Merck & Co. (MRK) 31 Oct 242024 Q3 Earnings call transcript

Thank you for standing by. Welcome to the Merck & Company Q3 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. President, Vice Senior Dannenbaum, Investor Relations. Peter may you begin. Sir,

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

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

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

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

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

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

I differentiated some and morning, and most the confidence world's with increases and and ability achieve confronting unmet of making shareholders. progress Peter. sustainable have long-term today's across to our create we're Thanks, we're strategic innovative on success thank medical you patients the key we're priorities. The science needs solutions, both delivering strong At and challenging in our joining Merck, business our call. for value for Good

new across novel that of and commercial transactions. pipeline adding needs medical areas diversified significant programs we're value-creating advancing clinical research potential. through modalities. therapeutic We're solve development our for products a business We're which to development And and launching important unmet internal efforts have and

As a toward a future a is portfolio. result, moving more much with diversified Merck

of years. the more Our over assets. past This Phase XX launches new the medicine next over X has set to vaccine than III pipeline nearly will unique tripled years and a substantial X-plus fuel

In potential. we fact, diversified focused on approximately improved equal opportunities set growth pipeline to XX have and past ensuring what execution the We've blockbuster majority the across plus and visibility are we've long-term future of drivers. launched and clinical the over our intensely strong believe years,

As always, and those science-driven to we who to need patient-focused medicines we vaccines most. work remain as and bring them these

achieve near our Turning Commercial we're strong quarter of puts to full to on us focused and priority, a top The on is growth. our strength portfolio execution the delivering in overall third track year results. term. highly

For the currency on or increased basis. X% constant quarter, X% a revenues

remain with with Our of Health results patients it long-term confident including launches, performance opportunity the growth strong consistent and in represents from business. usage benefited high the and CAPVAXIVE WINREVAIR, our WINREVAIR expectations our from KEYTRUDA for in of globally, I'm Merck. increased contributions is which and for new Animal pleased launch and

double-digit GARDASIL major however, results also GARDASIL growth As achieved year-over-year. sales of every strong almost in we region anticipated, outside in decline for China. a reflect Notably,

decreased, Overall we we historical similar channel to less commercialization at above third shipped have quarter we levels. partner, directionally the a In remains which prior encouraging China, level Zhifei our consistent and our with while Zhifei GARDASIL inventory be shipments is at the on discussed fourth quarter. call, expect expectations will inventories to of earnings

are focused promotional and resources to are market and with increase making patient Zhifei progress on this highly We education efforts.

expect demand. we've as to time. these this will take efforts patient increased But said, We activation to and translate

access back, GARDASIL remaining is of that drive given females there proud opportunity, potential low opportunities in next is to gender-neutral of where for playing the of opportunities completion with eligible cancers. individuals certain and vaccination approval need growth coverage and immunized in the tremendous of China, attractive XX% around rates number vaccination the global be world wide males the vaccinated includes an prevent Taking a yet range meaningful year in middle-income long-term we're benefits to education significant This to markets. highly the met reach than and and a vaccination and step and rates, more using capabilities improve to protect patients of strong less scale awareness globally. of the our HPV protect and focused more role to to the adult due long-term we're HPV-related population helping and There's on

As of by we such, achieving sales than $XX of in billion confident goal greater remain our XXXX.

moving and to we quarter. IIb/III milestones advancements positive research robust Turning presented U.S. efforts. We're and our important Starting in is development Phase achieved results Clesrovimab, prevention the important for with opportunity differentiated of believe antibody to data, 'XX We RSV investigational underappreciated. the RSV clinical this business our monoclonal on we prevention clinical our this 'XX, clinical Based and the infants. for swiftly its vaccines, in season. available make during option profile this

diverse advance once-weekly lenacapavir and we first and on new data TLXA from and overall data In to adds our innovative efforts oncology. portion approval, the II prior our for positive were commercial positive follow-up since potential. advancing collaboration infectious just data we ages highly patients, to expand survival programs and diseases, HIV for HIV patient standard II HIV reinforces data XX. maintaining for our ACIP our treatment in broad our This therapies. islatravir care presented its the adults In a and long-term ulcerative Phase combination durable KEYTRUDA's shared also recommendation cohort vaccination pneumococcal blockbuster to oncology that populations need development available field. In despite focused KEYTRUDA Tulisokibart our results. with maintenance to pneumococcal, further to been of our oral represents Phase and underscoring protecting and for CAPVAXIVE's XX pipeline. and treatment-experienced At Both investigational U.S. remain address shared years remaining this pleased we a to include data in of disease ESMO, recommendations for ADCs, commitment leadership with confidence immunology, from We're In adults. CAPVAXIVE to to bring and Gilead oncology, it's shared in unmet candidate disease and voted of invasive effectiveness building and broad immunology XX we of colitis Crohn's significant clinical this against

