Merck & Company, Inc. · NYSE:MRK
Merck & — JP Morgan Healthcare Conference 2023
24 slides from Merck &'s conference presentation, Jan 9, 2023
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference January 9, 2023
Slide 2: Strategy and Business Update
Strategy and Business Update Rob Davis Chairman and Chief Executive Officer
Slide 3: Forward-looking statement of Merck & Co., Inc.
Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA This presentation of Merck & Co., Inc., Rahway, 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 state
Slide 4: Significant advancements across key strategic priorities
Significant advancements across key strategic priorities Advancing The pipeline to meet patient unmet needs Executing Strategic business development to enhance pipeline Achieving Strong commercial and financial performance Creating Long-term value for patients and shareholders 4
Slide 5: Strong commercial and operational execution driving revenue and EPS growth
Strong commercial and operational execution driving revenue and EPS growth Revenue +15% ex-LAGEVRIO Excellent commercial execution $48.7B across key growth pillars: +17% $45.5B $41.5B +29% • Oncology $35.2B • Vaccines 2020 Full year 2021 3Q 2021 YTD 3Q 2022 • Hospital Non-GAAP EPS • Animal Health $5
Slide 6: Sustained strong performance across key growth pillars
Sustained strong performance across key growth pillars Through 3Q Full year $17,186 +28% YOY $14,380 $989 +20% $11,084 $15,487 YOY +36% $725 $704 YOY $825 $580 $444 $404 $660 2019 2020 2021 YTD 3Q 2022 2019 2020 2021 YTD 3Q 2022 2019 2020 2021 YTD 3Q 2022 +35% $5,568 $5,673 YOY +6% $4,393 $4,703 YOY
Slide 7: Advancing key levers to drive success into the next decade
Advancing key levers to drive success into the next decade Enhance durable Deploy cash flow to Leverage leadership Advance pipeline across growth drivers value-enhancing BD in oncology key therapeutic areas Pursuing the New combinations and Cardiometabolic best external science coformulations Vaccin
Slide 8: Durable growth drivers provide a strong foundation
Durable growth drivers provide a strong foundation Sustained results driven by robust underlying Vaccines demand and strong commercial execution • GARDASIL sales expected to double off a 2021 base by 2030, driven by strong global demand and increased ability to supply • Potential suite of population
Slide 9: Prioritizing strategic business development to augment the pipeline
Prioritizing strategic business development to augment the pipeline Delivering visible de-risked revenue growth and operating margins of >43% by 2025 Strategic priority Seeking the best external science to augment the pipeline, unbounded by therapeutic area Revenue Non-GAAP $ in billions Operating m
Slide 10: Enhanced pipeline with important business development in 2022
Enhanced pipeline with important business development in 2022 Announced acquisition expected to expand hematology presence with bomedemstat (LSD1 inhibitor) Advanced collaboration to develop SKB-264 (TROP2 ADC) and 7 investigational preclinical ADCs $36.5B Collaboration to evaluate mRNA-4157/V940 (p
Slide 11: Research Update
Research Update Dr. Dean Li President, Merck Research Laboratories
Slide 12: Significant pipeline advancements across therapeutic areas in 2022
Significant pipeline advancements across therapeutic areas in 2022 Oncology Cardiometabolic Vaccines Infectious Disease • KEYTRUDA: • Sotatercept: Announced • VAXNEUVANCE: Received • Islatravir: Reinitiated – Received approval for advanced positive topline data for Phase approval in the pediatric de
Slide 13: Leveraging leadership in oncology with robust portfolio and innovative pipeline
Leveraging leadership in oncology with robust portfolio and innovative pipeline Further establish KEYTRUDA as a foundational anti-PD-1 cancer treatment in monotherapy and in combination regimens Diversify through collaborations Ladiratuzumab MRNA-4157/ with PARPi, VEGF TKI, HER2 TKI, SKB-264 ODM-208
Slide 14: Collaboration with Moderna to leverage expertise in mRNA and immuno-oncology
Collaboration with Moderna to leverage expertise in mRNA and immuno-oncology to improve outcomes for patients with cancer Combining mRNA-4157/V940 with KEYTRUDA may Positive Phase 2b results provide a synergistic effect and enhance • Phase 2 trial for the adjuvant treatment of patients T cell-mediat
Slide 15: Broad pipeline advancing across key therapeutic areas
Broad pipeline advancing across key therapeutic areas Infectious Disease/ Cardiometabolic Vaccines Neuroscience Immunology PAH Pneumococcal Disease: Adults Schizophrenia HIV: Treatment sotatercept (ligand trap, Phase 3) V116 (PCV, Phase 3) MK-8189 (PDE10A, Phase 2) Islatravir1 (NRTTI, Phase 3) Chron
Slide 16: Sotatercept has the potential to transform the treatment of patients with PAH
Sotatercept has the potential to transform the treatment of patients with PAH PAH is a rare, rapidly progressive and fatal disease Positive results for Phase 3 STELLAR trial • Demonstrated a profound effect on improvement in six-minute walk distance from baseline at 24 weeks • Met 8 of 9 secondary e
Slide 17: Advancing population-specific approach to pneumococcal disease
Advancing population-specific approach to pneumococcal disease The serotypes that cause pediatric disease differ significantly from those that cause adult disease VAXNEUVANCE Expanding coverage while maintaining protection against historically invasive disease-causing serotypes in children, includin
Slide 18: Extensive discovery research efforts and clinical expertise to generate future breakthroughs
Extensive discovery research efforts and clinical expertise to generate future breakthroughs Broad research efforts across multiple therapeutic Investing in key technologies areas and modalities • Vaccines – Circular RNA technology Immunology – Personalized cancer vaccine • Cyclic Peptide Technology
Slide 19: Building a sustainable engine to drive success into the next decade
Building a sustainable engine to drive success into the next decade Achieved meaningful progress across each lever in 2022 Enhance durable Deploy cash flow to growth drivers value-enhancing BD Increased confidence in our sustainable engine to drive success into the next decade Potential for >$10B fr
Slide 20: Q&A
Q&A Rob Davis Chairman and Chief Executive Officer Dr. Dean Li President, Merck Research Laboratories
Slide 21: Appendix
Appendix 21
Slide 22: Full year continuing operations GAAP to Non-GAAP financial results reconciliation
Full year continuing operations GAAP to Non-GAAP financial results reconciliation $ in billions, except EPS amounts (Income) Loss Acquisition and Restructuring from Certain Other GAAP Divestiture- Non-GAAP Costs (2) Investments in Items (3) Related Costs (1) Equity Securities Cost of sales $13,626 1
Slide 23: 3Q YTD continuing operations GAAP to Non-GAAP financial results reconciliation
3Q YTD continuing operations GAAP to Non-GAAP financial results reconciliation $ in billions, except EPS amounts (Income) Loss Acquisition and Restructuring from Certain Other GAAP Divestiture- Non-GAAP Costs (2) Investments in Items (3) Related Costs (1) Equity Securities Cost of sales $13,530 1,57
Slide 24: Full year and 3Q YTD GAAP to Non-GAAP reconciliation (cont'd)
Full year and 3Q YTD Continuing operations GAAP to Non-GAAP financial results reconciliation (cont’d) 1. Amounts included in cost of sales primarily reflect expenses for the amortization of intangible assets. Amount in full year 2020 cost of sales also reflects a $1.6 billion intangible asset impair