Merck & Co. (MRK) 30 Jul 242024 Q2 Earnings call transcript

Thank you for standing by. Welcome to the Merck & Company Q2 Sales and Earnings Conference Call. [Operator Instructions] This call is being recorded. [Operator Instructions] I would now like to turn the call over to Mr. Peter Dannenbaum, Senior Vice President, Investor Relations. begin. may you Sir,

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

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

we of the harbor costs to to in made out is and have items, that the actual safe be are have statements. I'd our results certain may that the such meaning beliefs U.S. based as excluded like GAAP our set or we press provision remind in on within statements also materially some we prove forward-looking the our reconciliation Private There in other those and a materialize, our results started, Merck's non-GAAP risks of underlying subject these Such Reform acquisition-related forth may are XXXX. get we assumptions management the today and Before inaccurate will point from current statements the that statements If items Act uncertainties. of charges, results. considered make significant that from restructuring of and Securities forward-looking release. I differ Litigation you of uncertainties

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

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

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

lives strong to remain the around year. as improve purpose we leading-edge save Our power of science of by demonstrating business guided the harnessing first We half and is exit the our world. momentum the of

and deep Our with teams with for our and our scientific, innovations milestones goal we're advance medical excellent significant for the to working more needs. Through solve commercial are dedicated future and for tirelessly and reach execution, pipeline achieving company operational that patients unmet additional delivering ambitious patients. portfolio our broad commercial of

diseases. the to further now our effort strategic pipeline. another our execution candidate an of This have launched significant area This introduced quarter, the have closed we're in novel retinal to treatment brings pulmonary hypertension. late-phase committed potential expanding opportunity adults CAPVAXIVE, which of novel acquisition and to We We're to our EyeBio, successfully also has suffering proud treat recent a of WINREVAIR FDA arterial by the pleased approval mechanism with designed value to unwavering recommendation. remain development of which substantial these for of first the subsequent specifically new for unmet to need. well creating ACIP of the adults recently adds as approved and mechanism for and commitment Both to announced shareholders. And Merck patients pneumococcal our demonstrate commercial innovations a promising expands business conjugate the ophthalmology pipeline in we vaccine as important medical augment

honored advance necessary At Merck's of affirmed Health aggressive and Animal years to evolving of in as future which acquisition and to making biopharmaceutical investments a leader important augment company. and production premier this of a a that business the business patients. development our and be then, addition, In I both progress I uphold the research our benefit time, value long-term strategic development. Since Merck of through innovative vaccines our source the intention we've and commitment to the in science animal as pipeline to establishes science-driven, creation. closed Elanco's communicated broad made remains it the patient-focused build Merck's top role substantial with internal CEO, on priority as medicines of my aqua external ago, expanding it legacy I business, in pipeline was step the for and category. Three best into our to appropriately

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Going future. our are aligned strategy. long to shareholders value and positioned forward, the to I'm into and our to we I'm ensuring well actions confident patients remain with committed deliver that

our to second Turning quarter results.

our across updated reflected strong our demand which guidance, in year a continued will achieved full growth, broad is moment. in to speak reflecting which just portfolio, We Caroline

patients broader new seen the of efforts to very by launches. In favorable cardiometabolic, our physicians, availability we've WINREVAIR. to reception research and and payers Turning

an expectations. written and also received model a with are our of future. While still the Europe high pleased rare and near We've to CHMP has being forward to positive and regulatory prescriptions gone increasing U.S. in approval obtaining patients opinion early, launch disease in see number the deployed access. focused customer-centric potential in a look well, very We've line own

and bring continued innovations opportunity we've to continue living tremendous devastating the to both positively of to We forward adults patients a see disease. In impact this with for vaccines, lives children.

of of prevention and pneumonia the recent We ACIP adults disease pneumococcal of recommendation. CAPVAXIVE invasive the for FDA in and pneumococcal unanimous approval are proud the

market Given We results of that trial we clinical this prevention announce IIb/III the in profile, a infants, adult market. clesrovimab, for important its were from swiftly Phase line achieve share to the majority our also will and top positive for in RSV pleased bring antibody to investigational the are compelling setting. clinical expect monoclonal CAPVAXIVE to option we moving

the and our at KEYTRUDA. multiple of success made event on pipeline novel Finally, We progress ASCO care our the candidates of to over we've term. standards maintaining and presented building of data oncology highlighted commitment the demonstrating investor broadening significant advancing we our in the long from leadership

company, tremendous to patients with and others portfolio. we've work bring we Together, to focused of forward global team. continue to highly progress I pipeline our these innovations As and summary, urgency again we made and significant our the efforts serve. In remain want diverse recognize a for the across

we've over of for and patients patients, into that future. With of for the well stakeholders our deliver the years, is the a value Merck advancing company, turn that, science to to I'm benefit and Caroline. to As over XXX confident all well shareholders been positioned to call I'll

Good Thank morning. you, Rob.

the excellent portfolio. global conviction in growth another our excellent are noted, by remain the demand investments value to reinforce to execution and in have and we making confident ability strategy. near long-term the of results our are by term robust our for drive disciplined driven These to results teams customers with our to delivered we science-led We science compelling Rob across in in committed innovative enabled strong and shareholders. quarter continue patients, As deliver

on XX% $XX.X or an the excluding turning to foreign revenues increase ex-exchange an of of company X% following will were Now be our billion, results. Total exchange. basis. The second comments quarter impact revenue

business growth primarily Our its of Health Human oncology. with momentum sustained double-digit driven XX%, by

in by Our delivered X%, also products. business sales Animal increasing livestock performance Health with solid driven growth

