NIKKEI AVERAGE IN JAPAN UP
ALMOST 1% COST OF HEALTH CARE
WE ARE LIVE AT THE J.P. MORGAN
HEALTHCARE CONFERENCE IN SAN
FRANCISCO, "THE WALL STREET
JOURNAL" WITH FWHOOU OP-ED
CALLED DRUG PRICE CONTROL
THREAT, IT IS QUESTIONING
WHETHER OR NOT NEW CONGRESS
CAN COME TO YOU A BIPARTISAN
AGREEMENT OVER RISING DRUG
PRICES AND SAY BASICALLY THIS
IS THE ONE THING THAT SEEMS
THAT EVERYBODY AGREES ON.
PUTTING A CAP ON DRUG PRICES
JOINING ME IS CEO OF MERCK KEN
FRAZIER, GREAT TO SEE YOU.
>> ALWAYS GOOD TO BE HERE.
>> HAVE THANK YOU SO MUCH FOR
BEING HERE AGE-OLD QUESTION
HOW DO WE GET DRUG PRICES
HIRE?
YOU FEEL IF YOU PUT CAPS ON
THINGS GOING TO STYMIE
INNOVATION IS THAT RIGHT.
>> THAT IS ABSOLUTELY CORRECT.
LET ME START BY SAYING, WE
WANT TO WORK WITH THE
ADMINISTRATION, AND CONGRESS
BOTH PARTIES, TO ENSURE THAT
PATIENTS CAN HAVE MEANINGFUL
ACCESS TO DESTRUCTION ABOUT
AFFORDABILITY IS A PROBLEM,
THE QUESTION IS HOW DO WE
SOLVE THE PROBLEM WITH DAY'S
PATIENTS WITHOUT CREATING A
PROBLEM IN TERMS OF DEVELOPING
NEW DRUGS FOR ALZHEIMER'S
DISEASE OTHER THINGS
TOMORROW'S PATIENTS NEED.
>> I TOTALLY AGREE HOW ARE YOU
GOING TO GET SOMEBODY TO PUT
THEIR OWN CAPITAL ON THE LINE
TO PAY FOR, RESEARCH AND
DEVELOPMENT, OF NEW DRUGS IF
THEY THINK AT THE END OF THE
DAY THEY ARE NOT GOING TO MAKE
MONEY ON.
>> IT THAT IS ABSOLUTELY
RIGHT, I MEAN WE HAVE TO ASK
PEOPLE TO PUT A LOT OF CAPITAL
UP HIGH RISK FOR LONG PERIODS
OF TIME THERE ARE WAYS WE CAN
GO ABOUT IT I THINK WORKING ON
THE AFFORDABILITY ISSUE,
WITHOUT IMPORTING PRICE
CONTROLS FROM OTHER COUNTRIES.
>> HOW DO YOU DO THAT.
>> ONE ARTICLE IN THIS ONE
LINE IN THE ARTICLE WAS UNDER
BERNIE SANDERS' BILL HHS
SECRETARY COULD BREAK THE
PATENT OF ANY DRUG, THAT IS
EXCESSIVELY PROOIFD JUDGING BY
PEAK WOULD INCLUDE ALL OF
THEM.
>> I THINK IF YOU LOOK AT WHAT
HAPPENS OUTSIDE THE UNITED
STATES, PEOPLE SAY WELL GREAT
BECAUSE THE DRUGS ARE CHOPPE
BECAUSE THE DRUGS ARE CHEAPER
THEY DON'T UNDERSTAND HOW
OFTEN GOVERNMENTS PUT
RESTRICTIONS ON PATIENTS
GETTING ACCESS TO NEW DRUGS.
IN UNITED STATES IN CANCER
FIELD WITH DRUG WHEN WE ARE
ABLE TO PROVE IT IS USEFUL IN
A TIMER TYPE IT BECOMES
AVAILABLE ESSENTIALLY
IMMEDIATELY.
WE HAVE SITUATIONS, IN
EUROPEAN COUNTRIES WHERE THEY
HAVE TO 18 MONTHS, TWO YEARS I
DON'T WANT TO IMPORT THOSE
SYSTEMS.
NOW WHAT WOULD WORK IN THIS
COUNTRY IN MY OPINION ISSUE
MARKET-BASED SOLUTIONS WHAT DO
I MEAN BY THAT GREATER
AVAILABILITY FOR EXAMPLE OF
GESHG DERISIO
GESHG --RISIO
GESHG -- DSIO
GESHG -- DRUO
GESHG -- DRUGS CHANGING THE
VALUE BASED SYSTEMS FOR
PAYMENTS TO ENSURE THAT WE ARE
ONLY BEING PAYING FOR WHATEVER
IN HEALTH CARE ACTUALLY
PROVIDING VALUE, THOSE ARE THE
KINDS OF SOLUTIONS AND I THINK
REALLY IMPORTANTLY, THIS
IMPORTANT MARIA TO UNDERSTAND,
THAT ABOUT 1150-BILLION-DOLLAR
REBATES INTO SUPPLY CHAIN WE
NEED TO CHANGE INCENTIVE IN
SPY CHAIN SO MORE MONEY GETS
PASSED TO PATIENTS AT THE
ACTUAL PHARMACY COUNTER THOSE
ARE THINGS THAT WE CAN DO
WITHOUT DESTROYING THE ENTIRE
SYSTEM AND DESTROYING THE
INCENTIVES FOR TOMORROW'S
INNOVATION.
