#1Merck Investor Day MERCK INVENTING FOR LIFE#2FORWARD-LOOKING STATEMENT OF MERCK & Co., Inc., Kenilworth, N.J., USA MERCK INVENTING FOR LIFE These presentations from Merck & Co., Inc., Kenilworth, N.J., USA (the "company") include "forward- looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline products that the products will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those 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 attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company's ability to 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 2018 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 (www.sec.gov). 2#3TODAY'S AGENDA Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda Q&A / Closing Remarks All MERCK INVENTING FOR LIFE Lunch Break All Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China Additional members of the Merck leadership team to join after Q&A 3#4AFTER MORE THAN 125 YEARS, OUR MISSION REMAINS AS CRITICAL AS EVER To discover, develop and provide innovative products and services that save and improve lives around the world Grace MICROLAB STAR Premier science-driven biopharmaceutical company MERCK Ken Frazier | INVENTING FOR LIFE 4#5TODAY'S INDUSTRY LANDSCAPE CHALLENGES OPPORTUNITIES Rising cost of healthcare and R&D Pricing policy uncertainty and shift to outcome-based reimbursement in the U.S. Increased molecular target complexity Intensified generic and biosimilar competition High unmet medical needs of patients globally Growing and aging global population New modalities and technologies accelerating innovation More efficient and effective clinical trial design through advanced data analytics MERCK Ken Frazier INVENTING FOR LIFE 5#6EVOLUTION AT MERCK OVER THE LAST 5 YEARS ✓ Revitalized focus on science-driven, integrated approach to R&D Solidified leadership across key pillars of growth Strengthened operating model to drive execution globally Built energized leadership team and deep bench of talent Strong momentum for continued growth MERCK Ken Frazier I INVENTING FOR LIFE 6#7CLEAR STRATEGIC PRIORITIES TO DRIVE CONTINUED LEADERSHIP QUO MERCK Ken Frazier INVENTING FOR LIFE Advance pipeline for ongoing scientific breakthroughs Unlock full commercial potential of portfolio Drive simplification and culture change Deliver sustainable, profitable growth 7#8Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda All Q&A / Closing Remarks Lunch Break All Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China MERCK INVENTING FOR LIFE 8#9WELL POSITIONED TO DELIVER STRONG SHAREHOLDER RETURNS Kil 容 Sustained long-term Meaningful revenue growth operating margin expansion $ Balanced and disciplined capital allocation Investing in the business to innovate for patients globally MERCK Rob Davis INVENTING FOR LIFE 9#10GROWING REVENUE DRIVEN BY DEMAND FOR INNOVATION IN THE FACE OF PRICING HEADWINDS ONCOLOGY VACCINES HOSPITAL / SPECIALTY¹ ANIMAL HEALTH MERCK INVENTING FOR LIFE Leading oncology portfolio with significant growth potential Durable growth with significant competitive advantages Broad portfolio delivering demand-driven growth Global leader delivering above-industry growth rates Expect strong revenue growth every year, including 2023 - the year of greatest impact of JANUVIA LOE 1 Includes specialty products in the pipeline that have not yet launched Rob Davis 10#11FORTIFYING OUR FUTURE AHEAD OF THE CHANGING LANDSCAPE Becoming a leaner, more efficient, science-driven company to accelerate growth • Focusing