Merck & Company, Inc. · NYSE:MRK
Merck & — JP Morgan Healthcare Conference 2022
17 slides from Merck &'s conference presentation, Jan 10, 2022
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference January 10, 2022
Slide 2: Strategy and Business Update
Strategy and Business Update Rob Davis Chief Executive Officer
Slide 3: 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. The
Slide 4: Significant advancements across key strategic priorities
Significant advancements across key strategic priorities Progressed broad pipeline Executed strategic business development Completed successful Organon spinoff Reported strong revenue and EPS growth1 1. Reported September year-to-date revenue growth of 13% and non-GAAP EPS growth of 18% ex-exchange
Slide 5: Strong business momentum driving revenue and EPS growth
Strong business momentum driving revenue and EPS growth Revenue Exceptional commercial execution $41.5B $35.2B across key growth pillars $39.1B +8% +13% $30.6B Oncology 2019 2020 3Q 2020 3Q 2021 Vaccines Full Year YTD Hospital Non-GAAP EPS Animal Health $4.53 +25% $4.22 $3.55 +18% $3.73 2019 2020 3Q
Slide 6: Expect continued strong growth in revenue and earnings
Expect continued strong growth in revenue and earnings Revenue Operating margins Delivering visible de-risked revenue growth Commitment to drive leverage in the P&L with through 2025 operating margins >43% by 2025 $ in billions $60 45% $55 40% $50 35% $45 30% $40 $35 25% $30 20% $25 15% $20 10% 2019
Slide 7: Business development remains an important strategic priority
Business development remains an important strategic priority • Accessing the best external $34.4B on BD transactions over the past 4 years, including: science through value-enhancing business development $14.4B in 2021 • Financial flexibility to pursue both early- and late-stage $10.6B in 2020 oppor
Slide 8: Highly focused on KEYTRUDA LOE planning
Highly focused on KEYTRUDA LOE planning Minimize the Aspire LOE gap to grow through KEYTRUDA LOE period Revenue Shorten period to return to strong Benefit growth from multiple levers to minimize dip and shorten period Chart not to scale Time 8
Slide 9: Multiple levers to navigate the KEYTRUDA LOE
Multiple levers to navigate the KEYTRUDA LOE Leverage leadership Enhance durable Deploy cash flow from Advance pipeline across in oncology growth drivers key assets to BD key therapeutic areas New combinations Vaccines and coformulations New delivery mechanisms Cardiometabolic Additional immuno- Neu
Slide 10: Research Update
Research Update Dr. Dean Li President, Merck Research Laboratories
Slide 11: Powerful research organization pursuing focused strategy
Powerful research organization pursuing focused strategy • Implement broad development programs for potentially foundational assets • Advance new products, modalities and platforms and establish important beachheads • Augment pipeline with BD focused on areas of unmet need 11
Slide 12: Meaningful advancements across therapeutic areas in 2021
Meaningful advancements across therapeutic areas in 2021 Oncology Vaccines Broader Pipeline COVID-19 • KEYTRUDA: 11 new or VAXNEUVANCE: • VERQUVO: Initiated Phase 3 Molnupiravir: expanded indications including trial in chronic heart failure 3 in early-stage disease areas • FDA approval in adult sett
Slide 13: Leading oncology program aimed to further improve patient outcomes
Leading oncology program aimed to further improve patient outcomes >90 potential approvals through 2028 • Tripling potential new indications across oncology portfolio through 2028 <20% ~40% ~70% • KEYTRUDA, Lynparza, in a single in earlier in combination Lenvima, WELIREG and others tumor type treatm
Slide 14: Pursuing a broad array of key innovations beyond oncology
Pursuing a broad array of key innovations beyond oncology Vaccines Immunology/ Cardiometabolic Neuroscience Infectious Disease Pneumococcal Disease: PAH Schizophrenia Immunology Pediatrics sotatercept (ligand trap, Phase 3) MK-8189 (not yet disclosed, Phase 2) PT101 (IL-2 mutein, Phase 1) VAXNEUVANC
Slide 15: Expanding capabilities across a spectrum of modalities
Expanding capabilities across a spectrum of modalities, including … Increasing Molecular Size Small Peptides Therapeutic Targeted Multi-specific Viral Gene Cell Molecules Proteins Conjugates Antibodies Delivery Therapy Oligo-nucleotides Engineered Monoclonal Gene Vaccines (mRNA/siRNA) Proteins Antib
Slide 16: Extensive discovery research efforts to generate breakthroughs in the long-term
Extensive discovery research efforts to generate breakthroughs in the long-term Immunology • Research efforts across multiple Cardiometabolic Disease 6% ID/Vaccines therapeutic areas and modalities 13% • Broad program including in I/O, 34% infectious diseases and vaccines, neurology and cardiovascul
Slide 17: Q&A
Q&A Rob Davis Chief Executive Officer Dr. Dean Li President, Merck Research Laboratories