Q2 2024 Merck & Co Inc Earnings Call

July 30, 2024

Thank you for standing by. Welcome to the Merck & Co Q2 sales and earnings conference call.

Operator: --at this time, please remain in a listen-only mode until the question-and-answer session of today's conference. At this time, to ask a question, press start 1 on your phone and record your name at the prompt. This call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to Mr. Peter Dannenbaum, Senior Vice President and Investor Relations. Sir, you may begin.

Speaker Change: At this time, all participants are in a listen-only mode until the question-and-answer session of today's conference. At this time, to ask a question, press Star 1 on your phone and record your name at the prompt.

Unknown Executive: This call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to you. Good morning, everyone. Welcome. Rob Davis, Chairman and Chief Executive Officer, Caroline Litchfield, Chief Financial Officer, and Dr. Dean Lee, President of Merck Research Labs. Before we get started, I'd like to point out that we have items in our GAAP results, such as acquisition-related charges, restructuring costs, and certain other items, and that we have excluded these from our non-GAAP results.

This call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to you.

Speaker Change: This call is being recorded. If you have any objections, you may disconnect at this time.

Peter Dannenbaum: I would now like to turn the call over to Mr. Peter Dannenbaum, Senior Vice President, Investor Relations. Sir, you may begin.

Peter Dannenbaum: Thank you, Brad and good morning, everyone. Welcome to Merck's second quarter, 2024 conference call. Speaking on today's call will be Rob Davis, Chairman and Chief Executive Officer, Caroline Litchfield, Chief Financial Officer, and Dr. Dean Li, President of Merck Research Labs. Before we get started, I'd like to point out that we have items in our GAAP results, such as acquisition-related charges, restructuring costs, and certain other items, and that we have excluded these from our non-GAAP results. There is a reconciliation in our press release. I will also remind you that some of the statements that we make today may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are made based on the current beliefs of Merck's management and are subject to significant risks and uncertainties. If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statement. Our SEC filings, including Item 1A and the 2023 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck undertakes no obligation to publicly update any forward-looking statements. During today's call, a slide presentation will accompany our speakers' prepared remarks. These slides, along with the earnings release, today's prepared remarks, and our SEC filings, are all posted in the Investor Relations section of Merck's website. With that, I'd like to turn the call over to Rob.

Peter Dannenbaum: Thank you, Brad, and good morning, everyone. Welcome to Merck's second quarter 2024 conference call.

Speaker Change: Speaking on today's call will be Rob Davis, Chairman and Chief Executive Officer, Caroline Litchfield, Chief Financial Officer, and Dr. Dean Lee, President of Merck Research Labs.

Peter Dannenbaum: Before we get started, I'd like to point out that we have items in our GAAP results, such as acquisition-related charges, restructuring costs, and certain other items, and that we have excluded these from our non-GAAP results. There is a reconciliation in our press release. I will also remind you that some of the statements that we make today may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are made based on the current beliefs of Merck's management and are subject to significant risks and uncertainties. If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statement. Our SEC filings, including Item 1A and the 2023 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck undertakes no obligation to publicly update any forward-looking statements. During today's call, a slide presentation will accompany our speakers' prepared remarks. These slides, along with the earnings release, today's prepared remarks, and our SEC filings, are all posted in the Investor Relations section of Merck's website. With that, I'd like to turn the call over to Rob.

Unknown Executive: There is a reconciliation in our press release. I will also remind you that some of the statements that we make today may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are made based on the current beliefs of Merck's management and are subject to significant risks and uncertainty. If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statement. Our SEC filings, including Item 1A and the 2023 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck undertakes no obligation to publicly update any forward-looking statements.

Peter Dannenbaum: I will also remind you that some of the statements that we make today may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are made based on the current beliefs of Merck's management and are subject to significant risks and uncertainties.

Unknown Executive: Such statements are made based on the current beliefs of Merck's management and are subject to significant risks and uncertainty. If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statement. Our SEC filings, including Item 1A and the 2023 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck undertakes no obligation to publicly update any forward-looking statements.

Peter Dannenbaum: If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Peter Dannenbaum: Our SEC filings, including Item 1A and the 2023 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck undertakes no obligation to publicly update any forward-looking statements.

Peter Dannenbaum: During today's call, a slide presentation will accompany our speakers' prepared remarks. These slides, along with the earnings release, today's prepared remarks, and our SEC filings, are all posted in the Investor Relations section of Merck's website. With that, I'd like to turn the call over to Rob.

Peter Dannenbaum: During today's call, a slide presentation will accompany our speakers' prepared remarks. These slides, along with the earnings release, today's prepared remarks, and our SEC filings, are all posted to the Investor Relations section of Merck's website.

Robert M. Davis: Thanks, Peter. Good morning, and thank you for joining today's call. Our business is demonstrating strong momentum as we exit the first half of the year. We remain guided by our purpose of harnessing the power of leading-edge science to save and improve lives around the world. Our ambitious and dedicated teams are working tirelessly to reach more patients with our broad commercial portfolio and advance our deep pipeline with the goal of delivering future innovations that solve additional unmet medical needs. Through excellent scientific, commercial, and operational execution, we're achieving significant milestones for our company and for patients. This quarter, we're proud to have successfully launched WINREVAIR, which introduces a novel mechanism to treat adults suffering with pulmonary arterial hypertension. We're also pleased by the recent FDA approval of CAPVAXIVE, the first approved pneumococcal conjugate vaccine specifically designed for adults, as well as the subsequent ACIP recommendation. Both of these important innovations demonstrate our unwavering commitment to creating value for patients and shareholders. And we remain committed to the execution of strategic business development to further augment our pipeline. We recently announced and have now closed the acquisition of EyeBio, which expands our efforts in ophthalmology and brings to Merck a novel late-phase candidate for the treatment of retinal diseases. This promising new mechanism adds another substantial potential commercial opportunity to our expanding pipeline in an area of significant unmet medical need. In addition, our animal health business closed the acquisition of Elanco's Aqua Business, which establishes Merck as a leader in this important production animal category.

Peter Dannenbaum: With that, I'd like to turn the call over to Rob.

Rob Davis: Thanks Peter. Good morning and thank you for joining today's call.

Rob Davis: Our business is demonstrating strong momentum as we exit the first half of the year.

Speaker Change: We remain guided by our purpose of harnessing the power of leading-edge science to save and improve lives around the world.

Rob Davis: Our ambitious and dedicated teams are working tirelessly to reach more patients with our broad commercial portfolio and advance our deep pipeline with the goal of delivering future innovations that solve for additional unmet medical needs.

Rob Davis: Through excellent scientific, commercial, and operational execution, we're achieving significant milestones for our company and for patients. This quarter, we're proud to have successfully launched WinRIVER, which introduces a novel mechanism to treat adults suffering with pulmonary arterial hypertension. We're also pleased by the recent FDA approval of CABVAXIV, the first approved pneumococcal conjugate vaccine specifically designed for adults, as well as the subsequent ACIP recommendations. Both of these important innovations demonstrate our unwavering commitment to creating value for patients and shareholders. And we remain committed to the execution of strategic business development to further augment our pipeline. We recently announced and have now closed the acquisition of iBio, which expands our efforts in ophthalmology and brings to Merck a novel late-phase candidate for the treatment of retinal diseases. This promising new mechanism adds another substantial potential commercial opportunity to our expanding pipeline in an area of significant unmet medical need. In addition, our animal health business closed the acquisition of Lenco's aqua business, which establishes Merck as a leader in this important production animal category.

Rob Davis: Through excellent scientific, commercial, and operational execution.

Speaker Change: We're achieving significant milestones for our company and for patients.

Speaker Change: This quarter, we're proud to have successfully launched WinRIVERE, which has introduced a novel mechanism to treat adult suffering with pulmonary arterial hypertension.

Rob Davis: We're also pleased by the recent FDA approval of CABVAXIV, the first approved pneumococcal conjugate vaccine specifically designed for adults, as well as the subsequent ACIP recommendations. Both of these important innovations demonstrate our unwavering commitment to creating value for patients and shareholders. And we remain committed to the execution of strategic business development to further augment our pipeline. We recently announced and have now closed the acquisition of iBio, which expands our efforts in ophthalmology and brings to Merck a novel late-phase candidate for the treatment of retinal diseases. This promising new mechanism adds another substantial potential commercial opportunity to our expanding pipeline in an area of significant unmet medical need. In addition, our animal health business closed the acquisition of Lenco's aqua business, which establishes Merck as a leader in this important production animal category.

Speaker Change: We're also pleased by the recent FDA approval of CABVAXIV, the first approved pneumococcal conjugate vaccine specifically designed for adults, as well as the subsequent ACIP recommendation.

Speaker Change: Both of these important innovations demonstrate our unwavering commitment to creating value for patients and shareholders.

Speaker Change: And we remain committed to the execution of strategic business development to further augment our pipeline.

Speaker Change: We recently announced and have now closed the acquisition of iBio, which expands our effort in ophthalmology and brings to Merck a novel late phase candidate for the treatment of retinal diseases.

Rob Davis: This promising new mechanism adds another substantial potential commercial opportunity to our expanding pipeline in an area of significant unmet medical need. In addition, our animal health business closed the acquisition of Lenco's aqua business, which establishes Merck as a leader in this important production animal category.

Speaker Change: This promising new mechanism adds another substantial potential commercial opportunity to our expanding pipeline in an area of significant unmet medical need.

Speaker Change: In addition, our animal health business closed the acquisition of Lenco's aqua business.

Speaker Change: which establishes Merck as a leader in this important production animal category.

Robert M. Davis: Three years ago, I was honored to step into the role of CEO, and it remains my top priority to uphold and build on Merck's legacy as a premier science-driven, patient-focused biopharmaceutical company. At that time, I affirmed Merck's strategic commitment to the research and development of innovative medicines and vaccines as a source of long-term value creation. I communicated our intention to be appropriately aggressive in making the necessary investments to both advance our broad internal pipeline and augment it with the best external science through business development. Since then, we've made substantial progress in expanding and evolving our pipeline for the benefit of future patients. We have the potential to bring as many new drugs to market in the next five years as we launched over the last 10 years across a greater number of therapeutic areas and modalities, and with a significant proportion having Blockbuster Plus potential. We've made tremendous progress building on our past successes, enabling the creation of a sustainable engine that will drive future innovations for patients, and we continue to leverage our scientific prowess to identify new therapeutic targets where we can add value through our expertise in clinical development and regulatory affairs, and our global commercial scale. I'm also proud of the substantial improvements we've made across our sustainability focus areas. We're reaching more people with our medicines and vaccines across a greater number of countries globally than ever before, and doing so with a dedicated, highly talented, and diverse employee base. Finally, we're driving increased innovation and productivity through the widespread integration of data, digital, and analytics in all areas of our business. Going forward, I am committed to ensuring our actions remain aligned with our strategy, and I am confident that we are well positioned to deliver value to patients and shareholders long into the future.

Speaker Change: Three years ago, I was honored to step into the role of CEO , and it remains my top priority to uphold and build on Merck's legacy as a premier science-driven, patient-focused biopharmaceutical company.

Speaker Change: At that time, I affirmed Merck's strategic commitment to the research and development of innovative medicines and vaccines as a source of long-term value creation.

Speaker Change: I communicated our intention to be appropriately aggressive in making the necessary investments to both advance our broad internal pipeline and augment it with the best external science through business development.

Rob Davis: Since then, we've made substantial progress in expanding and evolving our pipeline for the benefit of future patients. We have the potential to bring as many new drugs to market in the next five years as we launched over the last 10 years across a greater number of therapeutic areas and modalities, and with a significant proportion having Blockbuster Plus potential. We've made tremendous progress building on our past successes, enabling the creation of a sustainable engine that will drive future innovations for patients, and we continue to leverage our scientific prowess to identify new therapeutic targets where we can add value through our expertise in clinical development and regulatory affairs and our global commercial scale. I'm also proud of the substantial improvements we've made across our sustainability focus areas. We're reaching more people with our medicines and vaccines across a greater number of countries globally than ever before, and doing so with a dedicated, highly talented, and diverse employee base. Finally, we're driving increased innovation and productivity through the widespread integration of data, digital, and analytics in all areas of our business. Going forward, I am committed to ensuring our actions remain aligned with our strategy, and I am confident that we are well positioned to deliver value to patients and shareholders long into the future.

Speaker Change: Since then, we've made substantial progress in expanding and evolving our pipeline for the benefit of future patients.

Speaker Change: We have the potential to bring as many new drugs to market in the next five years as we launched over the last ten years across a greater number of therapeutic areas and modalities.

Speaker Change: and with a significant proportion having Blockbuster Plus potential.

Robert M. Davis: We've made tremendous progress building on our past successes, enabling the creation of a sustainable engine that will drive future innovations for patients, and we continue to leverage our scientific prowess to identify new therapeutic targets where we can add value through our expertise in clinical development and regulatory affairs, and our global commercial scale.

Speaker Change: We've made tremendous progress building on our past successes.

Speaker Change: All of these partnerships are open source tools, enabling the creation of a sustainable engine that will drive future innovations for patients. And we continue to leverage our scientific prowess to identify new therapeutic targets where we can add value to our expertise in clinical development and regulatory affairs, and our global commercial scale.

Robert M. Davis: I'm also proud of the substantial improvements we've made across our sustainability focus areas. We're reaching more people with our medicines and vaccines across a greater number of countries globally than ever before, and doing so with a dedicated, highly talented, and diverse employee base.

Speaker Change: I'm also proud of the substantial improvements we've made across our sustainability focus areas.

Rob Davis: We're reaching more people with our medicines and vaccines across a greater number of countries globally than ever before, and doing so with a dedicated, highly talented, and diverse employee base. Finally, we're driving increased innovation and productivity through the widespread integration of data, digital, and analytics in all areas of our business. Going forward, I am committed to ensuring our actions remain aligned with our strategy, and I am confident that we are well positioned to deliver value to patients and shareholders long into the future.

Speaker Change: We're reaching more people with our medicines and vaccines across a greater number of countries globally than ever before, and doing so with a dedicated, highly talented, and diverse employee base.

Robert M. Davis: Finally, we're driving increased innovation and productivity through the widespread integration of data, digital, and analytics in all areas of our business. Going forward, I am committed to ensuring our actions remain aligned with our strategy, and I am confident that we are well positioned to deliver value to patients and shareholders long into the future.

Speaker Change: Finally, we're driving increased innovation and productivity through widespread integration of data, digital, and analytics in all areas of our business.

Speaker Change: Going forward, I am committed to ensuring our actions remain aligned with our strategy, and I am confident that we are well positioned to deliver value to patients and shareholders long into the future.

Robert M. Davis: Turning to our second quarter results, we achieved strong growth reflecting continued demand across our broad portfolio, which is reflected in our updated full year guidance, which Caroline will speak to in just a moment. Moving on to our broader research efforts and new launches, in cardiometabolic, we've seen a very favorable reception by physicians, patients, and payers to the availability of Wim Rivera. While still early, the U.S. launch has gone very well, in line with our own high expectations. We've deployed a focused, customer-centric rare disease model and are pleased to see an increasing number of prescriptions being written and patients obtaining access. We've also received a positive CHNP opinion and look forward to potential regulatory approval in Europe in the near future. We continue to see a tremendous opportunity to positively impact the lives of patients living with this devastating disease. In vaccines, we've continued to bring forward innovations for both adults and children. We are proud of the recent FDA approval of cabaxib for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults and the unanimous ACIP recommendation. Given its compelling clinical profile, we expect that CABAXIS will achieve a majority market share in the adult setting. We were also pleased to announce positive top-line results from the Phase 2b3 clinical trial for clozulomab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market. Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of Keytruda. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term. As a company, we remain highly focused and continue to work with urgency to bring these innovations and others to the patients we serve. In summary, I want to again recognize the tremendous efforts of our global team. Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Robert M. Davis: Turning to our second quarter results, we achieved strong growth reflecting continued demand across our broad portfolio, which is reflected in our updated full year guidance, which Caroline will speak to in just a moment. Coming to our broader research efforts and new launches, in cardiometabolic, we've seen a very favorable reception by physicians, patients, and payers to the availability of WINREVAIR. While still early, the U.S. launch has gone very well, in line with our own high expectations. We've deployed a focused, customer-centric rare disease model and are pleased to see an increasing number of prescriptions being written and patients obtaining access. We've also received a positive CHNP opinion and look forward to potential regulatory approval in Europe in the near future. We continue to see a tremendous opportunity to positively impact the lives of patients living with this devastating disease. In vaccines, we've continued to bring forward innovations for both adults and children. We are proud of the recent FDA approval of CAPVAXIVE for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults and the unanimous ACIP recommendation. Given its compelling clinical profile, we expect that CAPVAXIVE will achieve a majority market share in the adult setting. We were also pleased to announce positive top-line results from the Phase IIbIII clinical trial for clesrovimab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market. Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of KEYTRUDA. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term.

Speaker Change: Turning to our second quarter results, we achieved strong growth reflecting continued demand across our broad portfolio, which is reflected in our updated full year guidance, which Caroline will speak to in just a moment.

Caroline Litchfield: Turning to our broader research efforts and new launches.

Speaker Change: In cardiometabolic, we've seen very favorable reception by physicians, patients, and payers to the availability of Wim Rivera.

Rob Davis: While still early, the U.S. launch has gone very well, in line with our own high expectations. We've deployed a focused, customer-centric rare disease model and are pleased to see an increasing number of prescriptions being written and patients obtaining access. We've also received a positive CHNP opinion and look forward to potential regulatory approval in Europe in the near future. We continue to see a tremendous opportunity to positively impact the lives of patients living with this devastating disease. In vaccines, we've continued to bring forward innovations for both adults and children. We are proud of the recent FDA approval of cabaxib for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults and the unanimous ACIP recommendation. Given its compelling clinical profile, we expect that CABAXIS will achieve a majority market share in the adult setting. We were also pleased to announce positive top-line results from the Phase 2b3 clinical trial for clozulomab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market. Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of Keytruda. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term. As a company, we remain highly focused and continue to work with urgency to bring these innovations and others to the patients we serve. In summary, I want to again recognize the tremendous efforts of our global team. Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Caroline Litchfield: While still early, the U.S. launch has gone very well, in line with our own high expectations.

Caroline Litchfield: We've deployed a focused, customer-centric rare disease model and are pleased to see an increasing number of prescriptions being written and patients obtaining access.

Caroline Litchfield: We've also received a positive CHNP opinion and look forward to potential regulatory approval in Europe in the near future.

Caroline Litchfield: We continue to see a tremendous opportunity to positively impact the lives of patients living with this devastating disease.

Robert M. Davis: In vaccines, we've continued to bring forward innovations for both adults and children. We are proud of the recent FDA approval of CAPVAXIVE for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults and the unanimous ACIP recommendation. Given its compelling clinical profile, we expect that CAPVAXIVE will achieve a majority market share in the adult setting. We were also pleased to announce positive top-line results from the Phase IIb/III clinical trial for clesrovimab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market. Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of KEYTRUDA. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term.

Rob Davis: In vaccines, we've continued to bring forward innovations for both adults and children. We are proud of the recent FDA approval of cabaxib for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults and the unanimous ACIP recommendation. Given its compelling clinical profile, we expect that CABAXIS will achieve a majority market share in the adult setting. We were also pleased to announce positive top-line results from the Phase 2b3 clinical trial for clozulomab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market. Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of Keytruda. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term. As a company, we remain highly focused and continue to work with urgency to bring these innovations and others to the patients we serve. In summary, I want to again recognize the tremendous efforts of our global team. Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Caroline Litchfield: In vaccines, we've continued to bring forward innovations for both adults and children.

Caroline Litchfield: We are proud of the recent FDA approval of cabaxib for the prevention of invasive pneumococcal disease and pneumococcal pneumonia in adults and the unanimous ACIP recommendation.

Rob Davis: Given its compelling clinical profile, we expect that CABAXIS will achieve a majority market share in the adult setting. We were also pleased to announce positive top-line results from the Phase 2b3 clinical trial for clozulomab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market. Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of Keytruda. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term. As a company, we remain highly focused and continue to work with urgency to bring these innovations and others to the patients we serve. In summary, I want to again recognize the tremendous efforts of our global team. Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Caroline Litchfield: Given its compelling clinical profile, we expect that CABB-AXIS will achieve a majority market share in the adult setting.

Caroline Litchfield: We were also pleased to announce positive top-line results from the Phase 2b3 clinical trial for clozulomab, our investigational monoclonal antibody for the prevention of RSV in infants, and we are moving swiftly to bring this important option to market.

Robert M. Davis: Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of KEYTRUDA. We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term.

Caroline Litchfield: Finally, at our ASCO investor event, we highlighted the significant broadening of our oncology pipeline and the progress we've made in building on the success of Keytruda.

Rob Davis: We presented data for multiple novel candidates, demonstrating our commitment to advancing standards of care and maintaining leadership over the long term. As a company, we remain highly focused and continue to work with urgency to bring these innovations and others to the patients we serve. In summary, I want to again recognize the tremendous efforts of our global team. Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Caroline Litchfield: We presented data for multiple novel candidates demonstrating our commitment to advancing standards of care and maintaining leadership over the long term.

Robert M. Davis: As a company, we remain highly focused and continue to work with urgency to bring forth these innovations and others to the patients we serve. In summary, I want to again recognize the tremendous efforts of our global team. Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Caroline Litchfield: As a company, we remain highly focused and continue to work with urgency to bring forward these innovations, and others, to the patients we serve.

Caroline Litchfield: In summary, I want to again recognize the tremendous efforts of our global team.

Rob Davis: Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline. Thank you, Rob. Good morning.

Together, we've made significant progress across our diverse pipeline and portfolio. As a company, we've been advancing science for the benefit of patients for over 130 years, and I'm confident that Merck is well-positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future. With that, I'll turn the call over to Caroline.

Caroline Litchfield: Together, we've made significant progress across our diverse pipeline and portfolio.

Caroline Litchfield: As a company, we've been advancing science for the benefit of patients for over 130 years. And I'm confident that Merck is well positioned to deliver value to patients, shareholders, and to all of our stakeholders well into the future.

Caroline Litchfield: With that, I'll turn the call over to Caroline.

Caroline Litchfield: Thank you, Rob. Good morning. As Rob noted, we delivered another excellent quarter, with growth driven by robust global demand across our innovative portfolio. These results are enabled by the excellent execution of our team, and reinforce the conviction we have in our science-led strategy. We remain confident in our ability to continue to deliver strong results in the near term and are committed to making disciplined investments in compelling science to drive long term values for patients, customers and shareholders. Now, turning to our second quarter results. Total company revenues were $16.1 billion, an increase of 7% or 11% excluding the impact of foreign exchange. The following revenue comments will be on an ex-exchange basis. Our human health business sustained its momentum with double-digit growth of 11%, primarily driven by oncology. Our animal health business also delivered solid performance, with sales increasing 6%, driven by growth in livestock products. Turning to the performance of our key brand, in oncology, sales of KEYTRUDA grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications. In the US, KEYTRUDA grew across a broad range of tumors. In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. KEYTRUDA has now achieved market leadership in the neo-adjuvant and adjuvant settings, building on its existing leadership position as an adjuvant therapy. In metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer, following the recent launch of Keynote A39.

Caroline Litchfield: As Rob noted, we delivered another excellent quarter, with growth driven by robust global demand across our innovative portfolio. These results are enabled by the excellent execution of our... and reinforce the conviction we have in our science-led strategy. We remain confident in our ability to continue to deliver strong results in the near term and are committed to making disciplined investments. Transcribed by https://otter.ai Now, we turn to our second quarter results. Total company revenues were $16.1 billion, an increase of 7% or 11% excluding the impact of foreign exchange. The following revenue comments will be on an ex-exchange basis. Our human health business sustained its momentum with double-digit growth of 11% primarily driven by oncology. Our animal health business also delivered solid performance, with sales increasing 6% driven by growth in livestock products. Turning to the performance of our key brand, in oncology, Keytruda cells grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications. In the US, Keytruda grew across a broad range of tumors. In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. Keytruda has now achieved market leadership in the neo-adjuvant and adjuvant sectors. Building on its existing leadership position as an adjuvant therapy for metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer following the recent launch of Keynote A39.

