Merck & Co (MRK) Wells Fargo 21st Annual Healthcare Conference summary

Strategic progress and portfolio transformation

• Projected non-risk adjusted revenues from human health products increased from $50B to over $70B by the mid-2030s, reflecting significant portfolio transformation and new product launches across oncology, cardiometabolic, ophthalmology, immunology, and HIV.

• Recent acquisitions, including Cidara and Terns, have strengthened the pipeline, while the animal health segment continues robust growth.

• Confidence in long-term growth is anchored in an expansive pipeline and upcoming clinical readouts.

Oncology pipeline and clinical strategy

• Sac-TMT (TROP2 ADC) strategy initially targeted indications beyond breast and lung, with 13 of 17 trials outside these areas; now shifting focus back to lung and breast based on compelling phase III data from China.

• Sac-TMT is positioned as a differentiated asset, enabling unique PD-1/VEGF combination opportunities and broadening potential indications.

• INT program in melanoma shows promise, with phase II data suggesting potential to double cancer-free rates on top of KEYTRUDA; success in melanoma and RCC could expand applicability to other tumor types.

Financial outlook and investment priorities

• 2027 is expected to be another year of investment, with modest top-line growth driven by new product launches and offset by generic competition for BRIDION, JANUVIA, and Adempas.

• KEYTRUDA growth is slowing due to lifecycle maturity and pricing pressures, particularly in Germany, but animal health remains a growth driver.

• Expense growth is projected at mid to high single digits, with increased interest expense from recent debt issuance for business development.