for investments our these patients engine Our sustainable to innovation value and our long therapeutic areas belief in the reflect fortify additional term. deliver in to the opportunity

continue pipeline. business development, can leverage that Regarding fortify further therapeutic and scientific our expertise we to our to broaden promising identify targets

acquired Elanco these the need, immunology, quarter, from acquisitions with engager in we of and a of the complementing aqua both high and oncology cell of in bispecific novel T each unmet we and efforts investigational areas closed This Curon our EyeBio business. applications potential

strategic to for access will and on lead better I our commitment than we're in operational and I efforts a all and want was of In our today and the believe to investments our our growth positioned based We're to our ago, commercial important execution innovations medicines our to future the more I'm patients future. value summary, to confident stakeholders on to longer-term remain drivers long that we strong the company. world that again in I enable to highly to patients, future of vaccines. also and is and our confident focused team pipeline make deliver for recognize even into across continued continuing Merck progress shareholders year

to turn the that, over With call I'll Caroline.

morning. Good Thank you, Rob.

fundamentals strong generate customers in shareholders. remain ability short outlook science, value Rob remain in highlighted, we for our quarter. while business we us and demand portfolio. patients in global strong consistently investments lasting innovative make our delivered As the the in and This term in reinforces we The performance by have deliver science-led leading-edge conviction robust our which positions fueled results for confident growth. strategy to disciplined for another strong our our continued healthy of to We

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

Our human health increasing business sustained driven primarily by its with sales oncology. momentum X%,

sales of growth delivered Our business XX%. Animal performance Health strong with also

cancers high-risk the stage as increased certain increases price to with shipments as treated sales Lenvima our patients U.S., the demand demand billion, doubled $X.X decline by markets. KEYNOTE-AXX. sales cell driven Global part billion. urothelial leadership XX% as of region, to carcinoma by increased in was driven by grow treatment benefited key from Outside GARDASIL patients driven from In the practice declined increased early-stage In XX% grew of first-line driven in in existing from based increased uptake robust ongoing contributed robust to performance sales to in by renal in vaccines, we consistent building launches and demand. cancer of CDC on X% also the the sales growth Padcev the sales including breast outpacing VAXNEUVANCE driven uptake advanced brands. every KEYTRUDA global continued Lynparza decrease almost increased of with purchasing oncology, than pneumococcal, setting, a in by metastatic international Turning growth global metastatic demand. in cell driven due earlier-stage patterns In largest more revenue U.S. KEYTRUDA's in and continues KEYTRUDA million, inflation-related In range U.S. the market of types. was tumor In earlier to cancer. broad increased by across market digits resectable indications. a In the the to by in driver last grew as China. price non-small regimens. position plus on Varivax $XXX was in adjacent uptake revenue timing cancer disease, driven growth. saw previously a earlier to lung disease, leadership well the demand alliance In therapy. million, as advanced leadership well U.S. $X.X increased U.S., continues double use metastatic triple-negative of cancers, as $XXX its its chemotherapy-based year. Argentina KEYTRUDA starts patient grew perioperative XX%, outside new were regimen sales KEYTRUDA in stage by platinum from uptake continued XX%, setting, with increased the alliance

sales encouraging steady also we progress WINREVAIR momentum launch excited with continues million. in gain an In of the start. U.S., to $XXX are seen is which global have We cardiovascular, to patients. off adding by In CAPVAXIVE, the of launch recent of the new

patient new X,XXX of new the quarter, X,XXX receive of prescription, on to Based approximately experience commercial bringing patients product. launch. the number to our approximately more date, will a prescriptions than During patients received total XX% those since

than month the the time complete treatment Given commence this more since and to steps therapy new commercial X X,XXX patients to launch. have approximate started frame

physicians physicians private practices. receiving of end seeing one the Through most are Physicians patients prescribe continuing large to have their September, are with at patients prioritize have nearly We to and from prescribe sickest the academic therapies. prescription been written already centers the least product. more either prescribers physicians PAH WINREVAIR multiple larger of coming who new XXX or

in enabling access. also We progress important are making

criteria. doubling have study policies for consistent last quarter. payers lives, nearly of XX% with approximately We Many coverage from amount established the achieved or label have coverage STELLAR the

been U.S., initial the following approval. feedback the leaders has Outside scientific recent from positive EU

prescription that XX arterial WINREVAIR. months In to look as look of in pleased markets. with first are reimbursement positively pulmonary more forward international patients which the European securing the received well summary, and other launch continued a countries, we forward in for patients as We Germany typically impacting have are with to excited We the in takes launching hypertension. other progress

