Merck & Company, Inc. · NYSE:MRK
Merck & — Q2 2019 Earnings Presentation
14 slides from Merck &'s earnings presentation, 2019
Slide 1: Q2 2019 Earnings
MERCK Q2 2019 EARNINGS INVENTING FOR LIFE
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT OF MERCK & Co., Inc., Kenilworth, N.J., USA This presentation from 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. T
Slide 3: Q2 Performance Highlights
Q2 PERFORMANCE HIGHLIGHTS1 $11.8B • Returned $2.6 billion to shareholders DELIVERED through dividends and share WORLDWIDE repurchases CREATED SALES • Executed on value-enhancing business SHAREHOLDER GROWTH VALUE +15% development, including acquisitions of Peloton Therapeutics and Tilos Therapeutics
Slide 4: Oncology: Strong Growth for KEYTRUDA, Lynparza and Lenvima
ONCOLOGY: STRONG GROWTH FOR KEYTRUDA, LYNPARZA AND LENVIMA • KEYTRUDA growth of +63%1 year-over-year • +73%1 international growth, driven by lung performance, particularly in Europe, China and Japan • Early uptake in RCC and adjuvant melanoma indications in the U.S. • Lynparza revenues more than dou
Slide 5: Repeated Overall Survival Benefits in Monotherapy and in Combination
REPEATED OVERALL SURVIVAL BENEFITS IN MONOTHERAPY AND IN COMBINATION DEMONSTRATES SUCCESS OF KEYTRUDA Ipi-Naive Melanoma, 2L Bladder, Any PD-L1 2L+ NSCLC, TPS ≥50% 2L+ NSCLC, TPS ≥1% 1L NSCLC, TPS ≥50% 1L RCC, Any PD-L1 Any PD-L1 KEYNOTE-045 KEYNOTE-010 KEYNOTE-010 KEYNOTE-024 KEYNOTE-426 KEYNOTE-00
Slide 6: Vaccines: GARDASIL Global Uptake Remains Robust
VACCINES: GARDASIL GLOBAL UPTAKE REMAINS ROBUST • Vaccines sales growth of +36%1 driven by GARDASIL as well as certain pediatric vaccines • Strong underlying demand for GARDASIL in China, Europe and the U.S. • Pediatric vaccines, including PROQUAD / MMR-II / VARIVAX, also contributed to vaccines gro
Slide 7: Hospital Acute Care: BRIDION Demand Remains Strong
HOSPITAL ACUTE CARE: BRIDION DEMAND REMAINS STRONG • BRIDION on track to reach over $1 billion in annual sales globally - growth in the U.S. reflects increased utilization in procedures where neuromuscular blockade reversal agents are used • Ongoing PREVYMIS launch contributing to performance • Comm
Slide 8: Animal Health: Sustained Performance
ANIMAL HEALTH: SUSTAINED PERFORMANCE • Growth was driven by livestock, predominantly due to products acquired from the Antelliq acquisition • Companion animal sales reflect volume growth in vaccine and insulin products • Broad and innovative portfolio enables continued growth for our business 2Q 201
Slide 9: Continued Robust International Pharmaceutical Growth Led by China
CONTINUED ROBUST INTERNATIONAL PHARMACEUTICAL GROWTH LED BY CHINA1 -3% +7% +24% Canada +51% +11% Europe2 United States $343M China Japan +17% Eastern Europe / Middle East 2Q 2019 Earnings Africa +30% Latin America EX-U.S. GLOBAL PHARMACEUTICAL SALES +12% 1 All growth rates exclude the impact of fore
Slide 10: Q2 2019 Financial Results Summary
Q2 2019 FINANCIAL RESULTS SUMMARY DELIVERED +15% REVENUE GROWTH AND +25% NON-GAAP EPS GROWTH (BOTH EX-FX) $ in millions, except EPS amounts Change Q2 2019 Q2 2018 Change Ex-FX Sales $11.8 $10.5 12% 15% GAAP net income1 $2.7 $1.7 56% 61% Non-GAAP net income that excludes certain items 1,2 $3.4 $2.9 1
Slide 11: Balanced Approach to Capital Allocation
BALANCED APPROACH TO CAPITAL ALLOCATION INVESTING IN THE BUSINESS AND CREATING VALUE FOR SHAREHOLDERS Commitment to the Dividend Capital Investments 2019 to 2023 >$16.0B $2.30 +15% Dollars per share $2.00 +2% +2% +2% +2% +2% +2% +11% $2.20 Over 5 years, including expanding manufacturing $1.70 $1.84
Slide 12: Updated Full-Year 2019 Guidance
UPDATED FULL-YEAR 2019 GUIDANCE PRIOR GUIDANCE 2019 UPDATED GUIDANCE 2019 KEY ASSUMPTIONS $43.9B - $45.1B $45.2B - $46.2B • Narrowed and Raised; Assumes Revenue +4% to +7% (+5% to +8% ex-FX) +7% to +9% (+8% to +10% ex-FX) slightly over 1% negative FX impact • Improved product mix and favorable Non-G
Slide 13: Corporate Responsibility That Creates Sustainable Value
CORPORATE RESPONSIBILITY THAT CREATES SUSTAINABLE VALUE Access to Increasing access to health advances Merck’s efforts to serve more patients Health • Long history of making medicines and vaccines accessible and affordable through responsible pricing practices and industry-leading patient support pr
Slide 14: Creating Long-Term Value for Patients, Employees and Shareholders
CREATING LONG-TERM VALUE FOR PATIENTS, EMPLOYEES AND SHAREHOLDERS 10+ Years 5-10 Years Revitalized discovery efforts and increased Next 5 Years Rich pipeline addressing expertise in biology to deliver ongoing scientific areas of high unmet need Strong execution driving to drive performance over brea