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Merck & Co., Inc. (MRK) TD Cowen 44th Annual Healthcare Conference (Transcript)
MRKMerck(MRK)2024-03-05 21:00

Company and Industry Overview * Company: Merck & Co., Inc. (NYSE:MRK) * Industry: Healthcare, Pharmaceuticals, Biotechnology Key Points GARDASIL * Revenue Target: Merck aims to achieve 11billioninGARDASILrevenueby2030,drivenbyinternationalmarkets.∗∗∗InternationalExpansion∗∗:Merckfocusesonincreasingvaccinecoveragerates,expandingcoverageinNIPs,andtargetingtheprivatemarketandlowmiddle−incomesegments.∗∗∗ManufacturingCapacity∗∗:MerckhasinvestedinmanufacturingcapacitytomeetgrowingdemandforGARDASIL,particularlyinlowmiddle−incomemarkets.KEYTRUDA∗∗∗GrowthOutlook∗∗:KEYTRUDAisexpectedtoseegrowthin2024,drivenbyexpansionintonewtumortypesandearliertreatmentsettings.∗∗∗Early−StageSettings∗∗:Early−stageKEYTRUDAisexpectedtobetheprimarydriverofgrowthin2024,withsignificantpotentialintriple−negativebreastcancerandothertumortypes.∗∗∗SubcutaneousFormulation∗∗:MerckisexploringthesubcutaneousformulationofKEYTRUDAforO−U.S.markets,aimingtoimprovepatientconvenienceandaccess.Sotatercept∗∗∗PAHApproval∗∗:MerckisconfidentintheapprovalofsotaterceptforPAHintheEUandJapan,withapotentiallaunchinthesecondhalfof2024.∗∗∗MarketOpportunity∗∗:SotatercepthasthepotentialtobecomeasignificantrevenuedriverforMerck,withatargetcardiovascularbusinessof11 billion in GARDASIL revenue by 2030, driven by international markets. * **International Expansion**: Merck focuses on increasing vaccine coverage rates, expanding coverage in NIPs, and targeting the private market and low middle-income segments. * **Manufacturing Capacity**: Merck has invested in manufacturing capacity to meet growing demand for GARDASIL, particularly in low middle-income markets. KEYTRUDA * **Growth Outlook**: KEYTRUDA is expected to see growth in 2024, driven by expansion into new tumor types and earlier treatment settings. * **Early-Stage Settings**: Early-stage KEYTRUDA is expected to be the primary driver of growth in 2024, with significant potential in triple-negative breast cancer and other tumor types. * **Subcutaneous Formulation**: Merck is exploring the subcutaneous formulation of KEYTRUDA for O-U.S. markets, aiming to improve patient convenience and access. Sotatercept * **PAH Approval**: Merck is confident in the approval of sotatercept for PAH in the EU and Japan, with a potential launch in the second half of 2024. * **Market Opportunity**: Sotatercept has the potential to become a significant revenue driver for Merck, with a target cardiovascular business of 15 billion by the mid-2030s. Vaccines * Prevnar: Merck is focused on expanding the Prevnar franchise, including the launch of VAXNEUVANCE for the pediatric segment and V116 for the adult segment. * Dengue: Merck is developing a dengue vaccine with potential for significant impact in the Southern Hemisphere and other regions. * VAXELIS: Merck is making steady progress with VAXELIS, a hexavalent vaccine covering multiple diseases. HIV * Islatravir-Doravirine Combination: Merck is developing an islatravir-doravirine combination for HIV, aiming to differentiate from existing treatments and address unmet needs. China * Market Growth: Merck has seen significant growth in China, driven by the launch of GARDASIL and other innovative products. * Government Support: The Chinese government's focus on improving healthcare standards and access has been beneficial for Merck. * Partnerships: Merck has formed partnerships with local companies to leverage the growing scientific ecosystem in China. Future Outlook * Competitive Advantage: Merck's competitive advantage lies in its pipeline of innovative products and its focus on patient care. * Long-Term Growth: Merck is focused on long-term growth, with a focus on expanding its pipeline and addressing unmet medical needs.