Merck & Company, Inc. · NYSE:MRK
Merck & — Q2 2021 Earnings Presentation
17 slides from Merck &'s earnings presentation, Jul 29, 2021
Slide 1: Merck Q2 2021 Earnings
Merck Q2 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: Q2 performance highlights
Q2 performance highlights • Invested $2.5B in research and development, making Created significant progress in advancing our pipeline and shareholder Worldwide $11.4B sustaining our key growth pillars value sales • Returned $1.9B to shareholders through dividends and share repurchase performance1,4
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 July 29: • In the U.S., received approval for KEYTRUDA in high-risk early-stage TNBC based on KN-522, in gastric or GEJ cancer based on KN-811, in endometrial cancer based on KN-775, and in loca
Slide 5: Broad and innovative pipeline to solve significant unmet medical needs
Broad and innovative pipeline to solve significant unmet medical needs Phase 2 Phase 3 Under regulatory review Oncology Oncology Oncology KEYTRUDA (MK-3475) MK-2140 V937 MK-1308A KEYTRUDA (MK-3475) LENVIMA (MK-7902) Belzutifan (MK-6482) Advanced Solid Tumors Breast Melanoma Advanced Solid Tumors Bil
Slide 6: More than tripling the number of new indications and launches across oncology portfolio
More than tripling the number of new indications and launches across oncology portfolio over the next eight years >90 potential approvals PIPELINE ASSETS LENVIMA expected by 2028 LYNPARZA KEYTRUDA with more than 50 expected by 2025 2014-2020 2021-2028 6
Slide 7: Oncology: continued strength & leadership across portfolio
Oncology: continued strength & leadership across portfolio +20% YOY • KEYTRUDA sales of $4.2B increased 20% year- over-year, reflecting continued strong global demand o In the U.S., 15% growth driven by strong growth across all key tumor types, including continued leadership in lung o Ex-U.S., 27% g
Slide 8: Vaccines: GARDASIL driving robust growth
Vaccines: GARDASIL driving robust growth +78% YOY • GARDASIL sales of $1.2B increased 78% year- over-year reflecting strong underlying global demand o In the U.S., sales increased 170% year-over- year benefitting from ongoing pandemic recovery and strong demand 2Q20 2Q21 o Ex-U.S., sales increased 4
Slide 9: Hospital: continued pandemic recovery
Hospital: continued pandemic recovery +67% YOY • BRIDION sales of $387M increased 67% year-over-year, reflecting higher demand globally and improved patient access • Continued uptake in PREVYMIS, driven by ongoing launches 2Q20 2Q21 BRIDION Performance 1. All growth rates exclude the impact of forei
Slide 10: Animal Health: very strong performance across portfolio
Animal Health: very strong performance across portfolio +27% YOY • Animal Health sales increased 27% to $1.5B, adjusting for pandemic impact, sales increased 19% o Companion Animal sales increased 38%, driven by increased global demand for vaccines and parasiticides o Livestock sales increased 20%,
Slide 11: Strong global recovery across geographies
Strong global recovery across geographies1 Canada +16% Europe3 +18% +42% +7% United +17% States $343M China Japan +3% +9% Eastern Europe / Middle East Asia Pacific +24% Africa Global Latin pharmaceutical America sales +18%2 1. Results are presented on a continuing operations basis 2. All growth rate
Slide 12: Q2 2021 financial results summary: Strong business recovery and leverage in P&L
Q2 2021 financial results summary1: Strong business recovery and leverage in P&L $ in billions, except EPS amounts Change Q2 2021 Q2 2020 Change Ex-FX Sales $11.4 $9.4 +22% +19% GAAP Gross Margin 72.8% 70.6% +2% +3% Non-GAAP Gross Margin3 76.5% 77.1% -1% 0% GAAP net income2 $1.2 $2.3 -48% -47% Non-G
Slide 13: Continuing operations full-year 2021 guidance
Continuing operations full-year 2021 guidance1 Guidance Key Assumptions • Raised and narrowed from previous guidance ($45.8 to 47.8B) $46.4 to $47.4B Revenue • Assumes a <2% positive FX impact +12% to +14% (+10% to +12% ex-FX) • Now assumes <3% negative impact due to COVID-19, all of which relates t
Slide 14: 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% $2.60 +11% ~$20B Dollars per share $2.30 +15% Over 5 years, including expanding manufacturing $2.00 +2% +2% $2.60 capacity for Oncolo
Slide 15: 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 15
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 267 million 1 million 13 million Women Renewable Energy Reached more than 267 Announced that our prior Reached 13 million women Accelerating by 15 years, to million people globally with CEO, Ken Frazier, is the co- through Merck for Mothers, 2025, o