Thank you for standing by. Welcome to the Merck & Company, Inc., Broadway, New Jersey, USA, first quarter sales and earnings conference call. At this time, all participants are in a listen-only mode until the question and answer session of today's conference. At that time, to ask a question, press star 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, Investor Relations. Sir, you may begin.

Thank you, Julie, and good morning, everyone. Welcome to the first quarter 2026 conference call for Merck and Company Incorporated, Railway, New Jersey, USA. 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 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 that we have excluded 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 our company'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 and the 2025 10K, 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. American Company Incorporated, Railway, New Jersey, USA, 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 to the Investor Relations section of our company's website. With that, I'd like to turn the call over to Rob.

Thank you, Peter. Good morning, and thank you for joining today's call. Advancing and delivering breakthrough science to address unmet medical needs remains the foundation of our strategy to create sustainable value for patients and shareholders. We continue to make tangible progress in accelerating and augmenting our pipelines, And with the recent new product launches, the transformation of our portfolio to a far more diversified set of commercial drivers is now well underway. Turning to our first quarter results, we delivered year-over-year growth with revenue of $16.3 billion, driven by continued strength in oncology, animal health, and growing contributions from new products. We remain confident in our outlook for 2026, which Caroline will speak to in a moment. We also achieved several important pipeline milestones. The FDA approved Invinso as a new treatment option for adults with virologically suppressed HIV-1, reflecting our ongoing commitment to innovation to address the evolving needs of people living with HIV. Additionally, the FDA granted priority review for IDXD, our antibody drug conjugate, being developed in collaboration with Daiichi Sankyo for adult patients with previously treated extensive stage small cell lung cancer. In ophthalmology, we initiated phase 2b slash 3 studies in neovascular age-related macular degeneration for MK8748, our TIE2 VEGF bispecific antibody, the second candidate from our acquisition of iBio. We also presented important phase 3 results across multiple other therapeutic areas. Finally, in our animal health business, we have high expectations for long-term growth, driven by new and ongoing product launches. We're pleased to have introduced Numelvy to the U.S. market, the first and only second-generation JAK inhibitor for allergic dermatitis in dogs. Our planned acquisition of Terns Pharmaceuticals, with its promising candidate for certain patients with chronic myeloid leukemia, is another example of our science-led business development strategy in action. TURN 701 has the potential to be a best-in-class therapy in a disease where there is an opportunity to further improve depth and duration of response for patients. Given the substantial unmet need for additional options, we believe TURN 701 has multibillion-dollar commercial potential and will be a significant driver of growth in the next decade. This transaction demonstrates our disciplined approach to pursuing business development when compelling science and value aligned, and we are confident in our belief that TURN 701 can benefit patients while generating value for our shareholders. Looking ahead, we continue to expect a particularly robust period of Phase III data readouts from novel candidates over the next 18 months. Our portfolio is undergoing a meaningful transformation to one with a rapidly expanding and diversified set of growth drivers. We're in the midst of initial launches of over 20 new products, almost all of which have blocked us the potential across a broad set of therapeutic areas. To move with the speed and precision this opportunity demands, we announced an evolution of our commercial operating structure. Our new business unit model, organized around products in therapeutic areas, is built to drive accountability, sharpen focus, and increase agility, ensuring that every part of our commercial organization delivers on the promise of our pipeline for patients. We're pleased to welcome Brian Ford to our executive team to lead our new specialty, pharma, and infectious diseases business unit. while Yanni Usthausen has been appointed to lead our new Global Oncology and MSD International Business Unit. Chirpi Gindo has taken leadership of a newly formed Strategic Access, Policy, and Communications Unit. Each of these individuals brings deep experience to these important roles. Together, this leadership team and structure will enable strong execution of our strategy, which includes extending our leadership in oncology while building a powerful, diversified portfolio across a range of therapeutic areas. We're confident that this change will best position us to deliver on a potential commercial opportunity of over $70 billion by the mid-2030s from these 20-plus anticipated new growth drivers alone. We're also taking important additional steps to accelerate our ongoing transformation as it relates to artificial intelligence. Last week, we announced a multi-year partnership with Google Cloud to scale advanced AI, data, and agentic capabilities across our company. This complements our recently expanded collaboration with Tempest AI designed to advance our precision oncology strategy, as well as a recent agreement with the Mayo Clinic that will allow us to leverage Mayo's clinical insights and genomic data sets at scale. Together, these efforts support improved productivity across our organization and create a real opportunity to advance the innovation in our pipeline with greater speed and with a higher likelihood of ultimately reaching patients. As we look forward, we continue to see robust demand for our innovative medicines and vaccines around the world. We're investing behind our pipeline, optimizing our operating structure, and are fully committed to our purpose of using leading-edge science to save and improve lives. We're encouraged by the progress we're making and look forward to the many significant milestones coming in the months ahead. In summary, we remain confident in our strategy and in our ability to deliver sustained growth and value for our shareholders. Before I turn the call over to Caroline, I want to recognize Sanat Chattapadawe and Joe Romanelli, both of whom have announced their retirements from Merck. Sanat and Joe have made lasting contributions to our company and to the patients we serve, and I want to thank them for their many years of impact. And now to Caroline.