Caroline Litchfield: Thank you Rob. Good morning. As Rob noted, we delivered another excellent quarter, with growth driven by robust global demand across our innovative portfolio.

Caroline Litchfield: These results are enabled by the excellent execution of our teams and reinforce the conviction we have in our science-led strategy.

Caroline Litchfield: We remain confident in our ability to continue to deliver strong results in the near term, and are committed to making disciplined investments in compelling science to drive long-term value for patients, customers, and shareholders.

Caroline Litchfield: Now turning to our second quarter results.

Caroline Litchfield: Now, turning to our second quarter results. Total company revenues were $16.1 billion, an increase of 7% or 11% excluding the impact of foreign exchange. The following revenue comments will be on an ex-exchange basis. Our human health business sustained its momentum with double-digit growth of 11%, primarily driven by oncology. Our animal health business also delivered solid performance, with sales increasing 6%, driven by growth in livestock products. Turning to the performance of our key brand, in oncology, sales of KEYTRUDA grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications. In the US, KEYTRUDA grew across a broad range of tumors. In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. KEYTRUDA has now achieved market leadership in the neo-adjuvant and adjuvant settings, building on its existing leadership position as an adjuvant therapy. In metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer, following the recent launch of Keynote A39.

Caroline Litchfield: Total company revenues were $16.1 billion, an increase of 7% or 11% excluding the impact of foreign exchange.

Caroline Litchfield: The following revenue comments will be on an ex-exchange basis. Our human health business sustained its momentum with double-digit growth of 11% primarily driven by oncology. Our animal health business also delivered solid performance, with sales increasing 6% driven by growth in livestock products. Turning to the performance of our key brand, in oncology, Keytruda cells grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications. In the US, Keytruda grew across a broad range of tumors. In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. Keytruda has now achieved market leadership in the neo-adjuvant and adjuvant sectors. Building on its existing leadership position as an adjuvant therapy for metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer following the recent launch of Keynote A39.

Caroline Litchfield: The following revenue comments will be on an ex-exchange basis.

Caroline Litchfield: Our human health business sustained its momentum with double-digit growth of 11%, primarily driven by oncology.

Caroline Litchfield: Our animal health business also delivered solid performance with sales increasing 6% driven by growth in livestock product.

Caroline Litchfield: Turning to the performance of our key brand, in oncology, Keytruda cells grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications. In the US, Keytruda grew across a broad range of tumors. In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. Keytruda has now achieved market leadership in the neo-adjuvant and adjuvant sectors. Building on its existing leadership position as an adjuvant therapy for metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer following the recent launch of Keynote A39.

Caroline Litchfield: Turning to the performance of our key brand, in oncology, sales of KEYTRUDA grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications. In the US, KEYTRUDA grew across a broad range of tumors. In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. KEYTRUDA has now achieved market leadership in the neo-adjuvant and adjuvant settings, building on its existing leadership position as an adjuvant therapy. In metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer, following the recent launch of Keynote A39.

Caroline Litchfield: Turning to the performance of our key brands.

Caroline Litchfield: In oncology, sales of Keytruda grew 21% to $7.3 billion, driven by increased uptake from earlier stage cancers and continued strong global demand for metastatic indications.

Caroline Litchfield: In the U.S., Keytruda grew across a broad range of tumors.

Caroline Litchfield: In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer. Keytruda has now achieved market leadership in the neo-adjuvant and adjuvant sectors. Building on its existing leadership position as an adjuvant therapy for metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer following the recent launch of Keynote A39.

Caroline Litchfield: In the earlier stage setting, the increase was largely attributable to uptake from Keynote 671 and Keynote 091 in non-small cell lung cancer.

Caroline Litchfield: Keytruda has now achieved market leadership in the neoadjuvant and adjuvant settings, building on its existing leadership position as adjuvant therapy.

Caroline Litchfield: In metastatic disease, we saw continued strong uptake in first-line advanced urethelial cancer following the recent launch of Keynote A39.

Caroline Litchfield: KEYTRUDA plus PADCEV has now surpassed platinum chemotherapy-based regimens in new patient staff. Outside the U.S., KEYTRUDA growth was driven by increased use in certain earlier stage cancers, including high-risk, early-stage, triple-negative breast cancer and intermediate-high or high-risk renal cell carcinoma, as well as continued strong demand from patients with metastatic disease. Inflation-related price increases, consistent with market practice in Argentina, also contributed to growth. Alliance revenue from LYNPARZA and LENVIMA, each grew 4%. WELIREG sales more than doubled to $126 million, driven by increased uptake in certain patients with previously treated advanced renal cell carcinoma. Our vaccines portfolio delivered solid growth. GARDASIL sales increased 4% to $2.5 billion. In the U.S., sales benefited from price as well as demand and favorable CDC purchasing patterns. Outside the U.S., higher demand across many international markets was partially offset by the timing of shipments to China. In pneumococcal, VAXNEUVANCE sales increased 16% to $189 million. Growth was driven by ongoing launches in international markets. As Rob noted, we are very excited by the opportunity to positively impact the lives of adult patients with pulmonary arterial hypertension following the recent U.S. launch of WINREVAIR. Recall, we received FDA approval on March 26th, with the first patients receiving therapy about one month later. Initial patient and physician feedback has been favorable, and we recorded $70 million in sales in the quarter.

Caroline Litchfield: Keytruda plus PADCF has now surpassed platinum chemotherapy-based regimens in new patient staff.

Caroline Litchfield: Outside the U.S., Keytruda growth was driven by increased use in certain earlier-stage cancers, including high-risk early-stage triple-negative breast cancer,

Caroline Litchfield: Intermediate High or High Risk Renal Cell Carcinoma Continued Strong Demand from Patients with Metastatic Disease

Caroline Litchfield: Inflation-related price increases, consistent with market practice in Argentina, also contributed to growth.

Caroline Litchfield: Alliance revenue from Limpasa and Lempima each grew 4%. However, Wellyreg cells more than doubled to $126 million, driven by increased uptake in certain patients with previously treated advanced renal cell carcinoma. Our vaccines portfolio delivered solid growth. Gardasil sales increased 4% to $2.5 billion. In the U.S., sales benefited from price as well as demand and favorable CDC purchasing patterns. Outside the US, higher demand across many international markets was partially offset by the timing of shipments to China. In New McCockle, vaccine advance sales increased 16% to $189 million. Growth was driven by ongoing launches in international markets. As Rob noted, we are very excited by the opportunity to positively impact the lives of adult patients with pulmonary arterial hypertension following the recent U.S. launch of WinRiver. Recall, we received FDA approval on March 26th, with the first patients receiving therapy about one month later. Initial patient and physician feedback has been favorable, and we recorded $70 million in sales in the quarter.

Caroline Litchfield: Alliance Revenue from Limpasa and Lempima each grew 4%.

Caroline Litchfield: Wellireg cells more than doubled to $126 million, driven by increased uptake in certain patients with previously treated advanced renal cell carcinoma.

Speaker Change: Our vaccines portfolio delivered solid growth. Gardasil sales increased 4% to $2.5 billion. In the U.S., sales benefited from price as well as demand and favorable CDC purchasing patterns.

Caroline Litchfield: As Rob noted, we are very excited by the opportunity to positively impact the lives of adult patients with pulmonary arterial hypertension following the recent U.S. launch of WINREVAIR. Recall, we received FDA approval on March 26th, with the first patients receiving therapy about one month later. Initial patient and physician feedback has been favorable, and we recorded $70 million in sales in the quarter.

Speaker Change: Outside the US, higher demand across many international markets was partially offset by the timing of shipments to China.

Caroline Litchfield: In New McCockle, vaccine advance sales increased 16% to $189 million. Growth was driven by ongoing launches in international markets. As Rob noted, we are very excited by the opportunity to positively impact the lives of adult patients with pulmonary arterial hypertension following the recent U.S. launch of WinRiver. Recall, we received FDA approval on March 26th, with the first patients receiving therapy about one month later. Initial patient and physician feedback has been favorable, and we recorded $70 million in sales in the quarter.

Speaker Change: In pneumococcal, vaccine advance sales increased 16% to $189 million.

Speaker Change: Growth was driven by ongoing launches in international markets.

Caroline Litchfield: We estimate that approximately 40% of sales were attributable to doses administered to patients, with the remainder due to distributors building inventory in support of increasing demand. The launch is off to a strong start. As of the end of June, more than 2,000 patients received a prescription for WINREVAIR. Our experience to date with those prescriptions would suggest that approximately 75% to 80% will receive commercial products. Of those, more than 1,000 patients started treatment in the quarter, largely reflecting prescriptions written in April and May, as it currently takes approximately one month to complete the steps necessary to commence therapy. More than 500 physicians have written at least one prescription, with many looking to gain experience with the product as they prioritize treating the most advanced patients who are in greatest need of additional therapy. Most prescribers are from either large academic centers, or larger private practices. We are pleased that payers are recognizing the value of WINREVAIR and are already providing access to patients. Many payers have established coverage policies consistent with the label or Stellar Study criteria, while others are in the process of developing their policies. In summary, we are pleased with the strong start and look forward to continued progress in enabling access for appropriate patients over the coming months. Our animal health business delivered another solid quarter, with sales increasing 6%. Livestock sales grew 11%, driven by higher demand for poultry and ruminant products, as well as price. Companion animal sales grew 1%, reflecting price partially offset by a reduction in distributor inventory.

Speaker Change: As Rob noted, we are very excited by the opportunity to positively impact the lives of adult patients with pulmonary arterial hypertension following the recent U.S. launch of WinRiver.

Rob Davis: Recall, we received FDA approval on March the 26th, with the first patients receiving therapy about one month later.

Rob Davis: Initial patient and physician feedback has been favorable and we recorded $70 million of sales in the quarter.

Rob Davis: We estimate that approximately 40% of sales were attributable to doses administered to patients, with the remainder due to distributors building inventory in support of increasing demand.

Caroline Litchfield: Our experience to date with those prescriptions would suggest that approximately 75 to 80% will receive commercial products. Of those, more than 1,000 started treatment in the quarter, largely reflecting prescriptions written in April and May, as it currently takes approximately one month to complete the steps necessary to commence therapy. More than 500 physicians have written at least one prescription, with many looking to gain experience with the product as they prioritize treating the most advanced patients who are in greatest need of additional therapy. Most prescribers are from either large academic centers or larger private practice. We are pleased that payers are recognizing the value of WinRivere and are already providing access to patient care. Many payers have established coverage policies consistent with the label or Stellar Study criteria, while others are in the process of developing their policies. In summary, we are pleased with the strong start and look forward to continued progress in enabling access for appropriate patients over the coming months. Our animal health business delivered another solid quarter, with sales increasing 6%. Livestock sales grew 11%, driven by higher demand for poultry and ruminant products, as well as price. Companion animal sales grew 1%, reflecting price partially offset by a reduction in distributor inventory.

Rob Davis: Our experience to date with those prescriptions would suggest that approximately 75-80% will receive commercial product.

Rob Davis: More than 500 physicians have written at least one prescription, with many looking to gain experience with the product as they prioritize treating the most advanced patients who are in greatest need of additional therapy.

Caroline Litchfield: We are pleased that payers are recognizing the value of WinRivere and are already providing access to patient care. Many payers have established coverage policies consistent with the label or Stellar Study criteria, while others are in the process of developing their policies. In summary, we are pleased with the strong start and look forward to continued progress in enabling access for appropriate patients over the coming months. Our animal health business delivered another solid quarter, with sales increasing 6%. Livestock sales grew 11%, driven by higher demand for poultry and ruminant products, as well as price. Companion animal sales grew 1%, reflecting price partially offset by a reduction in distributor inventory.

Speaker Change: We are pleased that players are recognizing the value of WinReverse and are already providing access to patients.

Speaker Change: Many payers have established coverage policies consistent with the label or stellar study criteria, while others are in the process of developing their policies.

Caroline Litchfield: In summary, we are pleased with the strong start and look forward to continued progress in enabling access for appropriate patients over the coming months. Our animal health business delivered another solid quarter, with sales increasing 6%. Livestock sales grew 11%, driven by higher demand for poultry and ruminant products, as well as price. Companion animal sales grew 1%, reflecting price partially offset by a reduction in distributor inventory.

Caroline Litchfield: In summary, we are pleased with the strong start and look forward to continued progress in enabling access for appropriate patients over the coming months.

Speaker Change: In summary, we are pleased with the strong start and look forward to continued progress in enabling access for appropriate patients over the coming months.

Caroline Litchfield: Our animal health business delivered another solid quarter, with sales increasing 6%. Livestock sales grew 11%, driven by higher demand for poultry and ruminant products, as well as price. Companion animal sales grew 1%, reflecting price partially offset by a reduction in distributor inventory. We are also excited to have launched a long-acting BRAVECTO injectable in a number of international markets during June.

Speaker Change: Our animal health business delivered another solid quarter, with sales increasing 6%.

Speaker Change: Livestock sales grew 11%, driven by higher demand for poultry and ruminant products, as well as price.

Speaker Change: Companion animal sales grew 1%, reflecting price partially offset by a reduction in distributor inventory.

Caroline Litchfield: We are also excited to have launched a long-acting BRAVECTO injectable in a number of international markets during June. I will now walk you through the remainder of our P&L, and my comments will be on a non-GAAP basis. Growth margin was 80.9%, an increase of 4.3 percentage points, driven by reduced royalty rates for KEYTRUDA and GARDASIL, as well as a favorable product mix. Operating expenses decreased to $6.2 billion. There were no significant business development expenses in the quarter compared with the $10.2 billion charge a year ago. Excluding this charge, operating expenses grew 8%, reflecting strategic investments to realize the promise of our robust early and late phase pipeline and support the promotion of our key growth drivers. Other expenses was $108 million. Our tax rate was 14.1%. Taken together, earnings per share were $2.28. Now turning to our 2024 non-GAP guidance. The continued operational strength of our business has enabled us to raise and narrow our full year revenue guidance. We now expect revenue to be between $63.4 and $64.4 billion, an increase of approximately $200 million at the midpoint. Our increased guidance range represents strong year-over-year revenue growth of 5% to 7%, including an approximate 3 percentage point negative impact from foreign exchange using mid-July rates. Our gross margin assumption remains approximately 81%. We now expect operating expenses to be between $26.8 and $27.6 billion.

Caroline Litchfield: We are also excited to have launched a long-acting BRAVECTO injectable in a number of international markets during June.

Speaker Change: We are also excited to have launched a long-acting Bruvecto injectable in a number of international markets during June .

Caroline Litchfield: I will now walk you through the remainder of our P&L, and my comments will be on a non-GAAP basis. Growth margin was 80.9%, an increase of 4.3 percentage points, driven by reduced royalty rates for KEYTRUDA and GARDASIL, as well as a favorable product mix. Operating expenses decreased to $6.2 billion. There were no significant business development expenses in the quarter compared with the $10.2 billion charge a year ago. Excluding this charge, operating expenses grew 8%, reflecting strategic investments to realize the promise of our robust early and late phase pipeline and support the promotion of our key growth drivers. Other expenses was $108 million. Our tax rate was 14.1%. Taken together, earnings per share were $2.28. Now turning to our 2024 non-GAP guidance. The continued operational strength of our business has enabled us to raise and narrow our full year revenue guidance. We now expect revenue to be between $63.4 and $64.4 billion, an increase of approximately $200 million at the midpoint. Our increased guidance range represents strong year-over-year revenue growth of 5% to 7%, including an approximate 3 percentage point negative impact from foreign exchange using mid-July rates. Our gross margin assumption remains approximately 81%. We now expect operating expenses to be between $26.8 and $27.6 billion.

Speaker Change: Growth margin was 80.9%, an increase of 4.3 percentage points, driven by reduced royalty rates for Keytruda and Gardasil, as well as favorable product mix.

Caroline Litchfield: Excluding this charge, operating expenses grew 8%, reflecting strategic investments to realize the promise of our robust early and late phase pipeline and support the promotion of our key growth drivers. Other expenses were $108 million. Our tax rate was 14.1%. Taken together, earnings per share were $2.28. Now turning to our 2024 non-GAP guidance. The continued operational strength of our business has enabled us to raise and narrow our full year revenue guidance. We now expect revenue to be between $63.4 and $64.4 billion, an increase of approximately $200 million at the midpoint. Our increased guidance range represents strong year-over-year revenue growth of 5-7%, including an approximate 3 percentage point negative impact from foreign exchange using mid-July rates. Our gross margin assumption remains approximately 81%. We now expect operating expenses to be between $26.8 and $27.6 billion.

Caroline Litchfield: Now turning to our 2024 non-GAP guidance. The continued operational strength of our business has enabled us to raise and narrow our full year revenue guidance. We now expect revenue to be between $63.4 and $64.4 billion, an increase of approximately $200 million at the midpoint. Our increased guidance range represents strong year-over-year revenue growth of 5-7%, including an approximate 3 percentage point negative impact from foreign exchange using mid-July rates. Our gross margin assumption remains approximately 81%. We now expect operating expenses to be between $26.8 and $27.6 billion.

Caroline Litchfield: Now turning to our 2024 non-GAP guidance. The continued operational strength of our business has enabled us to raise and narrow our full year revenue guidance. We now expect revenue to be between $63.4 and $64.4 billion, an increase of approximately $200 million at the midpoint. Our increased guidance range represents strong year-over-year revenue growth of 5% to 7%, including an approximate 3 percentage point negative impact from foreign exchange using mid-July rates. Our gross margin assumption remains approximately 81%. We now expect operating expenses to be between $26.8 and $27.6 billion.

Caroline Litchfield: This range reflects an incremental $1.5 billion of charges related to the one-time cost to acquire EyeBio and ongoing expenses to advance the asset, as well as investments to progress our innovative pipeline. As a reminder, our guidance does not assume additional significant potential business development transactions. Other expenses are expected to be approximately $350 million, which now includes financing costs for the acquisitions of EyeBio and Elanco's Aqua Business. Our full-year tax rate is now expected to be between 15.5% and 16.5%, which includes an unfavorable impact related to the EyeBio acquisition that is not tax deductible. We assume approximately 2.54 billion shares outstanding. Taken together, we expect EPS of $7.94 to $8.04. This range includes a negative impact from foreign exchange of more than 30 cents using mid-July rates. Recalls; our prior guidance range was $8.53 to $8.65, including the one-time charge of $1.3 billion, or $0.51 per share, related to the acquisition of EyeBio and an estimated $0.09 to advance the assets, as well as finance the EyeBio and Elanco Aqua Business transactions, our prior guidance range would have been $7.93 to $8.05 with a midpoint of $7.99. Our current guidance midpoint remains the same as our higher revenue estimate is being upset by increased investments to support our business. As you consider your models, there are a few items to keep in mind. We look forward to the opportunity to help protect certain adults from invasive pneumococcal disease and pneumococcal pneumonia following the recent FDA approval and ACIP recommendation of CAPVAXIVE. We are now working toward the achievement of certain milestones that will enable commercial uptake. These milestones include publication in the Morbidity and Mortality Weekly Report, which typically lacks an ACIP recommendation by a few months, as well as obtaining payer coverage and contracting with customers.

Speaker Change: As a reminder, our guidance does not assume additional significant potential business development transactions.

Speaker Change: Other expense is expected to be approximately $315 million, which now includes financing costs for the acquisitions of <unk> underlying toes at clip business.

Caroline Litchfield: Our full-year tax rate is now expected to be between 15.5 and 16.5%, which includes an unfavorable impact related to the iBio acquisition that is not tax deductible. We assume approximately 2.54 billion shares outstanding. Taken together, we expect EPS of $7.94 to $8.04. This range includes a negative impact from foreign exchange of more than 30 cents using mid-July rates. Calls; our prior guidance range was $8.53 to $8.65. Including the one-time charge of $1.3 billion, or $0.51 per share, related to the acquisition of iBio and an estimated $0.09 to advance the assets, as well as finance the iBio and Elanco aqua business transactions, our prior guidance range would have been $7.93 to $8.05 with a midpoint of $7.99. Our current guidance midpoint remains the same as our higher revenue estimate is being upset by increased investments to support our business. As you consider your models, there are a few things to keep in mind. We look forward to the opportunity to help protect certain adults from invasive pneumococcal disease and pneumococcal pneumonia following the recent FDA approval and ACIP recommendation of CAPVACSID. We are now working toward the achievement of certain milestones that will enable commercial uptake. These milestones include publication in the Morbidity and Mortality Weekly Report, which typically lags an ACIP recommendation by a few months, as well as obtaining payer coverage and contracting with customers.

Speaker Change: Absolutely a tax rate is now expected to be between $15 five and 16, 5%, which includes an unfavorable impact related to the <unk> bio acquisition that is not tax deductible.

Speaker Change: We assume approximately 254 billion shares outstanding.

Caroline Litchfield: Taken together, we expect EPS of $7.94 to $8.04. This range includes a negative impact from foreign exchange of more than 30 cents using mid-July rates. Recalls; our prior guidance range was $8.53 to $8.65, including the one-time charge of $1.3 billion, or $0.51 per share, related to the acquisition of EyeBio and an estimated $0.09 to advance the assets, as well as finance the EyeBio and Elanco Aqua Business transactions, our prior guidance range would have been $7.93 to $8.05 with a midpoint of $7.99. Our current guidance midpoint remains the same as our higher revenue estimate is being upset by increased investments to support our business.

Speaker Change: Taken together, we expect EPS of $7.94.

Speaker Change: Two $8.04. This range includes a negative impact from foreign exchange of more than 30 cents using mid July rates.

Caroline Litchfield: Calls; our prior guidance range was $8.53 to $8.65. Including the one-time charge of $1.3 billion, or $0.51 per share, related to the acquisition of iBio and an estimated $0.09 to advance the assets, as well as finance the iBio and Elanco aqua business transactions, our prior guidance range would have been $7.93 to $8.05 with a midpoint of $7.99. Our current guidance midpoint remains the same as our higher revenue estimate is being upset by increased investments to support our business. As you consider your models, there are a few things to keep in mind. We look forward to the opportunity to help protect certain adults from invasive pneumococcal disease and pneumococcal pneumonia following the recent FDA approval and ACIP recommendation of CAPVACSID. We are now working toward the achievement of certain milestones that will enable commercial uptake. These milestones include publication in the Morbidity and Mortality Weekly Report, which typically lags an ACIP recommendation by a few months, as well as obtaining payer coverage and contracting with customers.

Speaker Change: Recall, our prior guidance range was $8 53 to.

Speaker Change: Two $8.65, including the one time charge of $1 $3 billion or <unk> 51 per share related to the acquisition of <unk> and an estimated nine two.

Speaker Change: So advanced the asset as well as for Nancy I bio and the like kind of a quick business transactions. Our prior guidance range would have been $7 93 to.

Speaker Change: $8 five with a midpoint of $7.99.

Speaker Change: Our current guidance midpoint remains the same as that higher revenue estimate is being offset by increased investments to support our business.

Caroline Litchfield: As you consider your models, there are a few items to keep in mind. We look forward to the opportunity to help protect certain adults from invasive pneumococcal disease and pneumococcal pneumonia following the recent FDA approval and ACIP recommendation of CAPVAXIVE. We are now working toward the achievement of certain milestones that will enable commercial uptake. These milestones include publication in the Morbidity and Mortality Weekly Report, which typically lacks an ACIP recommendation by a few months, as well as obtaining payer coverage and contracting with customers.

Caroline Litchfield: As you consider your models, there are a few things to keep in mind. We look forward to the opportunity to help protect certain adults from invasive pneumococcal disease and pneumococcal pneumonia following the recent FDA approval and ACIP recommendation of CAPVACSID. We are now working toward the achievement of certain milestones that will enable commercial uptake. These milestones include publication in the Morbidity and Mortality Weekly Report, which typically lags an ACIP recommendation by a few months, as well as obtaining payer coverage and contracting with customers.

Speaker Change: As you consider your models that are a few items to keep in mind.

Speaker Change: We look forward to the opportunity to help protect certain adult from invasive pneumococcal disease and pneumococcal pneumonia. Following the recent FDA approval and ACI P recommendation of Factset.

Speaker Change: We are now working towards the achievement of certain milestones that will enable commercial uptake.