>> YOU MAKE GOOD POINTS, A
GAME-CHANGER A LIFESAVER
LITERALLY WHERE ARE WE IN
FIGHT AGAINST CANCER RIGHT
NOW.
>> WE HAVE REALLY GOOD NICE,
SO I KNOW WE HAVE SHOWN
ALREADY THAT MONOTHERAPY IN
COMBINATION WITH CHEMOO CAN
SIGNIFICANTLY REDUCE AMOUNT OF
DEATHS ARE REPUBLICA
DEATHS ARE ARPUBLICA
DEATHS ARE ARE BLICA
DEATHS ARE ARE REICA
DEATHS ARE ARE REPUA
DEATHS ARE ARE REPUBLICAN OF.
>> WE ARE ABLE TO REDUCE DEATH
RATE 51% DEMONSTRATE VALUE IN
NINE OTHER TRURMZ BEYON
NINE OTHER TUMRMZ BEYON
NINE OTHER TUMORZ BEYON
NINE OTHER TUMORS BEYON
NINE OTHER TUMORS WEYON
NINE OTHER TUMORS WE KNOW
ACTIVITY IN 25 TUMORS WE HAVE
900 STUDIES GOING FORWARD TO
PRICING ISSUE WE CAN'T AFFORD
TO DO THAT, IF WE ARE NOT ABLE
TO GET A RETURN, THAT KEEPS
THE MARKET INTERESTED IN OUR
BUSINESS.
>> THAT IS FANTASTIC I KNOW
PUSHBACK IT IS EXPENSIVE
140,000 DOLLARS A YEAR.
>> IT IS ABOUT 125, 130,000
THE QUESTION IS IF YOU TAKE A
NEWLY DIAGNOSED PATIENT NOT
GOING TO DIE COMPARE THAT COST
TO WHAT IT COSTS FOR PATIENT
TO GET PROGRESSIVELY SICKER TO
DIE HOSPICE EVERYTHING ELSE WE
CAN'T AFFORD CANCER NOT CANCER
MEDICINES WE CAN'T AFFORD.
>> GOOD PAY TO PUT IT I
UNDERSTAND, MERCK PFIZER AS
WELL BIGGEST GAINERS OF 201
YOU HAD A GOOD YEAR 38%, 22%
RESPECTFULLY TELL ME WHAT
DROVE THAT PERFORMANCE WHERE
GROWTH AT MERCK COMES FROM IN
'19 ON 5 ARE 20.
>> INNOVATION NEW DRUGS VOLUME
FROM NEW DRUGS, THIS IS ONE
THAT MARKET LOOKS FOR, IN MOST
PEOPLE IDENTIFY WITH MERCK WE
HAVE SO MUCH MORE WE ARE NOT
JUST A STORY, LET'S START WITH
ONCOLOGY ASTRAZENECA, TARGETED
MECHANISMS THAT ARE USEFUL
ACROSS AGAIN TUMOR TYPES
BEYOND THAT 20 NEW CANCER
MEDICINES COMING IN PIPELINE,
THAT GUARDICIL AROUND 10 YEARS
VIEWED AS ANTICANCER VACCINE,
PEOPLE WANT TO USE IT FOR BOTH
MALES AND FEMALES AROUND THE
WORLD WE ARE LAUNCHING IT IN
NEW MARKETS INCLUDING CHINA,
WE HAVE A BIGGER PIPELINE THAN
EVER IN HISTORY, THEN, IN
HOSPITAL ESPECIALLY WE HAVE
ISSUES LIKE NEW DRUG REVERSES
MUST COULD YO
MUST K
MUST COULD YOU MUSCULAR BLOCK
AIDES HOW DO YOU GET THEM TO
BREATHE THAT DRUG A WONDERFUL
JOB FANTASTIC STUFF.
>> ANIMAL HEALTH PUT TOGETHER
PARTLY BY ACQUISITION TELL ME
ABOUT THAT AMAZING HOW MUCH
GROWTH THERE IS IN THIS
BUSINESSPEOPLE WILL SPEND
ALTERS OF MORE THAN AMOUNTS OF
MONEY.
>> COMPANION ANIMAL PRODUCTION
ANIMAL BUSINESS, THE WORLD
DOESN'T HAVE MORE ROOM TO
CREATE PROTEIN WE HAVE TO BE
ABLE TO RAISE CHICKENS PIGS
CATTLE TO MEET THE GROWING
POPULATION THAT SQUARELY WHERE
WE ARE FOCUSED AS WELL AS ON
THE COMPANION ANIMAL SIDE.
>> QUICK ON ALZHEIMER'S THIS
IS SOMETHING TOUCHES SO MANY
PEOPLE OUT THERE, I KNOW THERE
WAS A FAILURE RECENTLY, WHAT
DO WE NEED TO SEE IN TERMS OF
UNDERSTANDING MORE ABOUT THE
BRAIN, AND GETTING ARMS AROUND
SOME NEUROLOGICAL DISEASES.
>> I THINK WE NEED TO
UNDERSTAND FUNDAMENTALLY HOW
BRAIN WORKS THE PATHOLOGY
BEHIND ALZHEIMER'S THE FACT
THAT WE HAD A FAILURE LATE
STAGE COMPOUND HAS NOT DID HE
TERD MERCK, COMING BACK TO THE
BEGINNING WE NEED TO HAVE A
SYSTEM THAT ALLOWS US TO
CONTINUE TO GO AFTER REALLY
DIFFICULT ISSUES.
>> GREAT TO HAVE YOU ON THE
PROGRAM.