Thank you, Rob. Good morning. As Rob noted, we delivered growth in the quarter driven by continued strength in oncology and animal health, as well as increasing contributions from our many compelling product launches. Our commercial and operational execution continues to enable us to generate strong results in the short term while we advance our broad and deep pipeline and invest in innovation to deliver long-term value for patients, customers, and shareholders. Now turning to our first quarter results. Total company revenues were $16.3 billion, an increase of 5% or 3% excluding the impact of foreign exchange. The following revenue comments will be on an ex-exchange basis. In oncology, cells of the Keytruda family of products, which includes Keytruda and Keytruda Culex, increased 8% to $8 billion, with global growth driven by continued strong demand from metastatic indications and robust uptake in earlier-stage cancers. Strong utilization in tumors that primarily affect women, including breast and cervical cancers, continues to be a key contributor to growth. In addition, we saw increased use of Keytruda in combination with PADCESH in locally advanced or metastatic urothelial cancer. In the U.S., growth benefited by approximately $250 million from the timing of purchases. We are pleased with the positive feedback following the recent launch of Keytruda QLEX. sales in the quarter were $128 million. On April 1st, we received the permanent J-code, and we look forward to having an even greater impact on patient and healthcare systems. Our broader oncology portfolio achieved another quarter of strong growth. Notably, Wellyreg sales increased 43% to $199 million, driven by continued uptake from ongoing launches in international markets and increased use in certain patients with previously treated advanced renal cell carcinoma in the U.S. We look forward to potentially reaching more patients with renal cell carcinoma following positive results from the LightSpark 011 and studies. In vaccines and infectious diseases, Gardasil sales were $1.1 billion, a decrease of 22%, driven by lower demand in China and Japan, consistent with our expectations. In the U.S., sales declined 10%, primarily due to timing of CDC purchases, which was partially offset by price. In pneumococcal, Capvaxiv continues to progress well, with sales of $142 million, an increase of 31%. Outside of the U.S., sales were driven by uptake from ongoing launches in certain markets. In the U.S., growth was driven by increased demand from both retail pharmacies and non-retail customers, partially offset by a reduction in wholesaler inventory. In cardiometabolic and respiratory, WinRiver continues to have a positive impact on patients with pulmonary arterial hypertension. Global sales were $525 million, a reflection of the continued strong demand for this important therapy. In the U.S., we continued to see steady progress with more than 1,600 new patients having received a prescription and an increase in usage by patients whose background therapies do not include a prostacycline. Outside the U.S., we continue to progress with securing reimbursement and ongoing launches. Sales of Otover, a novel maintenance treatment for adults with COPD were $131 million. As expected, sales were adversely impacted by the CMS reimbursement change as well as Medicare deductible resets. We are encouraged by the prescription trends which began to recover in March. Consistent with our strategy to maximize OtoVe's strong potential, we are making investments to reach more patients and physicians, which we expect will accelerate growth in the second half of the year and beyond. Our animal health business delivered another quarter of strong growth, with sales increasing 6%. Livestock sales grew 8%, driven primarily by higher demand for ruminants and poultry products, as well as price. Companion animal sales increased 4% due to new product launches and price, partially offset by a reduction in vet visits. I will now walk you through the remainder of our P&L and my comments will be on a non-GAAP basis. Gross margin was 81.9%, a decrease of 0.3 percentage points. operating expenses increased to $15.2 billion, including a $9 billion one-time charge related to the acquisition of Sidera Therapeutics. Excluding this charge, operating expenses grew 2%, reflecting increased investments in support of our key growth drivers, partially offset by benefits of our multi-year optimization effort, and recognition of a portion of the external funding for SAC TMT. Other expense increased to $318 million, primarily reflecting financing related to recent business development transactions. Our tax provision was $957 million. As a result of the non-tax deductible one-time charge for Sidera, we had a pre-tax loss this quarter, resulting in a tax rate of negative 43.5%. Taken together, we reported a loss of $1.28 per share, which includes a negative impact of $3.62 per share from the one-time charge related to Sidera. Now turning to our 2026 non-GAAP guidance. We have narrowed the range and raised the midpoint of both our full-year revenue and EPS guidance. We now expect revenue to be between $65.8 and $67 billion, representing growth of 1 to 3%, including a positive impact from foreign exchange of approximately 1 percentage point using mid-April rates. Our gross margin assumption remains approximately 82%. Operating expenses are assumed to be between $36 and $36.8 billion. This range does not include the proposed acquisition of terms or any additional significant potential business development transactions. Other expense is expected to be approximately $1.3 billion. We assume a full-year tax rate between 23.5% and 24.5%, which reflects the non-tax-deductible one-time charge for Sdera. We assume approximately 2.48 billion shares outstanding. Taken together, we expect EPS of $5.04 to $5.16, including a positive impact from foreign exchange of approximately 10 cents using mid-April rates. It is important to note that this guidance does not include the impact of the proposed acquisition of terms, which is expected to close soon. We expect the transaction will result in a one-time charge that will increase research and development expense by approximately $5.8 billion, or approximately $2.35 per share. In addition, ongoing investment to advance turn 701 and the assumed cost of financing will negatively impact EPS by approximately 12 cents this year. As you consider your models, there are a few items to keep in mind. For Keytruda, recall that while growth benefited from the timing of wholesaler purchases in the first quarter, we will face a corresponding headwind in the third quarter. For inflonsia, consistent with the first quarter, we expect minimal sales in the second quarter given the seasonal nature of the product and continued high levels of RSV monoclonal antibody inventory in the market. We are actively engaging customers in advance of the RSV season and remain focused on educating healthcare professionals and parents on the importance of protecting infants from this potentially serious disease and expect shipments to increase in the second half of the year. Lastly, we expect SG&A expenses to increase over the remainder of the year as we invest to maximize the impact of our recent and upcoming launches. Now turning to capital allocation where our strategy remains unchanged. We will prioritize investments in our business to drive near- and long-term growth, including new product launches and a robust pipeline. We remain committed to the dividend with the goal of increasing it over time. Business development remains a high priority as evidenced by our recently announced acquisition of Tern. We maintain the ability, within a strong investment-grade credit rating, to pursue additional science-driven value-enhancing transactions going forward. We are on pace for approximately $3 billion of share repurchases this year, as previously communicated. To conclude, we are confident in the outlook for our business driven by global demand for our innovative medicines and vaccines, including our many new product launches. We remain committed to bringing forward medically significant innovations that will enable us to deliver value to patients, customers, and shareholders well into the future. With that, I'd now like to turn the call over to Dean.