Speaker Change: Milestones include publication in the morbidity and mortality weekly report, which typically lags and ACI P recommendation by a few months as.

Speaker Change: As well as obtaining payer coverage and contracting with customers.

Caroline Litchfield: For GARDASIL, over the past few years, we've benefited from extremely strong demand in China, including from the expanded indication for GARDASIL 9 to the 9 to 45-year-old age cohort in late 2022. In the second quarter, however, there was a significant step down in shipment from our distributor and commercialization partner, Zhifei, to the points of vaccination compared with prior quarters, resulting in above normal inventory levels at Zhifei. We are working closely with them to more fully understand the dynamics that have caused this change. As we learn more, we will assess future shipments to our partner and work to bring their inventory back to more normal levels. If shipments from Zhifei to the points of vaccination do not increase, it is likely that we will ship less than our full year 2024 contracted doses by the end of this year. We believe the opportunity in China remains very attractive as there are more than 120 million females in the addressable population living in Tier 1 to Tier 5 cities who have not yet received the protection of an HPV vaccine. As we said before, it will take increasing efforts to educate and activate the next wave of patients. Together with Zhifei, we are focused on and committed to investing in additional resources and patient education on the value of GARDASIL, given the important benefits it provides. We also look forward to the potential approval for males, which we believe represents a meaningful opportunity. More broadly, we remain confident in the opportunity for GARDSAIL globally, based on the protection it provides against HPV-related cancers and low immunization levels overall, and continue to believe we will achieve sales of over $11 billion by 2030. Our initial launch of WinRiver is having a positive impact on patients.

Speaker Change: The guards of sales over the past few years, we've benefited from extremely strong demand in China, including from the expanded indications for Gardasil nine to the 9% to 45 age cohort in late 2022.

Speaker Change: In the second quarter. However, there was a significant step down in shipments from our distributor and commercialization partner to face into the points of vaccination compared with prior quarters, resulting in above normal inventory levels at your face.

Speaker Change: We are working closely with them to more fully understand the dynamics that caused this change.

Caroline Litchfield: As we learn more, we will assess future shipments to our partner and work to bring their inventory back to more normal levels. If shipments from Shafei to the points of vaccination do not increase, it is likely that we will ship less than our full year 2024 contracted doses by the end of this year. We believe the opportunity in China remains very attractive as there are more than 120 million females in the addressable population living in Tier 1 to Tier 5 cities who have not yet received the protection of an HPV vaccine. As we said before, it will take increasing efforts to educate and activate the next wave of patients. Together with Sheffey, we are focused on and committed to investing in additional resources and patient education on the value of Gardasil, given the important benefits it provides. We also look forward to the potential approval for males, which we believe represents a meaningful opportunity. More broadly, we remain confident in the opportunity for Gardasil globally based on the protection it provides against HPV-related cancers and low immunization levels overall, and continue to believe we will achieve sales of over $11 billion by 2030. Our initial launch of WinRiver is having a positive impact on patients.

Speaker Change: As we learn more we will assess future shipments to our partner and work to bring that inventory back to more normal levels.

Speaker Change: Shipments from Shanghai into the points of vaccinations do not increase it is likely that we will ship less than our full year 2024 contracted doses by the end of this year.

We believe the opportunity in China remains very attractive as there are more than 120 million females in the addressable population living in tier one to tier five cities.

Speaker Change: <unk> not yet received the protection of an HPV vaccine.

Caroline Litchfield: As we said before, it will take increasing efforts to educate and activate the next wave of patients. Together with Sheffey, we are focused on and committed to investing in additional resources and patient education on the value of Gardasil, given the important benefits it provides. We also look forward to the potential approval for males, which we believe represents a meaningful opportunity. More broadly, we remain confident in the opportunity for Gardasil globally based on the protection it provides against HPV-related cancers and low immunization levels overall, and continue to believe we will achieve sales of over $11 billion by 2030. Our initial launch of WinRiver is having a positive impact on patients.

Speaker Change: As we said before it will take increasing efforts to educate and activate the next wave of patients.

Caroline Litchfield: As we said before, it will take increasing efforts to educate and activate the next wave of patients. Together with Zhifei, we are focused on and committed to investing in additional resources and patient education on the value of GARDASIL, given the important benefits it provides. We also look forward to the potential approval for males, which we believe represents a meaningful opportunity. More broadly, we remain confident in the opportunity for GARDSAIL globally, based on the protection it provides against HPV-related cancers and low immunization levels overall, and continue to believe we will achieve sales of over $11 billion by 2030.

Speaker Change: Together with just say, we are focused on and committed to investing in additional resources and patient education on the value of God yourself, given the important benefit it provides.

Speaker Change: We also look forward to the potential approval for males, which we believe represents a meaningful opportunity.

Speaker Change: More broadly we remain confident in the opportunity for Gardasil globally based on the protection. It provides against HPV related cancers, and low immunization levels overall and.

Speaker Change: Continue to believe we will achieve sales of over $11 billion by 'twenty Saatchi.

Caroline Litchfield: Our initial launch of WINREVAIR is having a positive impact on patients. We are very pleased with its performance and look forward to supporting more patients in the U.S. and across the globe. Outside the U.S., we are pleased with the positive CHMP opinion and potential near-term launch in Europe. Following EU approval, we will need to obtain reimbursement, which should occur in 2025 in most major markets, but we expect that Germany will receive reimbursement and launch this year. We remain confident in the successful launch of WINREVAIR, consistent with our high expectations, and look forward to providing further updates on our progress. Now turning to capital allocation, where our strategy remains unchanged. We will prioritize investments in our business to drive near and long-term growth. We will continue to invest in our expansive pipeline of novel candidates, each of which has the significant potential to address important unmet medical needs. We remain committed to our dividend and plan to increase it over time. Business development remains a priority, and we are well positioned to pursue additional science-driven, value-enhancing transactions. We will continue to execute a modest level of share repurchasing. To conclude, as we enter the second half of the year, there is continued strength in our business, driven by global demand and commercial execution. We remain confident in our outlook, driven by our unwavering commitment to leverage leading-edge science to save and improve the lives of patients. With investment in innovation and our ongoing focus on execution, we are well positioned to deliver value to patients, customers, and shareholders now and well into the future. With that, I'd now like to turn the call over to Dean.

Speaker Change: Our initial launch of wind River is having a positive impact for patients.

Caroline Litchfield: We are very pleased with its performance and look forward to supporting more patients in the U.S. and across the globe. Outside the U.S., we are pleased with the positive CHMP opinion and potential near-term launch in Europe. Following EU approval, we will need to obtain reimbursement, which should occur in 2025 in most major markets, but we expect that Germany will receive reimbursement and launch this year. We remain confident in the successful launch of WinRiver, consistent with our high expectations, and look forward to providing further updates on our progress. Now turning to capital allocation, where our strategy remains unchanged. We will prioritize investments in our business to drive near and long-term growth. We will continue to invest in our expansive pipeline of novel candidates, each of which has the significant potential to address important unmet medical needs. We remain committed to our dividend and plan to increase it over time. Business development remains a priority, and we are well positioned to pursue additional science-driven, value-enhancing transactions. Additionally, we will continue to execute a modest level of share repurchasing. To conclude, as we enter the second half of the year, there is continued strength in our business.

Speaker Change: We're very pleased with its performance and look forward to supporting more patients in the U S and across the globe.

Speaker Change: Outside the U S. We are pleased with the positive <unk> opinion and potential near term launch in Europe.

Speaker Change: Following EU approval, we will need to obtain reimbursement, which should occur in 2025 in most major market, but expect that Germany will receive reimbursement and launch this year.

Speaker Change: We remain confident in the successful launch of wind river consistent with our high expectations and look forward to providing further updates on our progress.

Caroline Litchfield: Now turning to capital allocation, where our strategy remains unchanged. We will prioritize investments in our business to drive near and long-term growth. We will continue to invest in our expansive pipeline of novel candidates, each of which has the significant potential to address important unmet medical needs. We remain committed to our dividend and plan to increase it over time. Business development remains a priority, and we are well positioned to pursue additional science-driven, value-enhancing transactions. Additionally, we will continue to execute a modest level of share repurchasing. To conclude, as we enter the second half of the year, there is continued strength in our business.

Caroline Litchfield: Now turning to capital allocation, where our strategy remains unchanged. We will prioritize investments in our business to drive near and long-term growth. We will continue to invest in our expansive pipeline of novel candidates, each of which has the significant potential to address important unmet medical needs. We remain committed to our dividend and plan to increase it over time. Business development remains a priority, and we are well positioned to pursue additional science-driven, value-enhancing transactions. We will continue to execute a modest level of share repurchasing.

Speaker Change: Now turning to capital allocation, where our strategy remains unchanged.

We will prioritize investments in our business to drive near and long term growth.

Caroline Litchfield: We will continue to invest in our expansive pipeline of novel candidates, each of which has the significant potential to address important unmet medical needs. We remain committed to our dividend and plan to increase it over time. Business development remains a priority, and we are well positioned to pursue additional science-driven, value-enhancing transactions. Additionally, we will continue to execute a modest level of share repurchasing. To conclude, as we enter the second half of the year, there is continued strength in our business.

Speaker Change: We will continue to invest in our expensive pipeline of novel candidates each of which has significant potential to address important unmet medical needs.

Speaker Change: We remain committed to our dividend and plan to increase it over time.

Speaker Change: Business development remains a priority and we are well positioned to pursue additional science driven value enhancing transactions.

Speaker Change: We will continue to execute a modest level of share repurchases.

Caroline Litchfield: To conclude, as we enter the second half of the year, there is continued strength in our business, driven by global demand and commercial execution. We remain confident in our outlook, driven by our unwavering commitment to leverage leading-edge science to save and improve the lives of patients. With investment in innovation and our ongoing focus on execution, we are well positioned to deliver value to patients, customers, and shareholders now and well into the future. With that, I'd now like to turn the call over to Dean.

Speaker Change: To conclude as we enter the second half of the year. There was continued strength in our business driven by global demand and commercial execution, we remain confident in our outlook driven by our unwavering commitment to leverage leading edge science to save and improve the lives.

Caroline Litchfield: We remain confident in our outlook, driven by our unwavering commitment to leverage leading-edge science to save and improve the lives of patients. With investment in innovation and our ongoing focus on execution, we are well positioned to deliver value to patients, customers, and shareholders now and well into the future. With that, I'd now like to turn the call over to Dean. Thank you, Caroline.

We remain confident in our outlook, driven by our unwavering commitment to leverage leading-edge science to save and improve the lives of patients. With investment in innovation and our ongoing focus on execution, we are well positioned to deliver value to patients, customers, and shareholders now and well into the future. With that, I'd now like to turn the call over to Dean.

Speaker Change: A patient.

Speaker Change: This investment in innovation and our ongoing focus on execution, we are well positioned to deliver value to patients customers and shareholders now and well into the future.

Speaker Change: With that I'd now like to turn the call over to Dave.

Dean Li: Thank you, Caroline. Momentum continued in the second quarter with several clinical and regulatory milestones, as well as progress in our science-led business development strategy. Today, I will speak first about programs in vaccines, then cover oncology, followed by cardiometabolic disease. As Rob noted, last month, the FDA approved CAPVAXIVE, a 21-valent pneumococcal conjugate vaccine, and we subsequently received a unanimous recommendation from the CDC's Advisory Comittee of Unionization Practices for its use in certain adult populations. CAPVAXIVE is the first vaccine specifically designed to help protect adults against pneumococcal pneumonia, an invasive pneumococcal disease, and, as such, it provides an important new public health option. It has been designed to address those serotypes responsible for approximately 85% of the incidence of invasive pneumococcal disease in individuals 65 years and older, based on CDC-generated surveillance data. The CAPVAXIVE marketing authorization application is also under review by the European Medicine Agency's Committee for Medicinal Products for Human Use. We continue to evaluate novel approaches to alleviate the burden of infectious disease. Recently, we announced positive top-line results for clesrovimab, our investigational respiratory syncytial virus preventative antibody. This is a single, fixed-dose option to help protect infants from birth through their first full RSV season.

Dean Lee: Momentum continued in the second quarter with several clinical and regulatory milestones, as well as progress in our science-led business development strategy. Today, I will speak first about programs in vaccines, then cover oncology, followed by cardiometabolic. As Rob noted, last month, the FDA approved CABVAXIS, a 21-valent pneumococcal conjugate vaccine, and we subsequently received a unanimous recommendation from the CDC's Advisory Tavaxxas is the first vaccine specifically designed to help protect adults against pneumococcal pneumonia, an invasive pneumococcal disease, and, as such, it provides an important new public health option. It has been designed to address those serotypes responsible for approximately 85% of the incidence of invasive pneumococcal disease in individuals 65 years and older based on CDC-generated surveillance. The CAVACSIV marketing authorization application is also under review by the European Medicine Agency's Committee for Medicinal Products for Human Use. We continue to evaluate novel approaches to alleviate the burden of infection. Recently, we announced positive top-line results for Clesrobimab, our investigational respiratory syncytial virus preventative antibody. This is a single, fixed-dose option to help protect infants from birth through their first full RSC vaccine.

Dave: Thank you Caroline momentum continued in the second quarter with several clinical and regulatory milestones as well as progress in our science led business development strategy.

Dave: Today I will speak first to programs in vaccines, then cover oncology followed by cardio metabolic disease.

Dave: As Rob noted last month, the FDA approved cutbacks at our 21 valent pneumococcal conjugate vaccine and we subsequently received a unanimous recommendation from the Cdc's Advisory Committee of immunization practices for its use in certain adult patient population.

Speaker Change: Okay boxes is the first vaccine specifically designed to help protect adult against pneumococcal pneumonia and invasive pneumococcal disease and as such provides an important new public health option.

Dean Lee: It has been designed to address those serotypes responsible for approximately 85% of the incidence of invasive pneumococcal disease in individuals 65 years and older based on CDC-generated surveillance. The CAVACSIV marketing authorization application is also under review by the European Medicine Agency's Committee for Medicinal Products for Human Use. We continue to evaluate novel approaches to alleviate the burden of infection. Recently, we announced positive top-line results for Clesrobimab, our investigational respiratory syncytial virus preventative antibody. This is a single, fixed-dose option to help protect infants from birth through their first full RSC vaccine.

Speaker Change: It has been designed to address those serotypes responsible for approximately 85% of the incidents of invasive pneumococcal disease in individuals 65 years and older based on CDC generated surveillance data.

The cut backs of marketing authorization application is also under review by the European Medicine Agency Committee for medicinal products for human use.

Speaker Change: We continue to evaluate novel approaches to alleviate the burden of infectious disease.

Speaker Change: Recently, we announced positive topline results for class roadmap, our investigational respiratory syncytial virus preventative antibodies, a single fixed dose option to help protect infants from birth to their first full RSV season.

Dean Li: The Phase IIb/III trial, clesrovimab, met its primary efficacy and safety endpoints, as well as its secondary endpoint regarding RSV-associated hospitalization. Detailed findings of this study will be presented at an upcoming scientific congress, and we plan to file these data with global regulatory authorities. Globally, RSV infection is a leading cause of hospitalization for otherwise healthy infants under one year of age. Historically, a high surge in incidents in the 2022-2023 season reinforced the need for more effective preventative measures. Now, to Oncology. During the Investor event at ASCO, we detailed how we have leveraged our foundational position with KEYTRUDA to create a diverse pipeline by executing on our three-pillared strategy comprised of immuno-oncology, precision molecular targeting, and tissue targeting candidates. This quarter, tangible progress has been made across each of these pillars. In Immuno-Oncology, we received FDA approval for the combination of KEYTRUDA and chemotherapy for the treatment of primary advanced or recurrent endometrial cancer regardless of mismatch repair status based on the Phase III Keynote 868 study. Data continues to flow from the KEYTRUDA Clinical Development Program, including from studies that achieve an overall survival benefit, the gold standard for many oncology trials. We announced an overall survival benefit in high-risk, early-stage, triple-negative breast cancer based on the Keynote 522 study. KEYTRUDA is the only PD-1 or PD-L1 to date to receive approval for nine earlier stage indications, of which four have now demonstrated a statistically significant overall survival benefit, including in non-small cell lung, renal cell carcinoma, cervical cancer, and most recently, triple negative breast cancer.

Speaker Change: As <unk> III trial class Robin that met its primary efficacy and safety endpoints as well as a secondary endpoint regarding RSV associated hospitalization.

Speaker Change: Detailed findings of this study will be presented at an upcoming scientific Congress and we plan to file these data with global regulatory authorities.

Speaker Change: Globally RSV infection is a leading cause of hospitalization for otherwise healthy entrance under one year of age.

Dean Lee: Historically, a high surge in incidents in the 2022-2023 season reinforced the need for more effective preventative measures. Now, to Oncology. During the Investor event at ASCO, we detailed how we have leveraged our foundational position with Katrina to create a diverse pipeline by executing on our three-pillared strategy comprised of immuno-oncology, precision molecular targeting, and tissue targeting candidates. This quarter, tangible progress has been made across each of these pillars. In Immuno-Oncology, we received FDA approval for the combination of Keytruda and chemotherapy for the treatment of primary advanced or recurrent endometrial cancer regardless of mismatch repair status based on the Phase III Keynote 868 study. Data continues to flow from the Kutruda Clinical Development Program, including from studies that achieve an overall survival benefit, the gold standard for many oncology trials. For example, we announced an overall survival benefit in high-risk, early-stage, triple-negative breast cancer based on the Keynote 522 study. Truda is the only PD-1 or PD-L1 antibody to date to receive approval for nine earlier stage indications, of which four have now demonstrated a statistically significant overall survival benefit, including in non-small cell lung, Reno Cell Carcinoma, Cervical cancer, and most recently, triple negative breast cancer.

Speaker Change: The historically high surge and incidents in the 2022 2023 season reinforced the need for more effective preventative measures.

Dean Li: Now, to Oncology. During the Investor event at ASCO, we detailed how we have leveraged our foundational position with KEYTRUDA to create a diverse pipeline by executing on our three-pillared strategy comprised of immuno-oncology, precision molecular targeting, and tissue targeting candidates. This quarter, tangible progress has been made across each of these pillars. In Immuno-Oncology, we received FDA approval for the combination of KEYTRUDA and chemotherapy for the treatment of primary advanced or recurrent endometrial cancer regardless of mismatch repair status based on the Phase III Keynote 868 study. Data continues to flow from the KEYTRUDA Clinical Development Program, including from studies that achieve an overall survival benefit, the gold standard for many oncology trials. We announced an overall survival benefit in high-risk, early-stage, triple-negative breast cancer based on the Keynote 522 study. KEYTRUDA is the only PD-1 or PD-L1 to date to receive approval for nine earlier stage indications, of which four have now demonstrated a statistically significant overall survival benefit, including in non-small cell lung, renal cell carcinoma, cervical cancer, and most recently, triple negative breast cancer.

Dean Lee: Data continues to flow from the Kutruda Clinical Development Program, including from studies that achieve an overall survival benefit, the gold standard for many oncology trials. For example, we announced an overall survival benefit in high-risk, early-stage, triple-negative breast cancer based on the Keynote 522 study. Truda is the only PD-1 or PD-L1 antibody to date to receive approval for nine earlier stage indications, of which four have now demonstrated a statistically significant overall survival benefit, including in non-small cell lung, Reno Cell Carcinoma, Cervical cancer, and most recently, triple negative breast cancer.

Speaker Change: Now to oncology.

Speaker Change: During the Investor event at Astro, we detailed how we have leveraged our foundational position with keytruda to create a diverse pipeline by executing on our three pillared strategy comprised of immuno oncology precision molecular targeting and tissue targeting candidates.

Speaker Change: This quarter tangible progress has been made across each of these pillars.

Speaker Change: In immuno oncology, we received FDA approval for the combination of Keytruda in chemotherapy for the treatment of primary advanced or recurrent endometrial cancer, regardless of mismatch repair status based on the phase III keynote <unk> eight study.

Speaker Change: Data continues to flow from Keytruda clinical development program, including from studies, which achieve an overall survival benefit the gold standard for many oncology trials.

We announced an overall survival benefit and high risk early stage triple negative breast cancer based on the keynote <unk> two study.

Speaker Change: Katrina.

Speaker Change: The only PD, one or PDL, one to date to receive approval for nine earlier stage indications.

Speaker Change: Four have now demonstrated a statistically significant overall survival benefit including in non small cell lung cancer renal cell carcinoma.

Speaker Change: Cervical cancer, and most recently triple negative breast cancer.

Dean Li: We are pleased to announce that Keynote 811 met its overall survival, dual primary endpoint for the first-line treatment of patients with HER2-positive, advanced gastric or gastroesophageal junction adenocarcinoma. These results build on the previously reported positive data that formed the basis for the FDA approval last year. A similar approval was received from the National Medical Products Administration in China this quarter. Also in immuno-oncology, the FDA granted priority review for KEYTRUDA in combination with chemotherapy for the first-line treatment of patients with unresectable advanced or metastatic malignant pleural mesothelioma, based on the overall survival benefit demonstrated in the Keynote 483 trial. The FDA has set a target action date of September 25th. KEYTRUDA has now received approval for 40 distinct indications in the U.S. and has demonstrated statistically significant overall survival in 25 trials. Next, to Precision Molecular Targeting. We exercised the exclusive development option to advance the program for OPEVESOSTAT, an oral non-steroidal inhibitor of CYP11A1, through our collaboration with Orion. 2 pivotal Phase III trials evaluating OPEVESOSTAT in combination with hormone replacement therapy for the treatment of certain patients with metastatic prostate cancer, Omaha-1 and Omaha-2, are ongoing.

Speaker Change: We were pleased to announce that keynote 811 met its overall survival dual primary endpoints for the first line treatment of patients with her two positive.

Speaker Change: Advanced gastric or gastroesophageal junction adenocarcinoma.

Speaker Change: These results build on the previously reported positive data that form the basis for the FDA approval last year.

Speaker Change: A similar approval was received from the National Medical products administration in China This quarter.

Speaker Change: Also our immuno oncology the FDA granted priority review for Keytruda in combination with chemotherapy for the first line treatment of patients with Unresectable advanced or metastatic malignant pleural mesothelioma based on the overall survival benefit demonstrated in the.

Dean Li: Also in immuno-oncology, the FDA granted priority review for KEYTRUDA in combination with chemotherapy for the first-line treatment of patients with unresectable advanced or metastatic malignant pleural mesothelioma, based on the overall survival benefit demonstrated in the Keynote 483 trial. The FDA has set a target action date of September 25th. KEYTRUDA has now received approval for 40 distinct indications in the U.S. and has demonstrated statistically significant overall survival in 25 trials.

Speaker Change: <unk> III trial.

Dean Lee: The FDA has set a target action date of September 25th. Truda has now received approval for 40 distinct indications in the U.S. and has demonstrated statistically significant overall survival in 25 trials. Next, Two Precision Molecular Targets. We exercised the exclusive development option to advance the program for OBERA-SOSTAP, an oral non-steroidal inhibitor of CYP11A1, through our collaboration with Orion. 2 Pivotal Phase III trials evaluating Opevazostat in combination with hormone replacement therapy for the treatment of certain patients with metastatic prostate cancer, Omaha One and Omaha Two, are ongoing.

Speaker Change: The FDA has set a target action date of September 25th.

Speaker Change: Trudeau has now received approval for 40 distinct indications in the U S and has demonstrated statistically significant overall survival in 'twenty five trials.

Speaker Change: Next to precision molecular targeting we exercise of exclusive development option to advance the program for <unk> and oral nonsteroidal inhibitor of Sip 11, 81 through our collaboration with Orion.

Dean Li: Next, to Precision Molecular Targeting. We exercised the exclusive development option to advance the program for OPEVESOSTAT, an oral non-steroidal inhibitor of CYP11A1, through our collaboration with Orion. 2 pivotal Phase III trials evaluating OPEVESOSTAT in combination with hormone replacement therapy for the treatment of certain patients with metastatic prostate cancer, Omaha-1 and Omaha-2, are ongoing.

Speaker Change: Two pivotal phase III trials evaluating <unk> in combination with hormone replacement therapy for the treatment of certain patients with metastatic prostate cancer.