for key U.S., by now high continued building XX% chemotherapy-based in of was of existing platinum advanced KEYTRUDA Padcev metastatic and surpassed broad as on KEYTRUDA continued intermediate cancer. KEYTRUDA regimens KEYNOTE-XXX across or patient market launch driven renal following grew including from to cell strong In growth. stage and therapy. our than increase breast with uptake performance of uptake billion, continued the well WELIREG Lenvima brands. In the position new as leadership increases contributed its and of carcinoma saw disease. metastatic with previously uptake high-risk practice doubled carcinoma. setting, start. Outside earlier cell recent demand cancers each triple-negative urothelial revenue also patients in earlier in cancer $X.X Argentina In cell leadership from early-stage sales in by KEYNOTE-XXX global certain growth advanced has use grew disease, the U.S. X%. earlier-stage Inflation-related in largely cancers, increased increased lung non-small neoadjuvant we indications. high-risk now Alliance to consistent KEYNOTE-AXX. to settings, renal in more with In adjuvant the metastatic plus strong attributable the tumors. has the a certain and in sales the to $XXX strong adjuvant uptake treated oncology, KEYTRUDA range driven cancer Turning driven by from to from Lynparza as KEYTRUDA demand achieved million stage was and market grew patients price increased first-line

In driven increased shipments sales higher to the GARDASIL $XXX CDC price purchasing $X.X and launches billion. benefited ongoing demand by XX% Outside the to offset timing as X% well in VAXNEUVANCE markets. many growth. was as solid was of markets U.S., across increased pneumococcal, demand partially international U.S., delivered by portfolio Growth patterns. sales the sales In to vaccines international million. Our favorable from China.

by with of the recent impact the As FDA with about favorable, recorded Rob noted, patients of we due doses are with in March in very month is patients positively launch of strong demand. The been adult off Initial we opportunity a administered the We were approval that hypertension later. on to WINREVAIR. inventory quarter. patient has XX% to receiving one therapy the pulmonary support distributors arterial following sales of XX the million feedback U.S. remainder and $XX to Recall, lives physician first received excited we launch the approximately of patients. building increasing estimate attributable to start. and sales to

than the a As WINREVAIR. X,XXX of end for received June, of more patients prescription

with advanced XXX XX% date steps more with written would May private Of than reflecting greatest with X,XXX quarter, suggest prescription in physicians that larger additional from written patient practices. than treatment they prioritize approximately Our the large approximately the in largely commercial academic experience to as or at to to and April currently therapy. centers XX% prescriptions treating the one necessary to who the will month in are More to patients product takes least have those, as looking product. it need one those experience therapy. of prescribers many receive commence gain Most are complete either prescriptions most started

are policies coverage payers pleased access established providing while or of recognizing the criteria, consistent enabling continued that summary, policies. to the already for value strong start process label forward and of We the with progress the with months. patients. study are over are others their pleased access are in appropriate payers in coming Many STELLAR patients and the developing In we WINREVAIR to are look have

X%. business increasing partially sales offset by and animal XX%, grew as demand Our X%, sales solid another a by price. products as Livestock with delivered reduction inventory. sales ruminant Animal in price, Companion grew poultry Health quarter for driven well distributor higher reflecting

KEYTRUDA driven walk points as development $XX.X We billion. margin launched non-GAAP of percentage expenses excited for no BRAVECTO as a to will an business $X.X compared charge the and P&L, during our number decreased ago. of now year basis. Gross by international injectable billion expenses through quarter in There product reduced on to Operating favorable significant GARDASIL my of with royalty the was you increase rates comments be will the also XX.X%, a mix. were remainder and June. X.X are well a long-acting a have I markets in

late charge, million. expenses robust investments promotion promise to and pipeline key the support this drivers. the reflecting our and and X% of phase grew of Other Excluding was our expense strategic realize operating early $XXX growth

Our was tax XX.X%. rate

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

to be our $XXX raise strength and our guidance. Now and We approximately year turning expect to non-GAAP of continued million operational between enabled of at narrow increase $XX.X guidance. The full us billion midpoint. business XXXX billion, an revenue $XX.X now our the to revenue

point increased year-over-year rates. strong Our foreign revenue percentage exchange using to impact mid-July X%, negative X guidance from represents of growth X% including range approximate an

EyeBio $X.X billion between and Our charges billion. assumption onetime advance our as and cost expect operating to approximately acquire to now investments the expenses gross incremental $XX.X be an related reflects range $XX.X as remains margin asset pipeline. of to expenses This well the billion XX%. We to progress innovative ongoing to

million, expense acquisitions Other and development As significant of aqua approximately does reminder, which assume for to a the $XXX guidance be transactions. our now includes additional is costs business. potential Elanco's EyeBio not expected business financing

impact expected includes outstanding. to is X.XX the assume year an We tax which that XX.X% EyeBio billion tax and is XX.X%, approximately to rate full acquisition deductible. unfavorable be between not Our now shares related

Taken rates. or Recall $X.XX billion charge range This $X.XX a together, was we expect mid-July from the $X.XX of guidance $X.X to $X.XX. foreign includes using and range including to more of $X.XX share per of of exchange EyeBio range negative $X.XX with a the our $X.XX. and EPS impact our onetime well estimated of the to than $X.XX $X.XX, EyeBio the prior midpoint business $X.XX related an and Elanco to aqua to as acquisition assets been guidance transactions, as advance would have finance prior

is Our offset the current our guidance midpoint revenue by estimate remains being investments as support to our increased business. higher same

