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2 Live the Legacy. Live the Legacy. Protect the Future. Mike Nally, President, Global Vaccines December, 2017
3 This presentation of Merck & Co., Inc., Kenilworth, N.J., USA (the company ) includes forward -looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of These statements are based upon the curr ent beliefs and expectations of the company s management and are subject to significant risks and uncertainties. There can be no guarantees w ith respect to pipeline products that the products will receive the necessary regulatory approvals or that they will prove to be commerciall y successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from thos e set forth in the forward-looking statements. Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents atta ined by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company s ability t o accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward -looking statements can be found in the company s 2016 Annual Report on Form 10-K and the company s other filings with the Securities and Exchange Commission (SEC) available at the SEC s Internet site ( 3
4 Our scientists were among the first to discover and develop medicines for the treatment of HIV Today, a future where HIV/AIDS can be a manageable illness is closer, in part, because of Merck s response to the crisis Number of people living with HIV on antiretroviral therapy 17 Million People living with HIV 36.7 Million Only 60% of HIV infected people know of their status 4
5 The surest remedy for any disease is to invent the best medicine or vaccine and ensure that the broadest number of patients have access to it 5 16, M 37% 40M 15M Years increase in Global Life Expectancy between 2000 to 2015 Children under age 5 died everyday due to lack of simple interventions such as Medicines and Vaccines Annual Deaths due to Hepatitis Estimated 257M & 71M with chronic HBV & HCV infection. Deaths in low-income countries caused by Non-Communicable Diseases (NCDs) - Cardiovascular, Cancers, Diabetes or Chronic lung diseases Or 70% of all global deaths were due to NCDs 43% of all NCD deaths occurred before the age of 70 Or 31% of all global deaths due to Ischaemic heart disease and stroke 5
6 US National Healthcare Budget Only Allocates ~1% For Vaccination Programs But Delivers 5 Times As Much In Savings Expenditure, 2009 Childhood Vaccination Program Benefits 1 National Health Expenditure $ 2.5 Trillion Prescription Drug Expense $250 Billion Vaccines ~$19 Billion Cases Prevented ~ 20 Million Deaths Prevented ~ 42, 000 Direct Costs Saved $20 Billion Societal Costs Saved (Direct + Indirect) $ 76 Billion Additional $25.5 Billion In Direct Costs Can Be Saved By Improving Uptake Of Adult Vaccines 2 1 Zhou, F., et al. (2014). Economic Evaluation of the Routine Childhood Immunization Program in the United States, Pediatrics, 133(4). Diseases Evaluated: Diphtheria, Tetanus, Pertussis, Hib, Polio, Measles, Mumps, Rubella, Congenital Rubella Syndrome, Hep B, Varicella, HepA, Pneumococcus-related diseases & Rota 2 Estimated Human and Economic Burden of Four Major Adult Vaccine-Preventable Diseases in the United States, 2013 McLaughlin, JM, McGinnis, JJ, Tan, L, Mercatante, A., Fortuna, J., J Primary Prevent Diseases Evaluated: Influenza, pneumococcal disease (both invasive disease and pneumonia), Herpes zoster (shingles), and Pertussis (whooping cough) 6
7 FOR MORE THAN A CENTURY, MERCK HAS BEEN INVENTING TO SOLVE SOME OF THE GREATEST CHALLENGES TO PEOPLE S HEALTH AND WELL-BEING AROUND THE WORLD. HEADQUARTERS Kenilworth, NJ, U.S.A. operating in more than 140 countries Merck & Co., Inc. is our legal name and is listed on the New York Stock Exchange under the symbol "MRK. EMPLOYEES approximately 69,000 BUSINESSES Vaccines, Prescription medicines, Biologic therapies, Animal Health products 7
8 20 Years of commitment to ongoing HPV clinical development PROOF OF CONCEPT STUDIES (MONOVALENT VACCINES) WOMEN, YEARS QUADRIVALENT HPV VACCINE WOMEN, YEARS GIRLS/BOYS, 9-15 YEARS QUADRIVALENT HPV VACCINE WOMEN, YEARS MEN, YEARS 8/9-VALENT CANDIDATES SELECT DOSE 9-VALENT HPV VACCINE WOMEN/MEN, YEARS GIRLS /BOYS, 9-15 YEARS By expanding the scope of HPV prevention, GARDASIL 9 makes HPV cancer elimination a realistic Public Health Goal Gardasil & Gardasil 9 were developed over two decades Gardasil was licensed in females in 2006, and in males in 2009 Gardasil 9 was licensed in 2014, & as a 2-dose schedule in VALENT HPV VACCINE GIRLS /BOYS, 9-14 YEARS (2- DOSE SCHEDULE)
9 The New Health Economy is challenging pharma companies to better manage data, place a value on medical treatments, and deal with empowered patients Commercial Environment Scientific capability for new disease areas Sustainable Funding Reliable Quality Supply Disruptive Technologies Investment Cycles 9
10 MERCK F O R MOTHERS MECTIZAN DONAT ION PROGRAM We believe we have an important role and responsibility in improving access to medicines and vaccines and improving quality health care worldwide. U.S. PAT I ENT ASSISTANCE PROGRAM MERCK F ELLOWSHIP F O R G LOBAL HEALT H MSD-WELLCOME T RUST HILLEMAN LABORATORIES AFYA RABIES I NITIAT I VE Our key initiatives reflect that belief. 10
11 KEY INITIATIVES MSD-WELLCOME TRUST HILLEMAN LABORATORIES LAUNCHED IN 2009 focused on low-cost vaccines treating a number of diseases This first-of-its-kind, nonprofit, R&D joint venture is focused on creating new vaccines, and adapting existing vaccines for low-income countries. 11
12 OUR CONTRIBUTIONS IN FIGHTING EBOLA CREATING NEW PARADIGMS OF PARTNERSHIPS & DRUG DEVELOPMENT During the 2014 Ebola outbreak, we worked in an unprecedented partnership with the international health community and committed to advancing a vaccine candidate to fight a global health emergency JULY 2016 FDA granted the Ebola vaccine candidate, rvsv-zebov-gp (V920) Breakthrough Therapy Designation, and the EMA granted it PRIME (PRIority MEdicines) status, enabling the company to continue to accelerate development of the vaccine candidate. DECEMBER 2016 The Lancet published final results of the 2015 Guinea Ebola clinical study, showing promising efficacy of Merck s investigational vaccine against Ebola Zaire in a ring vaccination trial. MAY 2017 The WHO declared another Ebola outbreak in the Democratic Republic of the Congo (DRC). 300,000 emergency doses of Merck s investigational vaccine could be available in case of a large-scale outbreak. The story continues to develop. 12
13 Commitment to supply GARDASIL & Rotateq to Gavi markets to help our common goal to save lives Vaccine implementation support to Gavi countries Over 30 Million Doses of Gardasil and Rotateq Have Been Distributed In Gavi-eligible Countries Through 2016 Over 10 Million Lives Touched Upon licensure, MSD has pledged to make the Ebola vaccine available to the world s poorest countries (Gavi-eligible) at the lowest possible access price 13
14 THANK YOU
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