MKGAF - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Dear, ladies and gentlemen, welcome to the Merck Investor and Analyst Conference Call on Third Quarter 2020.

As a reminder, all participants will be in a listen-only mode. May I now hand you over to Constantin Fest, Head of Investor Relations, who will lead you through this conference. Please go ahead, sir.

Constantin Fest

Thank you very much, Lauren. a call. welcome gentlemen, QX this and results XXXX ladies very to warm Merck Dear, is Fest, name My Constantin Investor Relations. I'm Head of I'm here our And have me, to Kuhnert, Marcus today Group with CFO. delighted present Capital like Science. to of which we our Chris I would our in from Interim highlight call, the also this know Life Day, have that for Q&A Markets you Head Ross, Sector

this Process available would deep Bioprocessing. as Verlenden, might have also of from which related dive Chris Darren. for the call Life know from And to questions ask Market Darren We Capital and Solutions you any you And questions, you of sessions or seen. joining Day, encourage Solutions have the Head also Process we Science to ask to our you I have

guide Group three turn over kick Mr. the in hesitate this slides Head this, like Having would of now to sustainability, like sustainability Buchholz, please our that, opportunity any then ask we related to presentation. Corporate to presentation the and on Having to and And have questions questions this key all to following I'd through you your as this answer said during now Sustainability. slides don't Herwig to and the We deck. use to Marcus also hand said over always for Q&A. Marcus? here Herwig. of off

Marcus Kuhnert

strategy. warm sales Slide yet our for was X.X%, welcome EBITDA QX Group with Thanks a proof number and highlights. presentation to a the starting of successful also strong surged execution is lot, of by the everyone side, very And earnings my XX.X%. our the point X Organically, call. Constantin. QX increased while from by I'm another on Overall,

earnings know, boost the included release. provision you a from As Biogen major

We benefits Versum. full out, also pre of EBITDA consolidation and FX despite at strong XX.X% this was from tough quarter when was the even growth last remarkably saw stripping comps. headwinds However, organic QX

result, our in a neutral points reported reported ahead of of growth As X.X The QX. in was COVID-XX about was line. effect and percentage performance pre organic net sales growth EBITDA was

performance, means effects various and management, performance €X.XX the well In €X.XX. becomes later. particular, a also in and our crisis as overview be border on pandemic go business will to that, sector. to can QX for pre fact, COVID-XX we to proud and guidance Last an expect cope now for and this we with the blurred. raising talk to Slide billion assure transparent successful others. sales of the recovery In adapt also are X the tailwinds in billion And continue to and months range to to about between of introducing Based as instances, Thanks franchises challenges increasingly I let's during our business very in significant continue in accordingly. full but of increasing But many today, are strategy to with new more continue we processes the and that earnings €X.XX €XX.X our range the this not by billion, in least, This we saw sustainability that we range possible. between we the rest will you pre EBITDA year. net EPS €X.XX €XX.X billion, be nine strong underlying across

after in the second record Science with more quarter, dip Looking at in markedly. the positive HX, And also momentum territory returned while organic QX rate twice the sales had in development, the Healthcare to a growth at improved quarter. Life Performance than of Materials

resulting was the headwinds group portfolio group X% up Solutions, X.X%. pipeline, while were revealed recent driven from that was Markets stable. minus offset €X.X in of by so-called – Healthcare X, Versum, sales which Day, billion, introduced FX business, our Solutions the Capital we by total Another BIG rest more primarily effects the about and the than namely on way business of looking growth sales at Semiconductor organic our at in of quarter Process X% net Significant of

business high Performance Research Materials, Regarding QX. Semiconductor than in continued, in impressive Healthcare, picked please strongly and growth. was And Display and growth recovered also of in QX. improving momentum. Science, Mavenclad Solutions QX, Life different growth significantly after marked In Applied year-on-year the Solutions while note a organic Solutions in and flat Bavencio good that less were up while new declines Solutions saw the core pronounced while organic showed Surface XX%, much almost In double-digit Process all-time with

EBITDA Regarding strong which margin came of an corresponds in earnings, exceptionally €X.X billion, to group XX.X%. pre at

million mitigated partly However, XXX on margin regional release, the underlying this an note by on the reflecting €XXX line excluding expenses year than an was was comments costs. Slide lower even when to but expansion points the more by XX%, suggesting still in €XX about On of income basis growth XXX development. strong points. focus with margin Healthcare nonrecurring million basis Also provision last ongoing up top that few a travel year, sales to higher and X,

of mid the more Our Europe and paired posted with growth In Life Africa organic QX, management. also pandemic. three reflecting high-teens crisis North regions, to and of from offsetting and regions, adverse each delayed in amidst contributed Middle the while Science to Asia-Pacific, effects dip three declines impact Performance America in Latin positively, from growth thus main in Healthcare successful after negative is positive East returned America than easing QX, organic the organic turned Materials. COVID-XX

So and now overview our headline our Slide X I'm let's of key financial on at figures. closer with QX. take performance in an look developments a now

boosted were earnings As mentioned release. significantly the Biogen before, by provision

QX of of better and year will differences million particular, deferred high GSK. XX%, around €XX our and updating given expect this where to translated comprising growth namely indicated leveraged are said, year in underlying still million around from from around pre you just million year included from into close Pfizer QX in in single-digit That which that we from EBITDA earnings nonrecurring income performance this even amount, included GSK. Healthcare. last was I've €XX growth guidance in million deferred around also income and Excluding deferred full million nicely €XX pre euro €XX we QX. income means XX% significant In effect, for GSK find P&L, top total EPS million from a income XX% line respectively. around deferred a million before €XX to income €XXX previously,

achievement this just is this This milestones. in a development – nothing evolution a rule, depending can that cost the just reminder. on amount new, derive As please general and note the program of

was to investment was which flow billion would example, Please confirm in another out-licensing to on year QX. active for QX, around well strong double-digit million recently which the made at for take we close you are also year-end account by debt of MXXXX, million, a cash into be lower reduce also full if €X.X note to net euro but we in guidance compared full excess We announced €XXX XXXX. helped to of our will, €XXX from That cash, management. that the temporary million year, the operating and for said, Nothing amount support portfolio track by net debt up given QX. booked mid

reported on at our Slide Let's take a figures XX. look brief

Overall, earnings comes higher LTIP amortization reported lower, increased partly lower tax the by per sales the XX. number effective as at more on Mavenclad to growth Healthcare pre Healthcare core due headwinds EBIT The to While X.X% expenses. we interest organically to as the with starting €X.XX some million. our from compared €XXX range the that, QX rate difference €XXX decline and and lower most here compared products, last came by COVID-XX as X.X% and to to effects largely The bear less of share million, of face well year. With business G&A, evident up continues Mavenclad. guided is of increased as with in active in lower strong management sectors Yet, our from one new The in XX% QX of provisions financial mitigated by consequently, higher on on in offset other was fertility good the business was there. our Bavencio. reacceleration of strong adverse the hand. on much double-digit review and the €X.XX were quarter, move a still and EBITDA minus reported recovery hand was a fruit. had with than The adjustments particular, pronounced within crisis mainly let's in Slide intangibles result XX%,

in remain markets MS and For fertility example, the dynamic Asia-Pacific muted.