We forward few are there adults pneumonia invasive from following the models, items approval pneumococcal to As and disease certain to look the FDA protect of help you keep recommendation CAPVAXIVE. in and mind. your recent pneumococcal consider to opportunity a

working the coverage which well few uptake. months milestones that We payer with enable include lags achievement contracting as by an weekly and These recommendation customers. typically certain mortality of are ACIP obtaining morbidity will now milestones report, and in towards a the commercial as publication

levels GARDASIL, in to X the XX-year strong with in second step few Zhifei. the significant In above however, past cohort from X- we've vaccination GARDASIL demand partner, the in there age from over commercialization a prior Zhifei, years, quarter, XXXX. to the indication normal including quarters, inventory expanded benefited and distributor the at points from our of resulting For was late compared extremely in into down of China shipments

working change. fully dynamics to more them caused are We that with closely understand the this

this do and our bring ship back learn their China As Tier attractive to XXX will we X in we end of protection the less vaccination than contracted who year. We into more Tier full believe normal are in likely vaccine. an as year Zhifei levels. to our partner doses shipments the addressable the opportunity not received more of in is living females by the it shipments there inventory assess more, increase, we of points the from remains to have will future If very than million HPV work not cities that to X yet XXXX population

wave we of As of and investing GARDASIL focused important the in on increasing patients. on before, take will we and said to efforts education provides. Together with activate Zhifei, given to resources it patient educate and value benefit the are next committed the additional it

by which we achieve continue the We to broadly, also believe look sales $XX forward the opportunity. More the potential HPV-related approval low meaningful globally represents we billion confident in immunization against will overall, it provides to and opportunity GARDASIL cancers males, we on levels and of protection remain for for over XXXX. a based believe

is having Our for of WINREVAIR initial a launch impact positive patients.

opinion U.S. pleased positive in and Europe. CHMP potential and in We we are the globe. Outside the performance look patients across launch supporting pleased very are with the U.S., the more its with to and forward near-term

in EU and will which will launch We expectations on in with to expect year. in further obtain occur Wind we need launch progress. receive and markets, updates providing forward our most the should XXXX confident that Germany reimbursement look our consistent of approval, this but River major Following successful reimbursement high to remain

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

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

address pursue pipeline are priority, expansive committed plan invest of remains unmet science-driven value-enhancing positioned and to development of increase well We potential needs. novel continue which in to our Business will important it each have additional transactions. and significant time. our We to we remain over to a to dividend candidates, medical

to patients, to and save to second by commercial well execute as are I'd call unwavering we of patients the half We to future. With conclude, execution driven strength a our that, investment continued of the outlook Dean. the and in is confident into focus to customers value share and of now leading-edge our we improve and well business and lives repurchases. To over on there demand ongoing to like positioned leverage our continue modest science turn the will our shareholders in the innovation now global year, driven to commitment with level enter We in deliver remain by execution.

clinical first Thank science-led second progress milestones will programs in several quarter followed you, vaccines, in with development Caroline. I as Momentum the business and to as cover disease. oncology, strategy. Today, in our continued cardiometabolic well regulatory speak then by

important noted, Committee vaccine pneumococcal first the pneumococcal invasive as such, last a Rob for unanimous health also is help has individual approximately CAPVAXIVE invasive CDC's Immunization surveillance of Human option. against disease those designed CAPVAXIVe, Committee provides pneumonia for of certain an As years and, and disease vaccine, use by the It Agency's for adult serotypes pneumococcal the review protect its on approved month, is received in from marketing XX been valent older under population. CAPVAXIVE FDA Medicinal specifically and for adults generated new European we address the Practices pneumococcal incidence based responsible Medicines Advisory our of The subsequently public designed XX recommendation application Use. authorization and to the Products to XX% CDC in conjugate data.

IIb/III will We alleviate surge birth to full clesrovimab, measures. one for option top Recently, XXXX, year from we secondary hospitalization. Detailed regulatory preventative their the we a syncytial under plan infectious evaluate XXXX results virus the of season. as need reinforced approaches burden the RSV as RSV primary effective met incidence infants regarding for antibody, well safety these global cause preventative announced help leading fixed hospitalization a Globally, endpoints dose trial, continue its infection our positive historically investigational novel infants age. high scientific the through to Phase efficacy season more of single for file in healthy and first protect otherwise to clesrovimab be The In is upcoming of and and of study a data respiratory congress, line with to authorities. findings RSV-associated this an endpoint presented at disease.

Now oncology. to

During comprised the pipeline of immuno-oncology, investor have leveraged diverse executing how our strategy KEYTRUDA candidates. precision create we X-pillar on event by and at foundational position ASCO, to molecular targeting we a with detailed targeting tissue our

progress many met the approval granted last KEYTRUDA on priority from data earlier-stage KEYNOTE-XXX development received survival previously oncology the gastroesophageal FDA an was similar formed advanced chemotherapy treatment survival the the that the indications, advanced KEYTRUDA received flow immuno-oncology, reported overall trials. for the cervical to has on junction its China combination XXX-study. Data for demonstrated FDA these endometrial has KEYTRUDA cell including patients statistically cancer across Medical in dual each or overall cell action set the the renal treatment chemotherapy cancer Phase that regardless overall breast FDA This or of of positive review this for survival, and for Administration approval the status have XX quarter, unresectable trial. breast September which for been demonstrated KEYTRUDA nine based non-small has with triple-negative receive most standard high-risk we is or trials. XX lung built cancer, first-line recurrent year. PD-LX tangible benefit benefit achieved for in announce a gold We in XX. in significant to date demonstrated and first-line a for triple overall The based of The with and FDA primary in study, U.S. approval immuno-oncology, quarter. Also benefit. received III of Products National of repair early-stage PD-X basis overall based were the studies, In pleural for survival announced on only and combination mesothelioma in the indications cancer. We gastric target pillars. A KEYNOTE-XXX primary overall has malignant now results of to clinical advanced the the an distinct significant to HERX-positive on These of now mismatch date cancer endpoint survival in with including or four adenocarcinoma. pleased approval continues for which metastatic KEYTRUDA carcinoma, from survival from KEYNOTE the program, treatment statistically patients benefit, recently, negative in the approval KEYNOTE-XXX made

replacement pivotal to with for for opevesostat certain Next precision to option combination OMAHA-X in targeting. We oral the program Orion. ongoing. Phase of collaboration an patients inhibitor development opevesostat, molecular therapy, exercised nonsteroidal the Two prostate with and of our CYPXXAX metastatic exclusive with through treatment evaluating III advance cancer, OMAHA-X, trials the are hormone

