Merck & Co. Inc. (NYSE:MRK) Q4 2014 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 08:00 am ET


Merck & Co. Inc. (NYSE:MRK) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, everyone and welcome to Merck's Fourth Quarter and full year 2014 Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to Joseph Romanelli, Vice President of Investor Relations.

Joseph Romanelli

Thank you Christy and good morning, everyone. We'd also like to say good afternoon and good evening to everyone listening outside the United States. Welcome to Merck's fourth quarter 2014 conference call. Before I turn the call over to Ken, I just want to point out a couple of items.

First, you will see that we have items in our GAAP results, such as the acquisition-related charges, restructuring costs and certain other items. You should note that we've excluded those items from our non-GAAP results. The reconciliation tables available on our press release, so you can get a better understanding of the underlying performance. We've also provided tables to help you understand the sales results in the quarter for the business units as well as for the products. This can be found in table three of our press release and the reconciliation table, I mentioned earlier is in Table 2 of the release. During the call, we'll be referring to Table 2 for the P&L and Table 3 as it relates to revenue.

(Forward-Looking Cautionary Statements)

And you can see our SEC filings, as well as today's earnings release on So with that this morning, I'm joined by Ken Frazier, our Chairman and Chief Executive Officer; Adam Schechter, President of Global Human Health; Rob Davis, our Chief Financial Officer and Dr Roger Perlmutter, President of Merck's Research Labs. So with that, I'll turn the call over to Ken.

Ken Frazier

Thank you, Joe. Good morning everyone and thank you all for joining the call today. Our performance this quarter is a result of the proactive steps we are taking to further sharpen our commercial

Joseph Romanelli

We design our operating model and reduce our cost base. We are evolving Merck's operating model in recognition of the evolution under way and healthcare markets across the world and we will continue to focus our resources on those internal and external opportunities that can generate the most value for patients, customers and shareholders. While we made real progress in 2014, we should all know that we are by no means (inaudible). Over the past year our greater focus had led to better execution, a point underscored by the effort that led to KEYTRUDA being the first PD one inhibitor approved in the United States.

Another example of focused execution is restoring JANUVIA growth. It is our intention to continue this focus discipline and execution, especially in areas where we have the greatest opportunities to grow internally, while we are transforming the way Merck operate and execute, our fundamental strategy has remained consistent. Our success and our future, we'll continue to be predicated upon what has long defined Merck, innovating at the intersection of scientific opportunity and global unmet medical need.

In short, there is no substitution for innovation, which