So is XX% the what that is at

contributor. both a see will a very growing we a as So a be still good and we it, this that remain confident And VXXX meaningful market, have majority share is market.

JPMorgan. of the Next, we'll line from go Schott to Chris

development. trying R&D business of obviously -- assets years. the of just stage kind I'm consider sense current has asset the get to just size that on of the kind question given active you very the allocating amount capital company bigger-picture there. making you're of The been past a you're investments of few and a just the And and Just

lines thinking and focus? guess, prioritize? specifically, are point, a that, that the along earlier-stage I we the look be would deals at would So more assets or about Or should maybe be at Acceleron of of this still deals an Merck that Prometheus

to the first, your Yes. I have the in progress Chris, team been the and question. have pride and want I thanks making business weird think, reinforce to both underlying way, a Dean do and for the internal to which we're I the in able what just development, able what some is, do through in question. pipeline Obviously, we've meaningful the our been in ways,

our continue size portfolio business As believe if pipeline, the are find And Prometheus, we of we've say interested to Acceleron very very I and assets. deals about progress portfolio, development. while diverse will do deals more, we like the of our we we feel still we in I today, the to great views like in, here can and have we good prioritize that the deep we need in continue growing would are sit made

do as Harpoon. with saw area clearly, But well, deals you also of like So that's smaller an what focus. continuing to

are it to range $X to billion, be So for. of where of that see also, similar did to we it's very but a deals. with what collaboration we've obviously, well, as very look tool in we shown then $XX kind continues that you Sankyo. And an doing Daiichi billion important But going acquisition, an I as only not $XX X we think open billion, we be to look to to will I as think,

we're deals that fit be going at So including the to full those categories. suite looking and

we'll to Andrew Baum line Citi. Next, the from of go

share ask ACIP I that suspect your may want to I you prevent was going of you about revaccination for expectations on the view. to patients, not recommendation but vaccinated

I KEYTRUDA. you cell in instead, maybe about could SKB running ask combination first-line So TROPX trials with that the you're non-small

of a internalization biomarker PD-X. data TROPX academic the primary that who suggests resistant Some published are in recently to is patients

with retrospective that And old analysis a not exploring in it's just data I real drug settings. it the and given that layering to to And the fake assuming of seems in, to But is profile caveats an bone completely and a top. that, have like you of more in chemo given drug the sensible it on other be population combination be can signal. terms take So do would seem the this marrow suppression?

Yes.

our and answer relationship specifically to broadly an in just compound. TROPX I'll more So ADC as

us is quite lung that relationship for profile. is patients cancer the to extremely It's One is adverse profile, to and its manageable. especially readily good useful of lung effect toxicity, things a

paper and relationship. those the for your of important is the do I us results think of terms that are see But also internalization and about In do to us that's that the talked think consider. about experiment for to are important you what interesting I papers I things and one question the to this, in think clinical

move with if think those about first standard it with is are also has impact. to what an clinical impact ADC have how through therapy question combine linker do team payload, the TROPX to chemo/pembro you you care We with it TROPX-ADC, is, then chemo? our are combine you questions of especially And Do also an cancer do will important of an think we standard have had but in is. will care you combine impact. of that? the think that deeply that line a and deeply How cancer. And KEYNOTE-XXX PD-X? TROPX confident you want line basis. that what in ADCs our I you about, have And breast thinks believe it? lung we Do the that

to about different to way one has the first line. how one all TROPX advance think So a would lines from

in So those considerations heavily. come quite

Seamus the Next, from we'll Guggenheim go line Securities. to of Fernandez

and the patients a anticipate little updated face delivery as I to you Can would to of the just well new benefits XXXX Part drivers as cap the on given from payers' how after economic the talk this treat there. some Congrats catastrophic be B think there biosimilars subcutaneous being the benefits D? modality potential could of from how Part guidance. you KEYTRUDA But this. quarter to struggling payers potential of see shift acceptance bit about KEYTRUDA, in

Just color subcutaneous of just more economic the benefits, on bit interested not the to a patients the benefits have little KEYTRUDA. of