Thank you, Caroline. Good morning. Progress continued with a steady cadence of clinical and regulatory development. Today, I will provide updates in cardiometabolic and respiratory, oncology, infectious diseases, and ophthalmology, then conclude with key upcoming milestones. Starting with cardiometabolic and respiratory, the global burden of atherosclerotic cardiovascular disease disease remain significant, and with recently updated clinical guidelines recommending lower LDL cholesterol thresholds, there remains a need for innovation that is broadly accessible. At the American College of Cardiology Congress last month, additional Phase 3 data were presented for enlissitide, our investigational oral PCSK9 inhibitor. Enlissitide is designed to reduce LDL cholesterol in a similar manner to PCSK9 antibody therapies with the simplicity of a daily pill. The phase three coral reef add-on study demonstrated statistically significant and clinically meaningful greater reductions in LDL cholesterol at eight weeks compared to other oral add-on lipid lowering therapies when added to background statin therapy. Of note, Elyssetide also showed statistically significant greater reductions across key secondary endpoints, including apolipoprotein B and non-high-density lipoprotein cholesterol. The Coral Reef program has generated compelling evidence for the efficacy and safety of enlicitide. As a pill, enlicitide has the potential to democratize access to a potent lipid-lowering therapy. With clinical guidelines targeting lower LDL cholesterol targets, the field of preventive cardiology is increasingly energized and focused on early, aggressive LDL cholesterol reduction. Also at ACC, we shared full results from the Phase II cadence trial evaluating WinRivir in adults with combined post- and precapillary pulmonary hypertension and heart failure with preserved ejection fraction. WinRivir met the primary endpoint of reduction from baseline in pulmonary vascular resistance compared to placebo. At the 0.3 mg per kilogram dose, WinRivir prolonged the time to first occurrence of a clinical worsening event, which was an exploratory secondary endpoint with a hazard ratio of 0.18. Results provide compelling proof of concept and warrant further evaluation in phase three. This is an underdiagnosed condition with an extremely poor prognosis. There are currently no approved therapies. Moving to oncology, Keytruda now has 44 FDA approved indications across 19 tumor types as well as two tumor agnostic approvals and continues to generate evidence further transforming cancer care. In the first quarter, The FDA and European Commission approved Keytruda in combination with paclitaxel with or without bevacizumab for the treatment of certain patients with platinum-resistant ovarian cancer based on the findings of Keynote B96. This is the first PD-1 inhibitor-based regimen to show a statistically significant improvement in both progression-free survival and overall survival versus paclitaxel with or without fevacizumab for these patients. We also announced findings from the Keynote B15 study demonstrating Keytruda plus PADFIP reduced the risk of event-free survival-related events by 47% and risk of death by 35% for cisplatin-alergible patients with muscle-invasive bladder cancer. This is the first and only perioperative immunotherapy plus ADC regimen to extend survival for these patients. Based on these data, the FDA has accepted supplemental BLA filings for Keytruda and Keytruda Q-Lex under priority review and is targeting an action date of August 17th. Keino B15 is the sixth study of a Keytruda-based regimen to demonstrate overall survival in an earlier stage cancer and, if approved, would mark the 12th earlier stage indication for CTRUDA. We also continue to make progress across the broader oncology portfolio. Wellergeg, our first-in-class oral HIP2-alpha inhibitor, initially approved for the treatment of certain patients with von Hippel-Lindau syndrome, has now shown additional clinical data for patients with renal cell carcinoma across multiple stages of disease. The LightSpark 022 study evaluating Wellerreg plus Keytruda in the adjuvant setting demonstrated a 28% reduction in the risk of disease recurrence or death compared to Keytruda alone. In addition, the LightSpark 011 study evaluating Wellerreg plus Lenvima demonstrated a 30% reduction in the risk of disease progression or death in certain patients with advanced RCC versus cabozantinib. Supplemental applications for Wellerreg in combination with Petruda or Catruda Culex based on LightSpark 022 were granted priority review by the FDA with the PDUFA date of June 19th. The FDA also set a PDUFA date of October 4th for Wellerreg in combination with LIMVIMA based on the LightSpark 011 study. As announced last week with our partner, ACI. The combination regimens from the LightSpark 012 study did not meet the dual primary endpoint of progression-free survival and overall survival for the first-line treatment of patients with RCC compared to Keytruda plus Limbema. The data from the study provides learnings to the broader program. Studies from the LightSpark clinical program, including LightSpark 033 and 034, evaluating Wellerig in combination with zanzalinid, are ongoing. Together with our partner, Daiichi Sankyo, we announced that the biologic license application for infinitimab, dirextican, or IDXD, for