Merck & Company, Inc. · NYSE:MRK
Merck & — Q1 2021 Earnings Presentation
17 slides from Merck &'s earnings presentation, Apr 29, 2021
Slide 1: Merck Q1 2021 Earnings
Merck Q1 2021 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. The
Slide 3: Q1 performance highlights
Q1 performance highlights • Invested $2.4B in research and development, making Created significant progress in advancing our pipeline and across shareholder Worldwide $12.1B our key growth pillars value sales • Returned $1.6B to shareholders through dividends -1% Executed value-enhancing business de
Slide 4: Driving value for patients and shareholders by progressing our pipeline
Driving value for patients and shareholders by progressing our pipeline Key regulatory milestones through April 29: • In the U.S., the FDA approved KEYTRUDA in esophageal cancer (KN-590) and VERQUVO in chronic heart failure (VICTORIA); accepted filing for gefapixant in chronic cough (COUGH-1 and COU
Slide 5: Oncology: continued strong growth
Oncology: continued strong growth +16% YOY • KEYTRUDA sales of $3.9B increased 16% year- over-year, driven by momentum in lung and strong performance across indications o In the U.S., sales of $2.2B driven by growth across all key tumor types, including continued leadership in lung, as well as uptak
Slide 6: Vaccines: COVID-19 dynamics more than offset underlying demand
Vaccines: COVID-19 dynamics more than offset underlying demand • GARDASIL sales of $917M negatively impacted -20% YOY by timing of public sector purchases and timing of shipments in China o In the U.S., sales declined year-over-year primarily due to public sector buying patterns and impact from COVI
Slide 7: Hospital: continued global recovery
Hospital: continued global recovery • BRIDION sales of $340M increased 11% +11% YOY year-over-year, driven by higher demand globally and increased elective surgery procedures • Continued uptake in PREVYMIS, driven by ongoing launches • Continued to build on long legacy in HIV through collaboration w
Slide 8: Animal Health: strong growth across innovative portfolio
Animal Health: strong growth across innovative portfolio • Animal Health sales increased 15% to $1.4B +15% YOY o Companion Animal sales increased 24%, driven by strength in parasiticides and vaccines o Livestock sales increased 9%, reflecting increased international demand in ruminant, poultry and s
Slide 9: Global human health performance
Global human health performance Canada -8% Europe2 -5% -2% -14% United -2% States $343M China Japan +0% -6% Eastern Europe / Middle East Asia Pacific +14% Africa Global Latin pharmaceutical America sales -3%1 1. All growth rates exclude the impact of foreign exchange. 2. Europe primarily represents
Slide 10: Q1 2021 financial results summary: Growth offset by impact from COVID-19
Q1 2021 financial results summary: Growth offset by impact from COVID-19 $ in billions, except EPS amounts Change Q1 2021 Q1 2020 Change Ex-FX Sales $12.1 $12.1 +0% -1% GAAP Gross Margin 69.6% 72.5% -3% -3% Non-GAAP Gross Margin2 75.7% 76.5% -1% -1% GAAP net income1 $3.2 $3.2 -1% -3% Non-GAAP net in
Slide 11: Updated full-year 2021 guidance
Updated full-year 2021 guidance1 Prior Guidance Updated Guidance Key Assumptions • Now assumes <2% positive FX impact $51.8B to $53.8B $51.8B to $53.8B • Now assumes ~3% negative impact due Revenue +8% to +12% (+6% to +10% ex-FX) +8% to +12% (+6% to +10% ex-FX) to COVID-19, particularly during the f
Slide 12: Accelerating towards the spinoff of Organon & Co.
Accelerating towards the spinoff of Organon & Co. Advancements March 17 March 30 April 8 Filing of Merck announces Pricing of Form 10 acquisition of Organon Upcoming milestones Alydia Health on senior notes behalf of Organon1 May 3 June 2 June 3 Merck Investor Expected Commencement Day featuring com
Slide 13: 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 2020 to 2024 +7% +11% >$20B Dollars per share $2.30 +15% +2% Over 5 years, including expanding manufacturing $2.00 +2% +2% $2.60 +11% +2% +2% $2.44 ca
Slide 14: Merck has actively supplemented its pipeline and portfolio with strategic business development
Merck has actively supplemented its pipeline and portfolio with strategic business development Oncology Cardiovascular, Animal Health Neurosciences & Other Bolt-on acquisitions Strategic collaborations & licensing 14
Slide 15: Expansion of HIV development program through collaboration with Gilead
Expansion of HIV development program through collaboration with Gilead Long-Acting Oral Long-Acting Injectable islatravir + lenacapavir islatravir + lenacapavir Once-Weekly Oral Treatment Once-Monthly Oral islatravir + MK-8507 development program islatravir in collaboration with Gilead Once-Daily Or
Slide 16: 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 17: Continuing to make progress on our ESG commitments
Continuing to make progress on our ESG commitments Increasing access to health to advance Merck’s efforts to serve more patients • History of making medicines and vaccines accessible and affordable through responsible pricing practices • Implemented refreshed Access to Health Guiding Principles to e