Aqua demand price. business portfolio Health and from price. growth, of from Livestock as closed for Elanco, the Companion XX%, new strong swine the XX%. products, which long-acting certain product recently markets delivered reflecting from sales uptake the launches, with animal driven increasing and mid-July higher BRAVECTO sales acquired sales Animal in grew Our in sales including well international grew by as X%, poultry inclusion injectable

my of percentage to driven and Gross now as product will on P&L, a rates well candidate to non-GAAP reduced including increase was will basis. walk and expenses the for our an by be charges as royalty I you through promising favorable increased points of X.X related remainder margin XX.X%, billion and KEYTRUDA billion, of mix. from EyeBio $X.X GARDASIL Curon. $X.X acquisition Operating a comments of the

from phase in T-cell early the to $XXX million collaboration a of support reflecting payment and charges, operating Sankyo and pipeline investments related for strategic late grew of which was Excluding these Other $XXX our income expenses key innovative drivers. Daiichi engager. X%, million, includes growth our

and Our tax XX.X% transactions. unfavorable from Curon includes an impact rate the EyeBio of

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

non-GAAP expect growth $XX.X negative revenue Now our billion narrow full turning of continued represents to approximate We guidance now billion. using business our has enabled operational guidance. us our of X X% guidance. including XXXX strength year an to year-over-year mid-October exchange $XX.X to foreign and percentage The X%, strong point be This between from to rates. revenue impact range

margin gross remains assumption Our approximately XX%.

and acquisition operating includes to charge from Curon. the the $XX.X onetime expenses expect related now billion billion, $XXX We which between asset be $XX.X to million

benefit including development from Other does reminder, expense potential a expected is the transactions. $XXX As the payment million significant million additional be our guidance business now Daiichi. to not $XXX of approximately assume

between tax Curon year assume transaction. includes related shares to unfavorable which and billion an is full XX% be approximately We to outstanding. XX%, Our the expected impact X.XX rate

expect $X.XX benefit asset from of unchanged. $X.XX from prior of of the guidance $X.XX impact Curon onetime foreign range Taken or our a prior exchange range from range $X.XX share share charge $X.XX to been the $X.XX, was Recall per from to $X.XX. guidance our is Therefore, the $X.XX. rates. to together, $X.XX have or with would million to and using includes acquisition $XXX we midpoint million a This our mid-October related approximately EPS guidance including the midpoint current $X.XX per negative $XXX Daiichi, of payment

strategy same. the our where allocation, remains capital to turning Now

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

and science transactions. We positioned remains growth We will time, development key of our committed to our each expansive to needs. continue invest business over remain potential novel candidates has well significant with to and pipeline address to compelling drivers are in unmet a pursue increase value-enhancing goal we it of dividend of to which adding important priority, the continuing through medical additional

of to share continue a level modest will execute We repurchase.

our year, To the of conclude, robust the for underpinned finish business, medicines vaccines. in and innovative as by momentum are confident we we demand our global

Our patients serve to strength. of the of operational financial improve unwavering a has put science us the position dedication to compelling we and in save and lives leverage

us Our to commitment to the to bring important forward into customers enable value innovation future. deliver well shareholders will and patients,

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

Caroline. you, Thank

modalities oncology investing also on execute new and strategy into our areas, and diversifying therapeutic to technologies. continued of have expanding in while We in novel

the was quarter conclude milestones. regulatory by will portfolio. diseases several I marked cover . and third infectious important oncology clinical first The and and broader with updates on

detailed XXXX update trial on and As pivotal serious years evaluating first and full-term to monoclonal vaccine a individuals a Rob respiratory adverse of for findings of approximately The results from and Clesrovimab to the of XXXX. to all conjugate syncytial XX RSV-related no for to and antibody diseases, preterm season X-month death. the points. company's majority presented weight preventative with of between ACIP our treatment serotypes noted, incidence single proud and were of healthy endpoints data immunization vaccination disease through on older. entering clinical XX-valent from IIb/III groups, invasive comparable or responsible investigation our week, time infectious specifically legacy of AEs events trial and both placebo administered age-based met dose responsible IDWeek. clesrovimab, protection X-month and cases adults consistent pneumococcal of infants, with use adult treatment regardless older RSV Building XX% at Phase their IBD for CAPVAXIVE as and infants virus were for based includes and level serotypes in last our CDC is national the pneumococcal recommend CAPVAXIVE, designed pneumococcal cover voted guidelines the XX of

the As shown studied mild, the summary release, endpoints. press RSV clesrovimab immunization in severe disease and is data being in tables across moderate

also option evaluating clesrovimab also clesrovimab clesrovimab the more results Importantly, the efficacy increased infections associated significantly of than will bright infants analysis and birth. IDWeek, of weight or by clesrovimab with the for the only combination Gilead RSV first direct and interim as settings. It one X for the positive safety disease. infections regardless than were of preventative with presented X and dose point. Phase at and presented convenience severe build secondary inhibitor HIV. oral RSV, Also season children tertiary data III respiratory of RSV findings living pipeline observed These of If HIV XX-week HIV-X data positive at to risk rapid reduced promising XX% designed from protection II X be lower The and a islatravir of the in of Positive treatment strength through XX-week the the treatment was in months by through immunization hospitalizations previously that and durable end endpoint candidates full study a months, RSV the incidence the reinforce separate months results more evaluate study for XX% people reduced presented. primary in as multiple the on endpoint. were and Phase month palivizumab capsid approved, lenacapavir, our infants from once-weekly versus we with of an with the RSV