the treatment of extensive stage small cell lung cancer in certain patients with disease progression has been granted priority review by the FDA. This was based on results from the Phase 2 ID8 Lung O1 trial and the Phase 1-2 ID8 Pan Tumor O1 trial. The FDA has set up PDUFA date of October 10th. As Rob mentioned, we continue to identify external opportunities to strengthen and diversify our pipeline, most recently with the proposed acquisition of TURNS Pharmaceutical. TURNS 701, a novel oral allosteric inhibitor of the BCR-ABO oncogene, is being evaluated for the treatment of certain patients with chronic myeloid leukemia and has the potential to be an important addition to our growing hematology pipeline. Clinical data has shown encouraging activity with promising rates of major molecular response and deep molecular response by week 24. Importantly, this includes responses in patients with high disease burden who previously received multiple lines of therapy. We are eager to get to work with the talented TURNS team to advance this program in a timely fashion. Turning to HIV, last week, the FDA approved Edvinso, our once-daily, single-tablet, two-drug regimen of Deroverine and Islotivir, a next-generation nucleoside reverse transcriptase inhibitor that blocks translocation, indicated for the treatment of certain adults whose HIV-1 is virologically suppressed based on two phase three switch studies. Approval was previously granted in Japan. IDVINSO is a first approved two-drug regimen that does not include an integrase strand transfer inhibitor. At CROI, additional data was presented demonstrating non-inferiority and a similar safety profile at week 48 versus the three-drug INSTE-based regimen, VIGTARVI, in adults who had not previously received antiretroviral treatment. In addition, Edvinso was shown to maintain virologic suppression at week 96 in adults who switched from other oral antiretroviral therapies, including Victarby. Islachvir, a potent, long-acting antiviral that forms an anchor for additional regimens, is currently being evaluated in late-phase trials as a once-weekly combination with Gilead's linacapavir, an HIV capsid inhibitor, and separately in combination with eulonivirine, an internally developed non-nucleoside reverse transcriptase inhibitor. We plan to present data from our HIV pipeline at an upcoming medical meeting. Next to RSV. In February, positive new data were presented for Enflasia, for the prevention of RSV lower respiratory tract disease in infants and children under two years of age at increased risk for severe disease over two seasons from the Phase III SMART study. These findings will be shared with global regulatory authorities with the intent to obtain an expanded indication. RSV is a leading cause of infant hospitalization globally and is especially serious for children under two years of age at high risk for severe disease. These data provide additional evidence for Inflansia for the prevention of RSV in younger children who remain at risk entering their second season. Earlier this month, the European Commission approved Inflansia for the prevention of RSV lower respiratory tract disease in newborns and infants during their first season, based on the Phase 2B-3 Clever and Phase 3 SMART trials. Next, in ophthalmology, we remain focused on retinal diseases associated with vascular leakage and neovascularization, with emphasis on improving structural and functional outcomes for patients and helping reduce the burden of certain retinal diseases. This month, we initiated two pivotal Phase 2b-3 trials evaluating MK8748 in investigational bispecific TIE2 agonist VEGF inhibitor for the treatment of neovascular age-related macular degeneration. The MELBEC and Torontes studies are the first trials in a broader late phase development program for MK8748. The decision to advance development is based on promising results from the Phase 1-2A Rioja trial. In closing, we anticipate multiple events and milestones across therapeutic areas in the coming months, including... In oncology, please mark your calendars for our annual investor event at the ASCO annual meeting in Chicago on the evening of Monday, June 1st, where we will outline progress on our oncology pipeline and strategy. On the regulatory front, as noted, potential approvals for Keytruda plus Padseth in MIDC, Wellerig in expanded RCC settings, and for IDXD in extensive stage small cell lung cancer. In HIV, data from the Phase 3 ISLIN one and two trials evaluating Islotivir and Lenacapravir, a once-weekly oral two-drug treatment regimen in collaboration with Gilead. In cardiometabolic and respiratory, the September 21st Fidufa date for Winrevere for the label update based on the Phase III Hyperion study, and the Commissioner's National Priority Voucher process for enlicitide is progressing. In immunology, data for tulisocobart, our TL1A inhibitor based on the Phase III Atlas UC trial in ulcerative colitis, and Phase II Athena study in SSC IOD. Finally, in ophthalmology, data from the Phase III Brunello study of MK3000, our novel Wnt agonist being evaluated in patients with diabetic macular edema, and the Phase II portion of the Rioja study of MK8748 being evaluated for the treatment of patients with certain retinal diseases. I look forward to providing further updates throughout the year, and now I will turn the call back to Peter.