partly Biogen XX% three estimate provision two last the underlying control. reduced percentage of already cost exclude from supported mitigated nonrecurring by best by sales a our XX% and organic was light surged organically pandemic. This COVID-XX is Healthcare was points by EBITDA despite performance So line if growth you is lower growth the year, in solid to in the also mentioned top the Earnings stringent versus or release. income quarter. face-to-face cost meaningful benefit that by pre activities which reduced

adjustments specialty step agenda drive the innovator. of coming will will €XXX our booked strength, profitable a a the million, with provision Acting amount earnings in for around consistent ongoing structures, continue we of In further our which of our under growth quarters up fact, optimization to focus execution efforts be and this as position earmarked to organizational of be a have our QX. Healthcare, over for strategic global of used on phase from

expected nine-month growth XX% raising our to year, with at now growth Biogen for on X% EBITDA XX% release. the at X% we organic organic include or you Finally, pre our strong and when provision sales X% to based full are guidance performance, to the Healthcare X%

you the For a with stable to and And rate higher effects than procurement let's truly sales pre, round XX as comps in Science. had net or QX to of to Life slightly which QX, growth outstanding EBITDA others Science, a of areas growth while Slide in recently review obviously. benefit, the into significant about and increased in a tailwinds leading to third ahead which with Life expected, upgraded growing for and and sales Life of headwinds China. more of initial our our guidance fade HX midterm in from perspective COVID-related to put some of that, to organic quarter well Science this of implies of volume-based XX.X% need XX% started twice XX% ambition. explains go

three from and pronounced business as a contributed were X.X% related to well development the less remain driven catch-up drivers terms all diagnostics at also of mainly a XX.X%, regions: worst the with to COVID-XX into performer, as favorable a X.X% of points to remained mainly effects were latter a the reflecting growth minute. pre leverage, our dip across a or organic before we also mix. the growth as growth COVID-related to XXX most Similarly, And to million, to and a recovered compared mixed Solutions in while in customer cost to finally, on from segments of in up, QX. underlying came balance. From high-teens testing bite APAC more and strong plus major Solutions also were still biotech Process view, saw XX%, swing, some well North X.X% picture boost star slightly of organic significant impressive effects negative EBITDA All as good record across bioprocessing of acceleration demand; ever was a expansion stable and to and a organic saw work, of from were QX. the as academia and and territory. that also the operating and improvement. level XX% on quarter including main business mid €XXX COVID-XX means saw impacted, control, accelerating Applied and at from in HX. some basis Almost by from strong. a That growth margin industrial lines including positive now QX lines America, while the pull-in multiple organic minus pricing, accelerating particularly growth best Pharma growth. customer strongly Europe in All indicated with segments. the product accelerated Solutions due in organic further an there a in to Research portfolio substantial

the for and call will in and margins mix I effect. guidance strong the sales that unfolds and on favorable demand told respectively. raising year EBITDA QX now expect already we performance, XX%, growth and months nine our we a are the higher additional on XX% X% think the of You to pre to COVID-XX organic full remember from average XX% you Based has in that –

growth lower somewhat implies this margins that note and versus please QX, For QX.

However, Solutions in Research. Process this effects tough pull-in to is aforementioned mainly comps and the due in and catch-up

the growth stems XX% has already process from accelerated significantly COVID-XX Process the science on Slide particular different the from let's turned XXXX implications effect number the lifted, provides to Before due to remain. you closer business in net in take while XX. therapies of months further the map, life heat quarter in shared portfolios, and a and vaccines. increased QX that and August, over would illustrating COVID-XX work strong About Performance that lockdowns are so-called evidence order for Materials, customer of this COVID-XX half from there of nine as segments. The across to factors with tailwinds in conclusion Solutions Back downsides moving units look as are period. business we on actually is this some focusing related at demand intake on benefiting was at upsides major COVID-XX positive. would fade

However, markedly. that times note also please extended have lead

addition, producing term into upside are the different making come customers topics predict. risk In next with remains as progress couple good difficult many products longer expansions, quarters the working is on to capacity of meaningful our while at COVID-XX visibility going potential of on requirements. are we Hence, and different

demand remains academia. comment tailwinds on headwinds have sure more outlook And a Both in upsides I'm And predict Finally, starting quarters. also Underlying net COVID-XX; the trends on back difficult developed life on improving still let are Chris, visibly you is questions more in the to science it's briefly they robust. while Both COVID-XX least longer Darren term, of materialize. this. from will to to generally XX. mainly look forward to as positively Materials let's you the and are PM when with in picture move balanced, are me to on as related at Overall, myself Performance later. on discussing number Research strong. unlike see for summary, you remains but mixed. review well With Solutions, of and Process to of continued In over looking Applied. QX, couple the in that, Slide

Surface with However, XX% and QX, portfolio QX. declined effect at In Display underlying and over crystals, adverse also portfolio almost given Costs sales a growth Versum. QX, momentum and COVID-XX. much better reflecting currency moderate by rate is Display were to reported realized FX was impact than That seen as the easing of with COVID-XX, XX% increased from the this effect. decline EBITDA continue XXXX. Performance obviously legacy the upgrading by the has X.X%, and percentage to in our of in Versum by improved faster. compared both the year our confirmed. mid-XXs declined Performance portfolio minus COVID-XX we nine in And means the by another minus sales continues XX.X% much and was headwinds, a a strong execution compared declines Reported note from to be due high X%. on €XX minus Based of significant slightly the organic The strong is in well-managed, growth pre less Versum and substantially from improvement of solid million also program while X% stable comps resulting sales of Materials, liquid strong prevailing which even Also expect midterm headwinds, full two to to for unit effect Bright of minus to normalizing cost with on similar notice XX.X% of the organic came in integration range On sales largest guidance. consistent moderate X%, to that less earnings, we the from easing run have now organic and of of performance Solutions, be are that was pre of for COVID-XX quarter and to of quarters, EBITDA smoothly, performance. to normalizing underlying that margin growth and seen rest now our minus EBITDA in synergies but X% coming supported performance, than a will And organically, months from half sales effects more towards decline X% in the be is the XX.X%. about respectively. is headwinds improved below through can QX. synergies this XX.X%. mainly and attributed Sales we strong liquid management. previous the growth Versum the stringent business countermeasures, while Solutions also offset guidance half back in you in Semiconductor it crystals still About slightly Future transformation comps and Solutions, this Materials declined expect delivered cost in a Solutions, to organic end pre on minus pronounced that Organically, quarter solid

QX, in For and Versum organic with expect keep that no also due mind previous of calls. in mentioned as connection have in change the from control low please very will comps growth to we strong portfolio effect

few on to with on Moving Slide remarks balance sheet. XX a our

As not cash the of our end the crisis. XXXX. this prudent year-end two million to to you Cash with there's quarters see, equivalents and during time much in previous liquidity to and secure remain higher, approach continue reflecting some of line compared change can €XXX

the of September. above Our XX% improved the remains and debt-to-EBITDA equity December at at ratio end to by X.X net from – of X.X end

more at Slide release, of investments already and EBITDA year. net outflows. year not CapEx compared cash mainly raising cash full flow guidance pre up, mainly growth provision cash Investing cash at example, we excess have flow by also as for million cash financing Let's to our now the may temporary on in due accelerated to are €X.XX XX. a capital reflecting spending on working Solutions. up but last up was noted conversion reduced you Process of percent mentioned. €XXX significantly, CapEx Biogen QX least, projects, Last, take due as to already, strong on was improved Versum as to while the billion, flow outlook. effects in €XXX in cash connection And million Operating let's was look level, flow closer came guidance the for financing with the move included that, Adjustment with a QX normal the acquisition. significant of in last year to

the Slide Before on COVID-XX guidance our in let upgrade, on start going me now. context details into performance the by I'm reflecting our pandemic. of of the XX