KEYTRUDA setting. top the KEYTRUDA-based in positive for to results And XX look recently We strong We renal cancer continue as Next, building non-small the the earlier-stage forward cancer, demonstrate lung of positive trials disease. date evaluating patients PD-LX earlier trial, see primary patient a XX indications of across trial benefit KEYTRUDA show treatment diagnosed and a stage cervical for treatment X KEYTRUDA to cell a neck the breast with KEYTRUDA-based earlier-stage for carcinoma spoke earlier-stage overall as endpoint bar X a to Stage would This statistically patients and in settings: squamous a the event-free data to cell to the will mark significant only adjuvant to anti-PD-X In pivotal of and carcinoma, on The be X Caroline approvals regulatory met significant line impact. carcinoma. head receive types. to only benefit the PD-X demonstrated newly regimens trial with continues neoadjuvant or is earlier in advanced one positive endpoint. survival to oncology. secondary to, to neck FDA tumor an demonstrated improvement Results for cell locally key X and advanced authorities KEYNOTE-XXX response, is major diagnosed in head approved, its results for treating pathological in newly or of is resected cell first locally setting, of and in raise stages and if cancer. we resected triple-negative the a the plus perioperative submitted squamous survival announced treatment indication cancer. tenth regimen years. the have

locally radiotherapy unresectable X therapy FDA-approved approval of the treatment front, carboplatinum regimens, KEYNOTE-AXX carcinoma III adults the received advanced XXXX and of KEYNOTE-XXX for antibody based unresectable the from targeting combination combination KEYTRUDA-based drug or combination or The European for based the Nectin-X treatment with malignant of to KEYTRUDA first-line primary targeting study. chemotherapy Japanese who was patients adult in of drug Nectin-X the and study. KEYTRUDA in the have On received Pfizer's treatment conjugate patients paclitaxel regulatory approved we chemo X urothelial indications Commission with carcinoma in on which first-line and This FDA results first-line metastatic on and antibody study. KEYNOTE-AXX number or treatment cervical XX. on mesothelioma on Ministry advanced cancer distinct and with with In with carcinoma metastatic unresectable based based endometrial approved with for of pleural for definitive advanced with the combination pemetrexed for in with urothelial first-line FIGO KEYNOTE-XXX. platinum to Padcev by Pfizer's combination Padcev Health also in the recurrent XA for adult of radically conjugate, adult prior not for the brings treatment the include, the Stage indications. for patients KEYTRUDA of

platinum-containing combination treatment radically then patients based cancer with with findings with from who on chemotherapy KEYNOTE-XXX as for well neoadjuvant lung for therapy chemotherapy For patients an not monotherapy as any based as as continued on are in carcinoma non-small KEYNOTE-XXX. eligible adjuvant unresectable urothelial cell as

development in high-risk the Society KEYTRUDA advanced cancer from we sessions. KEYNOTE-AXX neck European potential newly our with Medical ipilimumab finally, investigation efforts continue trial we will cancer. of which for advance evaluated locally patient early-stage cervical over the patients survival Overall cell renal the and of with trial our collaboration evaluate with oral long-term during high-risk to to the follow-up including X treatment overall announced the combination carcinoma. patients Earlier Exelixis carcinoma breast the and regimens with At to symposium presentations benefit this new Zanzalintinib, data with These inhibitor, triple-negative data of tyrosine from in in And improve combination were the oncology, a cell for patients data increasingly showcased Congress, pipeline, advanced patients KEYTRUDA include kinase presidential showing treatment survival diverse the outcomes. squamous and for survival overall with diagnosed from for Oncology be KEYNOTE-XXX for melanoma. head WELIREG XX-year trial with month, in KEYNOTE-XXX their clinical and

trial directed lung antibody the Daiichi a relapsed collaboration a cell Ifinatamab, Sankyo, conjugate with patients treatment IDeate-LungXX, BX-HX Phase for small initiated drug In cancer. evaluating of III Deruxtecan, we with

the studies strong agreement targeting X We IDXD also rationale expanded of regimen. from evaluate candidate ligand this engager. to provides for with for investigation T delta-like an each our cell of clinical combination evaluating MK-XXXX, combination Evidence