Rob sometimes question, there's prepared of are you is So for over and oncologists, something hyaluronidase to why this have thoracic provider, need who to and innovation I'll I the linked is as where of to question of clearly Caroline provider the have economic for is way like you pembro the hear then physicians systems Dean. the them interesting have care cancer that KEYTRUDA first -- call quite perioperative may in the speak with oncologists outside CT and for care now, emphasize, alternative a base, have in the only plan inhibitors doing constantly that actually given CT a understand different And from we RCC. I which innovation. I'll an and speak approvals, they to earlier-stage the or in a constantly, moonlighting surgeons KEYTRUDA regimen. and is get a right given and of the hand really X. In of I'll be all situations a many take to payer provide. oncologists, make to the speaking X who relationship the to this, they the meeting thoracic just we you I've major surgeon want lobectomies a that to resection approvals. QX, are with our benefit center thinking those it's it the that medical how of we setting that QX to major X -- about is very going came that, either subcu remarks, way those because sure a KEYNOTE-XXX is checkpoint X and category to and cancer. from have bunch them, hear just just as types, about also KEYNOTE-XXX. a in related the are medical said And OS early is And lung what

demanded that I pembro So demanded is the field. is innovation that want and going be an just to to being plus hyaluronidase the subcu is emphasize by

premium cognizant generic context the any on this I Yes. Thanks, the get questions this demonstrate quality-of-life the commented have this our little a subcu a afford But economics, a also to and be But bit that the of settings. think benefits about to very price. does we we've us think for market from ability we view Dean. IV pembro strategy perspective, commercial in is a and on our bringing to the brings various And in the are will to version. considered as

covered in when do where different drive we shown for we at means prices look and will to very history subcu the you So conversion, a them. for to see our more at which will line and the manageable volume looking expected really today would price you is version with has for premium and generic delivery payers by be that at

out also in perspective, into cap, as if should to Part and we patient are which versus this. The being there it far the a Part D, you D we does how the see whole plays correct of of to which it sense, a be are in category, question have But that is going of end chance, with that will to with Part as think So out manage then administration. reasonable new the think ultimate up in we'll B could that they're from able side we conversion. burden a some lower coverages also face, help catastrophic the

line Next, of we'll from Geoff of to go Bank Meacham America. the

drivers sure reasonable there's until the on margins I forward, whether guidance margins, Caroline, from think a looking the other and forward going is year, was year a highlighted this which as you target mix LOE? benefit or this impact I if wasn't KEYTRUDA But expected. could GARDASIL well. KEYTRUDA

the question, Geoff. for you Thank

over years. as all of So know, number you operating a margin progress in our made expanding has company great

that's royalties improve. being And of to by behind mix by revenue KEYTRUDA look in the really and do we operating to expect driven our of and As we've line margin that strength XXXX, invest GARDASIL, of noted expansive pipeline. roll-off we while the fully on we disciplined our expenses, top the

as is portfolio launching the focus drive But ensure we fueling our that margin long than still a and pipeline to XX% to XXXX. team the into supporting products greater are of in to company the we're as we XXXX, go of a really an As we growth point term. operating that beyond

Cowen. Steve from of to Scala TD Next, the we'll go line

I how positive, And that not might this product far be could believe And just this It's it. billion that Is that be correct? a antibody out this assuming Merck be soon Merck off, Phase is odd and could and talks on market? monoclonal registrational how differentiated the RSV Merck $X the from opportunity, by a II/III about never year. little study reads Fortis?

I to pediatric the the antibody, it's antibody, an the season believe I passive population. talk to and and monoclonal weight-based, we other It's birth. in This immunization, about not a so really early relationship it question, single for a it's This for relationship RSV it's the In has will it. appreciate choices. is shot. longer is

Medicine emphasize series vaccine, that And so also the this a just said islatravir think it's readout, RSV very antibody. I and that very that more an move that in important New on Journal and we're we would then the our also results from and not NRTTI previously I'm forward see to quickly. the And of about. And of papers, to of RSV, other published we're excited interested our MK-XXXX. monoclonal intrigued I've also NRTTI, broadly but moving dengue ID we're very in England excited

be that out able We'll to see will this year. also be coming So those.

