Merck & Co., Inc. (MRK) Investor Event at ASCO 2024 (Transcript)

Summary of Merck & Co., Inc. Investor Event at ASCO 2024 Company Overview - Company: Merck & Co., Inc. (NYSE: MRK) - Event: Investor Event at the American Society of Clinical Oncology Annual Meeting - Date: June 3, 2024 Key Industry Insights Oncology Pipeline Progress - Merck has made significant advancements in its oncology pipeline since early 2021, increasing the number of approved indications from 40 to 53, and approvals in earlier-stage cancers from 2 to 10 [9] - The company has expanded late-phase candidates being studied in combination from 2 to 9 [9] - KEYTRUDA is the only PD-1/PD-L1 therapy with 9 U.S. approvals in earlier-stage disease, demonstrating significant overall survival (OS) benefits in four earlier-stage tumor types: non-small cell lung cancer, renal cell carcinoma (RCC), cervical cancer, and triple-negative breast cancer (TNBC) [10] Strategic Pillars - Merck's oncology strategy is built on three pillars: 1. Immuno-oncology: Led by KEYTRUDA and V940, with ongoing trials for subcutaneous pembrolizumab [14] 2. Precision Molecular Targeting: Includes licensed and investigational medicines like belzutifan (HIF-2 alpha inhibitor) and MK-1084 (KRAS G12C inhibitor) [16] 3. Tissue-Targeting Medicines: Focus on antibody-drug conjugates (ADCs) and T-cell engagers, with a robust pipeline [17] Clinical Trials and Approvals - Merck has enrolled approximately 30,000 patients across over 30 Phase III clinical trials in earlier-stage cancers [20] - Recent approvals include KEYTRUDA's use in melanoma, lung cancer, RCC, bladder cancer, and TNBC, with a notable 28% reduction in the risk of death in resectable non-small cell lung cancer [21][22] - The company anticipates significant readouts in earlier-stage cancers over the next few years, which will guide future pipeline development [11] Commercial Landscape - Merck's oncology business has reached 2.6 million patients globally, with 53 approved indications in the U.S. and over 70 in the EU and Japan [42] - Earlier-stage indications are becoming a significant growth driver, with treatment rates for early-stage non-small cell lung cancer increasing from 35% to 65% since the launch of KEYNOTE-091 [43] - The company expects earlier-stage indications to represent 25% of overall KEYTRUDA revenue by the end of 2023 [44] Future Outlook - Merck's oncology pipeline is projected to contribute an incremental $20 billion in sales by the mid-2030s, excluding currently marketed products [48] - The company is confident in its ability to maintain leadership in oncology through ongoing innovation and expansion into additional tumor types [50] Additional Important Points - The acquisition of Harpoon Therapeutics enhances Merck's capabilities in developing T-cell engagers, which are expected to address high unmet needs in small cell lung cancer [37][38] - Merck is focusing on optimizing therapy for high-risk patients while avoiding overtreatment for low-risk patients, utilizing a diverse range of candidate medicines with different mechanisms of action [23] - The company is committed to advancing its ADC portfolio, with promising data from ongoing studies indicating potential for significant clinical impact [30][34] This summary encapsulates the key points discussed during the Merck & Co., Inc. investor event, highlighting the company's strategic focus, pipeline advancements, and future growth potential in the oncology sector.