Merck Wells Fargo 21st Annual Healthcare Conference

Thank you. Thank you for having us.

Thank you all for being here today, and thank you for your interest in and support of Merck. Since we were here a year ago, we have made tremendous progress, and that progress is all anchored towards driving our long-term growth ambition. This time last year, we were talking about 20 or so human health products that had the promise of delivering impact for patients and more than $50 billion in non-risk adjusted revenues by the mid-2030s. At the start of this year, we announced at the JP Morgan conference, we see more than $70 billion of non-risk adjusted revenues from this suite of human health products. The transformation of Merck's portfolio is underway. We have launched several new products. We have seen progress across our clinical book of business, and that is across oncology, cardiometabolic, ophthalmology, immunology, HIV.

On top of that, we continue to augment our pipeline with value, creating scientifically focused business development. That includes the acquisitions in this last year of both Caraway and Tilos. We have got an animal health business that continues to exhibit strong growth. We are excited and confident in our future, and we are going to fully invest behind the opportunities we have with our expansive pipeline and our launches to drive growth into the future. We have got many clinical readouts coming, and I am sure we will talk a lot about that. But overall, we are confident in the execution of our strategy, and we are confident in our future. We look forward now to your questions.

Yeah. For sac-TMT itself, you could argue it is the third TROP-2 ADCs.

Right. Whenever you are coming in with a third TROP-2 ADC, the minute you say it, they are like, "Why are you doing that?

Right. The concept for us is that we had already seen some data just from preclinical that made us think that this ADC, the linker payload, was going to be a cornerstone and would have a different benefit-risk ratio, especially in combinations.

The other sort of thing that was really important is that we have had a close relationship with Kelun-Biotech, and so we trust them implicitly in relationship to how they conduct their trials in China. The reason why that is important is we almost use it as a reconnaissance force.

To figure out where we should play. Our initial focus was when we looked at everyone else's TROP-2 ADC, we are actually very surprised how focused they were on breast and lung and how not focused they were in other indications.

Right. We put in 17, and 13 of them were not in breast and lung.

We said in breast and lung, we would be thoughtful and we would strike when the time was right.

What you've seen in the last year is that strategy coming out. Our endometrial is likely to be the first TROP-2 ADC, and those 13 trials are moving. In lung and breast, those data are coming through. You saw in Kelun-Biotech, in China data, in phase III data, very compelling data across the PD-1 standard. I think that gives us great confidence in moving our sac-TMT into lung and being more aggressive about it. You'll probably see data about breast cancer that will allow people to do a comparison.