Merck & Company, Inc. · NYSE:MRK
Merck & — Shareholder Meeting (May 2019)
26 slides from Merck &'s shareholder meeting presentation, May 28, 2019
Slide 1: Annual Shareholders Meeting | 2019
Annual Shareholders Meeting | 2019 May 28, 2019
Slide 2: Ken Frazier, Chairman and CEO
Annual Shareholders Meeting | 2019 Ken Frazier Chairman and CEO
Slide 3: Forward-looking Statement
Forward-looking Statement This presentation of Merck & Co., Inc., Kenilworth, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current bel
Slide 4: Our Strategy in Action
Our Strategy in Action Merck is well-positioned for growth and value creation by addressing unmet Mission Vision Execution medical needs, delivering To discover, develop and To be the premier, To deliver growth and create innovations for patients provide innovative products research-intensive long-t
Slide 5: About Merck
About Merck HEADQUARTERS Kenilworth, NJ, U.S. distributing to more than 140 countries BUSINESSES Innovative medicines and vaccines for human and $ 2018 REVENUES $42.3B, nearly 60% of sales from outside the Merck & Co., Inc. animal health U.S. is listed on the New York Stock Exchange and has a market
Slide 6: For More Than a Century, Merck Has Been Inventing
FOR MORE THAN A CENTURY, MERCK HAS BEEN INVENTING 2019> TO SOLVE SOME OF THE GREATEST HEALTH CHALLENGES AROUND THE WORLD Launch of investigational First statin Ebola vaccine brought to market Merck for Mothers established to First to isolate Developed reduce maternal broad-spectrum MECTIZAN and deat
Slide 7: FY2018 Highlights: Sales & Earnings
FY2018 Highlights: Sales & Earnings P&L (Non-GAAP) Ex-Exchange FY 2018 % vs. Prior Sales $42.3B 5% FY 2018 FY 2018 PGM $31.9B 4% NON-GAAP EPS GAAP EPS PGM% 75.4% $4.34 $2.32 Operating Expense SG&A Expense $18.0B $10.1B 2% 0% R&D Expense $ 7.9B 6% Net Income $11.6B 8% EPS $4.34 11%
Slide 8: Q1 2019 Key Highlights
Q1 2019 Key Highlights MERCK PHARMACEUTICAL SALES ANIMAL HEALTH SALES Q1 2019 $9.7B $1.0B WORLDWIDE SALES 8% GROWTH -4% GROWTH $10.8B 12% EX-EXCHANGE 3% EX-EXCHANGE KEY DRIVERS KEY DRIVERS 8% GROWTH STRONG GROWTH FROM CONTINUED STRENGTH IN KEYTRUDA, GARDASIL/GARDASIL 9, COMPANION ANIMALS, 11% EX-EXC
Slide 9: Q1 2019 Highlights: Sales & Earnings
Q1 2019 Highlights: Sales & Earnings NON-GAAP EPS P&L (Non-GAAP) $1.22 Q1 2019 Ex-Exchange % vs. Prior Sales $10.8B 11% PGM $8.2B 9% PGM% 75.9% Operating Expense $4.4B 4% SG&A Expense $2.4B -1% R&D Expense $2.0B 11% GAAP EPS Net Income $3.2B 13% $1.12 EPS $1.22 18%
Slide 10: Oncology: Strong Keytruda And Lynparza Growth
Oncology: Strong Keytruda And Lynparza Growth • KEYTRUDA growth of +60%1 year-over-year including +69%1 in international markets • LYNPARZA sales doubled in the quarter driven by 1L ovarian maintenance launch (SOLO-1) in the U.S. and expanded ovarian indication in Europe • Encouraging early customer
Slide 11: Vaccines: Gardasil Global Uptake Remains Robust
Vaccines: Gardasil Global Uptake Remains Robust • Vaccine sales growth of +24% driven by GARDASIL and GARDASIL 9, fueled by ongoing commercial launch in China and demand in Europe • Pediatric vaccines, including PROQUAD / MMR-II / VARIVAX and ROTATEQ also contributed to vaccines growth 1. All growth
Slide 12: Hospital/Specialty: Bridion Demand Remains Strong
Hospital/Specialty: Bridion Demand Remains Strong • BRIDION annualizing at over $1 billion. Growth in the U.S. reflects increased utilization of BRIDION in procedures where neuromuscular blockade reversal agents are used • Ongoing PREVYMIS launch contributing to performance • Successful ZERBAXA tria
Slide 13: Animal Health: Sustained Performance
Animal Health: Sustained Performance International growth offsets U.S. decline highlighting benefits of global scale • Growth in companion animals, led by BRAVECTO, drove sales in the quarter. Growth also supported by new poultry and swine product sales • Customer buying patterns within the U.S. bus
Slide 14: Robust International Pharmaceutical Growth Led By China
Robust International Pharmaceutical Growth Led By China -4% +4% +12% Canada +67% +9% Europe2 United States $343M China Japan +14% s\ Eastern Europe / +3% Middle East Africa +25% Asia Pacific Ex-China Latin America EX-U.S. GLOBAL PHARMACEUTICAL SALES +12% 1 All growth rates exclude the impact of exch
Slide 15: George W. Merck quote
“We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear.” — George W. Merck
Slide 16: Roger Perlmutter
Annual Shareholders Meeting | 2019 Roger Perlmutter
Slide 17: Where We Began: Dramatic Responses in Melanoma with Keytruda
WHERE WE BEGAN: DRAMATIC RESPONSES OBSERVED FOLLOWING TREATMENT OF MELANOMA WITH KEYTRUDA Baseline: 13 April 2012 27 July 2012 Courtesy of A. Ribas M.D.
