Merck & Company, Inc. · NYSE:MRK
Merck & — Q3 2019 Earnings Presentation
14 slides from Merck &'s earnings presentation, 2019
Slide 1: Q3 2019 Earnings
MERCK Q3 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: Q3 Performance Highlights
Q3 PERFORMANCE HIGHLIGHTS1 DELIVERED WORLDWIDE SALES $12.4B • Returned $2.8 billion to shareholders through dividends and share repurchases CREATED SHAREHOLDER • Continued commitment to value-enhancing GROWTH +16% business development as evidenced by the close of the Peloton Therapeutics acquisition
Slide 4: Oncology: Continued Strength from KEYTRUDA, Lynparza and Lenvima
ONCOLOGY: CONTINUED STRENGTH FROM KEYTRUDA, LYNPARZA AND LENVIMA1 • KEYTRUDA growth of +64% year-over-year • +75% international growth, driven by lung performance, particularly in Europe, Japan and China • In the U.S., continued momentum in 1L lung, adjuvant melanoma and H&N, with strong uptake in R
Slide 5: Vaccines: GARDASIL Demand Drives Sustained Growth
VACCINES: GARDASIL DEMAND DRIVES SUSTAINED GROWTH1 • Vaccines sales growth of +18% driven by GARDASIL and pediatric vaccines • Strong underlying demand for GARDASIL ex-U.S. driven largely by expansion into Asia Pacific, specifically China, and the continued roll-out of gender-neutral vaccination pro
Slide 6: Hospital Acute Care: Global Demand for BRIDION Remains Robust
HOSPITAL ACUTE CARE: GLOBAL DEMAND FOR BRIDION REMAINS ROBUST1 • BRIDION growth driven by strong underlying global demand and increased utilization in procedures where neuromuscular blockade reversal agents are used • Continued success from launch of PREVYMIS for CMV prophylaxis in certain stem cell
Slide 7: Animal Health: Sustained Performance
ANIMAL HEALTH: SUSTAINED PERFORMANCE1 • Growth was driven by products acquired in the Antelliq acquisition, companion animal products, including BRAVECTO, and swine sales offset by ruminants due to weather related cattle movement • Broad and innovative portfolio enables continued growth for our busi
Slide 8: China Continues to Lead Strong Global Human Health Performance
CHINA CONTINUES TO LEAD STRONG GLOBAL HUMAN HEALTH PERFORMANCE1 +20% +13% Canada +90% +17% Europe2 +10% $343M China Japan United States +24% Eastern Europe / Middle East 3Q 2019 Earnings Africa +16% Latin America EX-U.S. GLOBAL PHARMACEUTICAL SALES +23% 1 All growth rates exclude the impact of forei
Slide 9: Q3 2019 Financial Results Summary
Q3 2019 FINANCIAL RESULTS SUMMARY DELIVERED +16%3 REVENUE GROWTH AND +27%3 NON-GAAP EPS GROWTH $ in billions, except EPS amounts Change Q3 2019 Q3 2018 Change Ex-FX3 Sales $12.4 $10.8 15% 16% GAAP net income1 $1.9 $2.0 -3% -3% Non-GAAP net income that excludes certain items 1,2 $3.9 $3.2 22% 22% GAA
Slide 10: 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 11: Updated Full-Year 2019 Guidance
UPDATED FULL-YEAR 2019 GUIDANCE PRIOR GUIDANCE 2019 UPDATED GUIDANCE 2019 KEY ASSUMPTIONS $45.2B - $46.2B $46.5B - $47.0B • Narrowed and Raised; Assumes Revenue +7% to +9% (+8% to +10% ex-FX) +10% to +11% (+12% to +13% ex-FX) roughly 2% negative FX impact • Improved product mix and favorable Non-GAA
Slide 12: Fortifying Merck's Future Ahead of the Changing Landscape
FORTIFYING MERCK’S FUTURE AHEAD OF THE CHANGING LANDSCAPE Becoming a leaner, more efficient, science-driven company to accelerate growth • Focusing organization and resources on greatest opportunities for growth • Evolving operating model and culture to be more agile and efficient • Building optiona
Slide 13: 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
Slide 14: 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 • Long history of making medicines and vaccines accessible and affordable through responsible pricing practices and industry-leading patient support Health pr