Merck (MRK) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic positioning and growth pillars

• Positioned for growth in innovation-driven and secular markets, focusing on Process Solutions, rare diseases, and Semiconductor Solutions as key growth drivers.

• Multi-industry model and diversified global footprint provide resilience amid geopolitical changes.

• M&A and disciplined portfolio management remain central, with recent acquisitions like SpringWorks and divestments such as Surface Solutions, supported by strong cash generation.

• Three sectors—Life Science, Healthcare, and Electronics—target highly innovative end-markets.

• Key growth drivers expected to contribute up to 80% of future growth.

Sector performance and outlook

• Life Science sector reorganized for customer-centricity, with three go-to-market models: Process Solutions, Advanced Solutions, and Discovery Solutions, and a new structure effective January 2026.

• Process Solutions expected to grow 9%-10% midterm, driven by demand for monoclonal antibodies and novel modalities.

• Healthcare focuses on rare diseases, oncology, and fertility, with new launches and pipeline advancements.

• Electronics sector leverages semiconductor and optronics solutions, with AI and advanced nodes driving mid-term growth.

• Advanced Solutions and Discovery Solutions forecasted for mid- to high-single-digit and low-single-digit growth, respectively.

Pipeline, innovation, and M&A

• Rare disease portfolio includes Ogsiveo, Gomekli, and pimicotinib, with combined peak sales potential of €2.5 billion and multiple launches planned through 2027.

• Pipeline replenishment strategy emphasizes external innovation, aiming for 50% of new launches from outside sources.

• Ongoing openness to in-licensing and bolt-on M&A, especially in rare diseases.

• Electronics sector, especially Semiconductor Solutions, benefits from AI-driven demand and advanced packaging, with over 50% of the portfolio in advanced nodes.

• M&A strategy remains focused on innovation-driven businesses, using a string of pearls approach for targeted acquisitions.