Thanks, Dean. Julie, we're ready to start the Q&A now. We'd appreciate if analysts would limit themselves to a single question today so we can conclude the call at the top of the hour.

Thank you. Ladies and gentlemen, if you wish 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 star 1. One moment, please, for our first question. Our first question comes from Carter Gould with Cantor. Your line is open.

Good morning. Thanks for taking the question. Maybe let's start on the pipeline on MK3000. How are you thinking ultimately about dosing? The one-year Brunella data is likely not going to inform much on duration interval, and the Lucentis comparison is going to leave lots of questions unresolved. I fully appreciate that 40% have suboptimal responses to VEGF, But can this reach your targets if it ultimately requires every four-week dosing? Or put differently, are there reasons you have conviction about every eight-week or every 12-week dosing? Thank you.

Thank you very much. So just stepping back, MK3000 is our potential first-in-class novel candidate targeting Wnt pathway for retinovascular disease. Almost all the other mechanisms are based on VEGF. And as you highlighted, you know, up to 40% have suboptimal response to VEG-S. In terms of dosing frequency, when one sort of does these trials, one starts at every Q4 weeks, and upon doing that, then you go further from that. So we believe that one should focus on Q4 weeks, but one should not only focus on Q4 weeks. So your question, which I think alludes to, are we considering other frequencies? The answer is absolutely yes, but the initial focus is 24 weeks because that is very important to getting to the label. I just want to also highlight really quickly that it's not just MK3000, it's MK8748, which is the novel bispecific directly agonizing TIE2 that we're also excited about, and that as well as advancing in Phase 2b-3 trials in retinolvascular disease.

Great. Thanks, Carter. Next question, please.

Thank you. Our next question comes from Jason Gerberry with Bank of America. Your line is open.

Hey, guys. Thanks for taking my question. I had a question on the Wellerreg clinical update on LightSpark 12 recently provided, and I wanted to get your sense, you know, does this provide any concerning read-throughs some of the ongoing readouts. First, you know, LightSpark 022, the ability to see OS benefit there. And also, you have another frontline study with Wella Reg Zanza, albeit in a post-PD-1 setting. So, just kind of curious if you can speak to some of the read-throughs to some of the ongoing trials. Thanks.

Yeah, we were having a hard time hearing you, Jason. Let me restate the question, and then I think I'll get it. I think what you were asking, given the LightSpark 12 outcome, how does that make us think about getting OS in some of the upcoming LightSpark studies and, you know, what's our overall view as it relates to OREG? Dean, I think that's what he was trying to ask.

Thanks, because I could not hear quite well. In relationship to the other ones like LightSpark 022, LightSpark 011, which have to do for dates in June and October, I think we're very bullish in relationship to how those will turn out and also in relationship to the question that you have of what's the readout of this trial that had three agents involved, which is a PD-1, a VEGF-TKI, and a HIF-2-alpha. I think we are studying that data, but I would be very cautious to sit there and say that has any negative implications to other trials where, for example, we have a VEGF-TKI and Well-A-Reg or a PD-1 and Well-A-Reg.

Great. Thanks, Jason. Next question, please.

Thank you. Our next question comes from Michael Yee with UBS Securities. Your line is open.

Great. Thank you. As we think about coming up to ASCO, where you will obviously have your SAC-PMT featured in lung cancer, of course, obviously PD-1, VEGF also featured in a plenary as well from a competitor. How are you thinking about the dynamic of SAC-TMT in the context of PD-1 VEGFs and your own Lenovo asset? Maybe just give us a stand on these two types.

Yeah, so I'll answer the question too individually, but I will also answer what I think you're alluding to is the possibility of combinations of the two. So in relationship to the PD-1 VEGF, we're very interested in the space. We shared some encouraging early data at AACR, and our construct of the leading PD-1-VEGF is most similar to ours. And so we're looking at our own data, but to be frank, we're also looking at the broader field as well. And so we're eager to move PD-1-VEGF forward in our trials. And, you know, one of the issues that we think in our hands of PD-1-VEGF. If it should be better than Keytruda, we have a plethora of agents that would benefit from a combination with either Keytruda or a Keytruda Plus or a PD-1-VEGF. So we're advancing that. In relationship to SAC-TMT, I believe that at the ASCO, our strong partner and collaborator, KELIN, will provide optotrope Lung 05 in first-line non-small cell lung cancer, and I think people will look at that data very carefully because it may reflect on our global trials, which are not just within China but throughout the globe. In relationship to the question that you said, is there any possibility of thinking about combining those two? The answer is absolutely yes, developing the information, and also taking a scan to the outside world as to where and when to best combine a PD-1 VEGF with the rest of our portfolio.

Great. Thanks, Michael. Next question, please.

Thank you. Our next question comes from Asad Hayter with Goldman Sachs. Your line is open.