Medicinal opinion in tissue metastatic European the patients positive passive Lastly, Use first-line Human Products with for KEYTRUDA urothelial treatment with in of adult or targeting the the adopted space, Medicine unresectable approval for Committee of Agency's recommending a combination carcinoma. for

locally announced and metastatic FDA patritumab We letter portfolio of non-small Letter EGFR-mutated The or of are with more broad a own previously Application Daiichi of conjugates receipt findings also adult an from advanced third-party antibody drug advancing or License certain Daiichi with treatment of program. Last treated as a the systemic as inspection well site. month, Sankyo the with therapies. was our for Biologics the deruxtecan, diverse issued Sankyo, a Kelun-Biotech patients for of from internal manufacturing Complete on together two Response with based lung cancer, cell we

in note, nor in with the either the FDA CRL as deruxtecan. We are support Of address manner. raludotatug they findings bearing with deruxtecan the the feedback on work Daiichi manufacturer identified timely ifnatamab have and the to a working provide appropriate to no Sankyo

cardiometabolic disease. Turning to

positive on indicated, Caroline were from a approval for Products as decision quarter. recommending hypertension. the Commission's application European for option in authorization marketing Committee pulmonary a Building is for is The in certain there Human Medicinal arterial with to the expected patients the strong treatment the Agency's Use, third the of WINREVAIR interest physicians European and opinion U.S. pleased patients we receive momentum, WINREVAIR Medicine from As this for on

diseases. our potentially best promising of of macular first-in-class macular to pipeline neovascular late years, acquisition this One team the Finally, tetravalent solid the with previous business degeneration closed the recently our pipelines to candidate a efforts the as approach. edema leadership external candidates. In for that age-related in diabetic advance investigational the tri-specific antibody development remains internal memory. We includes past built eager focus phase, through and successfully with retina an strongest our EyeBio across seamlessly science well Restoret, established on Wnt integrating MK-XXXX, the preclinical assemble strategy execute targeting on science-led foundation pipeline continue we to and to additional on closing, over have acids as we team are X-plus medical the a significant EyeBio need space by teams one talented There these in work recent alongside our

have in and expanding We immunology, in infectious and oncology neuroscience strengthening diversified while other therapeutic areas, disease, including cardiometabolic, vaccine.

We I I back providing the now further forward have our on to strong and look momentum to updates call turn progress. And Peter.

Thank Q&A you, Brad. We're Thank Dean. ready Instructions] [Operator you. for now.

will [Operator come first our Schott And Instructions] JPMorgan. of from Chris question

just I progress. the just on here. GARDASIL dynamics question a kick to a on just off X-part in question Maybe China. with Congrats want

an for the of to quantify maybe are part potential hands this. coming reflected represent the shipments First, get come played XQ? any Or trying headwind drove that in doses in guidance? additional percent XXXX sales China? can to the international my And what is to below that, to that from color would around just XXXX you just extent And your of update, numbers as now the I'm out? down the incremental step what on that guidance contracted

XX% ask XX% to first question, and Chris, the Thanks, To guidance. numbers. represents part of China take to question. on your maybe Caroline and then the of about Great. about comment the thanks I'll [ GARDASIL for ] And

to going. look it. on where saw of the maybe some kind the sense a and see to what we and in full year as But gives things we context that So give you we quarter of

against opportunity very with eligible in yet eligible let start by HPV, and So to million I diseases the for protected clear bit Healthy is China be exists think recognize aligns XX% the with of GARDASIL protection than we little maybe HPV-related to remains China's importantly, of more XXX China the against benefits a XXXX initiative. about me which XX% talking attractive all that represents females dynamics. The population. in And about

believe to underlying continue there. So support, we the is

indication, the for mail filed significant has have and we been opportunity. accepted addition, which another In represents

in So to step think down and vaccination. The have from it's as unclear a in during we've that all was to important because understand, meaningful think saw quarter, to of of second us I What's China, continue XXXX prior surprising, into set we context a opportunity just trends to the second we understand I departure significant very really shipments about was the out a we market. seen trying during from China to of reductions is quarter want we're both what to I meaningful and would points Zhifei XXXX. the the throughout quarter and the point first the

track what factors indicates we're market at we So as And the this, what happening. But know look overall, the there the multiple wanting be we our we exactly that we we're contributing to you tease out cause we break whole HPV as experienced understand step could this tell of is dynamic, and be working closely data this in with to would partner down. what that can to China may trend believe to try saw. I now is

see any CDC but leader. actually do haven't marketplace. change market and up HPV really impact, a to we anti-bribery area We been in seen we which, not been dynamic on the the starting fewer impacted by see Merck-specific the driven you a of that in competitive really primarily it started much in by within as in really that now. or down, We stable vaccine this, anti-corruption believe far is we as step by there this And last believe, reduction year. And to the remains believe are do is result point, gathered, GARDASIL know, this right the China's this therefore, drive, and the based as the fact represents intelligence immunizations. industry, that share health we has So activity the importantly, GARDASIL the care recently a scientific however, we've event. in for increasing now And engagement, don't China in and has market

partner, So same at out broadened Zhifei, support our promotional HPV levels in to did of addition, that distribution reduced tease see we the time for And we portfolio. vaccination more. its need that

we'll we started efforts in activation with get already designed that. But place awareness, remaining more deployed Zhifei to promotional and strong Zhifei resources as drive plan and to to a promotional at very being So need relationship increased promotional have a resources from well of female education and put we to invest Merck. directly in the obviously, have as into this includes resources really opportunity. both robust And resources

learn So partner. as to all how with more, forward, China see vaccination. shipments And we'll we assess shipments the our activities look impact to of to as of point we have these we'll future

that gives in a we're to the -- mentioned we million that Outside for that's you would regions growth the one So we both given look double-digit I across what opportunity other male the remaining for the I as as indication the in of females long term, sense the all saw just seeing. But And hopefully, China, of point. quarter. well China, reiterate XXX potential as

we the important by on reiterate why continue China quarter. our $XX confidence even China Caroline this into saw vaccine. number doing our to comments what you And billion taking So this in prepared we be in and in well in driving XXXX, growth track, account that's heard happening

