Merck & Co (MRK) UBS Global Healthcare Conference 2024 summary

Financial and commercial performance

• Achieved $16.7 billion in Q3 revenue, with 7% overall and 8% human health year-over-year growth; animal health grew 11%.

• Strong launches for WINREVAIR in PAH and CAPVAXIVE, with most CAPVAXIVE uptake expected in 2025.

• Lagevrio contributed significantly in Q3, especially in Asia and the US.

• Guidance for 2024 narrowed, with expectations for continued strong growth into 2025.

• No major assets seen as underappreciated; focus remains on pipeline valuation as LOE approaches.

Pipeline and clinical development

• 2024 saw approval of sotatercept in the US and EU, with a broad label based on STELLAR results.

• Late-stage immunology development advanced, including phase III trials for TL1A (tulisokibart) and phase II-B for oral PCSK9 and GLP-1 asset MK-6024 for MASH.

• Major data readouts expected in 2025, including ZENITH mortality study for sotatercept and phase III results for heart failure and oral PCSK9.

• Phase III pipeline has tripled in three and a half years, with potential to launch as many products in five years as in the previous decade.

Regulatory and policy environment

• Ongoing engagement with policymakers at all levels in anticipation of a new US administration.

• IRA redesign in 2025 expected to benefit patients by capping out-of-pocket costs and removing the donut hole; compliance and access anticipated to improve.

• No disproportionate Medicare exposure; expects improved therapy compliance due to policy changes.