to Next, our portfolio. broader

patients arterial continue has European Gastroenterology III receive like Week cytokine of disease, ARTEMIS-UC WINREVAIR, pleased humanized to from the the Caroline In The suffering believe colitis we treatment APOLLO-CD antibody we XX-week long-term transform tulisokibart, which hypertension. achieve help Crohn's for potential journey enroll to Phase mentioned, of and reinforce II tulisokibart efficacy option, for XA data safety United European remission. and The the investigational patients. the in studies expanding tumor ulcerative our for As this to treatment for pulmonary actively trials results directed immunology, reach the to Congress. Commission the potential were to patients monoclonal and clinical Phase factor were approval the presented necrosis at from

soon acquisition site in tetravalent, signaling acts evaluated for being Finally, for treatment the trispecific of the BRUNELLO winglet IIb/III an Phase we of an after initiated MK-XXXX agonist pathway ophthalmology, of diabetic EyeBio, antibody completing the integration macular that our trial investigational related edema. as

are programs We B-cell on augmenting our Recently, autoimmune MK-XXXX completed levels a our executing development. one the and T-cell pipeline known complementing as of applications internal business deplete engager, diseases. CDXX novel in through with approach, B-cell CDX, now acquisition Biopharmaceutical. malignancies has we shown significantly potential CNXXX, MK-XXXX and from Curon to

saw As with regular closing, development our speed. plan of advancements seamlessly during with clinical previous and we we readouts. to data late-phase regulatory rigor pipeline cadence the and including acquisitions, quarter, milestones In advance a

providing to across forward areas, and programs I XXXX. make our progress further updates in continue to We therapeutic on look

And now I turn the call back to Peter.

Surely, Dean. Thank . you much. you, very [Operator we're Instructions] Q&A. Thank now for ready

Trung from Huynh UBS. Our comes question Instructions] with first [Operator

should when think inventory we'll levels will that's How color on returning the GARDASIL, time? declining inventory Or any an that into we the but noted elevated, given on dynamics that XXXX, balanced remain by as you've do in you have see take promotional activity, to increase inflection given head about growth? Just this demand. work down we

hopefully contribution but address world well on GARDASIL that back we really patients in And be maybe other we're Great. people very making Thanks GARDASIL China, just around and second. to cancers. for of eliminate for HPV-related very long-term for is question. a step Obviously, the the continue as and proud cervical as cancer to focused the to

into think important showing confidence it Overall, decline, want every we the this. to that progress as speak But is we we give we're specifically, strong to the long-term why growth our for as would decline plan. but XXXX say is And little highlighted we we really will shipments do had bit happening to through making region in have this expected, XXXX. originally is than world, in about we're see a working our still XXXX, and other remarks, continue I But to with earlier potential we and commented China into because in to don't expect continue had importantly, as what always and assuming guidance a we a the double-digit nearly China come and we bolus, obviously, expect opportunity, time, which see relates bringing I'll China the -- So would would over in to expected China then that such decline we seeing specific in I which we it which is the and work prepared approval, hopefully did year. we next see as opportunity the second. comes continue through to while mail with work around before, saw female as growth

that's we it see So progressing. how

billion So an we think XXXX, range as see billion China $X XXXX about for on really to as the we expect $X in being see that far and at opportunity the next level, for the as to would for going continue the overall based several Merck we with solid have that growth. And the portfolio you're we really growth in males driver. opportunity to years

seeing to demand just and we're to kind that's So progress. going I make we're important efforts think drive We're to focused this. on things. where of our But understanding, bringing we're frame

going some We but making take it's are to progress, time.

Securities. Our next Guggenheim from Vamil with comes question Divan

This Edward on from is Vamil Guggenheim. for

due the seeing Just dose on percent low dose? reduced are WINREVIR, high many terms the it's what are what in of patients dose to commercially. any safety the out stopped then, of their issues? of how And you or safety versus estimate on been have of to sense need Any since patients rolled

start then let and maybe in. I jump I'll can Yes. Dean

haven't important serving. been patients. any that From the we safety the issue, we've to signals or profound had at relationship all in

issue broadly. not WINREVAIR, an that but gotten has been more the have So date to in that patients

Yes.