organization and resources on greatest opportunities for growth • Evolving operating model and culture to be more agile and efficient • Building optionality for next wave of innovation Leveraging new digital capabilities and automation Better enable innovation Expand customer and patient reach • Enhance supply chain efficiencies • Simplify back office operations Creating headroom for innovation and sustainability of our mission MERCK Rob Davis INVENTING FOR LIFE 11#12MERCK INVENTING FOR LIFE EXPECT MEANINGFUL OPERATING MARGIN EXPANSION & INCREASED ROIC 30% Non-GAAP SG&A as % of sales 40% Non-GAAP Operating margin expansion (%) Return on Invested Capital (%)¹ 2014 2015 2016 2017 2018 2021 2022 2023 2014 2015 2016 2017 2018 2021 2022 2023 20% Non-GAAP R&D as % of sales 2014 2015 2016 2017 2018 2021 2022 2023 14% 12% 11% 10% 8% Rob Davis 2015 2016 2017 2018 2023 12 2014 1Excludes BD & Goodwill#13VALUE-CREATING CAPITAL ALLOCATION STRATEGY Commitments R&D Investments: Continued investments in internal innovation CapEx: ~$16 billion of capital projects through 2022 focused on manufacturing capacity for our growth businesses, R&D discovery buildout and IT infrastructure Dividends: Target payout ratio of 47%-50% over time Discretionary Business Development: Value-creating, bolt-on acquisitions and strategic collaborations to further Capital allocation priorities over the next 5 years Financing Activity MERCK INVENTING FOR LIFE enhance portfolio and pipeline Share Repurchases: Return excess cash to shareholders After-Tax R&D CapEx Dividends 'Assumes financing consistent with A1 rating Excess Capital for BD & Share Repo¹ Expect to generate significant free cash flow over the next 5 years Rob Davis 13#14STRATEGIC BUSINESS DEVELOPMENT FUELING INNOVATION Bolt-on acquisitions Developing portfolio through value-creating acquisitions Investments in innovative mechanisms and technologies Strategic collaborations and licensing Meaningful partnerships across all stages of development Working with a broad range of partners from academia to biotech to pharma Peloton Therapeutics IMMUNE DESIGN Antelliq Viralytics Developers of Oncolytic Immunotherapies Afferent Tilos THERAPEUTICS Vallée Rigontec GmbH HARRISVACCINES AstraZeneca K moderna KalVista PHARMACEUTICALS messenger therapeutics Eisai SUTRO NGMBIO BIOPHARMA BAYER BAYER TEIJIN ¹Peloton expected to close in 3Q 2019 Completed ~60 transactions in 2018 spanning acquisitions, licensing, technology deals and clinical collaborations MERCK INVENTING FOR LIFE Rob Davis 14#15POSITIONED TO DRIVE SUSTAINABLE GROWTH AND SHAREHOLDER VALUE SE 彩彩 Sustained long-term revenue growth including 2023 – the year of greatest impact of JANUVIA LOE - Meaningful operating margin expansion through strong revenue growth driving favorable mix and further leveraged by expense productivity, thoughtful resource allocation and simplification Value-creating capital allocation strategy to enable growth and return of capital to shareholders MERCK Rob Davis INVENTING FOR LIFE 15#16Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda Q&A / Closing Remarks All Lunch Break All Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China MERCK INVENTING FOR LIFE 16 16#17COMMERCIAL PRIORITIES TO DRIVE FURTHER GLOBAL GROWTH M Build on leading position across key growth pillars Capitalize on global growth opportunities Successfully execute new launches MERCK Frank Clyburn INVENTING FOR LIFE 17#18CURRENT PILLARS HAVE EXPANSION OPPORTUNITIES AHEAD M ONCOLOGY