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

Operational and financial performance

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

• International top-line grew from $17B in 2019 to just under $27B in 2023, a 12% CAGR, with patient reach doubling in that period.

• Keytruda and Gardasil remain key growth drivers, with Keytruda international sales doubling to $11B and Gardasil nearly quadrupling to just under $7B since 2019.

• Expanded national immunization programs for Gardasil to 189, half of which are gender-neutral, and improved supply capacity.

• WINREVAIR (sotatercept) launched in Germany and Austria, with further European expansion dependent on reimbursement timelines.

Pipeline and product development

• Phase III pipeline expanded to 21 assets, nearly tripling since 2021, with eight sourced from external partnerships.

• Expecting to launch nearly as many assets in the next five years as in the previous ten, signaling robust future growth.

• Keytruda expanded from 12 to 28 international indications, with significant growth in early-stage and metastatic cancers.

• ADCs, including TROP2, are a focus, with 10 phase III studies ongoing and a strong emphasis on biomarker-driven patient selection.

• Subcutaneous Keytruda readout expected in early 2025, with no delays anticipated.

Market and geographic strategy

• EU accounts for 60% of Keytruda international business, while Gardasil sees 60% of volume outside the EU.

• Emerging markets, especially China, are critical for long-term growth, with tailored access and pricing strategies.

• Gardasil's China strategy includes expanding vaccination points, improving sales force coverage, and managing inventory with partner Zhifei.

• Male indication for Gardasil filed in China, aiming to further differentiate from local competitors.

• WINREVAIR's emerging market strategy leverages experience from Keytruda to provide innovative access and pricing solutions.