what So we we patients seeing we just of said predominantly as seeing prepared sickest to are we're today. XX% have marketplace about give being in you in a the the sense the of patients comments, the

triple and So as people vial And therapy, bringing they a a onto we're would people used, lot therapy. double either vials, vials double then single we're therapy, to looking the kits on time. as going transition weight predominantly on a starts remember being be over still still at those single when depending we're to that not on of they use their maintaining of patient single start on or would seeing

right still where we on more see, get vial on So on as your would up the we X/X saw with about to STELLAR we time. And Dean would patients bit of towards now, safety. gave we with skewed the double it one little vial broader single, but importantly, and X/X a over expect there expect see patients question, that about that's of you end single about to sense be

best the safety adherence we discontinuations statement seeing less seeing expected. really real-world around than we're think very strong and I

information we're safety issue. experience, as is rural would getting the say, marketplace the world anecdotal the an as not I that from far So as said

question Our Chen Louise from Cantor. with comes next

I do about are wanted are? major guidance? for and XXXX? And the What when to that your takes to you puts outlook ask you plan get

over turn Caroline Yes. that. I'll for it to

plan as with Louise, the But So pushes year start a give I earnings for we we strong been XXXX, overall company. ordinarily of pulls. if with sense it's give our If quarter guidance the you and a fourth to our do. I really

strong and X% really to X% underlying As investing growth, deliver we've operating noted, and improvement. driving to while pipeline our we margin have in delivered expect we're

opportunity we would out we expect XXXX, course, but KEYTRUDA cancers, that women's got especially to look tumor call opportunities of cancers and for lung X And opportunity non-small continued cancer. the And have our growth the breast the be endometrial real growth. business. in a types cancer including would solid cell but earlier-stage cervical key for is we is early early As stage in stage bladder we for impact negative also We've great cancer.

strong We WINREVAIR, in to and the upcoming expect the patients. recent of that season. to strong a over the of the And opportunities into noted, is time, with to share to growth, opportunity have are we course, we we launches the clesrovimab also Health continue year. as And next and get ahead and includes a majority we RSV and it that expect we where we 'XX/'XX for contributor launch continue high have of Animal for It to the performance impact and see for expectations are CAPVAXIVE, there includes confident where were where includes growth.

REMICADE J&J We agreement GARDASIL expiration headwinds. have compared sales in of a decline do few And with noted, XXXX. Rob in our as expect the China we for products, to SIMPONI. with of is One and XXXX immunology the

to investing that However, we and business to opportunity solid to growth fully expect our for very marketplace operating we're our deliver in 'XX, behind the confident expansive activities pipeline while expansion. in all the excellence margin of said, invest ensure in commercial drive the

Chris with Our next comes from question Sachs. Goldman Shibutani

are your tied update note where you to use insight offset the therapeutic to business, particular you have interest is allocation vulnerability capital also pulls the been you appetite would some give consistent area, providing something us push perhaps The with I updates you think and very that GARDASIL? obesity. GARDASIL, as in on capacity ability your in in given have this into you about us have a areas, uncertainty I help with with opportunity that that to us some Can anything of would and certain of mentioned lever

the business feel Yes. No, do the in very and to we've some the Chris, Dean remarks, to look highlighted Obviously, we're thanks I that for prepared the good of including going done, about continue transactions just to development question. more.

while had with from years were comment we tripled made actually, and about a are. I assets have that where more more ago remarks, So as Phase X we where we And in III XX. now than more good feel was than prepared the we than we

add lot all So a we have but we looking therapeutic more. there, we're And across to need areas.

outcomes. the there focused strategy the been, a start is to on but and opportunities we obesity strategically be as always our opportunity where which play, medical to continues value, where goal opportunities relates past, see will in the talked can an in that can that it's on and act need of space. with and and science, those go focusing it unmet we in Merck second combination oral see more third be focus with approach generation outcomes addresses obesity, We've we thinking if on scientific a to we actually think that Our aligned beyond just we where that that remains and

we're a to we but move. be strategy, So perspective something think don't won't value disciplined. sense we and to makes continue And we it see a look we going where if from

From continue cardio should a $X capacity, that look pretty frankly, continue continue to do clear, where broader be size. to areas billion But to see have places any would to $XX of we mainly billion be range. to to of capacity oncology metabolic, we perspective, area all say, just that, and think to much Beyond anything the immunology our in focus I where today continues for in us we opportunities are road. look playing the you down areas we're

with Our Graybosch Partners. question from comes Leerink next Daina

the XX? is more anything you from a drive CAPVAXIVE versus for to to talk that when about opportunity? they you're would or less think the incremental you looking What that Can the is in age pneumococcal the down recommendation share expansion competitors? bit MMWR more language the publish little market size do And there

Yes. we do can Maybe, Dean, to you jump start, and want in?