Caroline? to Caroline So guidance-specific your it maybe turn over and she question. with that, address can I'll

you, Thank Rob.

really in of KEYTRUDA acquisition shipped doses guidance, underlying our BRAVECTO assumed a the we in less Chris, than to business contracted assuming rest we launch the during remain our less in oncology, our high by with raise anchor scenarios of the confident GARDASIL to that's and even that our growth something the as as health of So midpoint we've of and have to to patient has to of been impact including in midpoint have a animal as providing XXXX in in range and XXXX that consistent scenario the a contracted I were injectable aqua the outlook with $XXX expectations. momentum China. measured the year we our And drive includes business, WELIREG. It If that, guidance the million. from fully with well And the opportunities Elanco result and WINREVAIR for of this of terms at able with that. we doses guidance, our providing than

comes of Evercore. question Umer Raffat from next The

dial you the anti-corruption in few it I as little hitting feels Can anti-bribery going the there's of a potential which delays mentioned I more. GARDASIL months year. ahead also just like Rob, know competition perhaps last well. are drive China, just down started of the an shipment market on point some a happening, But

contracting So speak whether any future in China? to intact could GARDASIL will integrity there's long-term your you stay whether happening on and price

for thanks No, the Yes. question.

that So the marketplace, into we we would don't think that well in reiterate, dynamics the very year everything just next to future I would the point could see a competition sometime the we're potential referring you're I come X-valent fact seeing competition, see to the marketplace.

we're So from we've from that what's from I don't believe that, anything as in marketplace Jure the here. what well hearing as competitive intelligence heard happening is

from demand mail in China. the would the as we forward time we that over has comment expansion always peak And us seeing for And drive Caroline Nothing a business forward, As women the then we're have changed of that bring would in to then through move there. to allow indication and we of from dynamic look then age we specifically, cohort flattening specifically. expected should continue can in the out that what the that that on see see the now. not indications right the for you

unchanged. But our think specifically speak guidance we thinking Caroline China So contributor being next maybe belief around about significant the can year. as I'll is in as of some let look about we're how forward, we a

we contemplated would within So add competitor we X-valent have always a would that the is what I market. Chinese have

what the in market. as expect we such, doses to competitor a share that XXXX would current [indiscernible] the which are contracted is likely that gain understand for participate in on would market contract but less XXXX As for

opportunity we the GARDASIL-X We next has in first X ] a said and year. the in half China. of remarks, the coming also, are potential though, stage. we prepared as the with approval to hopeful that by for and market an launch be of And male [ at

longer our of are we confident will that as we've drive $XX part forward and an are important business in GARDASIL stated. billion that importantly, move term, the more we to opportunity confident So the GARDASIL China remain

and impacts as we changed is is much we maybe there market. just means out, very point have not going people the of and And would those and little what about when what we color reiterate, it's did that happening anti-corruption on, a late to because see be it anti-corruption, what's And all, do activities anti-bribery fair, I question understand last worth how bit early support first in we of been since it happening. about Yes. open just I'm year, and pointing probably anti-bribery what's see talk this and one, Umer, could evolving. And one out, transparent we one give assuming think around has we because on China the

supportive how players had representative in of So fact to one we're this effect criminal in at of driving is play us related CDC, all I seen of Chinese to there is assume them But don't that thought brought very some of against to see be we'll But dampening see. because that And impacting the as scientific there. to continue due a color believe to for the want lasts, we local of vaccination. We dampening the this how you I trying there. are we a out, overall. engaging to will and additional aware what was some is that government charges discussions vaccine the has we long would really happening what it do provide have believe this have I could senior scientific how a COVID

from Barclays. comes next of question The Carter Gould

how to Can think sustainable as of is of Maybe sort prescription sort characterize going training of X-month surpassable? maybe And delayed payer or of much you line gears bit. start, that about if the terms can you of And in from there's the the driven? WINREVAIR starts, to see of about just versus pace time sort that and do chance characterize evolve. of as maybe that we nurse sort might you that or a talk switch maybe new a

question. Yes. No, the thanks for

to patients more X,XXX had of than seen end June, as we you what WINREVAIR. of sense So the of give we've a receive a for prescription

convert us obviously, will now, good So product. receiving And our to -- that's prescription tell what about feel of to that XX% right about very would we commercial is XX% a those experience that.

started gives a actually treatment. driving quarter, X,XXX the sense actually, you the in now, have revenue patients of that about you what's happening. Right saw So on was treatment

who So X,XXX as the XX% started to of today, the total have sales. treatment expect will commercial sit the patients have X,XXX converts those scripts we scripts, X,XXX ultimately to here quarter, in you and would that XX% we

some work is after that don't you but they it dropout some go to and driving what's is look through go despite ] due through the so qualify. And and of that script to patient due patients that evaluations medical if some of who a fact access, you also have difference, [ at the will getting

of happening. those So all you have dynamics

the from look access person we -- that XX you think when referring two when a at approval their probably get gets you're to specifically If to, total three that and about is an perspective they a script days from the for period to weeks. weeks

a test, to to you is obviously your to and improve nurse that getting home around But getting to of go administration self come there addition -- WINREVAIR. the initiation and approval, So just have in training administration that. going then insurance schedule remember blood a to your through opportunity have to

much contributing how all those to frame, to over have we'll So elements see. that that time tightens of time are

comes Tim Wolfe The of question from next Research. Anderson

periods going be risk inventory year-on-year is way because pricing works to back that know to China XXXX. it in beyond over only that specifically, likely least really XXXX of is you're of number, a billion and sales contract the here pricing with issue in vaccines The part where GARDASIL. are $XX curve shape does $XX reiterating at actually going a I your Just the seem time which billion be there to like China. in the figure,

to indications going males And are offsetting these to time launch. take other some of like

there So in it could may over where you there be X sales years. next, the or have declines say, seems X let's like periods year-on-year