Great. Thanks for taking the question, and congrats on all the progress. Maybe just a high-level one back to BD, you've been fairly active across a number of different areas and you're saying you're ready to pursue additional transactions. So just level set up on where you still see the biggest gaps in your portfolio that could benefit from more BD as you scan the therapeutic landscape. What's the sweet spot now in terms of deal size?

And is there a point at which the BD lever starts to diminish in importance just given your growing confidence in the growth trajectory out to the mid part of the next decade with the portfolio transformation that's already underway thank you yeah i appreciate the question you know i would just start by saying we are very confident in the in the assets we have the new assets we brought in through business development as well as the continuing progress we're making uh with our with our pipeline so um that that continues and that grows that said we also continue to focus on business development And as we've said in the past, we don't necessarily target specific therapeutic areas as the first question we ask. We always ask the first question, which is where do we see a significant unmet scientific opportunity where the science is compelling and can address. And in doing that, that allows us to think about where to focus. So we start with the science, we then ask the question, how does it fit strategically, and then move to the value question, and where we see science and value in line, we move. So that has not changed. Our approach remains to be that as our focus. From a size perspective, we continue to look anywhere in the $1 to $15 billion range with that kind of being the sweet spot. But as we've consistently said, we have the capacity to go beyond that for the right strategic deal. And we will if and when we see that. So that is where we're looking as far as the therapeutic areas where we do continue to see interesting science. Obviously, oncology continues to be an area where there's a lot going on. We continue to look. Immunology is an area where we continue to see interesting opportunities, as well as cardiometabolic is probably the three most likely areas. But we are willing to be opportunistic beyond that as well. And I guess Peter did remind me of one other part. When will we have less urgency to do a deal? You know, my view is we can always do better. We can always grow stronger. And if we have the capacity, we will continue to invest. As Dean has said, you know, we think in terms of one pipeline, whether it's internal or external. And so that mix of internal plus external will be an ongoing part of our strategy. You will not see that change. Next question, please.

Thank you. Our next question comes from Vemil Devon with Guggenheim Securities. Your line is open.

Thanks for taking the questions. I'll just head on going back to Windrevere. Appreciate your comments about the cadence data in ACC. Just using the bright end in the updated thoughts on how the discussions with the FDA are going on moving forward with the phase program there. You remain confident on time to clinical worsening being can be the primary endpoint for the phase three. and then just maybe any sort of rough estimate on how long you think you'd actually take to execute a phase three program in this syndication?

Yeah, thank you very much. So in relationship to Winn-Rivera, I mean, it's reshaping the standard of care in PAH, and now the question is whether or not we can move it to a different segment of pulmonary hypertension, those people with heart disease. The patient population that we pick is a relatively small patient population of those patients who have pulmonary hypertension and heart disease, but it's probably one of the biggest unmet needs that I know of in this patient population who at least the way that I would describe it is a very different patient population than that of pH, and one could actually say is more complicated, is older, and has more comorbidity. We think that the cadence gives that proof of concept, As I had said previously, it's fine to talk about the primary endpoint reductions in PVR, but at least for me in this patient population, it will be very important to have the endpoints that allow someone, and when I mean someone, I mean patients, providers, and payers to really see a compelling conglomerate of endpoints in a time to clinical worsening. And that's where we will be having our discussions with the FDA. I think the other one that will be important is defining the inclusion criteria in relationship with the FDA and also the broader community in relationship to how do you actually operationalize the clinical trial, but also for everyone to be very clear that in our minds, this is a patient population that is an orphan inpatient population.

Great. Thanks, Vommel. Next question, please, Julie.

Thank you. Our next question comes from Dana Graybosh with Lyrinc. Your line is open.

I want to go back to ASCO and the data we're going to see from Colune, the Optitrope 105. You know, that's a China study. And I wonder what should we keep in mind as we look at those outcomes and how it could or could not translate globally any differences in what you're doing globally or any other things to keep in mind?

Yeah, thank you very much for that question. So just stepping up, you know, at a higher level, we think SAC-TMT, it is a trope to ADC, but we think that it has some important differentiation, and we believe that the SAC-TMT has a potential to be, I think Elliot has often said a cornerstone and Marjorie has said a workhorse ADC. And we have 17 phase three studies, 13 are in first movers. We have an in breast, non-small cell lung cancer, gyne, castric, and bladder. When we do our trials and when we speak to our close partner, Calhoun, we use the fact that they are in some sense doing signal finding in registrational trials in China. And we recognize China is different, but these are important data for us. In relationship to the exact details of the SAC-TMT and the KELIN, I would just remind you that the Optotrope Lung-O5, they will have data, but I think it's very important to sit there and go how one thinks through that in terms of how that would read out. We are following their data very much, but I think that we are guided. We are guided by the results. I do want to emphasize that in their optotrope, it's SAC-TMT plus Keytruda versus Keytruda in PD-L1 positive first-line non-small cell lung cancer. And it's very important that if one wants to do an ADC plus Keytruda versus Keytruda in the United States ex-China, one has to look at where a PD-1 and what's the range with which the PD-L1 cutoff is. And so for us, this is the first phase three combination study of SAC-TMT and Keytruda to read out. We have 50% of our TROF-FUSE studies are evaluating Keytruda combos. In our TROF-FUSE 007, our global study at SAC-TMT and Keytruda versus Keytruda in TPS greater than 50% in first-line non-small cell lung cancer. And I emphasize that simply because in the United States and ex-China, TPS greater than 50 percent is where Keytruda has an indication. Great. Thanks, Dana. Next question, please.