Speaker Change: One and all my heart to our ongoing.

Dean Li: Lastly, in the tissue targeting space, the European Medicines Agency's Committee for Medicinal Products for Human Use adopted a positive opinion recommending approval of KEYTRUDA in combination with PADCEV for the first-line treatment of adult patients with unresectable or metastatic urothelial carcinoma. We are also advancing a broad portfolio of diverse antibody drug conjugates with Kulun Biotech and Daiichi Sankyo, as well our own internal program. Last month, together with Daiichi Sankyo, we announced receipt of a complete response letter from the FDA for the Biologics License Application for PATRITUMAB DERUXTECAN for the treatment of certain adult patients with locally advanced or metastatic EGFR-mutated non-small cell lung cancer, previously treated with two or more systemic therapies. The letter was issued based on findings from an inspection of a third-party manufacturing site. We are working with Daiichi Sankyo to provide appropriate support as they work with the FDA and the manufacturer to address the feedback in a timely manner. Of note, the findings identified in the CRL have no bearing on either ifinitamab durextecan nor relatudatag durextacan. Turning to cardiometabolic disease, as Caroline indicated, there is strong interest from physicians and patients for WINREVAIR and the U.S. Building on this momentum, we were pleased to receive a positive opinion from the European Medicine Agency's Committee for Medicinal Products for Human Use, recommending the approval of WINREVAIR as a treatment option for certain patients with pulmonary arterial hypertension.

Speaker Change: Lastly, in the tissue targeting space the European medicines Agency's committee for medicinal products for human use.

Speaker Change: <unk> did a positive opinion recommending approval of Keytruda in combination with passive for the first line treatment of adult patients with unresectable or metastatic <unk> carcinoma.

Speaker Change: We are also advancing a broad portfolio of diverse antibody drug conjugate with could live in biotech and Daiichi sankyo as well as our own internal program.

Speaker Change: Last month, together with Daiichi Sankyo, we announced receipt of a complete response letter from the FDA for the biologics license application for Keytruda map directly to care for the treatment of certain adult patients with locally advanced or metastatic egfr mutated non small cell.

Speaker Change: Lung cancer previously treated with two or more systemic therapies.

Dean Lee: The letter was issued based on findings from an inspection of a third-party manufacturing site. We are working with Daiichi Sankyo to provide appropriate support as they work with the FDA and the manufacturer to address the feedback in a timely manner. Of note, the findings identified in the CRL have no bearing on either Infinitumab durextacan nor Relatudatag durextacan. Turning to cardiometabolic disease, as Caroline indicated, there is strong interest from physicians and patients for Wynne-Rivera and the U.S. Building on this momentum, we were pleased to receive a positive opinion from the European Medicine Agency's Committee for Medicinal Products for Human Use, recommending the approval of Winriver as a treatment option for certain patients with pulmonary arterial hypertension.

Speaker Change: The letter was issue based on findings from an expected of a third party manufacturing site.

Speaker Change: We are working with Daiichi sankyo to provide appropriate support as they work with the FDA and the manufacturer to address the feedback in a timely manner.

Speaker Change: Of note the <unk>.

Speaker Change: Findings identified in this ear out have no bearing on either infinite to map directly to Ken nor relative to tag directs to cat.

Dean Li: Turning to cardiometabolic disease, as Caroline indicated, there is strong interest from physicians and patients for WINREVAIR and the U.S. Building on this momentum, we were pleased to receive a positive opinion from the European Medicine Agency's Committee for Medicinal Products for Human Use, recommending the approval of WINREVAIR as a treatment option for certain patients with pulmonary arterial hypertension.

Speaker Change: Turning to cardio metabolic disease as Caroline indicated there is strong interest from physicians and patients for when we are there in the U S.

Caroline Litchfield: Building on this momentum we were pleased to receive a positive opinion from the European medicines agency's.

Speaker Change: <unk> for medicinal products for human use recommending the approval of win wherever there is a treatment option for certain patients with pulmonary arterial hypertension.

Dean Li: The European Commission's decision on the marketing authorization application is expected in the third quarter. Finally, we continue to execute on our science-led business development strategy, with a focus on seamlessly integrating efforts across our internal pipeline with the best external science through our one-pipeline approach. We recently closed the acquisition of EyeBio, that includes includes RESTORET, MK3000, an investigational late-phase, potentially first-in-class tetravalent, trispecific with antibody candidate for diabetic macular edema and neovascular age-related macular degeneration, as well as additional preclinical acids targeting retinal diseases. There remains a significant medical need in this space, and our teams are eager to work alongside the talented EyeBio team to advance these promising candidates. In closing, over the past three plus years, we have successfully built on the solid foundation established by the previous leadership team to assemble one of the strongest pipelines in recent memory. We have diversified in oncology while strengthening and expanding in other therapeutic areas, including cardiometabolic, immunology, infectious disease, neuroscience, and vaccines. We have strong momentum, and I look forward to providing further updates on our progress. And now, I turn the call back to Peter. Thank you, Dean. Brad, we're ready for Q&A now, and I request that analysts limit themselves to one question today.

Caroline Litchfield: The European Commission's decision on the marketing authorization application is expected in the third quarter.

Caroline Litchfield: Finally, we continued to execute on our science led business development strategy with a focus on seamlessly integrating efforts across our internal pipeline with the best external science through our one pipeline approach.

Speaker Change: We recently closed the acquisition of <unk> that includes restaurant.

Speaker Change: <unk> 3000, and investigational late phase potentially first in class Petro valent try specific wind antibody candidates for diabetic macular edema, and Neovascular age related macular degeneration as well as additional preclinical assets targeting retinal diseases.

Speaker Change: There remains a significant medical need in this space and our teams are eager to work alongside the talented <unk> team to advance these promising candidates.

Dean Li: In closing, over the past three plus years, we have successfully built on the solid foundation established by the previous leadership team to assemble one of the strongest pipelines in recent memory. We have diversified in oncology while strengthening and expanding in other therapeutic areas, including cardiometabolic, immunology, infectious disease, neuroscience, and vaccines. We have strong momentum, and I look forward to providing further updates on our progress. And now, I turn the call back to Peter.

Dean Lee: In closing, over the past three plus years, we have successfully built on the solid foundation established by the previous leadership team to assemble one of the strongest pipelines in recent memory. We have diversified in oncology while strengthening and expanding in other therapeutic areas, including cardiometabolic, Immunology, Infectious Disease, Neuroscience, and Vaccines. We have strong momentum, and I look forward to providing further updates on our progress. And now, I turn the call back. Thank you, Dean. Brad, we're ready for Q&A now, and I request that analysts limit themselves to one question today.

Speaker Change: In closing over the past three plus years, we have successfully built on the solid foundation established by the previous leadership team to assemble one of the strongest pipelines in recent memory we.

Speaker Change: We are diversified in oncology, while strengthening and expanding in other therapeutic areas, including cardio metabolic immunology infectious disease neuroscience and vaccine.

Dean Lee: We have strong momentum, and I look forward to providing further updates on our progress. And now, I turn the call back. Thank you, Dean. Brad, we're ready for Q&A now, and I request that analysts limit themselves to one question today. Thank you. Please submit your question at any time by pressing star 2. If you are using a speakerphone, please pick up the handset before pressing star 2.

We have strong momentum, and I look forward to providing further updates on our progress. And now, I turn the call back. Thank you, Dean. Brad, we're ready for Q&A now, and I request that analysts limit themselves to one question today.

Speaker Change: We have strong momentum and I look forward to providing further updates on our progress and now I turn the call back to Peter.

Peter Dannenbaum: Thank you Dean Brad we're ready for Q&A now.

Peter Dannenbaum: Requests that analysts limit themselves to one question today. Thank you.

Peter Dannenbaum: Thank you, Dean. Brad, we're ready for Q&A now, and I request that analysts limit themselves to one question today. Thank you.

Speaker Change: Ladies and gentlemen, if you would like to ask a question. Please press star one on your phone keypad.

Speaker Change: Withdraw your question at any time by pressing star two.

Operator: Leadies and gentlemen, if you'd like to ask a question, please press star 1 on your telephone keypad. You may withdraw your question at any time by pressing star 2. If you are using a speakerphone, please pick up the handset before pressing the numbers. Once again, if you have a question, you may press the star 1. One moment please for our first question. And our first question will come from Chris Schott of JP Morgan. Your line is open.

Speaker Change: If youre using a speakerphone please pick up the handset before pressing the numbers. Once again, if you have a question you May press star one.

Speaker Change: Please for our first question.

Speaker Change: And our first question will come from Chris Schott of Jpmorgan.

Line is open.

Operator: If you have a question, you may press the star. Great, thanks so much for the question and congrats on the progress. I just want to kick off with just a question on Gardasil dynamics in China. There is a major two-part question here. First, can you quantify what percent of your international sales are coming from China? And just any additional color on what drove this step down in 2Q? I'm trying to get my hands around this.

If you have a question, you may press the star.

Chris Schott: Great. Thanks, so much for the question and congrats on the progress I just want to kick off with just a question on Gardasil dynamics in China.

Chris Schott: Great, thanks so much for the question and congrats on the progress. I just want to kick off with just a question on GARDASIL dynamics in China. There is two-part question here. First, can you quantify what percent of your international sales are coming from China? And just any additional color on what drove this step down in 2Q? I'm trying to get my hands around this. And maybe as part of that, the 2024 guidance update, is the potential for shipments to come below the 2024 contracted doses now reflected in that guidance? Or would that represent an incremental headwind to numbers to the extent that it played out? Thank you.

Chris Schott: Two part question here first can you quantify what percent of international sales are coming from China, and just any additional color on what drove the step down in <unk> and in <unk> I'm sure I get my hands around this and maybe as part of that the 2024 guidance update.

Speaker Change: Is the potential for shipments to come below the 2024 contracted doses now reflected in that guidance or would that represent incremental headwind two numbers to the extent that played out. Thank you.

Rob Davis: And maybe as part of that, the 2024 guidance update, is the potential for shipments to come below the 2024 contracted doses now reflected in that guidance? Or would that represent an incremental headwind to numbers to the extent that it played out? Thank you. Great, thanks. Thanks, Chris.

And maybe as part of that, the 2024 guidance update, is the potential for shipments to come below the 2024 contracted doses now reflected in that guidance? Or would that represent an incremental headwind to numbers to the extent that it played out?

Robert M. Davis: Thank you. Thanks, Chris. And thanks for the question. And I'll maybe take the first part and then ask Caroline to comment on guidance. To your question, China represents about 60% to 70% of the number. So that kind of gives you a sense of it, but maybe to give some context on what we saw in the quarter and as we look to the full year and where we see things going, so let me start maybe by talking a little bit about the dynamics. The opportunity that exists for GARDASIL in China remains very attractive, with more than 120 million eligible females in China yet to be protected against HPV, which represents about 60% to 70% of the eligible population. And I think we all recognize that protection against HPV-related diseases is clear and importantly aligns with China's Healthy 2030 initiative. So, the underlying support, we continue to believe, is there. In addition, we have filed for the mail indication, which has been accepted and represents another significant opportunity. So, as we think about China, I just want to set the context because I think it's important to understand. We continue to have a very meaningful opportunity in the Chinese market. What's unclear to us and what we're trying to understand is that during the second quarter, we saw a significant step down in shipments from Zhirfei to the points of vaccination. The reductions during the second quarter were surprising and, I would point out, a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024.

Rob Davis: And thanks for the question. And I'll maybe take the first part and then ask Caroline to comment on guidance. To your question, China represents about 60 to 70% of the number. So that kind of gives you a sense of it, but maybe to give some context on what we saw in the quarter and as we look to the full year and where we see things going, so let me start maybe by talking a little bit about the dynamics. The opportunity that exists for Gardasil in China remains very attractive, with more than 120 million eligible females in China yet to be protected against HPV, which represents about 60 to 70% of the eligible population. And I think we all recognize that protection against HPV-related diseases is clear and importantly aligns with China's Healthy 2030 initiative. So the underlying support, we continue to believe, is there. In addition, we have filed for the mail indication, which has been accepted and represents another significant opportunity. So as we think about China, I just want to set the context because I think it's important to understand. We continue to have a very meaningful opportunity in the Chinese market. What's unclear to us and what we're trying to understand is that during the second quarter, we saw a significant step down in shipments from Jirfe to the points of vaccination. The reductions during the second quarter were surprising and, I would point out, a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024.

Speaker Change: Great. Thanks, Thanks, Chris and thanks for the question.

Speaker Change: If we take the first part and then ask.

Caroline to comment on guidance to your question, China represented about regardless of about 60% to 70%.

Speaker Change: Of the number so.

Speaker Change: Thats kind of gives you a sense of it but maybe to give some context on what we saw in the quarter.

Speaker Change: And as we look to the full year and where we see things going So let me start maybe by talking a little bit about the dynamics there.

Rob Davis: So that kind of gives you a sense of it, but maybe to give some context on what we saw in the quarter and as we look to the full year and where we see things going, so let me start maybe by talking a little bit about the dynamics. The opportunity that exists for Gardasil in China remains very attractive, with more than 120 million eligible females in China yet to be protected against HPV, which represents about 60 to 70% of the eligible population. And I think we all recognize that protection against HPV-related diseases is clear and importantly aligns with China's Healthy 2030 initiative. So the underlying support, we continue to believe, is there. In addition, we have filed for the mail indication, which has been accepted and represents another significant opportunity. So as we think about China, I just want to set the context because I think it's important to understand. We continue to have a very meaningful opportunity in the Chinese market. What's unclear to us and what we're trying to understand is that during the second quarter, we saw a significant step down in shipments from Jirfe to the points of vaccination. The reductions during the second quarter were surprising and, I would point out, a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024.

Speaker Change: The opportunity that exists regardless still in China remains very attractive with more than 120 million eligible females in China, yet to be protected against HPV, which represents about 60% to 70% of the eligible population I think we all recognize the benefits of protection against HPV related.

Rob Davis: And I think we all recognize that protection against HPV-related diseases is clear and importantly aligns with China's Healthy 2030 initiative. So the underlying support, we continue to believe, is there. In addition, we have filed for the mail indication, which has been accepted and represents another significant opportunity. So as we think about China, I just want to set the context because I think it's important to understand. We continue to have a very meaningful opportunity in the Chinese market. What's unclear to us and what we're trying to understand is that during the second quarter, we saw a significant step down in shipments from Jirfe to the points of vaccination. The reductions during the second quarter were surprising and, I would point out, a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024.

Speaker Change: <unk> is clear and importantly, aligns with China's healthy 2030 initiatives. So the underlying support we continue to believe is there.

Speaker Change: In addition, we have filed for the male indication, which has been accepted and represents another significant opportunity. So as we think about China I just wanted to set the context, because I think it's important to understand we continue to have a very meaningful opportunity in the China market.

Robert M. Davis: So, as we think about China, I just want to set the context because I think it's important to understand. We continue to have a very meaningful opportunity in the Chinese market. What's unclear to us and what we're trying to understand is that during the second quarter, we saw a significant step down in shipments from Zhirfei to the points of vaccination. The reductions during the second quarter were surprising and, I would point out, a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024.

Rob Davis: We continue to have a very meaningful opportunity in the Chinese market. What's unclear to us and what we're trying to understand is that during the second quarter, we saw a significant step down in shipments from Jirfe to the points of vaccination. The reductions during the second quarter were surprising and, I would point out, a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024.

Speaker Change: What's unclear to us and what we're trying to understand is that during the second quarter. We saw a significant step down in shipments from geography to the points of vaccination.

Speaker Change: The reductions during the second quarter was surprising and I would point out was a meaningful departure from prior trends we've seen both throughout really all of 2023 and into the first quarter of 2024. So as we look at this we're wanting to understand what would cause the trend break we saw and I can tell you what we.

Peter Dannenbaum: So, as we look at this, we're wanting to understand what caused the trend break we saw, and I can tell you what we know as of now. We believe there could be multiple factors that may be contributing to this dynamic, and we're working closely with our partner to try to tease out what exactly is happening. Overall, the data we track indicates that the whole HPV market in China experienced this step down. So this is not a Merck-specific event. And importantly, we see the market share for Gardasil as stable or actually increasing right now in the marketplace. We don't believe this step down therefore represents any change in the competitive dynamic, and Gardner Steel remains by far the market leader. We do believe, however, based on the intelligence we've gathered, activity in the HPV vaccine area has recently been impacted by China's anti-bribery and anti-corruption drive, which, as you know, started really last year. And up to that point, we really haven't seen much impact, but we do believe we are starting to see it now. And this is really driven by the fact that in the healthcare industry, there has been, as a result of this, a reduction in scientific engagement, primarily in the CDC within China, and fewer immunizations. So we need to tease that out more. And in addition, we did see reduced levels of promotional support for HPV vaccination at the same time that our distribution partner, Xurfei, broadened its portfolio. So we'll need to get more into that. But obviously, we have a very strong relationship with Xurfei, and we have already started to put in place a robust plan to invest in increased promotional efforts, really designed to drive awareness. Education and Activation of the Remaining Female Opportunity, and this includes both resources at GERFA and more selling resources and promotional resources, as well as promotional resources being deployed directly from Merck. So as we look forward, we will have to see how all of these activities impact shipments to the point of vaccination, and as we learn more, we'll assess future shipments to China with our partner. So hopefully that gives you a sense of what we're seeing, but I just would reiterate one other point. And that is, as we look to the long term, given both the opportunity in China I mentioned for the 120 million remaining females, as well as the potential for the male indication, outside of China, we saw double-digit growth across all regions in the quarter. So we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question.

Robert M. Davis: So, as we look at this, we're wanting to understand what caused the trend break we saw, and I can tell you what we know as of now is we believe there could be multiple factors that may be contributing to this dynamic, and we're working closely with our partner to try to tease out what exactly is happening. Overall, the data we track indicates that the whole HPV market in China experienced this step down. So this is not a Merck-specific event. And importantly, we see the market share for GARDASIL as stable or actually increasing right now in the marketplace. We don't believe this step down therefore represents any change in the competitive dynamic, and GARDASIL remains, by far, the market leader. We do believe, however, based on the intelligence we've gathered, activity in the HPV vaccine area has recently been impacted by China's anti-bribery and anti-corruption drive, which, as you know, started really last year. And up to that point, we really haven't seen much impact, but we do believe we are starting to see it now. And this is really driven by the fact that in the healthcare industry, there has been, as a result of this, a reduction in scientific engagement, primarily in the CDC within China, and fewer immunizations. So we need to tease that out more. And in addition, we did see reduced levels of promotional support for HPV vaccination at the same time that our distribution partner, Zhirfei, broadened its portfolio. So, we'll need to get more into that. But obviously, we have a very strong relationship with Zhirfei, and we have already started to put in place a robust plan to invest in increased promotional efforts, really designed to drive awareness, education and activation of the remaining female opportunity, and this includes both resources at Zhirfei and more selling resources and promotional resources, as well as promotional resources being deployed directly from Merck.

Speaker Change: No as of now as we believe there could be multiple factors.

Speaker Change: May be contributing to this dynamic and were working closely with our partner to try to tease out what exactly is happening but.

Rob Davis: So this is not a Merck-specific event. And importantly, we see the market share for Gardasil as stable or actually increasing right now in the marketplace. We don't believe this step down therefore represents any change in the competitive dynamic, and Gardner Steel remains by far the market leader. We do believe, however, based on the intelligence we've gathered, activity in the HPV vaccine area has recently been impacted by China's anti-bribery and anti-corruption drive, which, as you know, started really last year. And up to that point, we really haven't seen much impact, but we do believe we are starting to see it now. And this is really driven by the fact that in the healthcare industry, there has been, as a result of this, a reduction in scientific engagement, primarily in the CDC within China, and fewer immunizations. So we need to tease that out more. And in addition, we did see reduced levels of promotional support for HPV vaccination at the same time that our distribution partner, Xurfei, broadened its portfolio. So we'll need to get more into that. But obviously, we have a very strong relationship with Xurfei, and we have already started to put in place a robust plan to invest in increased promotional efforts, really designed to drive awareness. Education and Activation of the Remaining Female Opportunity, and this includes both resources at GERFA and more selling resources and promotional resources, as well as promotional resources being deployed directly from Merck. So as we look forward, we will have to see how all of these activities impact shipments to the point of vaccination, and as we learn more, we'll assess future shipments to China with our partner. So hopefully that gives you a sense of what we're seeing, but I just would reiterate one other point. And that is, as we look to the long term, given both the opportunity in China I mentioned for the 120 million remaining females, as well as the potential for the male indication, outside of China, we saw double-digit growth across all regions in the quarter. So we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question.

Speaker Change: Overall, the data we track indicates that the whole HPV market in China experienced this step down. So this is not a merck specific event and importantly, we see the market share regardless.

Speaker Change: Stable or actually increasing right now in the marketplace.

Speaker Change: We don't believe this step down therefore represents any change in the competitive dynamic and garner still remains by far the market leader.

Robert M. Davis: We do believe, however, based on the intelligence we've gathered, activity in the HPV vaccine area has recently been impacted by China's anti-bribery and anti-corruption drive, which, as you know, started really last year. And up to that point, we really haven't seen much impact, but we do believe we are starting to see it now. And this is really driven by the fact that in the healthcare industry, there has been, as a result of this, a reduction in scientific engagement, primarily in the CDC within China, and fewer immunizations. So we need to tease that out more. And in addition, we did see reduced levels of promotional support for HPV vaccination at the same time that our distribution partner, Zhirfei, broadened its portfolio. So, we'll need to get more into that. But obviously, we have a very strong relationship with Zhirfei, and we have already started to put in place a robust plan to invest in increased promotional efforts, really designed to drive awareness, education and activation of the remaining female opportunity, and this includes both resources at Zhirfei and more selling resources and promotional resources, as well as promotional resources being deployed directly from Merck.

Rob Davis: We do believe, however, based on the intelligence we've gathered, activity in the HPV vaccine area has recently been impacted by China's anti-bribery and anti-corruption drive, which, as you know, started really last year. And up to that point, we really haven't seen much impact, but we do believe we are starting to see it now. And this is really driven by the fact that in the healthcare industry, there has been, as a result of this, a reduction in scientific engagement, primarily in the CDC within China, and fewer immunizations. So we need to tease that out more. And in addition, we did see reduced levels of promotional support for HPV vaccination at the same time that our distribution partner, Xurfei, broadened its portfolio. So we'll need to get more into that. But obviously, we have a very strong relationship with Xurfei, and we have already started to put in place a robust plan to invest in increased promotional efforts, really designed to drive awareness. Education and Activation of the Remaining Female Opportunity, and this includes both resources at GERFA and more selling resources and promotional resources, as well as promotional resources being deployed directly from Merck. So as we look forward, we will have to see how all of these activities impact shipments to the point of vaccination, and as we learn more, we'll assess future shipments to China with our partner. So hopefully that gives you a sense of what we're seeing, but I just would reiterate one other point. And that is, as we look to the long term, given both the opportunity in China I mentioned for the 120 million remaining females, as well as the potential for the male indication, outside of China, we saw double-digit growth across all regions in the quarter. So we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question.

Speaker Change: We do believe however that based on the intelligence, we have gathered activity in the HPV vaccine area has been recently impacted by China's anti bribery and corruption drive, which as you know started really last year and up to the point, we really haven't seen much impact, but we do believe we are starting to see it now.

Speaker Change: And this is really driven by the fact that in the healthcare industry. There has been as a result of this a reduction in scientific engagement.

Speaker Change: Primarily in the CDC within China, and fewer organization. So we need to tease that out more and in addition, we did see reduced levels of promotional support for HPV vaccination at the same time that our distribution partner <unk> broadened its portfolio.

Speaker Change: So we will need to get more into that but obviously, we have a very strong relationship with <unk>.

Rob Davis: So we'll need to get more into that. But obviously, we have a very strong relationship with Xurfei, and we have already started to put in place a robust plan to invest in increased promotional efforts, really designed to drive awareness. Education and Activation of the Remaining Female Opportunity, and this includes both resources at GERFA and more selling resources and promotional resources, as well as promotional resources being deployed directly from Merck. So as we look forward, we will have to see how all of these activities impact shipments to the point of vaccination, and as we learn more, we'll assess future shipments to China with our partner. So hopefully that gives you a sense of what we're seeing, but I just would reiterate one other point. And that is, as we look to the long term, given both the opportunity in China I mentioned for the 120 million remaining females, as well as the potential for the male indication, outside of China, we saw double-digit growth across all regions in the quarter. So we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question.