So if curve, of that please? you could just describe the shape

Sure. Yes.

we as as is of indication, male see to you the go So what And at growth will look to on be will see population penetrated. curve we Obviously, the female it, addressable still we comes then more there, flattening a given expect back do it as in more full. the ramp believe fully the we population.

with end on that then the the pricing important the just is bidding we determining in actually to expecting I Zhifei. sell the operate how provinces point, Zhifei and market point sale the understand So is way into this responsible works for market. what that and to it's the we're happen. And of We think then to ultimately doing vaccination.

to would that vaccine population a we really females million important XXX we're to Tier population, much today. pay we be the believe about X we're in population cash after the XX% think and sought quote an total which of in bigger. say understand look that to the even it's a total That's think is we dealing forward, penetrated face afford continue China X GARDASIL we we in the we accessible in I The think XX% to can when we'll cities market. As competition, as addressable overall highly of

assume because the bigger get China. don't we've produce should GARDASIL to for slice vaccination we're bigger a piece we think chosen competing don't I so into that we obviously, And not program we local all There's small can't much for that slice. go in because

that. to be do will competitors Our able

not all I think to it a So zero-sum view just would I game. caution as

still frankly, expansion indication to have that think quickly beyond the see benefit well. a a given will we is and opportunity along we be market other in I mail as with the the that us. And to We thing us there's there's will could believe be China others both chance sitting competitors. how

that's what short-term the out. double-digit hesitant is little a market to is break would I And we're in separated growth. in back quarters just actually, we because in if why any of seeing our or something had we that we're is of China, the that's strong the event specific, with this in also, point So one and I China. you we've you this themselves And strongest understand expect. happened seen still would not say But in world the what demand think else. And play to around bring was that the fact It's pretty need also would dynamics out that other every clear to what first I just a just the trend not quarter need markets significant.

those out. themselves are play dynamics -- all we'll So that's to have that

comes of next from TD The question Steve Cowen. Scala

would it has effectiveness to specifics. I your But has ]? XX% ] and appreciate hospitalizations compare competitive instance, [ clesrovimab hospitalizations. to half-life say on does byfortis given a -- How going [ highly out how on longer not achieve curious, does that it is XX% for give to you data durability byfortis product than shorter which just I'm you're

Yes.

question. Thanks for Dean. So the this is

PK/PD healthy such. As out, unmet the there you global single This we've something And as dose. infants. not is at-risk point is be given and the that It's a weight-based. can need as from for as a studies significant said, both

going hospitalization hope And the RSV-associated PK/PD to to are broadly. important the cover are half. we at some dose in in to versus affinity vaccine studied confident entire do looking very important, the second is with is X which relationship single the others, we point be So in the that we out announce X, that that's get relationship relationship top which season comfortable We're these We ahead relationship highlight in the was a to prevention, of really session you which and of in would did not a in RSV presentation profile. very I have this really half-life line. the the months. will public to is that what point

Bansal next with comes question The Wells from Fargo. Mohit

try -- lot to those vaccinations. Tier long-term the felt raising in male GARDASIL, cities for I'm it of understand like path seems it X on just a and would and growth to if depend awareness And me X to correct wrong,

So in at based the should experience and to we And X Tier those is do there is, on opportunity I where X cities, China could how think you be vaccination X challenging. the going because, to of double main mean, bigger context? question world, that about your think Tier

Yes.

Tier this we when -- XX% penetrated, actually just we're X across cities, look the to and again, So that X the we're quote to females. is XX% if you to

a -- to XX% penetrated. We're now. to speaking XX% little right bit penetrated. So is We're this females we're less only

in and X. around on think I X of say, XXth kind cities, [ and we're tier XX% to percent ] the we're X X into

to X. between there's not the and Tier a huge X to spread So the X X

continue that -- across which areas all efforts frankly, been to we as the area, doesn't have indication. exercise yet the same different of don't So to it's those that whole to across population isn't is, today fact have will activate a then date. And we we there of male focus because the

on this a broader total you think how XX%. population fits that picture, global remind I all important of is penetration about of As GARDASIL the global into approximately also the think the everyone just to basis eligible it's to

continue outside rest private on the well of into starting we China market across market. and position quite we're in that we as going private parts patients in America about activation, that we world forward, to to part our we So drive activate is We're in and were as look additional continue income when that to a in capacity doing opportunity opportunity the across our way to are segment today activate in we driving that our Europe, as a double-digit getting markets, the uptake Latin past, part middle on able growth to Asia it going in effectively. I see of going be and Pacific of is of bring comment more see and compete to Europe are space costs to meaningful to that the low broadly. We're both globally significant. And in we've talked the and the that's of mid-adult to to

best Pacific driven other the look across with are is vaccination to continue related and will know we We And is we opportunity neutral. And Japan to in example parts across including get and where neck the indication especially across a only cancers, then that. lastly, address there's lot a truly not drive Asia other to still which cancers male if also of then will Europe, market but gender-neutral of and continue in world for prominent, to is China where obviously, is area. to we but HPV, you people work to Asia for gender head growth both eliminate want the a catch-up by as there to China if a need very do, we increasingly to the for are we of where had That and program drive the and with opportunities cervical longer cancer while drive NIP we've there see that term initial NIP well. the males renewed phase continuing fact

overall will of And So in that. long why as us are the to the do for $XX look number important of opportunities shape are billion growth discussion. that's we the think we that's multiple to significant. term. context has how confident The context levers the at drive I we And

is Luisa of Hector The next Berenberg. question from

that major on filing the wondered private please. I a confirm Can this wanted market? that the How And RSV in market much file to what about is is is context, antibody, I year? where you you'll And education there? be this opportunity access in all just up you then China follow required markets soon? can to

Yes.

just So level antibody. let set me in clesrovimab and relationship RSV to the

season filing, and So that not different as we second in of relationship be within to it such data the States. time next year the have different the would of plenary the this our is the at half for some file plan that United In be available will but to sessions conferences season, for presented data, this occur.