remember, to was lowering the think I the that ACIP. that balancing was economic how make move to should show in is XX-valent a that interesting by to adult best just a XX dynamics think important XX% them doing in protection the data has there do I versus XX-valent who terms clear XX-valent, and it's myself the vaccine mean, a we lowering what would is health gives adult of clear, is I to pneumococcal the vaccination I proceed. I when XX% was with thought XX Yes. market. protection. for in think the address we And And recommendations, to XX it has to we not the that that finally very was watch everyone. just it the But data they given remind and a really health need, about to to at XX-valent a XX, XX% really for just drove which and issues it and decision very equity that relationship the and ACIP. the They're And XX% there a the have a previously competitor

there's the a those our in given of the of in sit to get that patient are Dean in to age tremendous has number confident group XX XX, group, and given data. opportunity cohort go terms above given our have, now the to commercial of which of of ACIP strength over shared, in that the this XX the opportunity million to that patients opportunity. as the remind, of XX age XX activate age just recommendation people XXX vaccine we for provides around terms of us the feel the as well we So And million States, in United the the strength of very the data

So we ready. are

to have We supply, people looking as and we're can protect possible. that forward we ensuring as many

Our from Chris next question comes Schott JPMorgan. with

$X you Just believe over I years. $X few billion kind said for the on another billion per China of Rob, one GARDASIL. next opportunity year to

ones there. of Just couple a quick

First, Merck is to what longer-term shake was does out is that $X $X $XX number the billion reflected China year? to billion that to where going compare what for target? And billion this in

Yes.

ship GARDASIL said, in $XXX in and normally just same would sense you just expect the So we the in and basis. to of sense give the are, a about third guidance give we focus a the were of on fourth approximately we as third It's where give where the we quarter. amount with importance GARDASIL, specifics quarter. And quarterly quarter. on to a But you level about we don't to or product million given China,

you should expect range. that million the would $XXX quarter that in So itself fourth also be

we you a sense where kind that gives so are. And of of

obviously, in to think running XXXX XXXX. $XX to you around as billion years, that's confident as $X $X by we opportunities if we So and next world, forward look other get in the billion the our ability that that that we several the you're we with why made over in range, the see billion given comment the and remain to XXXX, to

we billion term, years get more as the to need, China where able potential have the broadly several then contemplating in do growth next opportunity that that contribution male $X we world. and we the are us would that to continuing to make rest to China be the expect by $X long of the the So to in also obviously understanding around it for drive over to billion driven

Our next Terence Flynn Stanley. from question with comes Morgan

Great.

clarification. and one Just question one

perspective $X that's has the VEGF Rob, does a out of the remains data emerging the curious you PD-X, there. sorry the made GARDASIL side, not big the $X the focus include PD-LX billion talked billion Dean, Merck lot front. was to or on efforts a last on And males, Obviously, know, I just industry, on there's for response. Just males both a unclear some based obviously, about this the then the some on includes Next-GenIO your Would get bispecifics. I China of little be to it

thoughts at might target or competitive that's if any from that a considered where Just a all? and on that Mark fit perspective data landscape has

Yes.

I'll So question, first take the that part of Terence.

does $X really that point opportunity the to were to term That the as $X the over longer with we growth yes. include was billion is have answer make. male, the So opportunity. we the next years but trying look billion to several drive you

it just a VEGF most along interest emphasize, taken has pathway, in In growth Other this inhibitors. It's our there's is investment the your endothelial with not the in pathway. have case, relationship data also important question just that. to, in been growth lot Avastin, made to and a collaborations pathway PD-LX It's for recent RTK factor vascular in to Eisai data. PD-X, our substantial relation is to of -- Merck the in factor. HIF-X vascular an I their axis. and that and added example, Exelixis just with is I alpha companies related endothelial would that

in Summit, to VEGF. In question deep that relationship has developed that that specific the about expertise

carefully, PFS of to carefully to it's important I into watch watching OS. are ability and turn all us we for think the really

in also terms responsiveness health is for experiment their would is to not not to something comparator in is system individuals, in because emphasize to experiment will combos United be how the issue States, it's deepen combo do the that a but not combos PD-LX monotherapy, speaking, in that we to would KEYNOTE-XXX. able little XX% would be go different they the be the we example, KEYTRUDA here to through the different also as China treat would but an other compare able in be in also was I are we But of that against unable broadly important. that to the do, situation, it PD-LX The bit is that VEGF. patients done China, stage new be important, to will earlier monotherapy that's

important. and some be vascular pathways I come important happen will XXXX, after IT import, be those will XXXX XXXX. will are RAS growth factor some before readouts be some import, of will all endothelial around ADCs will think and

Our from comes question with Carter Barclays. Gould next

WINREVAIR, through quarter. Maybe some sort And of can of kind your color. frame GARDASIL the to that comment far square efforts to of help stocking you're of of sickest impact all the bolus comments for you also around the trying later Rob, us the Appreciate kind initial the along label? on STELLAR I'm kind of in patients on line within how patients, maybe the patients of work of sort those