Speaker Change: And we already have started to put in place a robust plan to invest in increased promotional efforts really designed to drive awareness education and activation of the remaining female opportunity and this includes both resources and <unk> and more selling <unk> sources and promotional resources as well as promotional resources.

Robert M. Davis: So as we look forward, we will have to see how all of these activities impact shipments to the point of vaccination, and as we learn more, we'll assess future shipments to China with our partner. So hopefully that gives you a sense of what we're seeing, but I just would reiterate one other point. And that is, as we look to the long term, given both the opportunity in China I mentioned for the 120 million remaining females, as well as the potential for the male indication, outside of China, we saw double-digit growth across all regions in the quarter. So, we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw happening in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question. Caroline?

Speaker Change: Being deployed directly from Merck. So as we look forward, we will have to see how all of these activities impact shipments to the point of vaccination and as we learn more we'll see.

Speaker Change: Future shipments to China with our partner so hopefully that gives you a sense of what we're seeing but I just would reiterate one other point.

Rob Davis: So hopefully that gives you a sense of what we're seeing, but I just would reiterate one other point. And that is, as we look to the long term, given both the opportunity in China I mentioned for the 120 million remaining females, as well as the potential for the male indication, outside of China, we saw double-digit growth across all regions in the quarter. So we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question.

Speaker Change: That as we look to the long term given both the opportunity in China, I mentioned towards the $120 million remaining females as well as the potential for the male indication outside of China, we saw double digit growth across all regions in the quarter. So we continue to be on track doing well and driving.

Rob Davis: So we continue to be on track, doing well, and driving growth in this important vaccine. And that's why you heard Caroline, in our prepared comments, reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw in China this quarter. So, with that, maybe I'll turn it over to Caroline, and she can address your guidance specific question.

Caroline Litchfield: Growth in this important vaccine and Thats why you heard Caroline and her prepared comments reiterate our confidence in the $11 billion number by 2030, even taking into account what we saw China happening in China. This quarter, so with that maybe I'll turn it over Caroline and she can address your <unk>.

Caroline Litchfield: Guidance specific question Colin Thank you, Rob So Chris in terms of our guidance, we've assumed a range of scenarios.

Caroline Litchfield: Thank you, Rob. So, Chris, in terms of our guidance, we've assumed a range of scenarios, from providing the fully contracted 2024 doses during this year, to providing something less than that. If I anchor to the midpoint of our guidance, we have been measured in assuming a scenario that has less than the contracted 2024 GARDASIL doses shipped to China. And even with that, we were able to raise our guidance at the midpoint by $200 million. And that's really a result of the underlying momentum that we have in the rest of our business, including oncology with KEYTRUDA and WELIREG, and in animal health with the launch of BRAVECTO Injectable, as well as the acquisition of the Elanco Aqua Business. And we remain confident in our outlook for WINREVAIR and the opportunities to drive patient impact and growth, consistent with our high expectations. Thank you, Chris.

Caroline Litchfield: Providing the fully contracted 2024 dosage during this year to providing something less than that if I anchor to the midpoint of our guidance. We have been measured in assuming a scenario that has less spend contracted 2020 for gardasil doses.

To China.

Speaker Change: And even with that we were able to raise our guidance at the midpoint by $200 million and that's really as a result of the underlying momentum that we have in the rest of our business, including oncology with Keytruda and Wendy Reg. It includes in animal health with the launch of <unk>.

Caroline Litchfield: And that's really a result of the underlying momentum that we have in the rest of our business, including oncology with Keytruda and Wellireg, and in animal health with the launch of Provecto Injectable, as well as the acquisition of the Elanco Aqua business. And we remain confident in our outlook for WinRevere and the opportunities to drive patient impact and growth, consistent with our high expectations. Thank you, Chris.

Speaker Change: So an injectable as well as the acquisition of the <unk> business and we remain confident in our outlook for wind river and the opportunities to drive patient impact and growth consistent with our high expectations.

Peter Dannenbaum: Thank you, Chris. Next question, please, Brad.

Operator: Next question, please, Brad. The next question comes from Umer Raffat of UberCore. Your line is open. I guess thank you for taking my question. Can I just dial down the Gardasil point just a little more?

Next question, please, Brad.

Speaker Change: Great. Thank you Chris next question please Brad.

Operator: The next question comes from Umer Raffat of UberCore. Your line is open. I guess thank you for taking my question. Can I just dial down the Gardasil point just a little more?

Operator: The next question comes from Umer Raffat of Evercore. Your line is open.

Umer Raffat: Hi guys, thank you for taking my question. Can I just dial down the GARDASIL point just a little more? Rob, I know you mentioned there's an anti-bribery, anti-corruption drive going on in China, which started last year. But it also feels like some of the shipment delays are happening perhaps a few months ahead of potential competition hitting the market as well. So could you speak to whether there's any future contracting happening and whether your long-term price integrity will stay intact on GARDASIL in China? Thank you.

Speaker Change: Question comes from Mario <unk> of <unk>. Your line is open.

Rob Davis: Rob, I know you mentioned there's an anti-bribery, anti-corruption drive going on in China, which started last year. But it also feels like some of the shipment delays are happening perhaps a few months ahead of potential competition hitting the market as well. So could you speak to whether there's any future contracting happening and whether your long-term price integrity will stay intact on Gardasil in China? Thank you. Yeah, no, thanks for the

Rob, I know you mentioned there's an anti-bribery, anti-corruption drive going on in China, which started last year. But it also feels like some of the shipment delays are happening perhaps a few months ahead of potential competition hitting the market as well. So could you speak to whether there's any future contracting happening and whether your long-term price integrity will stay intact on Gardasil in China? Thank you.

Mario: Hi, guys. Thanks for taking my question can I, just dialed down the Gardasil point, just a little more Rob I know you mentioned, there's an anti bribery anticorruption drive going on in China, which started last year.

Mario: But it also feels like some of the shipment delays are happening perhaps a few months ahead of potential competition hitting the market as well so could you speak to whether there's any future contracting happening and whether youre a long term price integrity will stay intact on gardasil in China. Thank you.

Peter Dannenbaum: Yeah, no, thanks for the question. So everything we're seeing in the marketplace, I would just reiterate, would point to dynamics that we don't see the competition--future potential competition. I think you're referring to the fact that we could very well see a nine-valent sometime next year come into the marketplace. So, I don't believe from anything we've heard in the marketplace from competitive intelligence, as well as what we're hearing from Zhirfei, that that is what's happening here. As we look forward, and Caroline can comment specifically, you know, we have always expected that as we see the peak move through--from the indication we got for the expansion of the age cohort, that you would see a flattening out over time of the demand in China, and then that for women specifically, and then we would bring on the male indications that should allow us then to continue to drive the business forward from there. Nothing has changed in that dynamic, in what we're seeing right now. So as we look forward, our belief in China being a significant contributor is unchanged, but I'll let--maybe Caroline can speak specifically as we're thinking about some of the guidance around how we think about next year. But what I would add is that we have always contemplated that we would have a nine-valent competitor within the Chinese market. As such, the current contracted doses which have stayed for 2025 are less than what the contract is for 2024, as we would expect to participate in that market, but we understand a competitor would likely gain share in that market.

Robert M. Davis: Yeah, no, thanks for the question. So everything we're seeing in the marketplace, I would just reiterate, would point to dynamics that we don't see the competition--future potential competition. I think you're referring to the fact that we could very well see a nine-valent sometime next year come into the marketplace. So, I don't believe from anything we've heard in the marketplace from competitive intelligence, as well as what we're hearing from Zhirfei, that that is what's happening here. As we look forward, and Caroline can comment specifically, you know, we have always expected that as we see the peak move through--from the indication we got for the expansion of the age cohort, that you would see a flattening out over time of the demand in China, and then that for women specifically, and then we would bring on the male indications that should allow us then to continue to drive the business forward from there. Nothing has changed in that dynamic, in what we're seeing right now. So as we look forward, our belief in China being a significant contributor is unchanged, but I'll let--maybe Caroline can speak specifically as we're thinking about some of the guidance around how we think about next year.

Rob Davis: So everything we're seeing in the marketplace, I would just reiterate, would point to dynamics that we don't see the competition, future potential competition. I think you're referring to the fact that we could very well see a nine-valent sometime next year come into the marketplace. So I don't believe from anything we've heard in the marketplace from competitive intelligence, as well as what we're hearing from GERFA, that that is what's happening here. As we look forward, and Caroline can comment specifically, you know, we have always expected that as we see the peak move through from the indication we got for the expansion of the age cohort, that you would see a flattening out over time of the demand in China, and then that for women specifically, and then we would bring on the male indications that should allow us then to continue to drive the business forward from there. Nothing has changed in that dynamic in what we're seeing right now. So as we look forward, our belief in China being a significant contributor is unchanged, but I'll let maybe Kelly speak specifically as we're thinking about some of the guidance around how we think about next year. But what I would add is that we have always contemplated that we would have a nine-valent competitor within the Chinese market. As such, the current contracted doses which have stayed for 2025 are less than what the contract is for 2024, as we would expect to participate in that market, but we understand a competitor would likely gain share in that market.

Speaker Change: Yes, no. Thanks for the question so everything we're seeing in the marketplace I would just reiterate.

Speaker Change: I would point too dynamic.

Speaker Change: The dynamics that we don't see the competition the future potential competition I think you're referring to the fact that we very well could see a nine valent sometime next year come into the marketplace. So.

Speaker Change: I don't believe from anything we've heard in the marketplace from competitive intelligence as well as what we're hearing from <unk> that that is what's happening here.

Rob Davis: As we look forward, and Caroline can comment specifically, you know, we have always expected that as we see the peak move through from the indication we got for the expansion of the age cohort, that you would see a flattening out over time of the demand in China, and then that for women specifically, and then we would bring on the male indications that should allow us then to continue to drive the business forward from there. Nothing has changed in that dynamic in what we're seeing right now. So as we look forward, our belief in China being a significant contributor is unchanged, but I'll let maybe Kelly speak specifically as we're thinking about some of the guidance around how we think about next year. But what I would add is that we have always contemplated that we would have a nine-valent competitor within the Chinese market. As such, the current contracted doses which have stayed for 2025 are less than what the contract is for 2024, as we would expect to participate in that market, but we understand a competitor would likely gain share in that market.

Speaker Change: As we look forward.

Caroline Litchfield: Caroline can comment specifically.

Caroline Litchfield: <unk> always expected that as we see the peak move through from the indication we got for the expansion of the age cohort that you would see a flattening out over time of the demand in China, and then that four women specifically and then we would bring on the Mayo indications.

Caroline Litchfield: Should allow US then to continue to drive the business forward from there nothing has changed in that dynamic and what we're seeing right now so as we look forward our belief in and trying to it being a significant contributor is unchanged, but I'll, let maybe Kelly can speak specifically as we're thinking about some of the guidance around how we.

Rob Davis: So as we look forward, our belief in China being a significant contributor is unchanged, but I'll let maybe Kelly speak specifically as we're thinking about some of the guidance around how we think about next year. But what I would add is that we have always contemplated that we would have a nine-valent competitor within the Chinese market. As such, the current contracted doses which have stayed for 2025 are less than what the contract is for 2024, as we would expect to participate in that market, but we understand a competitor would likely gain share in that market.

Kelly: Think about next year.

Kelly: What I would add is we have always contemplated that we would.

Caroline Litchfield: What I would add is that we have always contemplated that we would have a nine-valent competitor within the Chinese market. As such, the current contracted doses which have stayed for 2025 are less than what the contract is for 2024, as we would expect to participate in that market, but understand a competitor would likely gain share in that market. We also, though, as was said in the prepared remarks, have the potential opportunity for a mail launch in China, and we are hopeful for approval with GARDASIL 4 and 9 by the first half of next year, and we will be coming to the market at that stage. So we are confident that China will remain an important part of our GARDASIL business as we move forward, and more importantly, are confident in the opportunity to drive Gardasil longer term to the $11 billion that we've stated.

Kelly: Have a nine valent competitor within the Chinese market as such the current contracted doses with <unk>.

Kelly: For 2025 are less than what the contract is for 2024, and so we would expect to participate in that market, but understand a competitor would likely gain share in that market.

Rob Davis: We also, though, as was said in the prepared remarks, have the potential opportunity for a mail launch in China, and we are hopeful for approval with Gardasil 4 and 9 by the first half of next year, and we will be coming to the market at that stage. So we are confident that China will remain an important part of our Gardasil business as we move forward and, more importantly, are confident in the opportunity to drive Gardasil longer term to the $11 billion that we've stated.

Speaker Change: We also set aside as was said in the prepared remarks, perhaps the potential opportunity is a male launch in China and we are hopeful for an approval with Gardasil four and nine by first half of next year and be coming to the market at that stage says we.

Speaker Change: All confident that China will remain an important part of our garden soup business as we move forward and more importantly, a confident and the opportunity to drive Scott So longer term the 11 billion that we stated.

Peter Dannenbaum: Yeah, and maybe, Umer, just to give one little bit of color, because it's probably worth pointing out, I'm assuming people understand when we talk about anti-bribery and anti-corruption what is happening. And one question that could be there is, this has been going on since late last year, and we did not see impacts early on. What's changed, and how do we see it evolving? And what I would point out, first of all, one, just reiterate, as we think about what's happening in China around anti-bribery and anti-corruption, we very much support those activities because it means we have a fair, open, and transparent market. So, we're very supportive of what the Chinese government is trying to do there. But as we see how this is impacting us at the CDC, we have seen some dampening in them engaging in scientific discussions and driving for vaccination. We believe some of this could be due to the fact that there was criminal charges brought against a senior scientific representative and one of the local players related to the COVID vaccine, that we believe has had a dampening effect overall. And how long this lasts, and how it will continue to play out, we'll have to see. But I thought I'd provide additional color, because I don't want to assume that you all are aware of what is really happening there. Thanks, Umer. Next question, please, Brad.

Robert M. Davis: Yeah, and maybe, Umer, just to give one little bit of color, because it's probably worth pointing out, I'm assuming people understand when we talk about anti-bribery and anti-corruption what is happening. And one question that could be there is, this has been going on since late last year, and we did not see impacts early on. What's changed, and how do we see it evolving? And what I would point out, first of all, one, just reiterate, as we think about what's happening in China around anti-bribery and anti-corruption, we very much support those activities because it means we have a fair, open, and transparent market. So, we're very supportive of what the Chinese government is trying to do there. But as we see how this is impacting us at the CDC, we have seen some dampening in them engaging in scientific discussions and driving for vaccination. We believe some of this could be due to the fact that there was criminal charges brought against a senior scientific representative and one of the local players related to the COVID vaccine, that we believe has had a dampening effect overall. And how long this lasts, and how it will continue to play out, we'll have to see. But I thought I'd provide additional color, because I don't want to assume that you all are aware of what is really happening there.

Speaker Change: And maybe just.

Speaker Change: Just to give one little bit of color, because it's probably worth pointing out I'm assuming people understand when we talk about the anti bribery and corruption what is happening in one question that could be there is this has been going on since late last year and we do not see impacts early on what's changed.

Speaker Change: And how do we see it evolving, but what I would point out first of all one.

Speaker Change: Reiterated as we think about what's happening in China around the anti bribery and corruption reversed much support those activities because it means we have a fair open and transparent market. So we're very supportive of what the Chinese government is trying to do there.

Rob Davis: So we're very supportive of what the Chinese government is trying to do there. But as we see how this is impacting us at the CDC, we have seen some dampening in them engaging in scientific discussions and driving for vaccination. We believe some of this could be due to the fact that criminal charges were brought against a senior scientific representative and one of the local players related to the COVID vaccine, which we believe has had a dampening effect overall. And how long this lasts, and how it will continue to play out, we'll have to see. But I thought I'd provide additional color because I don't want to assume that you all are aware of what is really happening there. Thanks, Umer. Next question, please, Brad.

Speaker Change: We see how this is impacting us at the CDC, we have seen some dampening in them engaging in scientific discussions and driving for vaccination. We believe some of this could be due to the fact that there was criminal charges brought against a senior scientific representative of one of the local players related to <unk>.

Rob Davis: We believe some of this could be due to the fact that criminal charges were brought against a senior scientific representative and one of the local players related to the COVID vaccine, which we believe has had a dampening effect overall. And how long this lasts, and how it will continue to play out, we'll have to see. But I thought I'd provide additional color because I don't want to assume that you all are aware of what is really happening there. Thanks, Umer. Next question, please, Brad.

Speaker Change: <unk> vaccine that we believe has had a dampening effect overall on how long. This last how it will continue to play out we'll have to see but I thought I would provide additional cohort because I don't want to assume that you. All are aware of what really is happening there great. Thanks next question. Please Brad.

Peter Dannenbaum: Thanks, Umer. Next question, please, Brad.

Operator: Next question, please, Brad. The next question comes from Carter Gould. Good morning, thanks for taking the questions. Maybe just switch gears and talk about Wynne-Rivera a bit.

Next question, please, Brad.

Speaker Change: The next question comes from Carter Gould of Barclays. Your line is open.

The next question comes from Carter Gould. Good morning, thanks for taking the questions. Maybe just switch gears and talk about Wynne-Rivera a bit.

Operator: The next question comes from Carter Gould of Barclays. Your line is open.

Carter Gould: Good morning, thanks for taking the questions. Maybe just switch gears and talk about WINREVAIR a bit. Can you maybe characterize, or maybe go into, in terms of the pace of new starts, do you see that sort of as sustainable or surpassable? And as we think about the sort of that one month delay timeline from prescription to start, can you maybe characterize how much of that is sort of payer versus sort of nurse training driven, and if there's a chance that might evolve? Thank you.

Rob Davis: Can you maybe characterize, or maybe go into, in terms of the pace of new starts, do you see that sort of as sustainable or surpassable? And as we think about the sort of that one month delay timeline from prescription to start, can you maybe characterize how much of that is sort of payer versus sort of nurse training driven, and if there's a chance that might evolve? Yeah, no, thanks for the question. So to give you a sense of what we've seen, as of the end of June, we've had more than 2000 patients. Receive a prescription for Winn-Revere.

Can you maybe characterize, or maybe go into, in terms of the pace of new starts, do you see that sort of as sustainable or surpassable? And as we think about the sort of that one month delay timeline from prescription to start, can you maybe characterize how much of that is sort of payer versus sort of nurse training driven, and if there's a chance that might evolve?

Carter Gould: Good morning, Thanks for taking the questions, maybe just to switch gears and talk about when reverse a bit can you maybe characterize or maybe you're going to.

Terms of the pace of new starts do you see that sort of as sustainable or surpass it will and as we think about that sort of that one month delayed timeline from prescription to start can you maybe characterize how much of that is sort of payer versus sort of the nurse training driven and if there's a chance that might evolve. Thank you. Yes no. Thanks. Thanks for the question so to give you a sense of what.

Robert M. Davis: Yeah, no, thanks for the question. So, to give you a sense of what we've seen, as of the end of June, we've had more than 2000 patients receive a prescription for WINREVAIR. So that's, you know, obviously, we feel very good about that. And right now, what our experience would tell us is that about 75% to 80% of those receiving a prescription will convert to a commercial product. So, that gives you a sense of what's happening right now, actually, in the quarter driving that revenue you saw was about 1,000 patients actually on treatment had started treatment. So as we sit here today, you have 1,000 patients who have started treatment in the quarter, and the 2,000 total scripts, and we would expect that 75% to 80% of those 2,000 scripts will ultimately convert to commercial sales. And so if you look at what's driving that difference, some of that is due to access, but also some of it is due to patient dropout and the fact that you will have some patients who, despite getting a script, after they go through work and go through the medical evaluations, don't qualify. So you have all of those dynamics happening. If you look at the 30 days, and specifically what you're referring to, we think that probably the total period from when a person gets a script to when they get their approval from an access perspective is about two weeks to three weeks. So there is, you know, obviously, an opportunity to improve that. But just remember that in addition to going and getting a blood test, getting your insurance approval, you then have to schedule to have a nurse come to your home to go through the initiation and training around administration--self-administration of WINREVAIR. So, all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see.

Speaker Change: What we've seen.

Speaker Change: Hum.

Speaker Change: As of the end of June we've had more than 2000 patients receive prescriptions for when repair so.

Rob Davis: So that's, you know, obviously, we feel very good about that. And right now, what our experience would tell us is that about 75 to 80% of those receiving a prescription will convert to a commercial product. So that gives you a sense of what's happening right now, actually, in the quarter driving that revenue you saw was about 30. About 1000 patients actually on treatment had started treatment. So as we sit here today, you have 1000 patients who have started treatment in the quarter, and the 2000 total scripts, and we would expect that 75 to 80% of those 2000 scripts will ultimately convert to commercial sales. And so if you look at what's driving that difference, some of that is due to access, but also some of it is due to patient dropout and the fact that you will have some patients who, despite getting a script, after they go through work and go through the medical evaluations, don't qualify. So you have all of those dynamics happening. If you look at the 30 days, and specifically what you're referring to, we think that probably the total period from when a person gets a script to when they get their approval from an access perspective is about two weeks to three weeks. So there is, you know, obviously, an opportunity to improve that. But just remember that in addition to going and getting a blood test, getting your insurance approval, you then have to schedule to have a nurse come to your home to go through the initiation and training around administration and self-administration when we're there. So all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see.

Speaker Change: Obviously, we feel very good about that.

Speaker Change: And right now what our experience would tell us is that about 75% to 80% of those receiving a prescription will convert to commercial product. So that gives you a sense of what's happening right now actually in the quarter driving the revenue you saw was about third about 1000 patients actually on treat.

Speaker Change: <unk> had started treatment so as we sit here today you have 1000 patients who have started treatment in the quarter. The 2000 total scripts and we would expect that the <unk>.

Rob Davis: And so if you look at what's driving that difference, some of that is due to access, but also some of it is due to patient dropout and the fact that you will have some patients who, despite getting a script, after they go through work and go through the medical evaluations, don't qualify. So you have all of those dynamics happening. If you look at the 30 days, and specifically what you're referring to, we think that probably the total period from when a person gets a script to when they get their approval from an access perspective is about two weeks to three weeks. So there is, you know, obviously, an opportunity to improve that. But just remember that in addition to going and getting a blood test, getting your insurance approval, you then have to schedule to have a nurse come to your home to go through the initiation and training around administration and self-administration when we're there. So all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see.

Speaker Change: 70, 580% of those 2000 scripts will ultimately.

Speaker Change: Convert to commercial sales and so if you look at what's driving that difference some of that is due to two access but also some of it is due to a patient dropout.

Speaker Change: And the fact that you will have some patients who despite getting a script. After they go through blood work and go through the medical valuations don't qualify. So you have all of those dynamics happening. If you look at the 30 days, specifically that you're referring to we think that probably the total period from when.

Rob Davis: So there is, you know, obviously, an opportunity to improve that. But just remember that in addition to going and getting a blood test, getting your insurance approval, you then have to schedule to have a nurse come to your home to go through the initiation and training around administration and self-administration when we're there. So all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see.

Robert M. Davis: If you look at the 30 days, and specifically what you're referring to, we think that probably the total period from when a person gets a script to when they get their approval from an access perspective is about two weeks to three weeks. So there is, you know, obviously, an opportunity to improve that. But just remember that in addition to going and getting a blood test, getting your insurance approval, you then have to schedule to have a nurse come to your home to go through the initiation and training around administration--self-administration of WINREVAIR. So, all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see.

Speaker Change: Get the script to when they get their approval for <unk>.

Speaker Change: Access perspective was about two weeks to three weeks. So there is obviously opportunity to improve that but just remember that in addition to going and getting a blood test getting your insurance approval.

Speaker Change: You then have to schedule to have a nurse come to your home to go through the initiation.

Speaker Change: And training around administration self administration of when repair. So all of those elements are contributing to that timeframe. How much of that time is over time, we'll have to see.

Rob Davis: So all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see. Great. Thank you, Carter. Next question, please, Brad. The next question: Adam Anderson of Wolf Research, your line is open.