VACCINES H MERCK Frank Clyburn INVENTING FOR LIFE HOSPITAL PORTFOLIO Visibility into growth drivers over the next 5 years 18#19ONCOLOGY: DRIVING GLOBAL LEADERSHIP KEYTRUDA (pembrolizumab) Injection 100 mg Lynparza B olaparib tablets 150 mg Foundational cancer treatment 27 Indications LENVIMA (lenvatinib) capsules 10 mg and 4 mg 15 Tumor types + MSI-H Market-leading Broad-based PARPI TKI >200K Patients treated Strong foundation with long runway for growth ahead INVENTING FOR LIFE MERCK # Frank Clyburn 19#20KEYTRUDA: SIGNIFICANT GLOBAL GROWTH OPPORTUNITIES • Building on leadership in lung with additional reimbursement rolling out across Europe and other markets $10,000 KEYTRUDA is one of the best-selling drugs 6 years after launch $9,000 • Encouraged by early adoption in RCC and adjuvant melanoma launches $8,000 $7,000 • Excited to extend H&N leadership with recent 1L approval $6,000 Indications expected to more than double over next 5 years O Earlier lines of therapy, including adjuvant / neoadjuvant 。 New combinations 。 New tumor types $5,000 $4,000 $3,000 $2,000 $1,000 KEYTRUDA (pembrolizumab) 100 LIPITOR atorvastatin calcium OPDIVO. (nivolumab sabers $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Source: Evaluate Pharma; KEYTRUDA Year 6 sales represent 1Q 2019 sales annualized. Sales in $ billions and not inflation adjusted MERCK INVENTING FOR LIFE # Frank Clyburn 20#21LYNPARZA: SET FOR SUSTAINED CLASS LEADERSHIP MERCK INVENTING FOR LIFE • • ● • Lynparza has class leadership in the U.S., with ~60% of total PARPi prescriptions The only PARPi with 1L maintenance indication in ovarian cancer based on strong results from SOLO-1 POLO data represents new opportunity in gBRCAm pancreatic cancer patients Additional indications with monotherapy and combinations with KEYTRUDA to drive significant growth going forward Growth opportunities across multiple tumor types Pancreatic cancer Prostate cancer and more In collaboration with AstraZeneca Ovarian cancer Breast cancer # Frank Clyburn 24 21#22LENVIMA: ESTABLISHING AS TKI OF CHOICE MERCK INVENTING FOR LIFE and more ... • • . • Approved in markets worldwide in RCC, HCC and differentiated thyroid cancer Significant opportunity in China given prevalence of HCC in the market Strong commercial collaboration sets foundation for execution in many future indications 13 studies in combination with KEYTRUDA, including NSCLC, endometrial carcinoma and RCC Growth opportunities across multiple tumor types Hepatocellular carcinoma Endometrial carcinoma Lung cancer In collaboration with Eisai Thyroid cancer Renal cell carcinoma Frank Clyburn 22#23ONCOLOGY: POTENTIAL FOR >50 ADDITIONAL INDICATIONS OVER NEXT 5 YEARS Proportion of expected indications by product Lynparza olaparib tablets 150 mg KEYTRUDA (pembrolizumab) Injection 100 mg LENVIMA (lenvatinib) capsules 10 mg and 4 mg Potential to nearly triple oncology indications by 2023 MERCK # Frank Clyburn INVENTING FOR LIFE 23#24VACCINES: GROWING GLOBAL BUSINESS WITH NEAR- AND LONG-TERM OPPORTUNITIES ● • • Significant long-term opportunity for pediatric and adult vaccines growth around the world High barriers-to-entry supporting sustained, durable position Investing in vaccines manufacturing capacity to increase doses produced globally Strong pipeline in pneumococcal disease, respiratory syncytial virus (RSV), cytomegalovirus (CMV), dengue and others Nearly doubled vaccines revenue since 2010 $7.3B Other ZOSTAVAX ROTATEQ $5.7B Other PNEUMOVAX 23 ZOSTAVAX ROTATEQ PNEUMOVAX 23 $3.8B Other ZOSTAVAX ROTATEQ PNEUMOVAX 23 PROQUAD-MMR- VARIVAX PROQUAD-MMR- VARIVAX GARDASIL GARDASIL PROQUAD-MMR- VARIVAX GARDASIL 2010 2014 2018 Merck started recording vaccines sales in the 19 European countries previously part of the SPMSD vaccines joint venture starting in January 1, 2017 MERCK Frank Clyburn INVENTING FOR LIFE 24#25GARDASIL: POSITIONED FOR RENEWED GROWTH . Growth driven by global appeals to eliminate cervical cancer Reacceleration of growth driven by expansion into new geographies, public and gender-neutral immunization programs and age cohorts • Fastest pharmaceutical launch in China Significant opportunity ahead given only ~3% of the world's eligible population has received an HPV vaccine Male Female Global incidence of HPV-related cancers & diseases Common Oropharynx cancer Recurrent Respiratory Papillomatosis MERCK INVENTING FOR LIFE 11,000 Anal cancer 13,000 528,000 Cervical cancer Penile cancer 18,200 17,300,000 Genital warts 14,400,000 Millions of cases Vulvar & vaginal cancer Cervical dysplasia Current indications of GARDASIL 9 Not indicated Frank Clyburn 25#26HOSPITAL PORTFOLIO: OPTIMIZED BY GLOBAL STRENGTH AND SCALE bridion Injection (sugammadex) 100 mg/mL * equivalent to 108.8 mg/mL sugammadex sodium BRIDION poised for continued growth worldwide as number of surgeries that use a reversal agent increases ZINPLAVA (bezlotoxumab) 5mg/mL Injection PREVYMIS (letermovir) 240 mg, 480 mg tablets Injection 20 mg/mL شده ZERBAXA. ceftolozane and tazobactam for injection (1.5 g) Sizable HAB/VAB pneumonia indication represents new opportunity for ZERBAXA growth Pifeltro™ doravirine 100 mg tablets Delstrigo™ doravirine/lamivudine/ tenofovir disoproxil fumarate 100 mg/300 mg/300 mg tablets MERCK INVENTING FOR LIFE Leading portfolio of antibiotics and antifungals, including novel products Recent launches build on our HIV legacy and further position us to bring next generation treatments to market Frank Clyburn 26#27INNOVATIVE PORTFOLIO AND WAVE OF INDICATIONS DRIVING GLOBAL GROWTH +4% Growth Contributors: GARDASIL KEYTRUDA JANUVIA +67% +9% Europe¹ Hospital Acute Care China Japan -4% +12% United Canada Growth Contributors: KEYTRUDA GARDASIL Pediatric Vaccines BRIDION Lynparza Lenvima States Growth Contributors: KEYTRUDA Pediatric Vaccines +25% GARDASIL Hospital Acute Care Latin America Growth Contributors: +14% KEYTRUDA GARDASIL Pediatric Vaccines BRIDION Eastern Europe / Middle East Africa Growth Contributors: GARDASIL Pediatric Vaccines BRIDION +3% Asia Pacific Ex-China Growth Contributors: KEYTRUDA Lenvima Lynparza BELSOMRA Human health sales outside of the U.S. grew 12% in 1Q 2019 All growth rates exclude the impact of exchange and represent 1Q 2019 vs. 1Q 2018. Growth contributors represent select growth drivers across pillars of growth. 1 Europe primarily represents all European Union countries and the European Union accession markets MERCK INVENTING FOR LIFE Frank Clyburn 27 27#28CHINA BECOMING NEW PILLAR OF GROWTH 43% Merck 30% MNC 25% 24% 23% Pivoting portfolio to innovation KEYTRUDA Lynparza (pembrolizumab) Injection 100 mg olaparib tablet me GARDASIL.9 Human Papillomavirus 9-valent Vaccine, Recombinant Reaching more patients & expanding customer base LENVIMA (lenvatinib) capsules GARDASIL Humaan Papillomavirusvacci typen 6,11,16,18 inant, gradsorbeerd bridion (sugammadex)tion 100 mg/mL "equivalent to 108.8 ng/ml sugammade sodium Januvia (sitagliptin) 25mg, 50mg, 100mg tablets 18% 18% 18% 16% 15% 14% 12% --9%- 7% 4% MNC MNC MNC