And the so that's in of next wave sort relationship.

seeking when season coming no make targeting and RSV season. this concept relationship this to RSV we're So sure to out there's I that approval that licensure. want is next in

on question, opportunity this could the be Yes. And just maybe broader China. an in

And out, are 'XX, would continuing RSV at to thereafter. market a And year. season. I then beyond And go looking next points we Dean are all globally so at point we at. we're will as 'XX markets. look the is We out, global that, looking China

of question Leerink. comes Dana Graybosch next from The

recent ask that lung any looking novel the that program. given of development to see on the and how early to the your of take to the you plans? Do Perry And assume at let's look adjuvant you KEYTRUDA especially of the about discussion? want line current in cancer. you hard line any forward your back that development, in extension phases. wonder, combos stage to risk going requiring label I are on to a was FDA hard I contribution adjuvant And development ODAC neoadjuvant

much. very you Thank

in surgery, stage giving to in in it just to recent of relationship clinical show earlier the we difficult. especially earlier-stage some put resectable about PD-X talked emphasize the always trials PD-LX giving outcome our in cancers And the we So out there's lung, OS very to and it's the provide it context, surgery, the how giving is to ability of before we, risk and that's the issue highlight and after want at emphasize metastatic. What are it the nine approvals. emphasize perioperative. sort point, But four comes overall there's has much a a and would this different with those especially after two it in them or do the I have that -- is discussions earlier-stage relative And anyone in this in before of to curative do that the and the of we I because survival, why surgery. not do survivals four who else the in what's But and it's is just TNBC overall in know survivals. I such. in want track, setting, FDA than is overall is and in benefit have point that up we've we

new clear So that both consider we stage. the I of but consider in program, to you AdComm, standard, platforms when terms -- what but benefit of FDA is And overall with overall gold survival build the think components in that on to a FDA has the FDA recent even more, especially studies showing survival have PD-X have been overall survival the the the to continuing as continue of has also you using the the show also very to we overall top said, and interest add of survival. show that contribution our increasing need something earlier of and agent future recent

question next of Akash comes The Tewari from Jefferies.

really GARDASIL. helpful on And color

Just one here. more

$X.X XXXX looks $X.X and sales XXXX. exceeded looks around XXXX it Looking that like to there's potential the in in latest billion always figure. at like for decline Zhifei contracted however, That's Historically, billion. you've projected around to it contract,

be clear, to bake as sales ] upside in So X over on just get contract we further get in [ to potential decline the mail expect demand? the years next should contracted the for we Zhifei the And approval? clarity renegotiated does

Thank for you the question.

in the this at that we stage So have contract is approval we current on have market. focused the the Zhifei that

on the So population female through in X it's focused really the XX.

that as male As partner we possible. and of we the course, doses have we as can appropriate have move with working a we will, forward many our to males protect indication, be

The is from next UBS. Trung of question Huynh

of end Just June, there big the plus-XX one, got it the those. around a population on never during from to was -- the discussion at product. reviewing

that is get recommendation? So we can looked potential possible a at in it updated for October

was of at were XX in Thank not the that October. vote to much to presented the of that demonstrated over the in that disease, in for working by ACIP, they individuals at actually some discussion they in that all XX-year-old member when we ACIP XX- we, those the a to by comments than said, was and was ongoing the was ] of the the the when reevaluation. to But this you in that to XX-XX data we comparable interest in clear burden pretty group, one points made which ratio that point, actually very up. listen deciding vote the individuals. had [ to we're June notably ACIP greater in I There focused interested so that with missing in wondered back said and disparities I that pneumococcal points that the different ethnic revisiting XX. And thing XX bringing ] went soon. confirmation age black disparities. there a XX on what for the get to I recommendation invasive burden revisiting I had or most in million. And ACIP on. discussion of a there we, lot very of because whether meeting the some not member that want that to formal in group we were discussion. universal did the that especially were ratio the needed who the enduring be decide have [ me the have And resonated an and and reinforced clear very to ACIP, of is hope is part There But And is lot disease.

ACIP are recommendation our expanded in this hope out we reevaluation. we to the considering to confident going age-based potentially find that data, look forward October, and to in time confirm and at very some that they're So we appropriate formally

Chen next Louise of Cantor. is from The question

given this on I River, to ask third in stocking of Win we 'XX, sales about how some wanted quarter? think quarter you you that saw the

question, start strong WINREVAIR. with We thank So the for you feel a off to we're Louise. that really

the described end at the have we receiving for WINREVAIR, As have historically the XX% to commercial quarter, have X,XXX of of prescription as we've who patients XX% which been now product.