As our transforming made leading on from into a Markets cultural Capital to progress recent at science as global laid Day, perspective. portfolio both technology as we've a significant out a you and company, well

Following And you a to strategic we margins and strong profile. period test. this major momentum, heading out last into entered investments, of phase. XXXX has expansion our with were that stem we decouple we with risk COVID-XX growth major turned for agenda the become phase marked a the Merck deepest would over and Clearly, low start couldn't into be growth a promising profitable XXXX year, while high XX of lot to of a recession years. global from what fully pandemic the in

growth will new challenges, in of and successfully and this managed on we on turbulent a as chart, opportunities. confidently priorities, and various while reaffirm promise simultaneously we by profitable identifying XXXX, year even today. capitalizing this have set deliver However, Guided clear aforementioned the illustrated

of plan. the result, a on and Slide for track of the earnings business ahead XXXX. drivers pandemic well slightly the with reminder As is to a effects I'm now brief we of key mitigate performance XX are our strong even on

notable we you litigation release provision to The the one you patent see, in is August. related with As the this million version with much change compared can not €XXX to Biogen. addition shared

guidance Slide straight go let's So on XX. the Group to

EBITDA of and in we between Group to in billion, expect billion a €XX.X €X.XX €X.XX. billion pre per sales €XX.X of a billion, pre share As range €X.XX a earnings €X.XX mentioned and in range earlier, to now range net

of have X% minus previously. to €XXX unchanged our better versus sales by the offset X% X% now guidance We narrowed midpoint to greater is minus by organic Group leaving at X% X%, corridor for assumed as X%, while to headwinds, FX growth net minus million,

bigger X% partly between corridor now the lifted Out this better remainder million. provision minus narrowed of relate growth by assumed minus have the and EBITDA to midpoint the million X% mitigated €XXX and while of to headwinds versus minus same million organic time to X% pre in we by at minus X% €XXX by FX Biogen €XXX upgrade, For the the X% X% a range reflects before. release,

from the For corridor release. €X.XX, EPS €X.XX the the provision by pre €X.XX have narrowed and upgrading midpoint by we roundabout are including Biogen about

Finally, effect effects anticipated please and pre. note portfolio that sales net both a from are EBITDA as for confirmed percentage Versum positive mid-single-digit the

comment on our briefly also business Slide in me sector XX. Let number guidance

business While we qualitative, so far targets this quantitative providing has per sector. also now been are

you EBITDA organic As slightly see, we our upgraded all pre have businesses. can for sales in assumptions three

the power already develop additionally Biogen already KPIs. pharmaceutical, included today's the MSEI only the be ratings release. path in our topic new low While no we into unmet or necessary of of driven ESG the let's is from expertise, are for science new to our and led not today innovation that, products with call, technology special leading a to scientists positively that in science We Top right Technical societal electronic to successfully. to needs number business. and Healthcare, already we leading on enabling target. and will energy company, therapies. Merck. of confirm business platforms a on value to sheer sustainability. life XX sense Sustainalytics move for we namely, sustainability contribute for by new of consumption space provision mindsets And to And connect or have pioneering on displace the amount financial like a for transformation longer the our growth measured Slide with exclusively introduction of develop the success and With Future company

implement on businesses, from the sustainability and as as out ago, to the R&D well from strongly sustainable to to a the number social guide business us new developed That’s our three focused focus contribution to number actions responsibility. areas, our special Just companies. decided way which the and ESG one ranked governance. four reputational, pace Journal and innovation important we more development in Therefore, of with seven And targets strengths fast keep area our improve improve most weeks even four ESG further further the Wall our match into sustainability. XXX we and in we’ll Street and perspective,

into first progress of contribution advance takes human sectors we and sustainable X the people In will Merck. through than target and all three account Our wellbeing. to technology for more human from progress billion XXXX, science

and supply reflects target as sustainability huge well a the second values, This cycle includes and environment. this our transparency need into to various more XX,XXX example, integrate culture and Our a value XX,XXX than of fields management. risk With in changing as for our task. chains in suppliers, is our and to chains, develop than and governance life employees further impactful operations more

third Our climate in target. our regarding and to resource waste XXXX, water. By approach environmental was to consumption we our significantly reflected achieve aim neutrality and reduce

tailored for integrated an part will our overall sustainability and in-depth steering compensation operations, in of reflect KPIs is this we strategy, our scheme. design enhance new strategy reporting of of the As all

the have impact. benefits So of to sustainable our on United potential defined we an let’s the Slide ESG. The has of overview sharpened strongest XX the the by understanding contributions goals XX past exercise can go our and development month for strategic from which Nations, of

and You can SDGs wellbeing. us is most slide. that good relevant most see health The with on X, this obvious five for SDG fit

and contribute X, is basically power. and pharma, all which three, SDG same dedicated The products technology. innovation true how is are initiatives well-placed for connected strengths to we our to in for believe strong Also Merck Here address rationale targets. the we and there other with for science they are by

and be we business on hand, the that, the our ESG outlines growth and can even new on business. towards ahead. let’s that partnerships the to benefit guardrails convinced are we greater in helpful to expect roadmap our final both the particular, further with targets be Finally, economic and society a In years new go sustainability for slide, one which other resilience And opportunities. through hand

of you. which the progress XXXX in-depth resulted in areas, significant our We we have note to made we continue will just by our sustainability operations further the on very conducting dynamic. and of regulatory with as overall our Based strategy, and an that and targets during the new checked targets also review Please analysis ESG develop our as that, our stakeholders. ambitions needs environment topic reassessed changing that remains appreciate and focus we

platform currently onwards. on are the to into our XXXX reporting senior the external this, internal those well management from ESG Based steering of integrate of building processes. capable as will schemes a We executive improve also data we and for board, sustainability-related compensation as develop KPIs

businesses to And a working in already our now to further and come questions. on we to that all, targets. are are M&A you. All in approach We in we an integrated all initiatives us controlling and examples. and couple will investments supply achieve our to just R&D, integrate your develop ESG strategies fundamentally will new right of chain, name this confident help Thank to make the decisions on dedicated

Constantin Fest

question, please. First

Operator

Suisse. Instructions] you. with Weston Our comes Thank first Matthew Credit [Operator from question

Matthew Weston

much and good you very please. Thank questions afternoon. Two

Darren business to and regarding is first process The the fantastic growth. the solutions

potential very comments commentary about is book of constraints how But capacity growth, to clearly clear patient you surprising much able the on lung and XX to still much information. but us are the of it order that it add? to some reaching if business. lung detail investors levels supply now incremental where of I non-small was curtail taking can totally then of your walk hit being could the just XXX customers now question, the MXXXX currently second please are abilities And understand you about posting cautioned won’t the there’s you Slide Marcus’ very are you – keep study. you’re of a lot a capacity a we that risk, cancer through continued And constraints that going I with you I future to really in accelerating can growth number share and on grow. cell can see quarters lot And You’ve growing. is to for trial. revenue. But

can OS you can can, that with have are PFS XXX that registrational even just but importantly, only confident with a confidence any could So that patients and potential. color reiterate trial most you this give you your you us endpoint,

Marcus Kuhnert

I over the And first would you to Matthew. you, Thank Darren. hand suggested question as directly

