Merck & Co (MRK) Bank of America Global Healthcare Conference 2024 summary

Operational and financial performance

• Achieved strong operational and pipeline progress in 2024, with Q2 revenue up 11% year-over-year ex exchange and full-year guidance raised to 8%-10% top-line growth.

• International revenue grew from $17B in 2019 to nearly $27B in 2023, a 12% CAGR, with the number of patients reached doubling in that period.

• Keytruda and Gardasil remain primary growth drivers, with Keytruda's international indications expanding from 12 to 28 and Gardasil's revenue nearly quadrupling since 2019.

• Vaxneuvance (V114) launched in 31 markets, and WINREVAIR (sotatercept) recently approved and launched in Germany and Austria, signaling diversification.

• Pipeline includes 21 phase III assets, nearly triple the 2021 count, with significant contributions from external partnerships.

Product and market strategy

• Keytruda's international business is EU-centric (60%), while Gardasil's is more weighted outside the EU; market approach varies by therapeutic area.

• Early-stage indications and expansion into new cancers (e.g., triple-negative breast, RCC, melanoma) are driving Keytruda's growth.

• Subcutaneous (subQ) formulation of Keytruda is expected to capture up to 50% of the addressable market post-LOE, with data readout anticipated in early 2025.

• Gardasil's China strategy involves a binding contract with Zhifei, expansion of vaccination points, and focus on inventory management; male indication filing expected to further differentiate the product.

• WINREVAIR's European launch is paced by reimbursement timelines, with broader market access planned for 2025 and beyond.

Business development and partnerships

• Business development is science-driven and agnostic to geography, with successful partnerships in China (Kelun) and globally (Daiichi, EyeBio, Prometheus, Acceleron).

• Recent Daiichi partnership targets small cell lung cancer, leveraging ADC and T-cell engager combinations for broader oncology impact.

• Ongoing evaluation of assets in China and elsewhere, with a focus on unmet needs and value creation.