Merck & Co. Inc. (NYSE:MRK) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 08:00 am ET


Merck & Co. Inc. (NYSE:MRK) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Lara, and I will be your conference operator today. At this time, I would like to welcome everyone to the Merck & Co. Q2 Sales and Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Peter Dannenbaum, Vice President of Investor Relations. Please go ahead.

Peter Dannenbaum

Thank you. Lara, and good morning. Welcome to Merck's second quarter 2020 conference call. Today, I'm joined by Ken Frazier, our Chairman and Chief Executive Officer; Rob Davis, our Chief Financial Officer; Dr. Roger Perlmutter, President of Merck Research Labs; Frank Clyburn, our Chief Commercial Officer and Mike Nally, our Chief Marketing Officer.

Before we get started, I'd like to point out a few items. You will see that we have items in our GAAP results, such as acquisition-related charges, restructuring costs and certain [Technical Issue] that we have excluded these from our non-GAAP results and provided a reconciliation in our press release. We've also provided a table in our press release to help you understand the sales in the quarter for the business units and products.

I'd also like to remind you that some of the statements that we make during today's call 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 statements.

Our SEC filings, including Item 1A in the 2019 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. Our SEC filings, today's earnings release and an investor presentation with highlights of our results are all posted on

With that, I'd like to turn the call over to Ken.

Kenneth C. Frazier

Thank you, Peter. Good morning, and thank you all for joining today's call. I want to start by thanking our employees around the world for demonstrating resiliency and diligence through this difficult time. As a result of their tireless work, we continue to make progress on our strategic priorities and we exited the quarter with accelerating business momentum.

While the pandemic has brought challenges that few of us could have imagined even six months ago, it has also demonstrated the critical importance of organizations that our focused on breakthrough science. Our scientists are highly focused on this effort and we are incredibly energized by this mission. Simply put, this is why Merck exist.

Throughout the quarter, Merck executed well both operationally in support of our existing portfolio and by advancing our innovative research programs. We continue to perform at a very high level without significant disruption to the production, supply and distribution of our medicines, vaccine