Darren Verlenden

Process seeing, Great. immense the business on with for XX% some today. you great is limitations you actually uptake do thank as just you, Matthew. that fantastic. we’re have growth growth we’re seeing in that say, capacity, showing Thank And that Solutions But we recognizing

as our times As extend we as starting to are Marcus pandemic out situation. lead this well, described move into

situation pandemic, modalities fortunate multiple whether out which we’re antibody treating it nucleic of there. by be or monoclonal the candidate, acid a having therapies in vaccine We’re the

advancement of We some our investments million range here actually million look far and in on our €XX our We’ve growth. significant long single we times, of at significant the platforms in specifically invested with use capacity. made have actually our have filtration short and outlooks. and the lead short-term about done – So a €XX so planning north

So we’re book. actually looking at our order

advance looking where to and We’re to be at it range demand. need accelerating and investing able the this short-term the long plans, we implications

Chris Ross

Chris, is to a here. this just add Matthew, bit

really But see as that principles in in output to a run future, short also some the first many short and the we’re taken into performance single up in very seeing hiring of business, to place And the capacity run. of of strong the noted. the in in in and locations, QX. we’re to mentioned, some the Darren been operations part the operations QX investments making particularly in the filtration in it’s benefits Darren’s of that we’ve our we’ll bring our XXXX. leverage customers use, allocation some manufacturing done provide some think significantly from to improved I measures really as redensify And our –

Marcus Kuhnert

you, Thank and Darren. to second question. Matthew your Chris

So and patients to closure XXX very active, this regarding recent also the recruitment study. range change interpretation. speculations I potential communication status not at regarding interpretations know quite to of has I’m a our that a recruiting aware the positive, also of broad from in have pretty outcome And negative those that in resulted some the but

signal is, from have talk As the this What have we cannot bit Independent we too can much that we topic. clear futility. Monitoring a Data about are you Committee tell know, you limited, I nice passed we this little

is confidence. clearly that the recruitment premature at trial confidence, there patients, reiterate trial. outcome very however, continuing. will the is reiterate that this to So is We trial trial with me the we continue on want or the the XXX And on that And registrational based speculate of yes, let relevant. registration to it while means closing its is

Let me more one again. topic also clarify

to and a I the futility, where interim not the GSK have the It known changed. a are us is we than other data. The mean, think PFS decision And to interim reviewed has And that we and was passed study have that known in to IDMC. the went sponsors now study their carrying adaptive blinded results – OS, I was which They on. March, in interim neither This nothing design. think, are the relevant that registrational good only relevant nor sign. – trial endpoint have we is fact, And are continuing. the data we was are of we and with data changed we the is data passed the know to us. only In that futility

Matthew Weston

And in much. was you Solutions question. Thank supply trying manufactured that the you or out I of much the have know a understand how I very on if essentially a very follow-up your that with booked it just in supply what deal was great QX of to quick I’m can I specialized live customers. revenue is way came just put of inventory. that Process

the if ship had catch of we’re have is, as new QX capable you comes reaching from question the play you and Or Is the we online early manufacturing exactly capability same to your inventory that? where shipping guess QX? up point capacity a in shipped what year? doing you’ve I been to as in next So again,

Chris Ross

This to times. is Chris. I led I’ll mean, to lead off with where add regard Darren

I think lead have to rather our that recognize extended times it’s important significantly.

in definitely of a growth into the line. in intake couple So the sales current the the not quarter translate order quarters growth does down in

range. in time not six And in range. six the lead month the to usual two four a having sitting order to typically is month we’re So

regular So level a and with our landscape, seeing COVID-XX in that happening we placement and as change are is advanced business. a well heightened order

gets here it and are making So supply we in bit constraints, of year. HX a half what’s we progress but going the less there’s the on next our the an year, of second there in strong that see appreciation little clear

Matthew Weston

indeed. thanks Many

Operator

Vosser next our take Richard question We’ll JPMorgan. from with

Richard Vosser

taking my Thanks for questions.

to of the Solutions, first Process just So follow-up on all.

opportunity vaccine, we’ve just some about TGF others? of milestone Just that about one XXXX? us longer for should income in think Mavenclad. could beta. think vaccines give like should just Could of €XX the Why to you positive revenue for we that perspective make maybe it income, have spreading million. revenue book is give America to Second a then obviously And looks the an us and explanation thinking for about about AstraZeneca-Jenner vaccine in the but Merck we a back on upfront on milestone question, should ex-North the over how you of amount or less that is market how And finally the a XXXX? therefore out and bit the It time. period the one

that, could give about revenue very patients the split returning of new Thanks us America. talk the the not So exactly market you much. from and North or perhaps maybe but outside of split, patients in to

Marcus Kuhnert

Yes.

with part, Darren? Chris, start we Science So Life the

Chris Ross

Yes. Yes.

Thank good, Sounds Marcus. you.

I year. the next the just suppose the Pfizer of me a there's clinical vaccination With that million and the of up here. right? good the people results, of by with seeing news start expectation day, exciting let end And XXX we're very an BioNTech, – So forward step really the to and big the news of

the roughly of XX% global So population.

for play we and role So COVID-XX we'll coming bit the to the still of more. use talk cocktail see, for little be that severe but they'll I'll Darren reduce patients a And prophylactically, really other strategies acid needed developments other are about we the approaches. vaccine, treatments. And key treatment symptoms. for nucleic there's the with in treatments well in positioned mAb a years. vaccines, And for for let need that's course, the good of treat effective But could mAbs, still An vaccines news.

a So required cost of chains we the good mRNA availability cold the and And outcome are see the still vaccine challenging. are there. and

to we But to meet bit technologies needs. Darren, color, could advancing the more pass for the overall, varying to I maybe differentiated continued market So with you. little that modalities continue it a expect

Darren Verlenden

our Capital we Markets vaccines about we're Chris. Sure. actually talking of candidates back over different and in were Thanks, therapies looking and treatments. September, XXX Could you Day, at back go to across the these pipelines

benefit whether we be play it all key landscape. whether it be of the So those it's I or to product, the Process a or Solutions business, CDM part have a therapies, services, in think of where

market landscape significant to mRNA market. investing, in the these all and So be we're really just we're as coming at with we capacity, and it's in where in of full on significantly even look gives I new this a business of, candidates into these our able us for advancing great opportunity And forward. capitalize CDMO the some that news therapies you the of R&D and the these breadth footprint and today. to a that resources We've you world to think therapies that moving our R&D play if that been to investing our role are in patient health, population if will, profile

Marcus Kuhnert

question. second the take I Richard. Okay,

a a give the Regarding deal way the how would is short I structured. you all in it start just to alfa reminder, milestones, us, of bintrafusp

And potential the and of So the have Thereof, threshold. €XXX value development €XXX which billion remaining the billion. milestone and/or reaching of upfront commercial present we about net have €X.X as we are milestones, are €X.X the approvals received due talking payment, million for we million payments, then a of rest you know.