MNC MNC MNC MNC MNC MNC MNC MNC MNC MNC 1Only includes Human Health portion of business Average: 11% Fastest growing multinational pharmaceutical company Growth percentage over prior 18 months through 1Q 2019 for Top 15 multinationals.. Source: R&D-Based Pharmaceutical Association Committee (RDPAC) Report MERCK Frank Clyburn INVENTING FOR LIFE 28#29CONFIDENT IN GROWTH OPPORTUNITIES AND ABILITY TO EXECUTE Innovative portfolio with significant demand-driven growth Significant international opportunities, notably in China World-class commercial teams executing in a changing environment Commercial foundation for sustained global growth MERCK Frank Clyburn INVENTING FOR LIFE 29#30Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda All Q&A / Closing Remarks Lunch Break All Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China MERCK INVENTING FOR LIFE 30#31MERCK ANIMAL HEALTH IS A MARKET LEADER Global scale . Revenue growth above market • Strong profit contribution • . Innovative new product solutions Technologies that drive customer value Merck synergies MERCK Animal Health#32STRONG LONG-TERM METRICS FOR THE ANIMAL HEALTH INDUSTRY At the core of a $34+ billion industry CAGR mid-single digits¹ Companion Animal Diagnostics Vet services OTC medicines Pet supplies 1 Forward-Looking Projection Merck Animal Health Livestock Pharmaceuticals Vaccines Solutions Platforms Monitoring Identification Genetics Nutrition Food safety Diagnostics Predictable and sustainable Population growth growth drivers П$ Rising middle Increasing class urbanization MERCK Animal Health#33ANNUAL NET SALES GROWTH (%) 12.0 Merck 10.5 10.0 9.0 9.3 9.0 8.4 8.0 MERCK ANIMAL HEALTH: OUTPERFORMING THE INDUSTRY 6.0 6.5 6.2 5.4 4.0 2.0 3.4 5.8 Industry 0.0 2014 2015 2016 2017 2018 33 Source: Merck Internal Data, ex-exchange, excluding Zilmax. Industry Review MERCK Animal Health#34MERCK ANIMAL HEALTH Global leader in pharmaceuticals, vaccines, health management solutions and emerging digital technology 2018 Sales 38% Companion Animal Operating in more than 800+ Product families 50 Countries 102 BILLION Vaccine doses produced annually Products in more than 34 Dedicated 150 Markets manufacturing 9,400 Colleagues sites 12 Major manufacturing technologies & platforms 62% Livestock 29% U.S. O 71% International MERCK Animal Health#35Aquaculture- 1% Poultry 17% Ruminants 30% Parasiticides 26% Swine 14% Companion Animal 38% OUR DIVERSE PORTFOLIO PROVIDES STRENGTH 2018 RESULTS Anti-infectives 11% ASIA PAC 16% United States 29% LATAM 13% Other 17% Biologics 46% EURAM & Canada 42% All Others 62% Top 10 Products 38% Revenue by species Revenue by therapeutic area Revenue by geography Revenue by product line MERCK Animal Health#36DEDICATED ANIMAL HEALTH R&D NETWORK Bergen, NOR Ames, IA Boise, ID Cambridge, UK Elkhorn, NE Antelliq Innovation Centers Biologicals R&D Pharma R&D Madison & Rahway, NJ Millsboro, DE De Soto, KS Cologne, FRA Vitré, FRA Boxmeer, NLD Schwabenheim, DEU Ningbo, CHN Netanya, ISR Bendigo, AUS Malelane, ZAF Tokyo, JPN Singapore, SGP Macquarie Park, AUS MERCK Animal Health#37MERCK ANIMAL HEALTH: CONSISTENT DELIVERY OF SIGNIFICANT NEW PRODUCT APPROVALS Over 66 Approvals in 5 Years 9 10 2014 2015 15 18 14 14 6 2 2017 2018 2016 >150 Geo-expansion licenses annually MERCK Animal Health#38OUR INNOVATION PATHWAYS In-house Discovery and Technology Biologics Recombinant vaccines, RP technology Emerging diseases Delivery technologies Merck Research Laboratories Monoclonal antibodies Oncology