Merck & Co (MRK) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic progress and pipeline development

• Nearly tripled the number of unique phase III assets to 21 in three years, with over eight from business development.

• Plans to launch almost as many new drugs in the next five years as in the previous ten, with most phase III programs having blockbuster potential.

• Maintains a disciplined, science-driven business development strategy, targeting deals from $1 billion to $15 billion.

• Continues to adapt pipeline and deal-making to the IRA environment, focusing on both internal and external opportunities.

• Sees the current market as asset-specific, with strong clinical data commanding premiums.

Gardasil market outlook and growth drivers

• Global Gardasil opportunity remains significant, with less than 10% global penetration and strong focus on China and other regions.

• In China, inventory levels are normalizing, and efforts are underway to expand demand and education, especially in lower-tier cities.

• Male indication approval expected in early to mid-2025, aiming to drive future growth alongside a stable female base.

• Confident in reaching $11 billion in Gardasil sales by 2030, up from $9 billion in 2023, leveraging increased manufacturing capacity and global expansion.

• Near-term growth to be driven by mid-adult private markets, vaccine completion rates, and gender-neutral vaccination; long-term by low and middle-income countries.

Winrevair launch and expansion

• Winrevair launch is progressing on track, with strong prescription growth, positive reimbursement trends, and expanding prescriber base.

• European approval includes in-home administration; launches in Germany and Austria first, with broader European rollout expected in 2025.

• China identified as a future growth market for Winrevair.

• Ongoing studies (ZENITH, HYPERION) may expand use to earlier patient populations; key data readouts expected in 2025.

• Pulmonary hypertension due to heart failure represents a substantially larger market than current PAH indication.