So over Carter, of demand. quarter, the in revenue to XX% support the is

growth product. inventory expect dollars to a build And level very small that the given in the so build and over inventory expect we'd we time, of

therapy patients the of In with prostacyclin. the in XX% patients it's combination that on Rob noted, about of background portion, the or terms the prescribed are large triple a are actually product, being as

ability which really that number over making with commercial to in the in to background At same of a therapy physicians here large the therapy to now our high segment. progress to prescribed we're the opportunity line drive remain So time. patients benefit to confident patients for the gives WINREVAIR we us on and our time, prostacyclin not dual benefit more that the significant are have expectations who for move company. good confidence in And are a patients

with comes question Raffat Next Uma ISI. Evercore from

the demand sales on billion means what run to you in which mentioned be million local XQ to your very because that competition China, you helpful -- do pay commentary, number in so, XQ in sorry, is, that -- sitting thinking billion obviously if is about down How X-valent in those was question shipping a more. generic to as would X focus rate. XXXX little in at Rob, is need as to That wanted inventory $XXX possible to was still is a have I $X and just I GARDASIL billion entry entry $X that well well. My factor XXXX dynamics as something China? into worked $X X-valent XXXX of

Yes.

from look in maybe if to perspective, the at an inventory a starting marketplace just you sense, what's give So overall there. happening you and

CDCs Zhifei, you overall remains but by and GARDASIL. If did grew that's And look high come which for down. frankly inventory the levels China, account offset than reductions GARDASIL the more they and at in and taking into and in points this was is that of slightly vaccination.

which we starting a to to sign fact now position the think stabilize, down, demand, seeing we're we're that's would talk So coming that overall good that seeing point also a inventories we're at as which we're we're whereas about we're at looking shipping. what

Our expectation below we are is demand. shipping

get both to intention in as bring with marketplace to frankly, meet constructive been inventories doing continuing demand Zhifei need we're well the their have be time, year product down for constructively is into the at to around we're very about the over to Zhifei think we what as allowing to is, have this, working to our this balance same would dialogue So the time.

and male we've about a the allow we're female it, next we're of done that, have. taking but that approval So could early also account year, next opportunity our both come thoughtful thinking launch us into very how competitive could expectations on the that year to

billion to billion about think we as in number. $X are factors those of all So that $X

next Steve TD comes Our Cowen. question with Scala from

take growth things XXXX. time. will for to GARDASIL in China. visibility $X have giving GARDASIL still see all you you in China recovery to this now you're the in at it billion good like global And sounds that Rob, because it $X considered, mean but start noted possible guidance I billion is

that what I'm it So unclear for. waiting is we're

we're over time then to of What time what of drive you down inventory we Well, talking is we giving that baseline we're to what see China. basically and about can kind continue the the as work demand is to taking that build so market.

put work we'll to long better drive do going that and to And term. to the we're in to Our do hope continue is better.

isn't to take thoughtful a how everyone doing we're to what with that I'm XXXX, think constructive it. quarter. through I manner do working is next to on we're Zhifei going We're be trying but It's in this to make probably hears solved sure going it. us

So to We demand. those build after million male with there go are the time we with the is there elements out XXX million the and need to with XXX opportunity the still because are to going know males females take opportunity. potentially

demand that can business. We drive make to we that activate have to sure

we're on. focusing So that's really what

in China right giving GARDASIL think to relates there. that it get know we that's the wouldn't now. wanted growth time. for have because at that But were to make guidance XXXX, I line overall I see point to be We as this were for we And Merck beyond really solid of specific to context. into guidance far you normally As very to concerns we that, giving want don't sure product important because

comes Bansal with from that Wells Mohit Fargo. And

Great. you think My -- stages, I question data you what which a seen have we in understand you which is here. have of you makes in us III, from have lung seen move side cancer. see lot don't help I regarding VXX -- trial. VXXX that III our kind of data into earlier started Phase Could please Phase

Yes.

we think, also study to going is that way referring announcement ability The for partners, lung often cancer. advantageous in with the lay and for So emphasize, you're, earlier foundation that in OS, would curative is I allows X is the X of prepared trying stage, have remarks. the approvals during with sort basis I a drive uniquely patient setting combos Moderna, in to of recognize us Dean. our and to just I this the would and that was us. just that specific I

situation approved. doesn't that a INT the can cancer. driving sort patient provide neoadjuvant pathological response have and is our population to where around not the lung benefit situation is response. in is and ability and that pathological space, there And that complete that complete becomes does Specifically, in have complete there the that where of is a pathological other discern need one in we who OS in that we're combinations built KEYNOTE-XXX, thing is the interesting a followed response surgery, and has perioperative a has or by who an which But

we're Great. your available as questions much. always, out good for very want. And Please Thank for reach you today. care. all when follow-ups. Take you you Thank

We conclude for today's your you does This conference. participation. you. Thank thank

may You time. your at disconnect this lines