HIV seeing RSV. the just interested to It be that that this in it the and data out is was there, dengue is going the across year. is it So we're very

the just Yes. expectation that the ready would launch build us, XXXX. And the is a in not weight-based then commercial to which question, administered in shot. single what be obviously, And timing recall we're to full covers be a fixed for coverage in for -- market months. dose, We're our that season is differentiator Steve, working on And from X a RSV, that X prevention maybe, season for to perspective, perspective, from our a is from a we XXXX.

is of those the site very the different for thing us low I'd we things. And all for action So than really, has think, resistance note and risk the is us, last of development are of is important competition.

So we this. on are bullish very actually

things I about. sometimes it, talk about dengue, we're think to But frankly, which obviously, excited bit, many a mean don't about not doesn't little than other later is lost. this frankly, this I talk us. and/or huge because so we It dengue believe good we but it gets still for have

things It just are breadth about. of those we're So the have. reinforces excited the we portfolio

Chris Shibutani go we'll from Goldman Sachs. line of to the Next,

If that I ask a about essentially immunology, could Prometheus reentry into acquisition. the with realm

learn to on immunology just on us the If should also build platform. expecting being what to and update you out could perhaps be what find further we you interesting

with has Crohn's in from disease. about the the relevant Should Share in Merck clinicaltrials.gov something a could be us it observe Phase maintenance views treatments. from on hear to then And the year the What's program? you not in appeared to of think further, Specifically, we to particular, immunology on immunology go different lot in cell some II where data a presence there? I UC expect XXXXs. results advanced is oral excitement the did the therapies on there on take enrolling. you update modalities, of start that

Chris, and expansive question. question an a that's great

antibody. the relationship TLXA So let me to just in hit

moving ulcerative that's been forward. that's our moving colitis and listed forward, have We trial and

super than is to probably not the its I'll in myself just thing look different I remind out TLXA the TNF for I I But run-of-the-mill be think trial reason ability TNF is inflammation fibrosis. family. really is may dampen in moving. think getting important it's The Crohn's me but disease affect TLXA that that really important the

Crohn's disease be this. follow in important. and in has our Crohn's And going -- will strictures it follow be from That disease, look TLXA disease will to in important lots also to relationship scleroderma. data of to and colitis So lung ulcerative I

been acquisition you within with we interested previously, in other assets already that. I emphasize compounds, is the that there are with pipeline forward? are platforms moving is, which the absolutely discussed that are those or question as also and through that other Prometheus and that's answer then The well. And So would advancing have other the did partnership we had yes.

in immunology. had cell I with a terms of think question therapy you

relationship now, probably our at we've not that more know, of cancer, in exploratory. in in -- right I be been little but looked we've as is there. our especially But one view more solid, therapy cell therapy in bit more to tumor, a you think of we've immunology there interesting a similar in to solid when cell bit And cell therapy exploratory. might view little heme is

Cantor And the to for our of we'll Chen Fitzgerald. final from Louise line question, go

it. ADC or what to expand you add platform, your you want on any you I now feel enough just for wanted interest have or to And in if to you radiopharmaceuticals? is on ask do that

much you Thank that for question. very

linkers, tissue to tissue the which think targeting, in when but no clearly relationship think the the chemotherapy-based of other payload as of of So antibody interested continue targeting do potential we're about will that also movements think into evidence fields there also peptide longer other payloads, And that and ADC the we specificity to by but ADCs. be we sort I other change. There's I answer develop, possibility conjugates will well may drug compound-based. in is the the as think you the is,

So more we're tissue are interested interested. that. In we broadly, targeting in

in engagers. a proposed sort tissue as, tissue of acquisition that scheme going interesting okay, our we're tissue IO move Harpoon helped view -- relationship precision to targeting is we we targeting and and also the that's has very of our very is so chemotherapy asset medicine. relationship targeting, with And to that toxic by really in into interested foray sort space that agents that chemotherapy in But are in immune cell making how to

thank and all appreciate Louise, that. Great. sticking the lot you appreciate really to one of Thank to mostly got for a so you and questions questioners, you, We good question.

any be please you. reach have to seeing out If Thank follow-ups, IR. you you soon. We'll

Call. QX your disconnect all in Conference concludes & the day and a participating Thank Merck of Sales at rest great conference. have That and Please you today's time, Co. for Earnings this