So when is sales when in the product we thresholds. markets, certain hit

discussion, I the under So million think development €XXX milestones.

was there far, milestone so payment clarify yet. me no Let

say, buy our so We One the the call, interim thing, next over to earlier of disclosed There readout we'll collaboration years. there two some be once the have interim million QX eventually far eventually know, year. as whole other which through go a received P&L only as a €XXX you the in between three upfront, is or development was we analysis could have we deferred milestones. data to of come. that data let's not predict, yet, most told And milestone let those likely payments there's already to for payments again, never us the Richard. in me the milestone think just this milestone more you coming. data, program no or comparison and first it you when I just those kind lung remind impossible said trigger will outcome say But our we payment will this, income And from much

is initiations in new of remind That market this of there two And no very return for sign to in and markets patients as give initiations point still of there means United or pause outside for but specific high-efficacy were lowest entire a The retreatment that major COVID-XX. we hope presume patients. we and after patients. second And you too, this due split, across confidence the you also the of performance for sorry Mavenclad – no seeing interpret new a can April continued we of bit Mavenclad rebounding the ongoing. general was all U.S. little We question a was that say follow-up outside for versus revenue States. good new the year cannot can are from returning with ex

fully So this has not recovered. still

coming returns are we say We now this can confidently that and navigating back. through are the

Richard Vosser

Thanks. Marcus. much, very Thanks

Operator

of with Our next Bank question America. Sachin from comes Jain

Sachin Jain

for Thanks may. taking if few questions. have my I I

on pass, two Process four the just, may apologies book, you've First to and books. just visibility Solutions, on confused, in I be question, think to And clarify got you order time lead last visibility but months I order your to commented.

question, you could XH, we and till sales, which guess, on So business on say year? trying is that of lengthen the being XQ. I two imply visibility order is, And referenced book is than to to guess also it's that through get I book existing would delivery I comment think last the in that's sustainability quarter fourth you've the XX% you you order time delivered into XQ visibility whatever got would the one of to longer in and you give you'll next months it, or when I'm you that. when if through six saw need

think how about is Science, I any Life from versus And prior I healthcare decline then we if uplift margin And just a color just XXXX. continue question was Second In Process aggregate absolute the on a Solutions picture pipeline. on then commentary? final the year question check, the this accelerated growth on can into to cost So margin XXXX. into wanted big correct? question

XXXX do number, it'd the that years. pipeline in color pipeline on next to €XXX current X.X positive of what or next X year get you. like try think year €X.X for I'm pipeline products we how XXXX this any around year target be So covers about the build, both labs and consensus the levels, million-ish versus million-ish billion pipeline and is in which to for a into middle roughly sales Thank facing €X and do trying the over

Marcus Kuhnert

Darren? start And Life with again the Science question, Chris, Yes.

Darren Verlenden

order again Sure. the Sachin, thanks for question on book. the

the get which growing better Marcus is than So as happening coming had guidance whether said order of greater by related. the our whether opening starting in from, What's they're which orders up we're visibility from actually, the first and half we XX%, book and in where the transparency greater showing business, presentation, to to actually they're than we're COVID is based XX%.

of we're have in appreciate business ours right I these that of actually non-COVID. can in which of areas actually customers COVID, now, both think landscape some the you if

what coming really have business order from, as and is what pencil to is the to allowing to what for to tied us us very understand book actually it's to our ability sharpen really and prioritize. getting these actually to just intricate the discussions down with our So we customers, and the where can

prioritization I and as that first where government down our a think, allocation. COVID the we foremost priority, line had moving go whole as and you've heard, we've through orders you scheme, raised as have

be again, again, customers. from dependent deliver to so each are will, single going into diverse the that lead two the standpoint to lead to lead are But months. actually really this, so use, seeing there. six because our averages But media, times to it four to as product it's culture, one it's nuance we're that whether to that the its whether we in two Chris if the say, window. time and you we are as And on and around product portfolio up and said, ability So, the carries to six six it be extend, the so delivering is tough from those to yes, own month and start filtration, shipping required times the differentiated,

Chris Ross

at mind the important it's customers that currently in to And unlikely think producing approval. get it's keep in COVID all will products development very are risk. that I And

plays So we need to see that out. how

more murkiness of there. we, So And of vaccines. the as that different our different requirements. a for example, mABs talked puts have sell – well little and products the that And before this we've products manufacturing about into

in needs the clarity I bit there's comments So of on the times. lead second a agree to the with Darren's half come that of year, but

Marcus Kuhnert

Okay. around And margin potential your second Sachin, in question, was uplifts XXXX.

we not of I a on and you know, you or, would I can to business precisely As date. guide product but comments. say give you leverage margins hints couple What can per on sector

only mind, top-line in or ago tailwind, Life strong keep pricing by this high the effects, in in which which a of very an outlined for driven supported all, COVID-XX top-line in by the we couple profitability, please of of first quarter terms Science minutes sure of also and also a momentum, effect. I've already, this growth, positive presentation, positive which but strongly strongly in So third not mix XXXX, seen still quarter. What impose has have by driven three terms extraordinary extraordinary had

actually, next Life territory very we under even at would growth do not XXXX, Science year. For where see bullish organic mid-teens scenario in we exceed a assumptions,

we more do in everything want roundabout do points going business then margin the want When see into I this, we to and a I related €XXX same our in a in that calls of business however, it say midterm or it a way, If And vaccine that as let's normal bullish, businesses. million. would more potentials exceptional still year say, would case, that XXXX, more at the to we sense a we the little travel we also that stable. further business we sectors benefited forward would this say be couple I proportionally by a now write million bit from you similar translate We our further can cost when the not tailwind the mitigate a We necessarily, the that XX%, we in we €XXX share environment, a on also then too fiscal and conditions. would be as estimate And let's not bit be on a tailwind come we next one stick upgraded have assuming let's look by are a customer I increase prolong on – And ahead in in quarter. in let's Healthcare, have are benign enjoyed functions we XXXX. the XX%, keep three completely of recently of recent moving was crisis most also customers have obviously year currently, say that level, ambition of margins. should, where feeling on foresee we cost for market also we we unrealistic. that guidance. more contributed into end challenges. support this to do sectors implications. least COVID-XX have event in seeing get that rather we this take the say, maintained goes extraordinary of is XXXX, that news that to to without hand, While we'll are savings development getting that to travel out XXXX, of top roundabout course, to or group year margins, cost to also we Healthcare, have But allocate an looking saying the whereby by the what which growth say this the such not would line In our say for be to base our – at

end, committed also not the return So while happen we levels also strongly no other are cost that that very to we on under would not circumstance. pre-COVID should

in the sensor. broadest it in a need reinvest eventually also little in broad to of bit, – call personal variety the variety relationships We let's

you year. on go you��re pipeline. environment them into will assume year, carry crisis definitely question can everything that will able I the that what we we of XXXX yes, cost the Last this not actually also So over, what from. read some we by driven this savings say understand coming where were but have the to let’s

the bintrafusp pipeline expect also for Let main and cannot eventually be guidance to contributors the or tepotinib I for me Mavenclad precise XXXX. contribute. we a reiterate you now Bavencio, XXXX And obviously also sales product will give new for

can to strong in more However, about when billion, aggressive that XXXX. up continue imagine that still you and get further into interest, we think have carried do to in we gap to will we a plans to €X not the I in that risk much cannot too that loaded and have back our and huge see means, XXXX, you. That have also pretty a rollout have ramp tell also is reach you best we the it bridge

Sachin Jain

much. very you Thank

Operator

Verdult Peter next from with our question Citi. take We’ll

Peter Verdult

COVID, bintra, preventing then, you’ll clarify you’re Marcus, may stock-outs, inventories given just the sort Thanks, I Two Chris best situation here, the you seeing yet, that growth, And point in Citi. to excluding interest, Life blinded your relates it that on as made was Verdult Solutions mean, at or for the still to to it’s slightly not I demand. results. of Peter Did questions of the is to And Science you managing and benefits boring. said we’re Marcus. could right XX%. Process surge of hear XX% This that around you guess that

what decided the hurdle a like and not can seem So, it you explain given the offer well as prize to expand as was would just trial, prudent basis to us move. then on the

last can of you. anything be one that will appreciated. that interim, latest share bintra, on And XXX out? with very terms maybe you in Thank the expect So next read you study us to one when or

