Merck & Co., Inc. (MRK) BofA Securities 2024 Health Care Conference (Transcript)

Merck & Co., Inc. (NYSE:MRK) Conference Call Summary Company Overview - Company: Merck & Co., Inc. - Event: BofA Securities 2024 Health Care Conference - Date: May 15, 2024 - Participants: Caroline Litchfield (EVP & CFO), Geoff Meacham (Bank of America Securities) Key Highlights Financial Performance - Q1 Growth: Merck reported a 9% growth in revenue driven by oncology (KEYTRUDA), vaccines (GARDASIL, VAXNEUVANCE), and contributions from LAGEVRIO [3][4] - Guidance Update: The company raised and narrowed its guidance for both top line and bottom line for the year [4] Product Pipeline and Launches - Phase 3 Studies: Over 20 Phase 3 studies initiated across 8 novel candidates in 2023, with expectations for more in 2024 [4] - WINREVAIR Launch: Positive initial reception from prescribers and patient groups for WINREVAIR, aimed at treating pulmonary arterial hypertension (PAH) [6][8] - Market Potential: Approximately 40,000 patients in the U.S. identified with PAH, with prescriptions coming from both Centers of Excellence (COEs) and outside [7] Oncology Developments - KEYTRUDA: The company aims to mitigate the impact of KEYTRUDA's loss of exclusivity (LOE) through innovation and a strong pipeline in oncology [12][14] - Pipeline Expansion: Focus on individualized neoantigen therapy, precision molecular targeted agents, and antibody-drug conjugates (ADCs) [14][15] - TIGIT Program: Ongoing studies in non-small cell lung cancer and small cell lung cancer, despite setbacks in early-stage melanoma [17][19] GARDASIL and Vaccination Strategy - GARDASIL Performance: Strong performance, especially in ex-U.S. markets, with a focus on increasing vaccination rates globally [28][29] - Market Opportunities: Emphasis on gender-neutral vaccinations and targeting older age cohorts for vaccination [30][31] Upcoming Products - V116: Anticipated approval for the adult pneumococcal vaccine, with clinical studies showing effectiveness in various age groups [34] - RSV Treatment: Development of a monoclonal antibody (clesrovimab) for RSV, with a focus on a single fixed dose for infants [36] Capital Allocation and Business Development - Investment Focus: Commitment to investing in the pipeline and pursuing business development opportunities across various therapeutic areas [38][39] - Strategic Approach: No specific strategy for rare diseases, but a focus on unmet medical needs and leveraging scientific advancements [41] Cardiometabolic Disease - GLP Dual Agonist: Researching a dual agonist for NASH with promising data on liver fat loss and weight reduction [43][44] - Obesity Market: Exploring opportunities in obesity treatment with potential for innovative oral agents and combination products [44] Additional Insights - Market Dynamics: The company is confident in its ability to compete against local HPV vaccines in China while expanding its market presence [32] - Future Growth: Anticipation of continued growth in KEYTRUDA driven by earlier-stage cancer treatments and expanding indications [23][25] This summary encapsulates the key points discussed during the conference call, highlighting Merck's strategic focus, product pipeline, and market opportunities.