Merck & Company, Inc. · NYSE:MRK
Merck & — Q3 2018 Earnings Presentation
15 slides from Merck &'s earnings presentation, October 2018
Slide 1: 3Q 2018 Earnings Call
3Q 2018 EARNINGS CALL October 2018
Slide 2: Forward-Looking Statement
We are an innovative, global healthcare leader, committed to improving health and well-being around the world. 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 provision
Slide 3: Strategy in Action
STRATEGY IN ACTION Merck is well-positioned for growth and value Mission Vision Execution creation by addressing To discover, develop and Committed to being the Proven strategy to deliver provide innovative products premier, research-intensive growth and create long-term unmet medical needs, and ser
Slide 4: Pillars of Growth – Q3 Highlights
PILLARS OF GROWTH – Q3 HIGHLIGHTS ONCOLOGY VACCINES HOSPITAL / ANIMAL HEALTH SPECIALTY • Continued to expand • Represents a durable, • Hospital and specialty • Sales grew 6%1 oncology program by key pillar of growth medicines business year-over-year further advancing the • Sales of ~$2.2 billion, de
Slide 5: Financial Summary
FINANCIAL SUMMARY $ in millions, except EPS amounts Q3 2018 Q3 2017 Change Sales $10,794 $10,325 5% GAAP net income (loss) 1,950 (56) > 100% Non-GAAP net income that excludes certain items 1,2 3,178 3,054 4% GAAP EPS 0.73 (0.02) > 100% Non-GAAP EPS that excludes certain items 1.19 1.11 7% 1. Net inc
Slide 6: Delivering Top & Bottom Line Growth 3Q'18
DELIVERING TOP & BOTTOM LINE GROWTH 3Q’18 ACCELERATING REVENUE GROWTH 3Q’18 WORLDWIDE SALES $ 10.8B Billions $45 $43 GUIDANCE RANGE $42.1B - $42.7B 6% $41 DIVESTITURES $2.7B Growth ex-exchange $39 $37 2014 2015 2016 2017 2018 DELIVERING EPS GROWTH Non-GAAP EPS $ 1.19 GAAP $0.731 $4.50 $4.10 GUIDANCE
Slide 7: Updated Guidance
UPDATED GUIDANCE REVENUE IN LINE; IMPROVED NON-GAAP EPS OUTLOOK PRIOR UPDATED FY2018 GUIDANCE DRIVERS $42.0B - $42.8B $42.1B - $42.7B • 5-6% year-over-year growth; Revenue (Midpoint: $42.4B) (Midpoint: $42.4B) • Assumes minimal FX impact • Amortization of ADEMPAS & unfavorable PGM ~1% lower year-ove
Slide 8: Capital Allocation
CAPITAL ALLOCATION CREATING VALUE FOR SHAREHOLDERS Commitment to the Dividend Capital Investments $2.30 +15% $16.0B Dollars $2.00 +2% +2% +2% +2% +2% +2% +11% $2.20 $1.70 Over 5 years, including expanding $1.88 $1.92 $1.68 $1.72 $1.76 $1.80 $1.84 manufacturing capacity for Oncology, $1.40 Vaccines,
Slide 9: KEYTRUDA's Strong Performance
KEYTRUDA’S STRONG PERFORMANCE TOP 20 ONCOLOGY PRODUCT SALES POST LAUNCH1 KEYTRUDA’s performance after four years on the Millions market is unprecedented, $7,000 not only in the field of oncology, but also in the $6,000 pharmaceutical industry more broadly. $5,000 $4,000 $3,000 $2,000 $1,000 $0 Launc
Slide 10: Recent Pipeline Accomplishments
RECENT PIPELINE ACCOMPLISHMENTS PROGRESS SINCE THE LAST EARNINGS CALL Clinical Regulatory Top-line Results Approvals KEYTRUDA (KN-426) IN 1L RCC (KEYTRUDA + PFE’s KEYTRUDA (KN-189) 1L NON-SQUAMOUS NSCLC axitinib) (KEYTRUDA + Alimta) IN THE U.S. & EUROPE ZERBAXA IN HAB/VAB PNEUMONIA LENVIMA IN 1L HCC
Slide 11: What to Watch
WHAT TO WATCH KEY CLINICAL & REGULATORY CATALYSTS OVER THE NEXT 18 MONTHS Oncology Clinical Readouts Vaccines, Hospital/Specialty and Other Clinical Readouts KN-522 Neoadjuvant /Adjuvant TNBC (Ph3) MK-8591 Combination with doravirine/3TC (Ph2) 1H19 KN-119 2L TNBC (Ph3) 4Q18 MK-7264 Acute Cough for p
Slide 12: Merck Pipeline
MERCK PIPELINE Phase 2 Phase 3 Under Regulatory Review ONCOLOGY ONCOLOGY ONCOLOGY KEYTRUDA LENVIMA KEYTRUDA LENVIMA KEYTRUDA Cutaneous Squamous Cell Non Small Cell Lung Breast Endometrial Squamous NSCLC Carcinoma Biliary Tract Colorectal Renal Hepatocellular Carcinoma Advanced Solid Tumors Esophagea
Slide 13: Corporate Responsibility That Creates Sustainable Value
CORPORATE RESPONSIBILITY THAT CREATES SUSTAINABLE VALUE CORPORATE RESPONSIBILITY IS AT THE HEART OF MERCK’S MISSION TO DISCOVER, DEVELOP AND PROVIDE INNOVATIVE PRODUCTS AND SERVICES THAT SAVE AND IMPROVE LIVES Access to Increasing access to health advances Merck’s efforts to serve more patients • Lo
Slide 14: We try never to forget that medicine is for the people.
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 15: Thank You.
Thank You. € MERCK INVENTING FOR LIFE