Chris Ross

Science Life the Process Solutions and side. on solution Coming

growth yes, QX and just question. your organic in here, as very So, at strong to XX.X% discussed answer

effect the about in growth COVID XX% net the So of QX. explained from the estimated

Slightly slightly strong COVID slightly guidance still for us that allocation principles we base toward so and discussed XX% growth low due impacted the does our the business the well the growth imply of rates about above likely of midterm COVID. for being growth. prior this line, in some this to to teens by base business is So below

Marcus Kuhnert

outcome submitted visible patients – all, your that visible Peter, independent of obviously And on which the decision decision of not we this to have the criteria data bintrafusp the behind with fully was are first XXX also So, question, been us. are was an to so not this to committee, us. first recruited us, review again,

pros And cons and so data. and, I just we good something which the the They committee futility, the said, you unfortunately has reviewed independent this we was after can had XXX with said, they also was have data discussed okay, patients. news, it to past obviously. of then not accept And continue monitoring okay,

your trial, now are multiple to as So, scheduled. the interim coming any there analysis other of part second question,

date, April, again, study And discuss of of end the event-driven. so completion hope which And between this point. be and I you understand for detail say, also which XXXX, to primary sorry now estimated the course the that XXX, at in currently we more cannot is will

Peter Verdult

you. Thank

Operator

Morgan Our next James question with from comes Stanley. Quigley

James Quigley

my Thanks questions. for taking

savings. cost the on one Just

mentioned million things you’re QX and was efficiency that. there that like provision in a taking gains you €XXX So, support to

customers any – through going sort quite what And over-ordering in to from idea fast. secondly, But have even you much in anybody is go Really of Thanks. for like the burning inventory in future? it terms and buffer Process how of your margin are forward. the could perspective potentially say a you So you looking? terms do absolute have order how is they to in from Solutions, is that

Marcus Kuhnert

And €XXX the question the million note, say pipeline, fighting we development set initiatives that plans original in first cetera. ourselves to is The definitely that So a it are that order of your to please over a years, the €XXX is future. health for doing fire, are let’s it et we but that the care million. for in not prepare is

plans. than that has And get to think reality now simply areas adapt original to out have differently is we to structures We somewhat time accordingly. developed in some it that

and organizational time, same are So as addressing to more and very the carry or where the into want principle guiding which strong we are cultural components, program even we simplicity, has execution a very entire foster aspects, also at the organization. accountability, important this structural our

going future. also in So, way addressing in organizational cetera. et structures of in R&D, to And efficient we’re addressing the forward et the market cetera, working, areas we various go and

healthcare aim securing question? the also promised as longer early space, fully finalizing the your cultural successful leverage to transition big a in the this sector the of of term to Can would the organizational, or past, second of this you this So consequence with and program successful use I our the investments say now or the again, repeat into transformation have next what but please, transition step, you. is, successful a we and the the initiative context

James Quigley

I’m sorry.

going So, be question of inventory… the do to on visibility of customers second burning Solutions? through your have was, they’re inventories you sort their any the in Clearly Process

Marcus Kuhnert

and to Chris of Darren, to give Okay. will go I course. this

Chris Ross

are and when can’t Solutions some can time. finding what to in speak tell understanding, their need business, our that inventory them the that are, orders customers they get but they customer the them need look speak I Process I to materials into the queue are ensure where outlooks. can’t at to in advanced they raw the I for there actually have are you, right we when coming to at practices

advanced, orders first, still part last of in of practices we planning third, rated life stick is move and planning we, like to of practices enhancing allocation, ahead. saving clinical therapy programs our well see time. the government do then in second, again, and we But therapies which So, customers as ahead we COVID

James Quigley

Okay.

Operator

with Friedrichs Deutsche comes from next Falko Our question Bank.

Falko Friedrichs

much you Thank my very for questions. taking

could provide QX year. also bit a you’re of refresher and whether from as you And obviously saw pickup level the us glimpse in a maybe well. year, massive next for next bit alluded is headwind year higher this on a Bavencio, this you’ve also expect companies and thirdly, year. exactly you and FX in for been to a slightly on to remind Then feedback quickly physicians with Could you able provide just secondly, you spend quarter? in and you the Firstly, the gather what higher year of we then year, spending many into a should a so then this this CapEx

be have of if XXXX, bit would for a to it all of the models think an maybe are? could rates for negative stay indication impact I So, what in where helpful they our be the FX

Marcus Kuhnert

are of is as from Darren taken currently you. take, Um, release your So a quarterly we investment may COVID-XX how first. On mind The told and actually opportunities Science so safely heard have benefits has higher answer I have second reap and areas from our to we CapEx, Life where business. Falko, Process also growth lot and way. currently already on what the support I have sustainable Chris and the carefully question sustainable assessing future invest in order are main we you Solutions can we in the actually growth tailwind in which of the the

plants a the And capacity. So surprise, U.S. our reviewing expansions it high single of expected we in list filtration. plan. expansions the will of the our And the capacity, against against will also to serving accelerate demand QX range portfolio define into use in of we there. demand add fit at we that, the where for and current product assemblies prioritized not long growing doesn't are top on markets bouncer And additional be that two our and should for especially big

feedback be at tell current the you to on On Bavencio, at in-depth, FX refresh look our status but in quarter. time, you we in because FX On developments in headwind get This businesses, acquainted that is point regions yet the me And a FX planning with this we and that still obviously in not you say impact XXXX negative. into the then on, I so relatively topic. our in time. to our in say I then meetings is judge. had us. likely provide we physicians must quarter front and third some this let's in will honestly have cannot have difficult will much point of the more to also asked from

very nice have growth. So, very, seen a

three also caution XXXX. and number there's a And note we the XX% still XX% total quarter. obviously months of is of a Slide of more whereas versus was take pretty early, couple part also for up major this sequentially, actually a second first-line months well first and launch the This see is quite three the me XX science couple bladder. in first And Bavencio details. but very that after to fact foundation from the progressing with strong impressive, points course, setting encouraging the increase year is you extremely So, to prior of post-launch, now that coming for let of

So, right overall community the see first-line the in early this survival we here. slide performance. the launch that significant bladder, on strong And here have validates advantage you'll Bavencio of the reception on side, the

increase a now – data accounts supportive. seen the discussed sustained in R&D XX% encouraging we penetration. have believe XX%, share we here. Continue to points the have XX% And we in have also by We and very Rehan in the leading September roundabout, increase update have Bavencio trending positively. than continuing ordering more which share We is also towards

and start the all, standard think are we all good indicated off a segment. care of on in track I very to to the within change So

Falko Friedrichs

very Okay. Thanks much.