So all of those elements are contributing to that time frame. How much that tightens over time, we'll have to see.

Speaker Change: Great.

Speaker Change: Thank you Carter next question please Brad.

Great. Thank you, Carter. Next question, please, Brad. The next question: Adam Anderson of Wolf Research, your line is open.

Peter Dannenbaum: Great. Thank you, Carter. Next question, please, Brad.

Speaker Change: The next question comes from Tim Anderson of Wolfe Research. Your line is open Sir.

Operator: The next question comes from Tim Anderson of Wolfe Research. Your line is open, sir.

Tim Anderson: Thank you very much. I'm just going back to GARDASIL. I know you're reiterating your $11 billion figure, at least $11 billion and 2030, the shape of the curve over that time in China specifically, which's only a part of that number, are there likely to be periods where year-on-year sales actually contract, you know, beyond 2024 in the inventory issue? Because it does seem like pricing is really going to be a risk here, the way pricing works, the vaccines in China, and some of these other offsetting indications like males are gonna take tim to launch, so it seems like, there may be a period there where you could have--during your declines in sales of the next, let's say, 5 to 6 years. So if you could just describe the shape of that curve, please. Yeah, sure. So as we look at it, we do expect you will see a flattening of the curve. As we see the female indication be more fully penetrated, obviously, more to go there, given what we believe is still the addressable population. And then it will ramp back to growth as the male population comes on in full.

Timothy Minton Anderson: Oh, Thank you very much.

Speaker Change: Going back to Gardasil.

Timothy Minton Anderson: I know you're really you're reiterating your 11 billion figure at least 11 billion in 2030.

Speaker Change: The shape of the curve over that time in China, specifically, which is only a part of that number.

Speaker Change: Are there likely to be periods, where you are on your sales actually contract beyond 2024, and the inventory issue because it does seem like pricing was really going to be a risk here.

Speaker Change: The way pricing works with vaccines in China.

Robert M. Davis: Yeah, sure. So as we look at it, we do expect--you will see a flattening of the curve, as we see the female indication be more fully penetrated, obviously, more to go there, given what we believe is still the addressable population. And then it will ramp back to growth as the male population comes on in full. So, that is what we're expecting to happen. You know, and on the pricing point, I think it's just important to understand the way this market works and how we operate in the market. We sell into Zhirfei. Zhirfei then is responsible for doing the bidding with the provinces and actually then determining, ultimately, that end sale to the point of vaccination. As we look forward, you know, I think it's important to understand that GARDASIL, as we think about the addressable population, we continue to believe will be a highly sought-after vaccine, even in the face of competition. And we're dealing with an overall population; when we quote the 200 million total females, of which we would say we're 30% to 40% penetrated today, that's really in the tier one to five cities that we think can afford a cash-pay market. The total population accessible in China is much bigger. And so, you know, I don't think we should assume we're all competing for that small slice. There's a much bigger slice. We've chosen not to go for that bigger piece because, obviously, we can't get into the local vaccination program because we don't produce GARDASIL in China. Our competitors will be able to do that. So, you know, I think I would just caution all to not view it as a zero-sum game. I think there's still a market expansion opportunity, in China, that will benefit both us and the competitors. And frankly, the other thing we have to see is how quickly will the male indication be given to others beyond us. We believe there's a chance we could be sitting alone with that as well.

Speaker Change: And some of these other offsetting indications like males are going to take time to log the well it seems like you.

Speaker Change: There may be periods, there, where you could have year on year declines in sales over the next let's say five or six years.

Rob Davis: During your declines in sales, So if you could just describe Yeah, sure. So as we look at it, we do expect you will see a flattening of the curve. As we see the female indication be more fully penetrated, obviously, more to go there, given what we believe is still the addressable population. And then it will ramp back to growth as the male population comes on in full.

Speaker Change: Just describe the shape of that curve.

Rob Davis: So that is what we're expecting to happen. You know, and on the pricing point, I think it's just important to understand the way this market works and how we operate in the market. We sell into Jurfay. Jurfay then is responsible for doing the bidding with the provinces and actually then determining, ultimately, that end sale to the point of vaccination. As we look forward, you know, I think it's important to understand that Gardasil, as we think about the addressable population, we continue to believe will be a highly sought-after vaccine, even in the face of competition. And we're dealing with an overall population; when we quote the 200 million total females, of which we would say we're 30 to 40% penetrated today, That's really in the tier one to five cities that we think can afford a cash-pay market. The total population accessible in China is much bigger. And so, you know, I don't think we should assume we're all competing for that small slice. There's a much bigger pie. We've chosen not to go for that bigger piece because, obviously, we can't get into the local vaccination program because we don't produce Gardasil in China. But our competitors will be able to do that. So, you know, I think I would just caution everyone to not view it as a zero-sum game. I think there's still a market expansion opportunity in China that will benefit both us and the competitors. And frankly, the other thing we have to see is how quickly will the mail indication be given to others beyond us. We believe there's a chance we could be sitting alone with that as well.

Speaker Change: Yes, sure so as we look at it.

Speaker Change: We do expect you will see.

Speaker Change: Flattening of the curve.

Speaker Change: As we see the female indication.

Speaker Change: Before more fully penetrated obviously more to go there given what we believe is still the addressable population and then it will ramp back to growth as the male population that comes on in full so that is what we're expecting to happen.

Speaker Change: And on the pricing point I think it's just important to understand the way this market works and how we operate in the market we sell into <unk> <unk> is responsible for doing the bidding with the provinces.

Rob Davis: Jurfay then is responsible for doing the bidding with the provinces and actually then determining, ultimately, that end sale to the point of vaccination. As we look forward, you know, I think it's important to understand that Gardasil, as we think about the addressable population, we continue to believe will be a highly sought-after vaccine, even in the face of competition. And we're dealing with an overall population; when we quote the 200 million total females, of which we would say we're 30 to 40% penetrated today, That's really in the tier one to five cities that we think can afford a cash-pay market. The total population accessible in China is much bigger. And so, you know, I don't think we should assume we're all competing for that small slice. There's a much bigger pie. We've chosen not to go for that bigger piece because, obviously, we can't get into the local vaccination program because we don't produce Gardasil in China. But our competitors will be able to do that. So, you know, I think I would just caution everyone to not view it as a zero-sum game. I think there's still a market expansion opportunity in China that will benefit both us and the competitors. And frankly, the other thing we have to see is how quickly will the mail indication be given to others beyond us. We believe there's a chance we could be sitting alone with that as well.

Speaker Change: We then determining ultimately that end sale to the point of vaccination.

Speaker Change: We look forward.

Speaker Change: I think it's important to understand that garden sales, we think about the addressable population. We continue to believe will be a highly sought after vaccine even in the face of competition and we are dealing in an overall population when we quote.

Speaker Change: The $200 million total females of which we would say we are 30% to 40% penetrated today.

Speaker Change: It's really in the tier one to five cities that we think can afford a cash pay market. The total population accessible in China is much bigger and so I don't think we should assume we're all competing for that small slice. There is a much bigger slice we have chosen not to go for the bigger the bigger piece, because obviously, we can't get into the <unk>.

Rob Davis: And so, you know, I don't think we should assume we're all competing for that small slice. There's a much bigger pie. We've chosen not to go for that bigger piece because, obviously, we can't get into the local vaccination program because we don't produce Gardasil in China. But our competitors will be able to do that. So, you know, I think I would just caution everyone to not view it as a zero-sum game. I think there's still a market expansion opportunity in China that will benefit both us and the competitors. And frankly, the other thing we have to see is how quickly will the mail indication be given to others beyond us. We believe there's a chance we could be sitting alone with that as well.

Speaker Change: <unk> vaccination program, because we don't produce gardasil in China, our competitors will be able to do that so I think I would just caution all to not view it as a zero sum game I think there is still market expansion opportunities in China.

Rob Davis: I think there's still a market expansion opportunity in China that will benefit both us and the competitors. And frankly, the other thing we have to see is how quickly will the mail indication be given to others beyond us. We believe there's a chance we could be sitting alone with that as well.

Speaker Change: We will benefit both us and the competitors and frankly the other thing we have to see is how quickly will the mill indication be given to others behind US. We believe there is a chance we could be sitting alone without as well so the dynamics need to play themselves out, but I think we need to first understand is what we're seeing.

Robert M. Davis: So the dynamics need to play themselves out, but I think we need to first understand whether what we're seeing in the quarter is specifically a short-term event or something else. And that's still not clear because I would just point out that the trend break was pretty significant. It's not what we've seen in any other market that you would expect. And that's why we're a little hesitant to say this is just this is just demand in China. And also, I would also bring back the fact that, actually, if you separated out what happened in China, we had one of our strongest quarters in every other market around the world with strong double-digit growth. So those are all dynamics that will have to play themselves out.

Speaker Change: The quarter specific a short term event or something else and thats still not clear because I would just point that the trend break was pretty significant it's not what we've seen in any other market that you would expect and that's why we're a little we're a little hesitant to say this is just.

Operator: And that's why we're a little hesitant to say this is just this is just demand in China. And also, I would also bring back the fact that, actually, if you separated out what happened in China, we had one of our strongest quarters in every other market around the world with strong double-digit growth. So those are all dynamics that will have to play themselves out. Great. Thank you, Tim. Next question, please, Brad. Steve Scala of TD Cohen. Your line is open. Oh, thank you. How does Clostrovimab compare in terms of hospitalizations to Bifortis?

And that's why we're a little hesitant to say this is just this is just demand in China. And also, I would also bring back the fact that, actually, if you separated out what happened in China, we had one of our strongest quarters in every other market around the world with strong double-digit growth. So those are all dynamics that will have to play themselves out.

Speaker Change: This is just demand in China and also I would also bring back to the fact that actually if you separated out what happened in China. We had one of our strongest quarters in every other market around the world and with strong double digit growth. So that's the overall dynamics, we will have to play themselves out.

Speaker Change: Great. Thank you Tim next question please breath.

Great. Thank you, Tim. Next question, please, Brad. Steve Scala of TD Cohen. Your line is open. Oh, thank you. How does Clostrovimab compare in terms of hospitalizations to Bifortis?

Peter Dannenbaum: Great. Thank you, Tim. Next question, please, Brad.

Speaker Change: Next question comes from Steve Scala of Cowen Your line is open.

Steve Scala of TD Cohen. Your line is open. Oh, thank you. How does Clostrovimab compare in terms of hospitalizations to Bifortis?

Operator: The next question comes from Steve Scala of TD Cowen. Your line is open.

Steve Scala: Thank you how does costs drove a mab compare on hospitalizations two by four tests, which has 80 to 85% to 90% effectiveness on hospitalizations I appreciate you're not going to give out data specifics, but for instance would you say.

Steve Scala: Oh, thank you. How does clesrovimab compare on hospitalizations to BEYFORTUS, which has 85% to 90% effectiveness in hospitalizations. I appreciate you're not gonna give out data specifics, but for instance, would you say your product is highly competitive? And I'm just curious, how does it achieve longer durability, given that it has a shorter half-life than BEYFORTUS? Thank you.

Dean Lee: which has 85 to 90% effectiveness in hospitalizations. I appreciate you're not gonna give out data specifics, but for instance, would you say your product is highly competitive? And I'm just curious, how does it achieve longer durability, given that it has a shorter half-life than bifortis? Thank you.

Speaker Change: Your product is highly competitive and I'm just curious how does it achieve longer durability given that it has a shorter half life than by fortress. Thank you.

Dean Lee: Thank you. Yeah, so this is Dean. Thanks for the question. As you point out, there is a significant global unmet need, both for the healthy and at-risk infant. And as we said, from the PK PD studies as such, this is something that can be given as a single dose. It's not weight-based, so single dose broadly.

Thank you.

Dean: Yeah. So this is dean thanks for the question as you point out there is a significant global unmet need.

Dean Li: Yeah, so this is Dean. Thanks for the question. As you point out, there is a significant global unmet need, both for the healthy and at-risk infant. And as we said, from the PKPD studies as such, this is something that can be given as a single dose. It's not weight-based, so single dose broadly. And we are very comfortable in relationship to the PKPD, in relationship to the half-life, in relationship to the affinity that the prevention, which was studied, would cover the entire RSV season, which is five, six months. We did announce, you know, the top line. We're not going to get ahead of the public presentation of these that we hope to have at some session in the second half. I do point out that what you highlight is really important, which is the RSV-associated hospitalization will be a really important point, in relationship to looking at this vaccine versus others, and we are very confident in that profile.

Speaker Change: Both of the healthy at risk.

Speaker Change: And as we said from the PK PD studies as such.

Speaker Change: This is something that can be given as a single dose it's not weight based.

Speaker Change: So single dose broadly.

Speaker Change: And we are very comfortable in relationship to the PK PD and relationship to the half life in relationship to the affinity.

Dean Lee: And we are very comfortable in relationship to the PK PD, in relationship to the half-life, in relationship to the affinity that the prevention, which was studied, would cover the entire RSC season, which is five, six months. We did announce, you know, the top line. We're not going to get ahead of the public. Thank you. Thank you, Steve. Next question, please, Brad. The next question comes from Mohit Bansal with Wells Fargo. Great, thank you very much for taking my question.

And we are very comfortable in relationship to the PK PD, in relationship to the half-life, in relationship to the affinity that the prevention, which was studied, would cover the entire RSC season, which is five, six months. We did announce, you know, the top line. We're not going to get ahead of the public. Thank you.

Speaker Change: <unk>, which was studied would cover the entire RSV season, which is five to six months.

Speaker Change: We did announced.

Speaker Change: The top line, we're not going to.

Speaker Change: Get ahead of the public.

Speaker Change: <unk> of these that we hope to have at a head.

Speaker Change: Some session in the second half.

Speaker Change: I do point out that what you you highlight is really important which is.

Speaker Change: The RSV associated hospitalization will be a really important point in relationship to looking at this vaccine versus others and we are very confident in that profile.

Thank you, Steve. Next question, please, Brad. The next question comes from Mohit Bansal with Wells Fargo. Great, thank you very much for taking my question.

Peter Dannenbaum: Thank you, Steve. Next question, please, Brad.

The next question comes from Mohit Bansal with Wells Fargo. Great, thank you very much for taking my question.

Operator: The next question comes from Mohit Bansal with Wells Fargo. Your line is open.

Speaker Change: Great.

Speaker Change: Thank you Steve next question please.

Mohit Bansal: Great, thank you very much for taking my question. And just to try to understand the long-term growth path for GARDASIL, it seems like--and correct me if I'm wrong--a lot of it would depend on raising awareness in those Tier 1 to 5 cities and male vaccination. The question is, of those Tier 1 to 5 cities, where do you think there is a bigger opportunity? Because going to tier 1 to 5 could be challenging. And based on your male vaccination experience in the developed world, what should we think about China in that context? Thank you.

Speaker Change: Our next question comes from Mohit Bansal with Wells Fargo. Your line is open.

Dean Lee: And just to try to understand the long-term growth path for Gardasil, it seems like, and correct me if I'm wrong, a lot of it would depend on raising awareness in tier 1-5 cities and mail vaccination. The question is, of those tier 1-5 cities, where do you think there is a bigger opportunity? Because going to tier 4 and 5 could be challenging. And based on your mail vaccination experience in the developed world, what should we think about China? in that context, Thank you.

Mohit Bansal: Great. Thank you very much for taking my question.

Mohit Bansal: And just to try to understand.

Mohit Bansal: The long term growth path for Gardasil, It seems like and correct me if I'm wrong.

Speaker Change: A lot of it will depend on.

Speaker Change: Raising awareness in those new those tier one cities and the main explanation for the question is of those tier one to five cities the IPG team.

Speaker Change: There is bigger opportunity because I'm going to cancel or in fact could be challenging and then based on your mid vaccination experience <unk>.

Speaker Change: How should we think about China.

Speaker Change: In that context. Thank you.

Rob Davis: Thank you. Yeah, so if you look across the tier one to five cities, we're actually when we quote that we're 30 to 40% penetrated. And again, this is just for females.

Thank you.

Speaker Change: Yes, so if you look across the tier one to five cities, we're actually when we quote the work 30% to 40% penetrated and again. This is just to the females. So this is we're only speaking to females right now.

Robert M. Davis: So, if you look across the tier 1 to 5 cities, we're actually--when we quote that we're 30% to 40% penetrated--and again, this is just for females--so this is only speaking to females right now. We're 30% to 40% penetrated, we're a little bit less penetrated, I think we're on kind of say the 30th percent in the 4 and 5-tier cities, and we're around 40% into 1 to 3. So there's not a huge spread between the tiers 1 to 3, and the 4 to 5, so we will continue to focus efforts across all of those areas, as we have been to date. And then it's a whole different exercise to activate the male population across that same area, which is, you know, frankly, isn't there today because of the fact that we don't yet have the indication. As you think about how all of this fits into the broader global picture, I think it's also important to just remind everyone that the total penetration of GARDASIL on a global basis to the eligible population is aproximately 10%. To our oportunity to activate patients globally, as we bring on additional capacity is significant. And as we talked about in the past, we're going to continue to look to activate the mid-adult segment in the private market, we're doing that today in Europe, and that's part of when I comment that we're driving double-digit growth across the rest of the world, outside of China, part of it is that we are starting to see uptake in that private market activation, both in Europe, and across parts of Latin America, and Asia Pacific more broadly. We're going to continue to drive into the low and middle income markets. We see that as a meaningful opportunity going forward, and we are well on our way to getting our costs in a position to be able to compete in that space quite effectively.

Speaker Change: We're 30% to 40% penetrated we're a little bit less penetrated I think were around kind of say 30%.

Speaker Change: In the four and five tier cities and were around 40% in the one to three so there is not a huge spread.

Speaker Change: The tier one to three in the four to five so we will continue to focus efforts across.

Rob Davis: So this is only speaking to females right now. We're 30 to 40% penetrated, we're a little bit less penetrated, I think we're on kind of say the 30th percent in the four and five-tier cities, and we're around 40% into one to three. So there's not a huge spread between the tiers one to three and the four to five, so we will continue to focus efforts across. All of those areas, as we have been to date, and then it's a whole different exercise to activate the male population across that same area, which is, you know, frankly, doesn't isn't there today because of the fact that we don't yet have the indication as you think about how all of this fits into the broader global picture. We're doing that today in Europe, and that's part of the reason why I comment that we're driving double-digit growth across the rest of the world outside of China. Part of it is that we are starting to see uptake in that private market activation both in Europe and across parts of Latin America and Asia Pacific more broadly. We're going to continue to drive into the low and middle income markets. We see that as a meaningful opportunity going forward, and we are well on our way to getting our costs in a position to be able to compete in that space quite effectively.

Speaker Change: All of those areas as we have been to date and then the whole different exercise to activate the male population across that same area, which is frankly doesn't isn't there today because of the fact that we don't yet have the indication as you think about how all of this fits into the broader global picture.

Robert M. Davis: As you think about how all of this fits into the broader global picture, I think it's also important to just remind everyone that the total penetration of GARDASIL on a global basis to the eligible population is aproximately 10%. To our oportunity to activate patients globally, as we bring on additional capacity is significant. And as we talked about in the past, we're going to continue to look to activate the mid-adult segment in the private market, we're doing that today in Europe, and that's part of when I comment that we're driving double-digit growth across the rest of the world, outside of China, part of it is that we are starting to see uptake in that private market activation, both in Europe, and across parts of Latin America, and Asia Pacific more broadly. We're going to continue to drive into the low and middle income markets. We see that as a meaningful opportunity going forward, and we are well on our way to getting our costs in a position to be able to compete in that space quite effectively.

Speaker Change: I think it's also important just to remind everyone. The total penetration of Gardasil on a global basis to the eligible population is approximately 10% so our opportunity to activate patients globally as we bring on additional capacity is significant and is.

Speaker Change: We've talked about in the fat in the past we were going to continue to look to activate the mid adult segment and the private market and we're doing that today in Europe, and that's part of when I comment that we're driving double digit growth across the rest of the world outside of China part of it is we are starting to see uptake in the private mark.

Rob Davis: We're doing that today in Europe, and that's part of the reason why I comment that we're driving double-digit growth across the rest of the world outside of China. Part of it is that we are starting to see uptake in that private market activation both in Europe and across parts of Latin America and Asia Pacific more broadly. We're going to continue to drive into the low and middle income markets. We see that as a meaningful opportunity going forward, and we are well on our way to getting our costs in a position to be able to compete in that space quite effectively.

Speaker Change: Activation, both in Europe and across parts of Latin America, and Asia Pacific more broadly, we're going to continue to drive into the low and middle income markets, we see that as a meaningful opportunity going forward and we are well on our way to getting our costs in a position to be able to compete in that space quite effectively.

Robert M. Davis: We will continue to drive that, and then obviously, China is the best example of where we need to get a male indication to drive for gender-neutral vaccination if we truly want to eliminate cervical cancer and increasingly address the other cancers we know related to people with HPV, including head and neck cancers, which are very prominent, especially if you look across the Asia Pacific area. That is work we will continue to do, but not only in China and across Asia, but also across Europe and other parts of the world where there still is a lot of opportunity to drive for gender neutral. And then lastly, Japan is a market where we are continuing to see growth driven by the fact that we've had a renewed NIP program there, with both the initial NIP and a catch-up phase. And longer term, opportunities for males there as well. So, the opportunities are significant. The context of how we will drive growth has multiple levers for us to look at to do that. And that's why we are confident in the $11 billion number over the long term. And I think that's important as we shape the overall context of the discussion.

Speaker Change: We will continue to drive that and then obviously, while China is the best example of where we need to get a male indication to drive for gender neutral vaccination, if we truly want to eliminate cervical cancer and increasingly address the other cancers, we know related to <unk>.

Speaker Change: People with HBV, including head and neck cancers, which are very prominent especially if you look across the Asia Pacific area that is work, we will continue to do but not only in China and across Asia.

But also across Europe, and other parts of the World, where there still is a lot of opportunity to drive for gender neutral and then lastly, Japan is a market where we are continuing to.

Rob Davis: And then lastly, Japan is a market where we are continuing to see growth driven by the fact that we've had a renewed NIP program there with both the initial NIP and a catch-up phase and longer term opportunities for males there as well. So the opportunities are significant. The context of how we will drive growth has multiple levers for us to look at to do that. And that's why we are confident in the $11 billion number over the long term. And I think that's important as we shape the overall context of the discussion.

Speaker Change: See growth driven by the fact that we've had a renewed MIP program there with both of them.

Speaker Change: Initial MIP and a catch up phase.

Speaker Change: And longer term an opportunity for males. There as well so the opportunities are significant the context of how we will drive growth.

Speaker Change: Has multiple levers for us to look at to do that and Thats. Why we are confident in the $11 billion number long term and I think that's important as we shape. The overall context of the discussion.

Rob Davis: And I think that's important as we shape the overall context of the discussion. Great. Thanks, Mohit.

And I think that's important as we shape the overall context of the discussion.

Mohit Bansal: Thanks Mohit.

Speaker Change: We have availability to go a bit past 10. So we will continue on with questions next question. Please breath.

Peter Dannenbaum: Great. Thanks, Mohit. We have availability to go a bit past 10, so we'll continue on with questions. Next question, please, Brad.

Operator: We have availability to go a bit past 10, so we'll continue on with questions. Next question, please, Brad. The next question is from Luisa Hector of Barenburg. Your line is open. Oh, good morning.

We have availability to go a bit past 10, so we'll continue on with questions. Next question, please, Brad.

Speaker Change: The next question is from Luisa Hector of Baron Burke Your line is open.

The next question is from Luisa Hector of Barenburg. Your line is open. Oh, good morning.

Operator: The next question is from Luisa Hector of Berenberg. Your line is open.

Speaker Change: Yeah.

Luisa Hector: Oh, good morning. Thanks for taking my question. I wanted to follow up on RSV antibody, please. Can you confirm that you can file in all major markets this year? And then I just wondered about China in this context. Is that a market where you'll be filing soon? And what is the opportunity there? How much education is required to access the private market? Thank you.

Dean Lee: Thanks for taking my question. I wanted to follow up on RSV antibody, please. Can you confirm that you can file in all major markets this year? And then I just wondered about China in this context. Is that a market where you'll be filing soon? And what is the opportunity there? How much education is required to access the private market?

