CLAIM #43446 · Merck & Company Inc (MRK) · 2024Q2 earnings call · Jul 30, 2024 · due Dec 31, 2025
“the current contracted doses with Zhifei for 2025 are less than what the contract is for 2024 as we would expect to participate in that market but understand a competitor would likely gain share in that market.”
Caroline Litchfield · CFO
In context
“we have always expected that as we see the peak move through from the indication we got for the expansion of the age cohort that you would see a flattening out over time of the demand in China. And then that for women, specifically, and then we would bring on the male indications that should allow us then to continue to drive the business forward from there. Nothing has changed in that dynamic in what we're seeing right now. So as we look forward, our belief in China being a significant contributor is unchanged. But I'll let maybe Caroline can speak specifically as we're thinking about some of the guidance around how we think about next year. Caroline Litchfield: So what I would add is we have always contemplated that we would have a 9-valent competitor within the Chinese market. As such, the current contracted doses with Zhifei for 2025 are less than what the contract is for 2024 as we would expect to participate in that market but understand a competitor would likely gain share in that market. We also, though, as we said in the prepared remarks, has the potential opportunity of a male launch in China. And we are hopeful for an approval with GARDASIL 4 and 9 by first half of next year and be coming to the market at that stage. So we are confident that China will remain an important part of our GARDASIL business as we move forward, and more importantly, are confident in the opportunity to drive GARDASIL longer term to the $11 billion that we've stated. Rob Davis: Yes. And maybe, Umer, just to give one little bit of color because it's probably worth pointing out, I'm assuming people understand when we talk about the anti-bribery and anticorruption what is happening. And one question that could be there is this has been going on since late last year, and we did not see impacts earl”
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SEC filings for MRK ↗ · Claim quote is verbatim from the 2024Q2 earnings call.