Thank you. Our next question comes from Steve Scala with TD Cowan. Your line is open.

Oh, thank you so much. What are the gating factors for FDA acceptance of the in-linked application. And Dean, can you speak to the changes that you're pursuing on titration? What shorter durations are you pursuing? And it's the 15 minutes you spoke to previously before or after administration of the drug. Thank you.

Yeah. So I will just say that the enlucitide, as we've set out, is we want to have the first and best-in-class potent oral PCSK9. It's designed in a very similar manner to the antibody, and the data from the phase threes, as we have discussed, I think lay out the value statement in relationship to its potency in terms of all the important lipoproteins. In relationship to the CNPV, the issue in relationship to the CNPV is just for all of us to understand that the CMPV process is a little bit different, which is we, it's almost like a rolling submission sort of way to think about it. And through that rolling submission, at the end of that sort of rolling submission, that's when the FDA sits there and gives you a letter and a PDUFA date. And so we are actively in those discussions with the FDA. And then as we normally do when we get formal acceptance of the complete file, which is a little bit different in the CMPV, we'll make an announcement. I will emphasize, I will emphasize that in our discussion with the FDA, what is very important to them is us really showing them that the CMPV program is important, that we're addressing an important U.S. public health crisis, that we're delivering innovative cures, and we're increasing domestic drug manufacturer and supply chain resilience. So those are all important to the FDA, and we are in really good conversations with them, and so I think that's well, and it's progressing well. I would imagine that our estimation that we could get an approval at the second half of this year, I see no reason to moment in time. In relationship to what you said, in relationship to this issue of how you would take it, we're also in the discussion with the FDA as to what the exact label is in relationship to how they will talk about prescriptions and when to take it and how to take it. And I don't want to get ahead of that conversation because those are extremely active conversations as we speak.

Thank you, Steve. Steve, next question, please.

This one comes from Chris Schott with J.P. Morgan. Your line is open.

Thanks so much for the question. I just wanted to touch base on TL1A. I think this one's got maybe a little bit less attention than some of your other late-stage readouts this year. But can you just talk a little bit about the role you're seeing TL1A playing in the IBD space? And maybe more broadly, when we think about immunology and IBD, there does seem to be more discussions about combination therapy as maybe the next step for the market. I'm just interested in Merck's approach here of kind of building on the TL1A as a think about a broader pipeline. Thank you.

Yeah, so I would begin to say that throughout the immunology sort of field, there are certain nodes that are really important. IL-23 is an important node. TNF is an important node. And that's, you know, that's how the field is set up. We wonder whether TO1A is such a node, and our hope is Tula Sokobar could be one of the first and best-in-class TO1As. So that's in that sort of framework. The other thing that you've just said I think is really important is that there is increasing interest in combining different of these nodes. This is something that was tried 10, 15, 20 years ago, and it didn't turn out well. but now the data suggests that in certain cases you could begin to combine. When you look at the AE profiles of Tula Sokobar, it's, you know, if you take the phase two data, not just our phase two data, but across the phase two data, you know, it is a member of the TNF super family, but, you know, from an AE profile, I might describe it as a kinder, gentler AE profile than other node OTNFs and with profound efficacy. So I think combinations will be important. In relationship to what we hope to see, in relationship to phase three ulcerative colitis and Crohn's disease, we have readouts coming out. We hope to be first movers, but I also want to emphasize that we also think that TL1A may be also distinguished not just to be an important node, But it may be important for not just inflammation or dampening, but also for fibrosis. And we have phase two data in SSC-ILD and in HS that's coming in 2026. And that hopefully will define the unique role or the unique position that T01 has with all the other major nodes.

Thank you, Chris. Next question, please, Julie.

Thank you. Our next question comes from Louise Chen with Scotiabank. Your line is open.

Hi, thanks for taking my question. I wanted to ask you about the Caden study. There was some debate on the results that you recently presented at a medical meeting, and I'm wondering what you think the street may be missing about the competitiveness of your product. Thank you.

So I'm not sure I know everything that you're referencing. In terms of the competitiveness of our product, I don't know how else to answer it is. I don't know from a competitive standpoint that there's any treatment for this patient population, and when I look out, I'm not so sure that I see something that will break that barrier. In terms of whether or not you can make a phase three that sort of models what happens in the phase two, I think that's where the focus is, and that's been the focus in our conversations with KOLs, but also the FDA, and there is a clear understanding that this patient population, this patient population is one with a tremendous unmet need. And so, I don't know that I would call it competitive sort of dynamic sort of thing. It's whether someone for the first time can have a compelling treatment for a patient population that is in dire need. Great. Thanks, Louise. Next question, please.

Thank you. Our next question comes from Uma Raffet. With Evercore, your line is open.

