Merck & Company, Inc. · NYSE:MRK
Merck & — Q1 2020 Earnings Presentation
19 slides from Merck &'s earnings presentation, 2020
Slide 1: Merck 1Q 2020 Earnings
Merck 1Q 2020 Earnings
Slide 2: Forward-looking statement of Merck & Co., Inc.
Forward-looking statement of Merck & Co., Inc., Kenilworth, N.J., USA 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. Exa
Slide 3: Q1 performance highlights
Q1 performance highlights Delivered • Returned $2.8 billion to shareholders through Created worldwide $12.1B • dividends and share repurchases Continued commitment to value-enhancing shareholder sales business development with spend of $2.6 billion value growth1 +13% • Completed the acquisition of A
Slide 4: Oncology: continued strength & leadership across portfolio
Oncology: continued strength & leadership across portfolio • KEYTRUDA sales of $3.3B grew +46% year- over-year +46% YOY o In the U.S., sales of $1.9B were driven by all key tumors and continued strengthening of overall leadership position in I/O market o +44% growth in international markets, as lung
Slide 5: Vaccines: growth driven by strong global demand
Vaccines: growth driven by strong global demand • Vaccines sales grew +16% year-over-year • GARDASIL sales of ~$1.1B grew +33%, +33% YOY benefitting significantly from timing of shipments in China and timing of CDC purchases in the U.S., which contributed ~$190M, partially offset by the impact of CO
Slide 6: Hospital: BRIDION continues to drive global growth
Hospital: BRIDION continues to drive global growth • BRIDION sales of ~$300M grew +19%, driven by demand growth across all major regions +19% YOY • Continued success from launch of PREVYMIS for CMV prophylaxis in certain stem cell transplant recipients, with sales of ~$60M, +90% • Demonstrated commi
Slide 7: Animal Health: innovative portfolio positioned for long-term success
Animal Health: innovative portfolio positioned for long-term success • Animal Health sales were ~$1.2B, +21% • Increase in advance purchases amidst the COVID-19 pandemic positively impacted the +21% YOY Animal Health business by ~$60M • Livestock, with sales of ~$740M, grew +24%, largely benefitting
Slide 8: Global Human Health performance
Global Human Health performance Canada +19% Europe2 +12% +20% +1% United +13% States $343M China Japan +42% -2% Eastern Europe / Middle East Asia Pacific +7% Africa Global Latin pharmaceutical America sales +12%1 1. All growth rates exclude the impact of foreign exchange. 2.Europe primarily represen
Slide 9: Q1 2020 financial results summary
Q1 2020 financial results summary: Delivered leveraged P&L with strong revenue and EPS growth $ in billions, except EPS amounts Change Q1 2020 Q1 2019 Change Ex-FX Sales $12.1 $10.8 11% 13% GAAP net income1 $3.2 $2.9 10% 13% Non-GAAP net income $3.8 $3.2 20% 24% that excludes certain items 1, 2 GAAP
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 +11% ~$19.0B Dollars per share $2.30 +15% $2.00 +2% Over 5 years, including expanding manufacturing +2% +2% $2.44 +11% +2% +2% capacity f
Slide 11: Remain confident in long-term fundamental strength of business
Remain confident in long-term fundamental strength of business First quarter results demonstrate underlying strength of the business Strong underlying patient Operational and financial strength, demand for our innovative including our strong balance sheet, allows us to execute on our key priorities
Slide 12: Merck is actively engaged in finding solutions for the COVID-19 pandemic
Merck is actively engaged in playing a role in & finding solutions for the COVID-19 pandemic Manufacturing Facilities and R&D Efforts Relief Efforts Clinical Trials and Supply Employees • Team of scientists • Supporting communities • Continuity of clinical trials • Majority of manufacturing research
Slide 13: Key guidance assumptions: COVID-19
Key guidance assumptions: COVID-19 Patient Peak Normalization Variability Access Outbreak • Reduced access to • Peak of the virus assumed • Anticipate gradual return • These assumptions will hospitals and other in the second quarter in to normal operations vary based on: healthcare sites, the U.S. a
Slide 14: Human Health commercial considerations: COVID-19
Human Health commercial considerations: COVID-19 Oncology Vaccines Hospital Animal Health • To prioritize patients based on • Professional recommendations • Non-urgent elective • Reduced veterinary visits and severity and the immediate to further reinforce social procedures have been decreased prote
Slide 15: Animal Health commercial considerations: COVID-19
Animal Health commercial considerations: COVID-19 Oncology Vaccines Hospital Animal Health • To prioritize patients based on • Professional recommendations • Non-urgent elective • Reduced veterinary visits and severity and the immediate to further reinforce social procedures have been decreased prot
Slide 16: Updated full-year 2020 guidance
Updated full-year 2020 guidance Prior Guidance Updated Guidance Key Assumptions • Assumes ~2.5% negative FX impact, $48.8B - $50.3B $46.1B - $48.1B an incremental ~$750M headwind vs. Revenue +4% to +7% (+5% to +8% ex-FX) -2% to +3% (+1% to +5% ex-FX) prior guidance • Reflects assumed COVID-19 impact
Slide 17: Progressing the spinoff of Organon & Co.
Progressing the spinoff of Organon & Co. Announced Organon & Co. as the new company name • The Organon name has strong brand equity and engenders great respect among healthcare professionals for its dedication and innovation in women’s health Continue to expect spinoff Continued to make progress on
Slide 18: Creating long-term value for patients, employees and shareholders
Creating long-term value for patients, employees and shareholders Next 5 Years 5-10 Years 10+ Years Strong execution driving Rich pipeline addressing Revitalized discovery efforts and sustainable revenue growth, areas of high unmet need to increased expertise in biology to meaningful margin expansio
Slide 19: Corporate responsibility that creates sustainable value
Corporate responsibility that creates sustainable value 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 programs • Addressi