Operator

question with Commerzbank. next Wendorff our Daniel take We’ll from

Daniel Wendorff

sense quarter what saw demand my next COVID-XX order a it number Glucophage we order of of you growth then healthcare Is referring solutions safety to Is have, question really driven process and growth, intake produce in about? for underlying and And VBP order on Hi, here is quarter, to about at When of second I Three, over think you. double-digit good look QX, last number development. thanks talking us a development give my say China. – what of next started Yes. that the and considering we the customers? the you process number what situation And afternoon. a growth related single-digit solutions taking when I’m own you customers in risk. about the potentially and intake. your solutions number Can is my the so really are questions the a of question on for how Thank part two should is process at customers? this over you it by

Marcus Kuhnert

Life with over to start Darren. Chris We’ll Yes. Science, and

Darren Verlenden

right. All

we in risk, the say that will. approved, at thank getting Daniel, context the producing and when context definitely, you at producing you if So, of customers a they’re are risk treatment this just is

they’re questioning is, you moving right. a and think Can to had of for I you question in that breakdown actually, layer this this well, be limited because the high, have is we’re and we’re context, doing the who at specifically or risks order there, what demand we is not. producing, when could was see And the of we the ability we can’t of these well. at So there one perspectives or you’re definitely, then that for but a and order producing cancellation that ahead. seeing the this, again, order case, lot they is are risks what as of have have letting idea COVID one to order one intake of intake risk in please? but look just I speak growth the the linked intake to out related the treatments who’s in customers, – as the approval of to these orders that insight limited not, repeat cancellation whether or you

Daniel Wendorff

what would been this order quarter COVID-XX the underlying so The without Yes. intake projects? related in growth, have

Chris Ross

one, And I is can take this Daniel, that Chris.

as So, a about are XX in tied the and working versus the just right rough growth processes. over specific non-COVID of here. COVID-XX vaccines, the treatment to as situation, XX% to we’re and vaccines estimating on now order over we’re book COVID COVID-XX the solutions portfolio and is manufacturing you the the so main and treatments contributors, growth know, number of the XX

we fact, looking base we’re the closely with at reported there have in transparency XX%. see we specific molecule and well. strong customers think much I businesses that that quite the previously, as with But application. is now in more the as strength the we

that’s update. latest So the

Daniel Wendorff

Thank you. Okay.

Marcus Kuhnert

Okay.

Operator

question... We’ll take next our

Marcus Kuhnert

Glucophage. VBP more question, one effect Daniel, of about have please you We the open. asked

obviously, first all, be see be of will our XXXX. will we the and it guidance. obviously in but will moderate it in first So captured fully impact, first quarter

recently finalized with price I’m heard negotiations about or gradient on Secondly, the completed have the Shanghai just cut. so-called we it, sure but you’ve the to authorities reiterate

public hospitals still price you of segment, As refers we know, access gradient segments cut where have the to. the to

a a I tell we satisfied ahead are scenario, outcome the winners, than reserved to we cut, accept of got. cut you is that much can still It was where of compete, much, very case price of winners price is the And scenario XX%. not worst where roundabout the is where the which can then the case said the we which significantly So, moderate more we here, with worst to have cut, but negotiations. the that price

significantly only you year, but next are And not full-blown I say than in see that We VBP. the tell I effect that. of China, much Yes. can will last better so least, course, we of

We said what two and now reiterate that I’d I confident years’ over period. time call after QX the are

say of back because promising will growth. years’ as you said, base big I’m, to also, two XXXX we period business will to to growth back the VBP XXXX see a business in as courageous, for from effect, growth. will China China-based be XXXX, let’s the I there So, but over be time, not

Daniel Wendorff

Thank you.

Operator

And with question we’ll take our next Simon from Baker Redburn.

Simon Baker

on materials. One my healthcare, on Thanks so one questions. performance much for taking

Mavencla, did pre-pandemic. looks it than at stronger just of looking on it Just trajectory the healthcare, TRX now

give you if the a appreciate I up, data, at pre-specified then of us is So, some color fully lockdowns. the number I of access marketing? but interim analyses looks protocol. before it was a change study back that. on the Just thoughts just the cannot could is better not than interest, going you presumably, and an in why the did before them change performance on any catch to some wonder that the in and least about that in of will talk certainly

confirm then finally, thanks PM, very QX depreciation saw and run lapped what be and I acquisition much. by to quick would growth we Could clarity So, a essentially acquisition on just us multiple, charges and sensible be Marcus, post-Versum the give more we Versum to little bit on the QX, you have rate regular the is zero. you growth fair so in impact? that if now related to the also amortization questions on a in Versum. meant two could assume on wonder will you impact So it on

Marcus Kuhnert

way questions, of I lot my work try Yes. to through. A

So, I’ll start PM with the question.

I a are do PVA disturbing effects depreciation in I and PM think included. forward. The third rate see effects amortization QX for reliable that any rate not the the represents fully going run quarter.

we that to I or this fair will On contributing that assumption. assume the So our QX, growth. onwards, think is business have you – should seen be organic QX Versum a from

that means seen now quarters So we effect, organic. three have portfolio as will QX be

and actually – importantly, effects. – On timing COVID-XX up bit. Mavenclad very the us Mavenclad It’s during combination a question, caught of an little let’s has phase, say one. bad that’s set which Most not the easy a the ramp back

natural, see, are ramp let’s Yes. that ongoing I it we in launch an still the say are during think so dynamic demand is now a that on up We a phase. recovery and quite we

they more have time gone. been because relatively the a the a Mavenclad pre-COVID-XX, safe already off main is effects the system regarding seen, necessarily think lot exceeding are also immune they recovery. I level, special And So show some we that the progressed the which of adverse more shows are that I reasons has in that are is very of seeing system immune are recommendations concerns in we behind meanwhile, some we that means level the that on now just actually that think table, and the launch quick which reason out, not

other still hand, the factors still example, that the On market see are high-efficacy for back, we depressed. holding is also because us

growth back we the shares, have effect market gaining up of holds – then of that on but should a Mavenclad. the market of are if growth further highest high-efficacy which is another And status or market us positive bit. pre-COVID the the of little market We ramp the a recovery here, back market see of levels, not yet also to kind also

quarterly correlation in are the market seen that’s lockdown Let a high-efficacy review people which our very was shows presentation with and I’ve suffering. that times, me – efficacy you markets. we topic is thing share have restricted there, one when patient a high an to in the means development seen and that That interesting the meetings, that of high-efficacy big between more mobility then travel

let’s will question, normalizes, that hope than we or? the soon, up, situation goes that coming, vaccination if find and further let’s your now, effective its market is the that say answering Is mobility states. high-efficacy then So, – or so Mavenclad Simon

Simon Baker

Yes.

Just that you lovely? final could question Thank I the would – the on interims, be you. wonder if

Marcus Kuhnert

Yes. Yes.

practice tell interim it standard there Yes. no but happen. mean, cannot I multiple more. said, are I said I And analysis, I as could you as So, that

We on I think more I that. made myself clear. details give cannot

Simon Baker

That’s great. Okay. you Thank much. very

Operator

Emily field our And we’ll take question from next Barclays. with

Emily Field

you another Hi, doubling ask going a you. thanks my metrics on significant back. trajectory just essentially, one XXXX if thinking bladder, you for just a could just way, XXXX question. for metrics I’ll implies I see know mean, perhaps first-line is something that that commented acceleration Bavencio. achievable first-line now that in in few is questions for of taking but the Thank think of the market give into the on launch some bladder. overall year-over-year. consensus growth, about or as I size as you any that you launch a

Marcus Kuhnert

earlier to ramp the relatively it strong any in say, is, let’s phases, So, I think a that especially see, launch we inherent up.

is be quite I the or second-line do assume in received acceleration from believe in of more can Why the sale meanwhile U.S. bit Bavencio peak a growing into further I we a outside. sales not to and MCC. So our Renal are definitely nicely you have honest. XXXX. much – less expect little bladder we stagnant

So growth definitely acceleration and XXXX, in by provided to be the is bladder. of product part the major first-line

size, potential was right, question market or of Second the market.