Hi, guys. Thanks for taking my question. I wanted to touch up on some incremental information that came out on your turns deal, which I don't think we discussed on the call you guys did earlier. And by my math, it looks like the incremental patients may have had an MMR achievement rate of something like 2 out of 10 or something along those Could you just speak to that drop and how does that change or not change your overall thoughts about the drug's profile? Because presumably that's like the real target population early in the launch.

Yeah, thank you so much for that. So I would just say that in CML, there's multiple approved therapies and it appears that there's significant unmet need. And the value proposition for us for TURN 701 is whether or not it had the potential to be a best-in-class allosteric TKI with high selectivity and improved therapeutic index. When data is presented at some of these meetings, initially when they're early, oftentimes they're stated in one way. But for us, it's really important to always look at that data, whether it's especially when you go to ASCO, AACR, or ASH. We look at it immediately in the eyes of how do you think in terms of registration, and it's very important to translate whatever the abstract says to what I would say a more conservative ITT population consistent with regulatory standards. Given that, what was laid out at these public congresses is turnstated to 75% MMR and 36% DMR achievement rate. As the data evolved and we were looking at very specific patient-level data, we believe that the MMR will be north of 50% and within the confidence interval, as had been publicly stated. And we think that an MMR in that sort of range is extremely compelling. And then the other point that I would just highlight is we also think that the DMR rate is also very interesting to look at, and whether or not this drug could not only create a best-in-class in relationship to MMR, but whether it could catalyze the field to increasingly think of DMR as a treatment goal. Great. Thanks, Umar. Next question, please.

Thank you. Our next question comes from James Shin with Deutsche Bank. Your line is open.

Hi, good morning, guys. Thank you for the question. Dean, I have a question. Can you help us distinguish MK6837 from SACTMT? And then just going back to the TL1A question, is there a view within Merck that TL1A could stand alone in immunology? Because from a market or commercial perspective, immunology seems to be very much a portfolio-driven strategy. You know, some of your peers have large portfolios, and there's a very competitive moat that's built with that. Thank you.

Okay, so let me ask, let me tackle the immunology question really clearly. We're very focused on T01A, but if you ask me, is T01A, is our ambition to stop at T01A, would we use T01A as a beachhead to expand and extend? The answer is we would undoubtedly move it to expand and to extend. We'd expand it from IBD to other conditions, and we would advance it to conditions where the combination of immunofibrosis would be really important. In relationship to other molecules, of course, if one had a leading T1A that could advance through the series of different indications that we have, then in each one of those indications, you would immediately think of what's the combinatorial partner, whether it be an IBD or HS or in SSC IOD, so we would immediately think about doing that as well. So we are focused on TL1A, but that focus does not create a situation where we're not thinking about not just whether we can be first and best, but what's next as well. Oh, and I think the other question was related to MK6837. Is that correct? I didn't catch the other one. MK6837 is another ADC which had a unique payload and we have discontinued that, especially when you see the profound impact of SAC TMT and also in relationship to, you know, we've always said that we're very interested in the ADC field changing, changing the target, but also changing the payload and thinking about combinatorial or cycling different payloads as the field moves on in the antibody drug conjugate field.

Maybe I could just add one little bit as a teaser maybe to what you'll see as we go into next year and beyond. You know, in our invisible pipeline we often refer to, we have other assets in the immunology space that you're not seeing right now. So just to reinforce Dean's point, we aren't just a TL1A company. We have other things in development beyond that. And as we move forward in time, you'll start to get a better sense of that as we unleash that as it moves into phase two.

All right. Thanks, James. We'll squeeze one last question in before we end the call.

Thank you. Our last question comes from Jeff Meacham with Citibank. Your line is open.

Morning, guys. Thanks for the question. Dean, in HIV, just given the recent approval of Advine, so can you talk about how you guys see the competitive setup? And related, I know you have PrEP coming up, but how much of a strategic priority is HIV and infectious disease when thinking about the overall BD strategy?

So in terms of our interest in HIV, there is a profound interest in really in our HIV program. And for those of you who've talked to Elliot Barr, the chief medical officer, I think you can feel that just in his presence. This Lachivir is a next-generation nucleoside reverse transcriptase inhibitor. It blocks translocation, and we have the daily program. And increasingly, there is interest in going from a three-drug daily program to a two-drug. And of the two-drug daily programs, I think we're the only ones without an INST-D backbone. So I think that's very important. Critically also important is that we believe Islatravir can anchor Q-weekly. And you see it in Islatravir-Lenacapravir, which is a two-drug combo, which hopefully will be the first Q-week. And then Eslachivir with ULO, which is in development, and there will be data being presented, I think, in due course. You know, it could be the smallest pill, could be favorable DDI profile and be extremely effective. And then, as you said, to me, the monthly, if you could have 12 pills and protect people with MK8527, I think that would just be such an important contribution as a commercial product, but also as a global product for public health throughout the world. So if the question is, are we committed and are we passionate about our HIV program, I hope that you heard from the tenor of my response. The answer is unequivocally yes.

Great. Thanks, Jeff, and thanks, everybody. Apologies for going over a few minutes. Give us a call if you have any follow-up questions. Thank you.

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