Merck & Co (MRK) UBS Global Healthcare Conference 2024 summary

Business and financial performance

• Achieved $16.7 billion in Q3 revenue, with 7% overall growth and 8% in human health; animal health grew 11%.

• Strong contributions from oncology (KEYTRUDA, WELIREG) and new launches (WINREVAIR, CAPVAXIVE).

• Lagevrio contributed significantly, especially in Asia and the US, supporting a narrowed 2024 outlook and strong 2025 growth expectations.

• Confident in meeting street expectations; focus remains on pipeline valuation as LOE approaches.

• GARDASIL saw a 10% sales decline due to China, but strong double-digit growth in other regions; global vaccination rates remain low, offering growth potential.

Product launches and pipeline updates

• WINREVAIR launched in PAH, with strong uptake and high compliance; CAPVAXIVE launched for pneumococcal vaccination, with major uptake expected in 2025.

• Sotatercept approved in US and EU, with broad label; late-stage immunology and MASH assets advancing.

• Oral PCSK9 in phase III, showing promising LDL reduction and high patient adherence.

• GLP-1/glucagon co-agonist for MASH in phase II-B, with results expected in a year.

• TL1A agent for IBD in phase III, aiming for first-in-class status; primary completion date set for November 2026.

Regulatory and policy environment

• Monitoring US political landscape post-election, maintaining engagement with policymakers at all levels.

• IRA redesign in 2025 expected to benefit patients by capping out-of-pocket costs; company planning reflects these changes.

• Anticipates improved therapy compliance due to reduced patient financial burden.