Luisa Hector: Oh good morning, Thanks for taking my question I wanted to follow up on RSV antibody. Please.

Luisa Hector: Can you come from that you can file in all major markets. This year and then I just wanted about China. In this context is that a market where youll be filing soon and what the opportunity is there how much.

Speaker Change: Education is required to access the private market. Thank you.

Dean Li: Yeah, so let me just level set the stage in relation to clesrovimab and the RSV antibody. We have the data, and that data will be presented sometime in the second half of this year, as the different plenary sessions or different conferences occur. In relation to filing, our plan is to file such that it would be available, not for this season, but for the next season within the United States. And so that's the sort of next wave in our relationship. So, I want to make sure that there's no concept that this is coming out this RSV season. We're targeting the next RSV season in relation to when we're seeking approval and licensure. Yeah, and maybe just on the broader question, you know, could this be an opportunity in China? We are continuing to look at all global markets. And I would point out, as Dean points out, we're looking at the 25-26 RSV season. So next year, and then beyond that, we will go global thereafter. And China is a market we are looking into. Great.

Speaker Change: Yes, So let me just level set in relationship to class Robo Mab in the RSV antibody. So we have the data and that data will be presented some time in the second half of this year as as the different plenary sessions of different.

Speaker Change: Conferences occur in relationship to filing.

Speaker Change: Our plan is to file such that it would be available not for this season, but for the next season within the United States and so that's the sort of next wave in relationship. So I wanted to make sure that Theres no concept that this is coming out this RSV season, we're targeting next.

Dean Lee: We're targeting the next RSV season in relation to when we're seeking approval and licensure. Yeah, and maybe just on the broader question, you know, could this be an opportunity in China? We are continuing to look at all global markets. And I would point out, as Dean points out, we're looking at the 25-26 RSV season. So next year, and then beyond that, we will go global thereafter. And China is a market we are looking into. Great. Thank you, Luisa. Next question, please, Brad. The next question comes from Daina Graybosch of Lering. Your line is open.

We're targeting the next RSV season in relation to when we're seeking approval and licensure. Yeah, and maybe just on the broader question, you know, could this be an opportunity in China? We are continuing to look at all global markets. And I would point out, as Dean points out, we're looking at the 25-26 RSV season. So next year, and then beyond that, we will go global thereafter. And China is a market we are looking into. Great.

Speaker Change: <unk> season in relationship to win we're seeking approval and licensure.

Robert M. Davis: Yeah, and maybe just on the broader question, you know, could this be an opportunity in China? We are continuing to look at all global markets. And I would point out, as Dean points out, we're looking at the '25-'26 RSV season. So next year, and then beyond that, we will go globally thereafter. And China is a market we are looking at.

Speaker Change: Yeah, and maybe just on the broader question could this be an opportunity in China. We are continuing to look at all.

Speaker Change: <unk> markets.

Speaker Change: And I would point out as Dean pointed out we're looking at the 'twenty five 'twenty six RSV season.

Greg: So next year and then beyond that we will go globally thereafter in China is a market where we are looking at Greg. Thank you Luisa next question. Please breath.

Thank you, Luisa. Next question, please, Brad. The next question comes from Daina Graybosch of Lering. Your line is open.

Peter Dannenbaum: Geat. Thank you, Luisa. Next question, please, Brad.

Operator: The next question comes from Daina Graybosch of Leerink. Your line is open.

Speaker Change #100: The next question comes from Dana <unk> of Leerink. Your line is open.

Daina Graybosch: Hi, thank you for the question. I want to ask about the recent ODAC that was on periadjuvant development in lunf cancer. I wonder--let's assume FDA takes a hard line on requiring the contribution of the neoadjuvant and adjuvant phases, and you look forward to the current KEYTRUDA development program. Do you see any risk to that hard line for any of your label extension plans? And how are you going back to looking at your development, especially novel combos in the early stages, given that discussion? Thank you. Thank you very much.

Dana <unk>: Alright. Thank you for the question I wanted to ask about the recent <unk> that was on Peri adjuvant.

Speaker Change #101: Development in lung cancer.

Speaker Change #105: I Wonder, let's assume FDA takes a hard line and requiring the contribution of the neo adjuvant and adjuvant phases, and you look forward to the correct Keytruda development program.

Speaker Change #101: You see any risk to that hard line to any of your label extension plans and.

Speaker Change #103: How are you going back to looking at your development, especially of novel combos into early stage give.

Dean Li: Thank you very much. So, you know, just to provide some context, the recent Adcom talked about how much of a PD-1 or a PD-L1 is put in at an earlier stage, especially in the resectable, and there's giving it before the surgery, there's giving it after the surgery, and it's giving it before and after the surgery. And the issue that comes up is, in this curative setting, what's the sort of relative benefit-risk, because it's different than in metastatic. What I would just emphasize is, we track and we are in discussions with the FDA in relationship to our clinical trials and the such, but I do want to emphasize the ability to show OS, especially in the earlier stage cancers, is very difficult. And that's why we always emphasize we have 9 earlier stage approvals. But we highlight that 4 of them are overall survival. And we, at this point, do not know anyone else who has 4 overall survivals. I do wanna point out that in two of those overall survivals, in TNBC and in lung, it is perioperative. So, I think future studies need to consider what the FDA has said. But the FDA has also been very clear that overall survival is the gold standard, especially in the earlier stage. And as we build our program, we consider both the recent Adcom but also the recent--the continuing interest of the FDA to show contribution of components of a new agent on top of PD-1 and showinng overall survival and using platforms that have overall survival to show that when you add something even more, you continue to have increasing benefit in terms of overall survival.

Speaker Change #104: And that discussion thank you.

Dean Lee: So, you know, just to provide some context, the recent Adcom talked about how much of a PD-1 or a PD-L1 is put in at an earlier stage, especially in the resectable, and there's giving it before the surgery, there's giving it after the surgery, and it's giving it before and after the surgery. And the issue that comes up is, in this curative setting, what's the sort of relative benefit-risk of it because it's different than in metastatic. What I would just emphasize is that we track and we are in discussions with the FDA in relationship to our clinical trials and the such, but I do want to emphasize the ability to show OS. It is perioperative. So I think future studies need to consider what the FDA has said. But the FDA has also been very clear that overall survival is the gold standard, especially in the earlier stage. And as we build our program, we consider both the recent outcome but also the recent, the continuing interest of the FDA to show contribution of components of a new agent on top of PD-1 and show overall survival and using platforms that have overall survival to show that when you add something even more, you continue to have increasing benefit in terms of overall survival.

Speaker Change #106: Thank you very much so just to provide some context. The recent AD comm talked about how much of a PD one or a PDL. One is put in earlier stage, especially in the Resectable and there is giving it before the surgery there is giving it after the surgery and its giving it before and after the show.

Speaker Change #104: Terry.

Speaker Change #107: And the issue that comes up is in this curative setting, what's the sort of relative benefit risk in because it's different than in the metastatic what I would just emphasize is we.

Dean Lee: What I would just emphasize is that we track and we are in discussions with the FDA in relationship to our clinical trials and the such, but I do want to emphasize the ability to show OS. It is perioperative. So I think future studies need to consider what the FDA has said. But the FDA has also been very clear that overall survival is the gold standard, especially in the earlier stage. And as we build our program, we consider both the recent outcome but also the recent, the continuing interest of the FDA to show contribution of components of a new agent on top of PD-1 and show overall survival and using platforms that have overall survival to show that when you add something even more, you continue to have increasing benefit in terms of overall survival.

Speaker Change #108: We track and we are in discussions with the FDA in relationship to our clinical trials and as such but I do want to emphasize the ability to show OS.

Speaker Change #108: Actually in the earlier stage cancers is very difficult and that's why we always emphasize we have nine earlier stage approvals, but we highlight that four of them have overall survival and we at this point do not know anyone else who has four overall survival I do want to point out that in <unk>.

Speaker Change #108: Two of those over survivals in TN BC and in long.

Dean Lee: And as we build our program, we consider both the recent outcome but also the recent, the continuing interest of the FDA to show contribution of components of a new agent on top of PD-1 and show overall survival and using platforms that have overall survival to show that when you add something even more, you continue to have increasing benefit in terms of overall survival. Great. Thank you, Daina.

And as we build our program, we consider both the recent outcome but also the recent, the continuing interest of the FDA to show contribution of components of a new agent on top of PD-1 and show overall survival and using platforms that have overall survival to show that when you add something even more, you continue to have increasing benefit in terms of overall survival.

Speaker Change #109: It is Perry operator, so I think the the future studies need to consider what the FDA has said, but the FDA has also been very clear that oversee <unk> is the gold standard, especially in earlier stage and as we build our program we consider both.

Speaker Change #109: The recent AD com, but also the recent.

Speaker Change #109: With the continuing interest at the FDA to show contribution of component of a new agent on top of a PD, one and showing overall survival and using platforms that have overall survival to show that when you add something even more you you continue to have increasing benefit in terms of ballpark.

Speaker Change #109: Our survival.

Peter Dannenbaum: Great. Thank you, Daina. Next question, please, Brad.

Speaker Change #111: Great. Thank you Dana next question please.

Operator: Next question, please, Brad. The next question comes from Akash Tewari of Jefferies, your line, Hey, thanks so much. And a really helpful color on Gardasil. Just one more here.

Next question, please, Brad.

The next question comes from Akash Tewari of Jefferies, your line, Hey, thanks so much. And a really helpful color on Gardasil. Just one more here.

Operator: The next question comes from Akash Tewari of Jefferies. Your line is open.

Speaker Change #110: Our next question comes from cash to worry of Jefferies. Your line is open.

Akash Tewari: Hey, thanks so much. And really helpful color on GARDASIL. Just one more here. Looking at the latest Zhifei contract, it looks like there's around $4.5 billion in potential sales for 2024. That's projected to decline in 2025 and 2026 to around $2.5 billion. Historically, however, it looks like you've always exceeded that contracted figure. So just to be clear, does the contracted decline in sales over the next 2 years bake in the upside for potential male approval? And should we expect the Zhifei contract to get renegotiated as we get further clarity on demand? Thanks so much.

Caroline Litchfield: Looking at the latest ZFAE contract, it looks like there's around $4.5 billion in potential sales for 2024. That's projected to decline in 2025 and 2026 to around $2.5 billion. Historically, however, it looks like you've always exceeded that contracted figure. So just to be clear, does the contracted decline in sales over the next two years bake in the upside for potential mail approval? And should we expect the ZFAE contract to get renegotiated as we get further clarity on demand? Thanks.

Cash Towery: Alright, thanks, so much and really helpful color on Gardasil, just one more here looking at the latest DPA contracts. It looks like there's around $4 5 billion in potential sales for 2024, that's projected to decline in 2025 and trying to 'twenty six to around $2 5 billion. Historically, however, it looks like you've always exceeded that contracted.

Speaker Change #112: Cigarettes, so just to be clear does the contracted decline in sales over the next two years baked in the upside for potential mail approval and should we expect as you say contract to get renegotiated as we get further clarity on demand. Thanks, so much.

Caroline Litchfield: Thanks. Thank you for the question. So the Jafei contract that we have at this stage is focused on the current approval that we have in the market. So it's really focused on the female population between April 9 through 45.

Thanks.

Speaker Change #113: Thank you for the question. So they should say contracts that we have at this stage is focused on the current approval that we have in the market. So it's really focused on the female population.

Caroline Litchfield: Thank you for the question. So the Zhifei contract that we have at this stage is focused on the current approval that we have in the market. So it's really focused on the female population in the cohort 9 through 45. As we move forward and we have a male indication, we will, of course, be working with our partner to have the appropriate doses so that we can protect as many males as possible.

Speaker Change #113: The eighth cohort $93 45.

Caroline Litchfield: As we move forward and we have a male indication, we will, of course, be working with our partner to have the appropriate doses so that we can protect as many males as possible. Thank you, Akash. Next question, please. The next question is from Trung Huynh of UBS. Hi guys, thanks for taking my question. Just one on the cat vaccine.

As we move forward and we have a male indication, we will, of course, be working with our partner to have the appropriate doses so that we can protect as many males as possible.

Speaker Change #113: As we move forward and we have a male indication we will of course be watching with our partner to have the appropriate doses that we can protect as many miles as possible.

Speaker Change #113: Great.

Speaker Change #113: Thank you Kash next question please.

Thank you, Akash. Next question, please. The next question is from Trung Huynh of UBS. Hi guys, thanks for taking my question. Just one on the cat vaccine.

Peter Dannenbaum: Thank you, Akash. Next question, please.

Speaker Change #116: The next question is from Trung kin of UBS. Your line is open.

The next question is from Trung Huynh of UBS. Hi guys, thanks for taking my question. Just one on the cat vaccine.

Operator: The next question is from Trung Huynh of UBS. Your line is open.

Trung Huynh: Hi, guys. Thanks for taking my question. Just one on CAPVAXIVE. During the ACIP at the end of June, there was a big discussion on the plus 50 population for the product. They never got around to reviewing it those. So, is it possible we can get that looked at in October for a potential updated recommendation?

Trung Chuong Huynh: Hi, guys. Thanks for taking my question.

Speaker Change #113: One.

Speaker Change #113: <unk>.

Speaker Change #117: During the <unk> at the end of June there was a big discussion on the plus 50 population from the product.

Dean Lee: In June, there was a big discussion on the plus 50 population for the product. They never got around to reviewing it though, so is it possible we can get that looked at in October for a potential update? Thank you so much for bringing that up. There was a lot of discussion. There were a lot of points that the ACIP working group had to vote on. And what they said is that they were very interested in revisiting this in October.

In June, there was a big discussion on the plus 50 population for the product. They never got around to reviewing it though, so is it possible we can get that looked at in October for a potential update?

I never got round some reviewing it.

Speaker Change #115: Is it possible we can get at that.

Speaker Change #115: In October for a potential updated recommendation.

Speaker Change #115: Thank you so much for bringing that up there was a lot of discussion there are a lot of it.

Dean Li: Thank you so much for bringing that up. There was a lot of discussion. There were a lot of points that the ACIP working group have to vote on. And what they had said is that they were very interested in revisiting this in October. I want to be very clear that we have not had a formal confirmation of that reevaluation. But we did listen to the discussion. And the discussion was very clear that there was an interest in revisiting that in 50 to 64. And the data presented at the June ACIP meeting demonstrated or actually reinforced the ongoing burden of pneumococcal disease, especially in the 50-64 age group, most notably in the ratio of disparities. And I went back to the comments that were made by different individuals, but I focused on some of the points that those who actually vote in the ACIP, one resonated with me when that member said, the burden in 50 to 64-year-old black individuals is comparable to greater than 65 when we're all endorsing universal recommendation for over 65. And that member wondered whether we, which is the ACIP, was missing something too, by not deciding, and that we, the ACIP needed to decide at some point, and I hope we get there pretty soon, in part because of the racial and ethnic disparities in the invasive disease. So we are very confident in our data, and we look forward to the ACIP considering this expanded age-based recommendation potentially in October, and we hope to find out at some appropriate time that they're going to formally confirm that reevaluation.

Speaker Change #115: A lot of them.

Speaker Change #119: Points that the CIP working group have to vote on and what they had said is that they were very interested in revisiting. This in October I want to be very clear that we have not had a formal confirmation of that reevaluation, but we did listen to the.

Dean Lee: I want to be very clear that we have not had a formal confirmation of that reevaluation, but we did listen to the discussion. And the discussion was very clear that there was an interest in revisiting that in 50 to 64. And the data presented at the June ACIP meeting demonstrated or actually reinforced the ongoing burden of pneumococcal disease. I went back to the comments that were made by different individuals, but I focused on some of the points that those who actually vote in the ACIP made. One resonated with me when that member said, "You know, the burden on 50 to 64-year-old black individuals is comparable to greater than 65 when we're all endorsing universal recommendation for those over 65."

Speaker Change #119: <unk> discussion and the discussion was very clear that there was an interest in revisiting that in 50 to 64 and the data presented at the June meeting demonstrated or actually reinforce the ongoing Bergen pneumococcal disease.

Dean Lee: I went back to the comments that were made by different individuals, but I focused on some of the points that those who actually vote in the ACIP made. One resonated with me when that member said, "You know, the burden on 50 to 64-year-old black individuals is comparable to greater than 65 when we're all endorsing universal recommendation for those over 65." And that member wondered whether we, which is the ACIP, were missing something too by not deciding and that we, the ACIP, needed to decide at some point, and I hope we get there pretty soon, in part because of the racial and ethnic disparities in the invasive disease.

I went back to the comments that were made by different individuals, but I focused on some of the points that those who actually vote in the ACIP made. One resonated with me when that member said, "You know, the burden on 50 to 64-year-old black individuals is comparable to greater than 65 when we're all endorsing universal recommendation for those over 65."

Speaker Change #119: Especially in the 50 to 64 age group, most notably in the ratio of disparities and.

Speaker Change #120: I went back to the comments that were made by different individuals, but I focused on some of the points that those who actually vote in the AC IP one resonated with me when that member said you know the burden and 50 to 64 year old Black individuals is comparable to greater than 65, when we're all in <unk>.

Robert M. Davis: And that member wondered whether we, which is the ACIP, were missing something too by not deciding and that we, the ACIP, needed to decide at some point, and I hope we get there pretty soon, in part because of the racial and ethnic disparities in the invasive disease. So we are very confident in our data, and we look forward to the ACIP considering this expanded age-based recommendation, potentially in October, and we hope to find out at some appropriate time whether they're going to formally confirm that re-evaluation.

Speaker Change #121: Hosting universal recommendation for over 65 and that member wondered whether we which is the AC IP was missing something to buy not deciding and that we the ace AIP needed to decide at some point and I hope we get there pretty soon in part because of the ratio in ethnic disparities in the invasive disease.

Dean Lee: So we are very confident in our data, and we look forward to the ACIP considering this expanded age-based recommendation, potentially in October, and we hope to find out at some appropriate time whether they're going to formally confirm that re-evaluation. Great. Thanks. Bron, next question, please, Brad.

So we are very confident in our data, and we look forward to the ACIP considering this expanded age-based recommendation, potentially in October, and we hope to find out at some appropriate time whether they're going to formally confirm that re-evaluation.

Speaker Change #122: So we are very confident our data and we look forward to the ACI P. Considering this expanded age based recommendation potentially in October and we hope to find out at some appropriate time that theyre going to formally confirm that reevaluation.

Peter Dannenbaum: Great. Thanks, Trung. Next question, please, Brad.

Speaker Change #123: Next question please breath.

Operator: The next question is from Louise Chen of Cantor. Hi, thank you for taking my question here. I wanted to ask you about WinRiver and how you think about sales in the third quarter of 24, given some of the stocking that we saw this quarter. So, thank you for the question, Louise. We feel that we're off to a really strong start with WinRiver.

Operator: The next question is from Louise Chen of Cantor. Your line is open.

Speaker Change #123: The next question is from Louise Chen of Cantor Your line is open.

Louise Chen: Hi, thank you for taking my question here. I wanted to ask you about WinRiver and how you think about sales in the third quarter of 24, given some of the stocking that we saw this quarter. So, thank you for the question, Louise. We feel that we're off to a really strong start with WinRiver.

Louise Chen: Hi, thank you for taking my question here. I wanted to ask you on WINREVAIR, how you think about sales in the third quarter of '24, given some stocking that we saw this quarter? Thank you.

Louise Chen: Hi, Thank you for taking my question here I wanted to ask you on when Rivera, how you think about sales in the third quarter of 2004, given some stocking that we saw this quarter. Thank you.

Caroline Litchfield: So thank you for the question, Louise. We feel that we're off to a really strong start with WINREVAIR. As we've described, as at the end of the quarter, we have 2,000 patients who now have the prescription for WINREVAIR, of which 75% to 80% historically have been receiving commercial product. So we're confident in what we expect for the profile for WINREVAIR in the third quarter. And we actually expect that the stock level should increase as more patients have prescribed the product. So we remain confident in the outlook for WINREVAIR consistent with the high expectations that we have.

Caroline Litchfield: As we've described, at the end of the quarter, we have 2,000 patients who now have a prescription for WinRiver, of which 75 to 80% historically have been receiving commercial product. So, we're confident in what we expect for the profile for WinRiver in the third quarter, and we actually expect that the stock level should increase as more patients are prescribed the product. So, we remain confident in the outlook for WinRiver, consistent with the high expectations that we have. Thank you, Louise.

As we've described, at the end of the quarter, we have 2,000 patients who now have a prescription for WinRiver, of which 75 to 80% historically have been receiving commercial product. So, we're confident in what we expect for the profile for WinRiver in the third quarter, and we actually expect that the stock level should increase as more patients are prescribed the product. So, we remain confident in the outlook for WinRiver, consistent with the high expectations that we have.

Speaker Change #125: Hello, and thank you for the question the way we feel that we're off to a really strong start with wind River as we've described as at the end of the quarter. We have 2000 patients who now have the prescription for wind river of which 75% to 80% historically have been.

Speaker Change #125: Receiving commercial products. So we're confident in what we expect for the profile, but when we're firing the third quarter.

Luis: Actually expect that the stock level should increase as more patients are prescribed the product. So we remain confident in the outlet to win with their consistent with the high expectations that we have great. Thank you Luis next question. Please Brad.

Peter Dannenbaum: Thank you, Louise. Next question, please, Brad.

Operator: Next question, please, Brad. The next question comes... Tony of Goldman Sachs, your line. Thank you. On business development, this is typically a question that you get posed in June. You did comment that the company does have an expressed interest in the cardiometabolic space, thinking about second and third generation opportunities, potentially in weight management. Can you just provide us with the latest views, health views in terms of appetite, thighs, therapeutic area, and particularly obesity? Thank you. Yeah, no, Chris, thanks.

Next question, please, Brad.

The next question comes... Tony of Goldman Sachs, your line. Thank you. On business development, this is typically a question that you get posed in June. You did comment that the company does have an expressed interest in the cardiometabolic space, thinking about second and third generation opportunities, potentially in weight management. Can you just provide us with the latest views, health views in terms of appetite, thighs, therapeutic area, and particularly obesity? Thank you. Yeah, no, Chris, thanks.

Operator: The next question comes from Chris Shibutani of Goldman Sachs. Your line is open.

Chris Schott: The next question comes from Chris <unk> of Goldman Sachs. Your line is open.

Thank you. On business development, this is typically a question that you get posed in June. You did comment that the company does have an expressed interest in the cardiometabolic space, thinking about second and third generation opportunities, potentially in weight management. Can you just provide us with the latest views, health views in terms of appetite, thighs, therapeutic area, and particularly obesity? Thank you. Yeah, no, Chris, thanks.

Chris Shibutani: Thank you. On business development, this is typically a question that you get closed in June, you did comment that the company does have an expressed interest in the cardiometabolic space, thinking about second and third generation opportunities potentially in weight management. Can you just provide us with the latest views, house use in terms of appetite, size, therapeutic area in particular noting, obesity? Thank you.

Chris Schott: Thank you Pat and business development. This is typically a question that you get posed at in.

Speaker Change #127: In June you did comment that the company does have an expressed interest in the cardio metabolic space thinking about second and third generation opportunities potentially in weight management can you just provide us with the latest views.

Speaker Change #128: <unk> in terms of appetite.

Speaker Change #129: <unk> therapeutic area in particular, noting obesity. Thank you.

Robert M. Davis: Yes. No, Chris, thanks for the question. Obviously, we discussed what we did in the quarter with EyeBio and Elanco Aqua Business, we're going to continue to follow the same strategy we've been looking at, which is really focusing on the science and looking at how can we best continue to drive where we see a scientific opportunity that matches our portfolio and our skill set to bring that in more on the earlier stage settings and with some mid late, but clearly not commercialized products more to build the pipeline. So the continuation of the strategy we've been following. We continue to have the financial flexibility to consider deals of all sizes. But as we've pointed out in the past, we tend to look in that $1 billion to $15 billion, is a good indication of where we would most likely play. And to the obesity question specifically, our view continues to be that if we can find opportunities to look at next-generation plays in that space, those will be things we will continue to evaluate and consider. We don't believe going after today's first generation is the place to play. So, it will continue to be looking at second and third generation waves of innovation, whether it be around oral delivery, looking for where there's high tolerability, combinability and or preservation of muscle mass. Those are the areas of focus for us. And if we see something, we continue to have the capacity and the interest to act.

