Merck & Company, Inc. · NYSE:MRK
Merck & — Investor Day (2019)
15 slides from Merck &'s investor day presentation, 2019
Slide 1: Welcome & Introductions agenda
Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, Pres
Slide 2: Merck Animal Health Is a Market Leader
MERCK ANIMAL HEALTH IS A MARKET LEADER • Global scale • Revenue growth above market • Strong profit contribution • Innovative new product solutions • Technologies that drive customer value • Merck synergies
Slide 3: Strong Long-Term Metrics for the Animal Health Industry
STRONG LONG-TERM METRICS FOR THE ANIMAL HEALTH INDUSTRY At the core of a $34+ billion industry CAGR mid-single digits1 Predictable and sustainable growth drivers Companion Merck Animal Animal Health Livestock Diagnostics Pharmaceuticals Genetics Vet services Vaccines Nutrition Population Rising midd
Slide 4: Merck Animal Health: Outperforming the Industry
ANNUAL NET SALES GROWTH (%) MERCK ANIMAL 12.0 10.5 Merck HEALTH: 10.0 9.0 9.3 8.4 9.0 OUTPERFORMING 8.0 THE INDUSTRY 6.0 6.2 6.5 5.8 4.0 5.4 3.4 Industry 2.0 0.0 2014 2015 2016 2017 2018 33 Source: Merck Internal Data, ex-exchange, excluding Zilmax. Industry Review
Slide 5: 50 Countries, 150 Markets, 9,400 Colleagues
MERCK ANIMAL HEALTH 2018 Sales Global leader in pharmaceuticals, vaccines, health management solutions and emerging digital technology 38% Companion Animal Operating in more than 800 + 50 Countries 34 Product Products in more than Dedicated 62% Livestock families 150 Markets manufacturing 29% sites
Slide 6: Our Diverse Portfolio Provides Strength
OUR DIVERSE PORTFOLIO PROVIDES STRENGTH 2018 RESULTS Aquaculture 1% Anti-infectives 11% Poultry ASIA PAC 17% 16% United Ruminants Parasiticides States Top 10 30% 26% LATAM 29% Products Swine 38% 13% 14% Other Biologics All Others 17% 46% EURAM & 62% Companion Animal Canada 38% 42% Revenue by Revenue
Slide 7: Dedicated Animal Health R&D Network
DEDICATED ANIMAL HEALTH R&D NETWORK Vitré, FRA Bergen, NOR Ames, IA Boxmeer, Boise, ID NLD Cambridge, UK Schwabenheim, Ningbo, CHN Elkhorn, NE DEU Madison & Cologne, Rahway, NJ FRA Netanya, ISR Tokyo, JPN Millsboro, DE Singapore, SGP De Soto, KS Macquarie Park, AUS Antelliq Innovation Centers Bendig
Slide 8: Consistent Delivery of Significant New Product Approvals
Over 66 Approvals in 5 Years MERCK ANIMAL HEALTH: CONSISTENT DELIVERY OF SIGNIFICANT NEW PRODUCT APPROVALS 18 15 14 9 10 2014 2015 2016 2017 2018 >150 Geo-expansion licenses annually
Slide 9: Our Innovation Pathways
OUR INNOVATION PATHWAYS In-house Discovery and Technology • Biologics • Recombinant vaccines, RP technology • Emerging diseases • Delivery technologies Strategic Advantages Best-in-class Merck Research Laboratories First-in-class • Monoclonal antibodies • Oncology Vaccine leadership • Diabetes, atop
Slide 10: R&D Areas of Focus: Across Species
MERCK ANIMAL HEALTH Merck Research Laboratories (MRL) R&D AREAS OF FOCUS: ACROSS SPECIES Collaborations VACCINES BIOPHARMACEUTICALS PHARMACEUTICALS Zoonotic & Anti-Infectives Emerging Diseases Customer convenience, oral/mucosal Parasiticides & delivery, Endectocides MRL long duration MRL Respiratory
Slide 11: Complementary Business Development
COMPLEMENTARY BUSINESS DEVELOPMENT Geo-expansion: vaccines, pharmaceuticals High-growth markets Zhejiang Zhengli Antoo Biotech Co
Slide 12: Investing in High-Growth Animal Health Opportunities
INVESTING IN HIGH-GROWTH ANIMAL HEALTH PRODUCTS + CONVENIENCE + PREDICTIVE SOLUTIONS OPPORTUNITIES Technology & Data Animal Health Ventures Customer Value Innovative Delivery Solutions Trends Driving Technology Vaccines & Adoption Pharmaceuticals • Productivity • Wellness • Traceability • Safety • A
Slide 13: Investing in Digitally-Enabled Customer Solutions
INVESTING IN DIGITALLY-ENABLED CUSTOMER SOLUTIONS >500 million animals tagged per year >100 million pets monitored Non–invasive tool that confirms bovine respiratory Sea lice counter >1,100 aqua monitoring disease and gauges its stations worldwide severity in eight seconds 42
Slide 14: Merck Animal Health: Our Competitive Advantage
MERCK ANIMAL HEALTH: OUR COMPETITIVE ADVANTAGE ✓ Broad global portfolio and presence ✓ Innovative products and solutions ✓ R&D excellence and access to MRL expertise ✓ High-quality manufacturing and supply ✓ Investment in digital technology to drive customer productivity ✓ Track record of execution
Slide 15: The Science of Healthier Animals
THE SCIENCE OF HEALTHIER ANIMALS ® 44