Merck (MRK) Investor Update summary

Strategic R&D focus and external innovation

• Committed to launching a new product every 18 months, leveraging both internal expertise and external partnerships for about 50% of future launches.

• Focused leadership in oncology, expanding from established strengths in biology, technology, and therapeutic areas, while exploring adjacent opportunities.

• Active deals with Caris Life Sciences, Hengrui, Abbisko, and others to access new targets and de-risked assets, especially in ADCs and DDR.

• R&D spend maintained at low 20s% of sales, with organizational savings reinvested into pipeline growth.

Oncology pipeline progress and clinical updates

• Frontline phase III assets, Avelumab (Trillium study) and pimicotinib, have completed recruitment; interim analyses and readouts expected by year-end.

• Three phase III oncology trials and multiple phase Ia/Ib programs are advancing, with new compounds entering from both internal research and external sources.

• Emphasis on DNA damage response (DDR) and antibody-drug conjugates (ADCs) as key innovation areas.

DDR and ADC portfolio strategy

• DDR portfolio includes four clinical assets, notably a PARP1-selective inhibitor from Hengrui, targeting synthetic lethality, immune response rekindling, and cytotoxic potentiation.

• Lead DDR compounds, tuvusertib (ATR inhibitor) and M9466 (PARP1 inhibitor), prioritized for ovarian and prostate cancer, with combinations in development.

• Tuvusertib shows favorable safety and efficacy in monotherapy and combinations, with phase 2 trials ongoing or starting in 2024.

• M9466 demonstrates high selectivity and strong response rates in phase 1, especially in PARP-naive ovarian cancer.

• ADC platform leverages potent exatecan payloads and innovative antibody formats, with M9140 (anti-CEACAM5) and M3554 (anti-GD2) as clinical frontrunners.