The call introduces Merck and Company's Q1 2026 financial results, highlighting non-GAAP adjustments, forward-looking statements, and available resources on the company's website. It outlines the presentation structure and speakers involved.

Company highlights year-over-year revenue growth to $16.3 billion, driven by oncology, animal health, and new products. Key milestones include FDA approval for a new HIV treatment, priority review for an antibody drug conjugate, and initiation of phase Iib/III studies for ophthalmology. Anticipates long-term growth in animal health with nelvi launch and planned acquisition of Turns Pharmaceuticals for chronic myeloid leukemia treatment, reflecting a science-led business strategy.

Merck anticipates a robust growth phase with 20+ new products, potential $70B revenue by mid-2030s. Announces leadership changes, AI partnerships, and strategic shifts to enhance productivity and patient impact.

Merck's first quarter revenues increased by 5% to $16.3 billion, with oncology and animal health leading growth. Keytruda sales rose 8% to $8 billion, driven by strong demand in metastatic and earlier stage cancers, and its new formulation Keytruda qle launched positively, contributing to the overall success. The company also received a permanent J code for Keytruda, aiming to enhance patient and healthcare system impact.

The oncology portfolio, highlighted by Welly's 43% sales increase, showed robust growth, driven by international market uptake and new patient segments in renal cell carcinoma. Infectious diseases sales decreased, primarily due to lower demand in China and Japan, while pneumococcal cap fasci sales grew by 31%. Cardiometabolic and respiratory sales, led by W Revere's $525 million, reflected strong demand in pulmonary arterial hypertension, with steady progress in patient numbers and reimbursement efforts. Otavio sales, impacted by CMS reimbursement changes, are expected to recover, with strategic investments aimed at accelerating growth in the second half of the year.

Despite robust sales growth in livestock and companion animal sectors, the company faced a $1.28 loss per share, influenced by a $900 million non-recurring charge from the sedra therapeutics acquisition, and a $3.62 loss per share impact, reflecting increased investments and financing expenses.

The company revised its 2026 non-GAAP financial guidance, tightening the revenue and EPS ranges while highlighting foreign exchange impacts. It emphasized ongoing investments, particularly in R&D, and committed to strategic capital allocation, including dividends, share repurchases, and business development, notably the acquisition of Turns. The guidance excluded the acquisition's immediate effects, which would incur a one-time charge and affect EPS. Keytruda's sales were noted to have seasonal fluctuations, with anticipation of increased shipments post-RSV season. The firm remains dedicated to innovation and shareholder value.

Progress in cardiovascular and respiratory treatments includes phase 3 data for Lytta, an oral PCSK9 inhibitor showing significant LDL cholesterol reduction, and phase 2 results for Wind Rivera, demonstrating efficacy in pulmonary hypertension, both advancing preventive cardiology and therapy accessibility.

The FDA has approved several new cancer treatments, including a PD-1 inhibitor regimen for ovarian cancer and a perioperative immunotherapy plus ADC regimen for muscle-invasive bladder cancer. Additionally, a novel oral inhibitor for chronic myeloid leukemia and a new HIV treatment regimen have shown promising results. These approvals and ongoing studies highlight advancements in oncology and HIV therapeutics.

Global efforts to combat RSV in infants have seen European Commission approval for a preventive measure. In ophthalmology, new phase 2 trials for retinal diseases are underway, focusing on neovascular age-related macular degeneration. Additionally, significant milestones are anticipated in oncology, including potential approvals and updates on various therapeutic areas, with an annual investor event planned for June 1.

The dialogue focuses on MK-3000, a novel candidate targeting the Wnt pathway for retinal vascular disease, addressing concerns about its dosing frequency. It highlights the potential for every 4-week dosing, with consideration for longer intervals, emphasizing the importance of initial Q4 weeks for labeling. The discussion also touches on MK-748, another promising candidate in clinical trials for retinal conditions.

The dialogue discusses the outcomes of the Light Spark study, particularly focusing on the implications for overall survival (OS) in upcoming trials. It reassures a positive outlook on the trials' results, despite challenges in hearing the initial question. The conversation also touches on cautious analysis of data involving various treatments and agents, emphasizing no negative implications from the Light Spark study.

The discussion focuses on strategic approaches towards mT programs within the context of p1 initiatives, examining current standings and competitive landscapes, particularly concerning a competitor's plenary presentation at Asco, aiming to provide a snapshot of the status and implications for related assets.

Discussed the interest in PD-1 VEGF combinations, sharing early data and planning trials. Emphasized the potential of combining PD-1 VEGF with other agents like Keytruda, and highlighted collaboration with Keelan for Opti-trope in non-small cell lung cancer. Open to combining therapies based on global trial outcomes.

Discusses identifying significant unmet scientific opportunities, focusing on oncology, immunology, and cardiometabolic areas for potential acquisitions, emphasizing strategic value and growth potential.

The dialogue discusses the ongoing conversations with the FDA regarding the phase 3 program for Wind Revere, focusing on the time to clinical worsening as a primary endpoint. It emphasizes the importance of defining inclusion criteria and the operationalization of the clinical trial, particularly for a complex and underserved patient population with pulmonary hypertension and heart disease.

Discussion focuses on interpreting outcomes from a China-based study on Sac TMT and its potential global application, emphasizing the significance of ADC combinations and the role of PD-1/PDL-1 cutoffs in non-small cell lung cancer trials.

The FDA is in ongoing discussions about the Inle Ti application, emphasizing its importance to public health and innovation. The approval process is described as a rolling submission, with active talks about label specifics for administration. An approval in the second half of the year is anticipated, with no immediate concerns noted.

Discussion centered around TL1A's significance in immunology and IBD, highlighting its potential as a key node in treatment. The dialogue touched on the interest in combination therapies and TL1A's unique AE profile, suggesting it could be pivotal not only for inflammation but also fibrosis. Insights were shared on upcoming clinical data and the unmet need for effective treatments in specific patient populations.

A dialogue addresses the potential drop in MMR achievement rates for incremental patients on Turn 701, questioning its impact on the drug's profile. The discussion highlights the significance of Turn 701 in CML treatment, emphasizing its potential as a best-in-class allosteric DKI with a high selectivity and improved therapeutic index. It reassures that the drug's MMR rates are expected to be above 50%, which is compelling, and suggests that Turn 701 could catalyze the field to consider DMR as a treatment goal.

The dialogue covers Merc's focus on expanding T1A in immunology, considering it as a foundation to explore other conditions and combinations. It also discusses the discontinuation of Mk 6837, an ADC, in light of advancements in the ADC field, hinting at future developments in the immunology pipeline beyond T1A.

The dialogue underscores the company's dedication to its HIV program, emphasizing the development of a next-generation nucleoside reverse transcriptase inhibitor. The focus is on transitioning from three-drug to two-drug daily programs, aiming for the first weekly regimen. Future plans include exploring a monthly treatment option, highlighting a strong commitment to global public health.