So, It is available call. and number you actually if say let's in patients, the XX, I is of well first-line bladder. flip of patients presentation. the in would Slide as eligible update of can the in Bavencio R&D answer here, this only, this are as terms that number just number to Emily, for highlighting question slide

then take we XX% with assume some If we treatment. metastatic the can and Europe, patients of which States, first-line the X,XXX response, So diagnosed XX,XXX U.S., Japan. And to therapy in maintenance XX,XXX UC carboplatin in in some starting had a newly XX,XXX we eligible, platinum we of a Japan. finally cases, X,XXX roughly where in to it disease, And United eligible patients complete in and And reduces are let's with U.S., or are in some end this say some bladder. have that or those fraction assumable first-line X,XXX Bavencio which of stays for also XX,XXX Europe in in in XX,XXX in then number we XX,XXX in will Japan. that patients our up the and been using a X,XXX cisplatin Europe partial the then or they XX% that show means have,

the that mind, is, on this in a say Emily, course, available the United let's approval give I data. received have meanwhile patient you we And in based indication can So now keep States. of

that means second in all mind please keep payment in Japan bigger the in we first not for for we sorry, and the in And approval in a why jurisdictions aim in of We two approval bladder half that U.S. – also Europe milestone XXXX. years or Europe something have potential Japan, ago, that as screen the received for expect well is on it years milestone for year. as approval we approval received radar approvals for for have in a we in for eligible have second-line the and payment. – three next And would should be you the

Emily Field

to prior milestone? Would that amount similar the of be a

Marcus Kuhnert

The by region. are the all Yes. is same, milestones difference the only

Europe Japan, North out but you So already. is America and the double that amount I have figured of think

Emily Field

Okay. Thank you.

Operator

next with Sachs. Our from question comes Goldman Arikatla Krishna

Krishna Arikatla

or That's there? that there, my is big elsewhere cash, Hello, Any your on for those there? portfolio, you Medicine please. picture and being should rate. franchise overall about a the think the questions. we a not think Are those for resources the one. first should growth Marcus products drag priorities question that managing about of you in at thank taking General looking How healthcare for on have two we I franchise healthcare? divestment use

try. bintrafusp, on The one, you still much I'll appreciate but I second say can't

study Merck for basis is the potential forms you. the case, are the Will blinded And blinded companies GSK the to both the data. data remain complete, that mentioned the is please? if milestones? Thank any two You to that what and payment until of fully

Marcus Kuhnert

especially change going from have is or XXXX. dramatically example, driver for General healthcare On growth less this see of KC. also good are you, we that Thank key going our to we unaffected next forward. of impact, first do the tough the having been deal question, Medicine Actually into to a comparables a has more your with over year growth group. We contributor years portfolio not and when significant actually

let's we but effect, the would we that entire challenge for our the obviously, but little it rate China but for in bit due back So for Medicine’s At to – that potential also say be definitely which area same General be, would in say deals. the portfolio I so most where time, Medicine single-digit that will growth mid-to-high preferred is beyond then to XXXX, a a General would XXXX. stable consider group, believe on not, M&A

– we hand, would course, comes one but also where areas, strong which I especially the also management, whether the this cannot However, include owner growth not, are say from is to screening whether best want that, time-to-time it or there it our are portfolio looking means, That usual eventually strategic of areas let's portfolio strengthen. are we totally when we not topic. to on businesses the and

However, let also especially also mean, product investments, three, the obviously the M&A big or areas a I for the the healthcare it's me here, more focus pipeline, clearly an in outline and new space, investment areas it process our and semiconductor when but internal pipeline say comes – an the of development solutions into and would the organic I solutions further pipeline, next moves. M&A priority are or to

on question second bintrafusp. Your

the the the is we in potential and until you and the this until PFS primary after completion has to yes, have points, remain from as and be only so primary April, is XXXX. bintrafusp earlier, dataset What obtained now, shared for data milestones? Right March Analysis for will date been spaces study the dual changed once estimated the end event-driven. OS, asked, we all, blinded the completion First study you analyzed. full completion. You will of will remain blind know as know, if in forms said and study and which XXXX

to program tied and data So the cancer from milestones the lung is can say. I again, development all that the

Krishna Arikatla

you, Thank Marcus.

Operator

question Generale. comes with from Societe Cespedes next Our Florent

Florent Cespedes

Hey, much for good please. ones, Two afternoon. taking Thank you questions. my so quick

the healthcare, my your could research is question Could some in – on with have Solution. First milestones on we most us second I next more if the well Research And more dynamic share on QX if color side still XXXX, are for XXXX. or let’s second depressed the you be question be whether view? mean. which important And we is should in to be performance the a able demand and QX the more of early in QX will as kind one-off say

shape Thank the just of trend figure out So to this of business. the kind on you.

Marcus Kuhnert

do want the with question? Chris, start we research to

Chris Ross

Marcus. can thanks Absolutely, the so Certainly question. for

effect we of portion growth the So estimate yes, Research that that is strong. the the growth growth And QX. from XX% Solutions, in of exceptional in exceptionally about of COVID-XX net QX

if QX, up reminded academic in are that So of be QX. each decline fully yet. very it significant see which significant a have from elements we is you from the we break that QX, very saw view as demand to a catch underlying QX. effect pull QX, had also in offset operational two in pretty in we effect of you down, of from coming from half deep a and growth saw COVID other before, it labs a actually uptake balanced And catch bit other actually coming work half so impacted And we not up the that

trending far normal. from still we've direction, certainly but seen activity in the So global right

it some beyond. QX mitigating QX, was though in here there are an and factors So exceptional

Florent Cespedes

Okay.

Marcus Kuhnert

but mean in slow mean I second Okay. which sure just Thank you bladder XXX% the said outlined milestones, slide you – the you can flow on for XXXX, number is gives and take Florent, which Japan, presentation, news important most the messages the are in now. I just for question but two you, payments, This reiterate I first-line just the on Chris. in in quickly approvals side. I'm what by it those not said so also to it's potential that. milestone Europe XX I on guess you new healthcare.

in first So from expect of XXXX. Tepotinib, approval exon quarter we MET XX, the FDA

know midterm, You Japan we in for been approved planned has already jurisdictions. going all

expected EMA first half On Bintrafusp the our For by completed as data. the second the of And to in-house then lung, tract have readout we quarter in first-line the second or already Japanese second-line XXXX. bladder, the half the then the lung approval in see antagonist XXXX. expect results XXXX, biliary said, in MHLW in authorities. in second And Bavencio of X TLRX XXXX. study, available importantly, have – in then readout data alfa, antibody of MXXXX, and expected submissions to we here And, second or of to in the our health and the completion discussions half [indiscernible]. the our year, the against expect discussions first with of regulatory subject we also the quarter data

flow news the we is this year. next expect for So

Florent Cespedes

very you Thank much.

Constantin Fest

With much over words. all this Thank for today Thank some your this, asking for you questions Marcus to you. hand I'd like very to call. on closing

Marcus Kuhnert

and Yes. Merck. for Thank you, your Constantin all to of strong continued and interest thanks also in you

Let – are on said, me again personal on I you think QX one you on and will and work of at facing strategy. a the proof and I light while other the let's virtual road summarize unfortunately look strong that capitalizing meet challenges again, execution I overall, QX same pandemic, in to show you yet very March and new upcoming our addressing this our we to with we very was remain focused conferences, hope the of can also much We many of results this for again will really time, in of time out well, I'm the the the that the back report looking possibilities we setup, but in That arise. you, successful another next can it's currently meeting forward goodbye. that forward year. Thank promise

Operator

been and This has gentlemen, your attendance. you thank concluded. call Ladies for

disconnect. may You

Merck KGaA (MKGAF) 13 Nov 202020 Q3 Earnings call transcript