Rob Davis: Thanks for the question. Obviously, we discussed what we did in the quarter with iBio and Alenco aqua business. We're going to continue to follow the same strategy we've been looking at, which is really focusing on the science and looking at how we can best continue to drive where we see a scientific opportunity that matches our portfolio and our skill set to bring that in. So it will continue to look at second and third-generation ways of innovation, whether it be around oral delivery, looking for where there's high tolerability, combined ability, and or preservation of muscle mass. Those are the areas of focus for us, and if we see something, we continue to have the capacity and the interest to act. Great. Thank you, Chris.

Thanks for the question. Obviously, we discussed what we did in the quarter with iBio and Alenco aqua business. We're going to continue to follow the same strategy we've been looking at, which is really focusing on the science and looking at how we can best continue to drive where we see a scientific opportunity that matches our portfolio and our skill set to bring that in. So it will continue to look at second and third-generation ways of innovation, whether it be around oral delivery, looking for where there's high tolerability, combined ability, and or preservation of muscle mass. Those are the areas of focus for us, and if we see something, we continue to have the capacity and the interest to act.

Speaker Change #130: Yes, Chris Thanks, Thanks for the question obviously, we.

Speaker Change #131: Discuss what we did in the quarter and with <unk> and <unk> Aqua business, we're going to continue to follow the same strategy. We've been looking at which is really focusing on the science.

Speaker Change #131: And looking at how can we best continue to drive where we see a science scientific opportunity that matches, our portfolio and our skill set to bring that in more on the earlier stage.

Speaker Change #131: Settings, and with some midway, but clearly not commercialized products more to build the pipeline. So the continuation of the strategy. We've been we've been following we continue to have the financial flexibility to consider deals of all sizes, but as we've pointed out in the past we tend to work in that 1% to $15 billion.

Good indication of where we would most likely place and.

Robert M. Davis: And to the obesity question specifically, our view continues to be that if we can find opportunities to look at next-generation plays in that space, those will be things we will continue to evaluate and consider. We don't believe going after today's first generation is the place to play. So, it will continue to be looking at second and third generation waves of innovation, whether it be around oral delivery, looking for where there's high tolerability, combinability and or preservation of muscle mass. Those are the areas of focus for us. And if we see something, we continue to have the capacity and the interest to act.

Speaker Change #132: To the obesity question specifically.

Speaker Change #132: Our view continues to be that if we can find opportunities to look at next generation.

Speaker Change #132: Plays in that space those will be things, we will continue to evaluate and consider we don't believe going after today's first generation.

Speaker Change #132: Is the place to play so it will continue to be looking at second and third generation waves of innovation, whether it be around oral delivery looking for where there's high tolerability combinability <unk> preservation of muscle mass. So those are the areas of focus for us.

Speaker Change #132: And if we see something we continue to have the capacity and the interest to act.

Peter Dannenbaum: Great. Thank you, Chris. Next question, please, Brad.

Speaker Change #133: Great. Thank you Chris next question please spread.

Operator: Next question, please, Brad. The next question is from Terence Flynn of Morgan Stanley. Your line is open.

Next question, please, Brad.

Speaker Change #134: The next question is from Terence Flynn of Morgan Stanley. Your line is open Sir.

Operator: The next question is from Terence Flynn of Morgan Stanley. Your line is open, sir.

Rob Davis: Great. Thanks for taking the question. Just two parts on Wynne-Rivera for me. Was just wondering if you think you've already worked through the initial bolus of patients and kind of late line, or if there's more to go here for the second half, and then any color on background therapy in terms of the patients that have already started on Cetatercept. Thank you. Yeah, maybe I'll start on the second

Terence C. Flynn: Great. Thanks for taking the question. Just a two part on WINREVAIR for me. I was just wondering if you think you've already worked through the initial bolus of patients in kind of late line or if there's more to go here for the second half? And then any color on background therapy in terms of the patients that have already started on sotatercept. Thank you.

Terence Flynn: Great. Thanks for taking the question just two part on when Rivera for me I was just wondering if you think you've already worked through the initial bolus of patients in kind of late line or if there's more to go here for the second half and then.

Speaker Change #136: Any color on background therapy in terms of the patients that have already started on <unk>. Thank you.

Robert M. Davis: Yes. Maybe I'll start on the second part and then I'll come back to the first part. So on background therapy, you are seeing the vast majority of patients, as you would expect, are some of the sicker patients or who doctors are putting on the drug first. So there is a large amount on triple therapy or double therapy, and you are seeing uses with prostacyclin. So that is and frankly, consistent with what you would have seen in STELLAR as well. So we are seeing that pretty much as you'd expect. And then over time, we would expect to move into the earlier lines of therapy as we go. As it relates to what we see going forward with the bolus, I would say that we're--it's not necessary that we think the bolus has been worked through. What I would tell you more broadly is we're seeing a continued growth in both the breadth and the depth of prescribers who are prescribing, which were at a little over 500 doctors now prescribing. We think there's probably somewhere in the 800 to 900 range of doctors that are doing the vast majority of prescribing out there. So we still have a ways to go to get to what I would consider to be heavy prescribers of the medicine.

Rob Davis: And then I'll come back to the first part. So on background therapy, you are seeing the vast majority of patients, as you would expect, some of the sicker patients who doctors are putting on the drug first. So there is a large amount on triple therapy or double therapy, and you are seeing uses with prostacycline. So that is, and frankly, consistent with what you would have seen in Stellar as well. So we are seeing that pretty much as you'd expect. And then, over time, we would expect to move into the earlier lines of therapy as we go. As it relates to what we see going forward with the bolus, you know, I would say that we're not necessarily thinking we've worked through the bolus. What I would tell you more broadly is that we're seeing continued growth in both the breadth and the depth of prescribers who are prescribing, which we're at a little over 500 doctors now prescribing. We think there are probably, you know, somewhere in the 800 to 900 range of doctors that are doing the vast majority of prescribing out there. So we still have a ways to go to get to what I would consider to be heavy prescribers of this medicine.

Speaker Change #137: Yes, maybe I'll start on the second part and then I'll come back to the first part so on background therapy. You are seeing the vast majority of patients as you would expect are.

Speaker Change #137: Some of the sicker patients are who doctors are putting on the drug first so there is a large amount on triple therapy or double therapy and you are seeing uses with prostacyclin. So that is.

Speaker Change #137: And frankly, consistent with what you would've seen in stellar as well. So we are seeing that pretty much as you would expect and then over time, we would expect to move into.

Rob Davis: So we are seeing that pretty much as you'd expect. And then, over time, we would expect to move into the earlier lines of therapy as we go. As it relates to what we see going forward with the bolus, you know, I would say that we're not necessarily thinking we've worked through the bolus. What I would tell you more broadly is that we're seeing continued growth in both the breadth and the depth of prescribers who are prescribing, which we're at a little over 500 doctors now prescribing. We think there are probably, you know, somewhere in the 800 to 900 range of doctors that are doing the vast majority of prescribing out there. So we still have a ways to go to get to what I would consider to be heavy prescribers of this medicine.

Speaker Change #137: The earlier lines of therapy as we go as it relates to what we see going forward with the bolus.

Speaker Change #137: I would say that.

Speaker Change #139: It is not necessary that we think the boss has been worked through what I would tell you more broadly as we're seeing a continued growth in both the breadth and the depth of prescribers, who are prescribing which were at a little over 500.

Rob Davis: So we still have a ways to go to get to what I would consider to be heavy prescribers of this medicine. And as we see that group continuing to come in, and as we continue to see access being granted, because the other thing I would point out that, you know, one, we feel very good. We have about a third of all lives covered today under a medical plan with a protocol in place for reimbursement related to Winn-Rivera.

So we still have a ways to go to get to what I would consider to be heavy prescribers of this medicine.

Speaker Change #137: Doctors know prescribing.

Speaker Change #138: Think theres probably.

Speaker Change #138: Somewhere in the 800 to 900 range of doctors that are doing the vast majority of prescribing out there. So we still have a ways to go to get to what I would consider to be a heavy prescribers of the medicine.

Robert M. Davis: And as we see that group continuing to come in and as we continue to see access being granted because the other thing I would point out that, one, we feel very good. We have about a third of all lives are covered today under medical plan with a protocol in place for reimbursement related to WINREVAIR. We expect that to continue to grow because I would remind you that a lot of plans actually put in place just by the rule that they will wait 90 to 120 days-ish to put in place a plan--a coverage plan after a drug is launched. So you have a lot of plans still yet to come. So because of the fact you're going to see increasing access, you're going to see the fact that we have increasing number of physicians, and we're continuing to see the breadth of patients grow, I think you're going to see continued trend for growth upward.

Speaker Change #138: And as we see the group continuing to come in and as we continue to see access being granted because the other thing I would point out that one we feel very good we have about a third of all lives are covered today under medical plan with a protocol in place for reimbursement.

Rob Davis: We expect that to continue to grow because I would remind you that a lot of plans actually put in place just by the rule that they will wait 90 to 120 days-ish to put in place a plan, a coverage plan after a drug is launched. So you have a lot of plans still yet to come. So because of the fact that you're going to see increasing access, you're going to see the fact that we have an increasing number of physicians, and we're going to continue to see the breadth of patients grow, I think you're going to see a continued trend for growth upward.

Revere: Related to win Revere.

Speaker Change #138: We expect that to continue to grow because I would remind you that a lot of plans actually put in place just by their rule that they will wait 90 to 120 days ish.

Speaker Change #138: To put in place a plan our coverage plan after drug as long. So you have a lot of plans still yet to come so because of the fact youre going to see increasing access youre going to see the fact that we have increasing number of physicians and we're going to continue to see the breadth of patients grow.

Rob Davis: So because of the fact that you're going to see increasing access, you're going to see the fact that we have an increasing number of physicians, and we're going to continue to see the breadth of patients grow, I think you're going to see a continued trend for growth upward. Great. Thank you, Terence.

So because of the fact that you're going to see increasing access, you're going to see the fact that we have an increasing number of physicians, and we're going to continue to see the breadth of patients grow, I think you're going to see a continued trend for growth upward.

Speaker Change #138: I think youre going to see continued trend for growth upward.

Speaker Change #138: Great.

Speaker Change #138: Thank you Terrence next question please.

Peter Dannenbaum: Great. Thank you, Terence. Next question, please.

Operator: Next question, please. The next question comes from Evan Seigerman of BMO Capital Markets. Hi guys, thank you so much for the update today. Given the interest in the schizophrenia space with the number of readouts coming in the second half of the year, can you characterize what we should expect from your phase 2b trial of MK-8189? Looks like the study was completed back in June; just wondering when we might see the data and kind of how we should be comparing this to, you know, the novel development. Yeah, so this is Dean.

Next question, please.

<unk>: The next question comes from <unk> of BMO capital markets. Your line is open.

The next question comes from Evan Seigerman of BMO Capital Markets. Hi guys, thank you so much for the update today. Given the interest in the schizophrenia space with the number of readouts coming in the second half of the year, can you characterize what we should expect from your phase 2b trial of MK-8189? Looks like the study was completed back in June; just wondering when we might see the data and kind of how we should be comparing this to, you know, the novel development. Yeah, so this is Dean.

Operator: The next question comes from Evan Seigerman of BMO Capital Markets. Your line is open.

Hi guys, thank you so much for the update today. Given the interest in the schizophrenia space with the number of readouts coming in the second half of the year, can you characterize what we should expect from your phase 2b trial of MK-8189? Looks like the study was completed back in June; just wondering when we might see the data and kind of how we should be comparing this to, you know, the novel development. Yeah, so this is Dean.

Evan Seigerman: Hi, guys. Thank you so much for the update today. So give me interest in the schizophrenia space with a number of readouts coming in the second half of the year. Can you characterize what we should expect from your Phase IIb trial of MK-8189? It looks like the study completed back in June. Just wondering when we might do the data on kind of how we should be comping this to the novel developments in the space?

Speaker Change #142: Hi, guys. Thank you so much for the update today, so given the interest in the schizophrenia space with a number of Readouts coming in the second half of the year can you characterize what we should expect from your phase two B trial of MK 8189, Let's say the study completed back in June just wondering when we might see the data and kind of how we should be caught in this to the novel development in this.

Dean Li: Yes. So this is Dean. Thank you very much for that neuroscience question for MK-8189. I should just point out that I believe it was just in May that we published the Phase IIa, and it shows its efficacy and relationship to schizophrenia. But what was also interesting was that there was a reduction in body weight of around 6 pounds over just 4 weeks. And the reason why that's important is that oftentimes, it's not simply how efficacious the drug is, it's whether a patient will stay on, and what are the adverse effects that will drive a patient not to take the drug. So that Phase IIa was really important that triggered the Phase IIb. So I'll just lay out that, if we see things that are comparable to that Phase IIa and our Phase IIb, we would be eager to see such results.

<unk>: Space.

Dean Lee: Thank you very much for that neuroscience question about MK 8189. I should just point out that I believe it was just in May that we published phase 2a. And it shows its efficacy in relation to schizophrenia. But what was also interesting was that there was a reduction in body weight of around, you know, six pounds over just four weeks. And the reason why that's important is that oftentimes it's not simply how efficacious the drug is, it's whether a patient will stay on and what are the adverse effects that will drive a patient not to take the drug. So phase 2a was really important, and it triggered phase 2b. So I'll just lay out that, you know, if we see things that are comparable to phase 2a and our phase 2b, we would be we would be eager to see such results.

<unk>: Yeah. So this is dean thank you very much for that neuroscience question for MK $81 89.

Speaker Change #143: I should just point out that I believe it was just in May that we published the phase Iia and it shows its efficacy in relationship to schizophrenia, but what was also interesting was that there was a reduction in body weight.

Speaker Change #144: <unk> around six pounds over just four weeks and the reason why that's important is that oftentimes its not simply how efficacious. The drug is it's whether a patient will stay on and why are the adverse effects that will drive a patient not to take the drug.

Dean Lee: So phase 2a was really important, and it triggered phase 2b. So I'll just lay out that, you know, if we see things that are comparable to phase 2a and our phase 2b, we would be we would be eager to see such results. Thank you, Evan. Brad, one more question. Your final question comes from James Chin of Deutsche Bank. Your line is open. Morning. Thank you for the question. For Winn-Revere, it is the conversion of the 75 T to 80% of the scripts.

So phase 2a was really important, and it triggered phase 2b. So I'll just lay out that, you know, if we see things that are comparable to phase 2a and our phase 2b, we would be we would be eager to see such results.

Speaker Change #144: So that phase Iia was really important that triggered the phase II b. So I'll just lay out that if we see things that are comparable to that phase III and our phase II B, we would be.

Thank you, Evan. Brad, one more question. Your final question comes from James Chin of Deutsche Bank. Your line is open. Morning. Thank you for the question. For Winn-Revere, it is the conversion of the 75 T to 80% of the scripts.

Peter Dannenbaum: Great. Thank you, Evan. Brad, one more question, please.

Speaker Change #144: Would be eager to see such results.

Your final question comes from James Chin of Deutsche Bank. Your line is open. Morning. Thank you for the question. For Winn-Revere, it is the conversion of the 75 T to 80% of the scripts.

Operator: Your final question comes from James Shin of Deutsche Bank. Your line is open, sir.

Speaker Change #144: Great.

Brad: Thank you Evan Brad one more question please.

Speaker Change #146: Your final question comes from James Sheehan of Deutsche Bank. Your line is open Sir.

James Shin: Morning. Thank you for the question. For WINREVAIR the conversion of the 75% to 80% of scripts into commercial embedded within fiscal year '24 guide? And quickly, is there any time line on the INTerpath filing? Thank you.

James Sheehan: Good morning. Thank you for the question for Wind River is the conversion of the 75% to 80% of scripts into commercial embedded within fiscal year 'twenty for guide and quickly is there any timeline on the inter past filings.

Caroline Litchfield: Commercial Embedded within Fiscal Year 24 Guide. And quickly, is there any timeline on the InterPath filing? Thank you. So the answer to your first question is yes, and the answer to the second question I would let Dean address.

Commercial Embedded within Fiscal Year 24 Guide. And quickly, is there any timeline on the InterPath filing? Thank you.

Robert M. Davis: So the answer to your first question is yes. And the answer to the second question, I would let Dean address.

Speaker Change #148: Thank you.

Speaker Change #149: So the answer to your first question is yes.

Speaker Change #150: The answer the second question I would love being addressed.

Dean Li: So in relation to our collaboration with Moderna, in relation to the I&T, you know, that's something that we're focused on getting phase three fully enrolled and moving forward as that's really important in relation to how we will see the program and how the FDA will see that program. Thank you, James, and thank you all for your good questions today. As always, the IR team is available for any follow-up questions. Rob, any closing comments that you'd like to make? Yeah, no; I just want to thank you for your interest this morning.

Dean Li: So, in relationship to our collaboration with Moderna, in relationship to the INT, that's something that we're focused on getting the Phase III fully enrolled and to move forward as that's really important in relationship to how we will see the program and how the FDA will see that program.

Speaker Change #150: No.

Speaker Change #151: In relationship to our collaboration with <unk>.

Speaker Change #151: In relationship to the IMT.

Speaker Change #151: That's something that we're focused on getting the phase III.

Speaker Change #151: Fully enrolled and to move forward and Thats really important and relationship too.

Dean Li: Thank you, James, and thank you all for your good questions today. As always, the IR team is available for any follow-up questions. Rob, any closing comments that you'd like to make? Yeah, no; I just want to thank you for your interest this morning.

Peter Dannenbaum: Great. Thank you, James, and thank you all for your good questions today. As always, the IR team is available for any follow-up questions. Rob, any closing comments that you'd like to make.

Speaker Change #151: How we will see the program and how the FDA will see that program.

Speaker Change #151: Great.

Speaker Change #152: Thank you James and thank you all for your good questions today as always the IR team is available for any follow up questions.

Robert M. Davis: No. I just want to thank you for your interest this morning. Hopefully, you appreciate the transparency with which we try to bring. But I maybe would close by just bringing back the confidence we see in the business, both in the short term and the long term. Obviously, we'll work through what we see happening with GARDASIL in China. But the fact that we see strengthening, and I would call them, green shoots around GARDASIL everywhere else in the world gives us confidence in the $11 billion for that, as we've talked about. But then beyond that, the growing breadth of our pipeline, obviously, KEYTRUDA continues to deliver meaningfully for the business and for patients. But I am growing in my own excitement for the breadth and depth of the pipeline we have coming. Hopefully, it wasn't lost on everyone that we pointed out, we would be launching more drugs in the next 5 years than we've launched in the last 10. Many, many of which will be blockbuster plus opportunities. So the pipeline is maturing, and we're starting to see the green shoots of opportunity that continue to grow our confidence as we look to 2028 into the 2030s and beyond. And that's where we will continue to focus. But we will not take our eye off the short term, where we are equally confident in the guidance, we raised revenue today. Obviously, we kind of were neutral on earnings, but that's because of the investment we're making into the business, bringing in even more opportunities like EyeBio. So there's a lot out there, and I just want to leave you with that note of what's driving my confidence and my appreciation for your support of the stock. Thank you. Thank you for your participation on today's conference call. At this time, all parties may disconnect.

Rob Davis: Hopefully, you appreciate the transparency with which we have tried to bring you, but I would maybe close by just bringing back the confidence we see in the business, both in the short term and in the long term. Obviously, we'll work through what we see happening with Gardasil in China, but the fact that we see strengthening, and I would call them green shoots, around Gardasil everywhere else in the world gives us confidence in the $11 billion for that, as we've talked about. But then beyond that, the growing breadth of our pipeline. Obviously, Katrina continues to deliver meaningfully for the business and for patients. But I am growing in my own excitement for the breadth and depth of the pipeline we have. Hopefully, it wasn't lost on everyone that we pointed out we would be launching more drugs in the next five years than we launched in the last 10, many, many of which will be Blockbuster Plus opportunities. So the pipeline is maturing, and we're starting to see the green shoots of opportunity that continue to grow our confidence as we look to 2028 and to the 2030s and beyond. And that's where we will continue to focus, but we will not take our eye off the short term, where we are equally confident in the guidance. You know, we raised revenue today. Obviously, we kind of were neutral on earnings, but that's because of the investment we're making into the business, bringing in even more opportunities like iBio. So there's a lot out there, and I just want to leave you with that note of what's driving my confidence and my appreciation for your support of the stock. Thank you. For Your Purchase.

Speaker Change #152: Rob any closing comments that you'd like to me, yes, no I just want to thank you for your for your interest. This morning, hopefully you.

Rob Davis: I appreciate the transparency with which we tried to bring but I, maybe would close by just bringing back the confidence we see in the business both in the short term.

Rob Davis: In the long term, obviously, we will work through what we see happening with Gardasil in China, but the fact that we see strengthening and I would call them green shoots around gardasil everywhere else in the world gives us confidence in the $11 billion for that.

Rob Davis: As we've talked about but then beyond that the growing breadth of our pipeline. Obviously keytruda continues to deliver meaningfully for the business and for patients, but I am growing.

Robert M. Davis: So the pipeline is maturing, and we're starting to see the green shoots of opportunity that continue to grow our confidence as we look to 2028 into the 2030s and beyond. And that's where we will continue to focus. But we will not take our eye off the short term, where we are equally confident in the guidance, we raised revenue today. Obviously, we kind of were neutral on earnings, but that's because of the investment we're making into the business, bringing in even more opportunities like EyeBio. So there's a lot out there, and I just want to leave you with that note of what's driving my confidence and my appreciation for your support of the stock. Thank you.

Rob Davis: But then beyond that, the growing breadth of our pipeline. Obviously, Katrina continues to deliver meaningfully for the business and for patients. But I am growing in my own excitement for the breadth and depth of the pipeline we have. Hopefully, it wasn't lost on everyone that we pointed out we would be launching more drugs in the next five years than we launched in the last 10, many, many of which will be Blockbuster Plus opportunities. So the pipeline is maturing, and we're starting to see the green shoots of opportunity that continue to grow our confidence as we look to 2028 and to the 2030s and beyond. And that's where we will continue to focus, but we will not take our eye off the short term, where we are equally confident in the guidance. You know, we raised revenue today. Obviously, we kind of were neutral on earnings, but that's because of the investment we're making into the business, bringing in even more opportunities like iBio. So there's a lot out there, and I just want to leave you with that note of what's driving my confidence and my appreciation for your support of the stock. Thank you. For Your Purchase.

Rob Davis: In my own excitement through the breadth and depth of the pipeline we have coming.

Rob Davis: It wasn't lost on everyone that we pointed out we will be launching more drugs in the next five years and we've launched in the last 10, many many of which will be blockbuster plus opportunity. So the pipeline is maturing and we're starting to see the green shoots of opportunity that continue to grow our confidence.

Rob Davis: So the pipeline is maturing, and we're starting to see the green shoots of opportunity that continue to grow our confidence as we look to 2028 and to the 2030s and beyond. And that's where we will continue to focus, but we will not take our eye off the short term, where we are equally confident in the guidance. You know, we raised revenue today. Obviously, we kind of were neutral on earnings, but that's because of the investment we're making into the business, bringing in even more opportunities like iBio. So there's a lot out there, and I just want to leave you with that note of what's driving my confidence and my appreciation for your support of the stock. Thank you. For Your Purchase.

Operator: Thank you for your participation on today's conference call. At this time, all parties may disconnect.

Rob Davis: As we look to 2028 into the 2000, <unk> and beyond and Thats, where we will continue to focus, but we will not take our eye off the short term, while we are equally confident in the guidance. We raised revenue today, obviously, we kind of work.

Rob Davis: Neutral on earnings, but that's because of the investments, we're making into the business, bringing in even more opportunities like <unk>. So theres a lot out there and I just want to leave you with that note of what's driving my confidence in my appreciation for your support of the stock. Thank you.

Speaker Change #153: Thank you for your participation on today's conference call at this time all parties may disconnect.

Q2 2024 Merck & Co Inc Earnings Call

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