WINREVAIR the product. should So have increase level we third patients the we're confident actually for profile the And stock that in more expect in what we quarter. as prescribed expect for the

outlook confident WINREVAIR for we that expectations So we high the in the remain with consistent have.

comes from Goldman The next of question Shibutani Sachs. Chris

third-generation ] the use used in opportunities us On June, potentially house area obesity. in you just the is latest have [ closed in in of space, about a particular expressed management. cardiometabolic company and weight noting provide Can the that question therapeutic this comment typically that and does business with size, get did house you thinking an development, terms you interest second views, appetite,

set looking thanks we focusing looking really at, continue and Chris, on and to where which we've the the question. on quarter and is our same the the drive No, what skill we pipeline. a science build business. products in portfolio matches to the earlier Yes. discussed with with stage late We're Elanco our but continue more strategy in opportunity some at see to more how best been that we going to EyeBio Obviously, commercialized clearly, for settings can the did follow that and to we bring not mid aqua scientific

strategy the been of So continuation the we've following.

we of $XX the continue that $X to the look will the if in out don't the to where billion, we've likely is to and play. as today's of financial a continues that most evaluate flexibility we question specifically, things play. we opportunities sizes. consider next-generation will in to tend space, good obesity continue We at can be those past, find that all look view consider our pointed to billion have to to believe be we plays deals generation in to going after But we would first place indication And to

be the to areas of combinability act. to where around continue will something, it waves we And second the it the whether mass. looking of have and/or see for if So and are for capacity focus of muscle and at to be Those interest preservation oral innovation third us. continue looking there's generation high we tolerability, delivery,

of Morgan from is question Flynn next The Stanley. Terence

for Just on wondering just the any background in patients for on to kind in on here Was have you've color then worked the of more started late And there's already if second already a the half? terms of sotatercept. bolus WINREVAIR if patients initial therapy think me. that go of through you X-part or line

the on part. part I'll then to start first I'll Maybe Yes. and come the second back

some as sicker you on therapy, first. are the the who vast or on would background of patients, drug the doctors expect, So putting are patients you majority of are seeing

a and amount is uses you with large are therapy seeing triple on prostacyclin. or there So therapy, double

well. have as frankly, consistent what So seen you that in with and is would stellar

So we expect. expect we that pretty would And the as time, we over to you'd lines much earlier seeing are move of into then therapy go. as

there's -- of doctors growth are vast now and of prescribers what at I that the majority prescribing. we're -- we in were there. As it would the of bolus necessary a out through. over which XXX range who breadth the the relates would it's tell bolus, we're are is more been going doctors not We you I see what a with depth probably think worked continued prescribing, There's to the both little that seeing that broadly say has XXX think the prescribing XXX somewhere forward in to doing we

continuing to good. and continue being come one, go we heavy very that, So to that get in to I of see we medicine. And access would ways feel the granted to see point because would I be prescribers we as the to we what consider to group a still other out as thing have

today lives reimbursement have We or place all under with related WINREVAIR. plan about to protocol a a X/X in are covered medical of

I put lot XXX that a place after to days by grow would because a to drug is -- in We expect launched. to will continue actually of you remind to coverage a put the plans plan in XX wait just they rule that place a plan is that

to have a still you plans yet lot of come. So

increasing you're going of number of to we're fact breadth of see increasing going to I physicians, for see that you're continued see fact the trend growth and we access because So to to you're the going see think upward. the patients grow, continuing have

The next Markets. of question Capital from Evan BMO comes Seigerman

for today. so much the you Thank update

characterize IIb year. like we the Phase So give the back June. space interest in of the with trial in what Can coming readouts half your expect the in It the should schizophrenia study looks a you second number MK-XXXX? of from of completed

Just see data we comping kind be space. the might on we in novel when wondering to of the development the should this how

Yes.

patient MK-XXXX. simply the body interesting what efficacy is. weight for drug drive out weeks. of was that not Phase oftentimes, its the Dean. the a was you we IIa, in just effects that are efficacious will very just that, on a and reduction pounds for take reason over that around shows that's how that X drug. was to important the X was published much that what a neuroscience adverse relationship it in is stay the I should is It's there question schizophrenia. Thank also I will And patient to and it's believe why not whether But it just this May point and So

IIa Phase Phase really IIb. that important triggered that was So the

would we be lay So in to to IIb, results. our we Phase if Phase be are such things would that comparable see that we that I'll out see eager IIa just

comes of Your Bank. Shin James Deutsche final from question

any WINREVAIR, quickly, conversion the scripts on 'XX For the into within time fiscal commercial Interpath and of is to there XX% the filing? line embedded year is of XX% guide,

to address. So Dean question, yes. the second is answer first let to would your I answer the the question And

getting with in forward in FDA the and that the that really So we're Moderna relationship to program our something will to important how see Phase INT, enrolled the focused program. relationship how on see collaboration move and to will III we relationship fully that's that's the with as in

thank for good your James, Great. Thank you questions you, and all today.

IR always, to any Rob, like As make? you'd closing any team follow-up is questions. the that available comments for

the we growing breadth we've obviously, KEYTRUDA business then years many the the about. But that, will many, work would talked last hopefully, Hopefully, this we plus bringing short try term transparency fact else pointed the the But the us in of have business, what Yes. I confidence that GARDASIL through appreciate to everywhere thank for more we've that it breadth $XX in deliver next X would see in want No. coming and I term. see call excitement wasn't drugs launching the launched our by your continues we pipeline back the than and close lost both But China. of I GARDASIL own in to out, everyone But we green XX the depth interest I Obviously, be to we you for which beyond just would just billion see with my strengthening, on morning. the the long we growing we for the that be opportunities. through you blockbuster am in shoots in gives the confidence which the of bring. them in meaningfully for in pipeline, happening with patients. around as and world maybe and

we and pipeline will of XXXXs we green the look confidence we grow on the opportunities of confident the of revenue to that to into we're to that's the off starting XXXX Obviously, neutral eye equally see making but beyond. that's maturing, to So we and raised the we in And investment where shoots continue will the into were where our not opportunity business we is we're take as our focus. But bringing even continue are more EyeBio. kind because term guidance, like today. the in short earnings,

Thank the confidence So I you my driving what's a and you. with out just there, my appreciation for of to of stock. want lot note leave that there's and support your

your on this call. disconnect. for time, conference you parties today's may all participation Thank At