Slide 18: Where We Are Today: Keytruda Monotherapy Activity Across Tumors
WHERE WE ARE TODAY: KEYTRUDA MONOTHERAPY SHOWS ACTIVITY AGAINST A BROAD RANGE OF TUMORS Melanoma1 100 NSCLC2 100 H&N3 100 Urothelial4 100 TNBC5 Gastric6 cHL7 NHL PMBCL8 100 100 100 100 0 0 0 0 0 0 0 0 Change From Baseline in Tumor Size, % -100 -100 -100 -100 -100 -100 -100 -100 Mesothelioma9 Ovarian
Slide 19: Immunotherapy in Oncology: Bending the Survival Curve?
IMMUNOTHERAPY IN ONCOLOGY: BENDING THE SURVIVAL CURVE? Control Immune manipulation Standard or other therapy Combination
Slide 20: Combined Treatment Improves Overall Survival in Kidney Cancer
COMBINED TREATMENT IMPROVES OVERALL SURVIVAL AS COMPARED WITH STANDARD THERAPY IN KIDNEY CANCER 12-mo rate 18-mo rate 100 89.9% 82.3% 78.3% 72.1% 90 80 70 60 OS, % 50 HR 0.53 (95% CI 0.38-0.74) 40 P < 0.0001 30 Pts w/ Event Median 20 Pembro + Axi 13.7% NR 10 Sunitinib 22.6% NR 0 0 4 8 12 16 20 24 M
Slide 21: Progress Continues in Developing a Broad Range of New Medicines and Vaccines
PROGRESS CONTINUES IN DEVELOPING A BROAD RANGE OF NEW MEDICINES AND VACCINES CANCER INFECTIONS VACCINES - KEYTRUDA - ZERBAXA - V114 (PCD) - LENVIMA - RELEBACTAM - V160 (CMV) - LYNPARZA - PREVYMIS - V181 (Dengue) - More than 20 - MK-8591 - V920 (Ebola) novel anti- - Novel anti- cancer agents bacteria
Slide 22: Merck Excels at Generating Novel Chemical Structures
MERCK EXCELS AT GENERATING NOVEL CHEMICAL STRUCTURES THAT ADDRESS GRIEVOUS ILLNESS NH2 N N MK-8591 N N F HO O HIV Inhibitor HO NH2 N N O N N HS P O O MK-1454 O F F H O H O STING Agonist H 2N HN N N N O P SH O O Keytruda
Slide 23: Frances H. Arnold quote
“We must look at Nature with the eyes of a chemist, not just for what she’s done, but for what she could do” —Frances H. Arnold
Slide 24: Rivaling Nature: Biocatalytic Manufacturing Routes
RIVALING NATURE: BIOCATALYTIC MANUFACTURING ROUTES NH2 NH2 Na O HN S N N N NH2 O P O O N N F N N N O N F F F NH2 O HO N N F O O N N O O N P F • H3PO4 N CF3 Na O S HO Sitagliptin MK-8591 MK-1454 Innovation at the interface of biology and chemistry • Molecular evolution generates novel synthetic appro
Slide 25: Ken Frazier
Annual Shareholders Meeting | 2019 Ken Frazier
Slide 26: For voting results call 1-800-CALLMRK
For voting results call 1-800-CALLMRK (1-800-225-5675) or visit www.merck.com