Diabetes, atopy, osteoarthritis Shared vaccine technologies Strategic Advantages Best-in-class First-in-class Vaccine leadership Delivery technologies Compound libraries Diagnostic labs Nobivac:::::: Proteção essencial para laços essenciais innovax ND-IBD Panacur AquaSol™ BANAMINE® (flunixin meglumine) BRAVECTO (FLURALANER) Exzolt External Partnerships/Business Development Parasiticides Internal medicine Devices IDAL³G MERCK Animal Health#39MERCK ANIMAL HEALTH R&D AREAS OF FOCUS: ACROSS SPECIES VACCINES Zoonotic & Emerging Diseases MRL Respiratory Diseases Enteric Diseases MRL MRL BIOPHARMACEUTICALS Customer convenience, oral/mucosal delivery, long duration Food Safety Atopy / Allergy MRL MRL MRL Collaborations PHARMACEUTICALS Anti-Infectives Parasiticides & Endectocides MRL Oncology MRL Production enhancement reproduction, growth Non-conventional antimicrobials Internal medicine, pain, endocrinology, osteoarthritis MRL MERCK Animal Health#40COMPLEMENTARY BUSINESS DEVELOPMENT Geo-expansion: vaccines, pharmaceuticals High-growth markets 2005 T HARRISVACCINES ▸ Prondil® We help you prevent. Antelliq vilsan Zhejiang Zhengli Antoo Biotech Co VISCON hatchery automation SCANAQUA™ Vallée pharmaceuticals MERCK Animal Health#41INVESTING IN HIGH-GROWTH ANIMAL HEALTH OPPORTUNITIES Trends Driving Technology Adoption Productivity Wellness Traceability Safety Automation 6.3 Customer Value 4.0 PRODUCTS + CONVENIENCE + PREDICTIVE SOLUTIONS Technology & Data Animal Health Ventures Innovative Delivery Solutions Antelliq Banamine Transdermal flunixin transdermal solution) Vaccines & Pharmaceuticals Nobivac:::::: BRAVECTO ZUPREVO Innovax PorcilisⓇ PCV M Hyo SLICE™ MERCK IDALS Market Opportunities MERCK Animal Health#42INVESTING IN DIGITALLY-ENABLED CUSTOMER SOLUTIONS Antelliq MERCK ANIMAL HEALTH VENTURES 123 123 >500 million animals tagged per year >100 million pets monitored >1,100 aqua monitoring stations worldwide Whisper® Veterinary Stethoscope Non-invasive tool that confirms bovine respiratory disease and gauges its severity in eight seconds FALCON Clear view. Clearer direction. Sea lice counter Allflex Livestock Intelligence Biomark SURE PET CARE H Chronic 10-15 FEET 42 COO COO MERCK Animal Health#43REMOVED MERCK ANIMAL HEALTH: OUR COMPETITIVE ADVANTAGE Broad global portfolio and presence ✓ Innovative products and solutions ✓ R&D excellence and access to MRL expertise High-quality manufacturing and supply ✓ Investment in digital technology to drive customer productivity ✓ Track record of execution MERCK Animal Health#44MERCK Animal Health THE SCIENCE OF HEALTHIER ANIMALS® 44#45Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda All Q&A / Closing Remarks Lunch Break All MERCK INVENTING FOR LIFE Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China 45 49#46Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health MERCK Q&A / Closing Remarks All Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda INVENTING FOR LIFE Lunch Break All Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China 47 47#47BROAD ONCOLOGY STRATEGY TO IMPROVE OUTCOMES FOR CANCER PATIENTS GLOBALLY * Broadly explore combinations to reach more patients KEYTRUDA (pembrolizumab) Injection 100 mg ¹Peloton acquisition expected to close in 3Q 2019 LENVIMA (lenvatinib) capsules 10 mg and 4 mo Peloton Lynparza olaparib Viralytics Tilos THERAPEUTICS Developers of Oncolytic Immunotherapies Therapeutics MERCK INVENTING FOR LIFE Advance pipeline and pursue strategic collaborations and acquisitions to expand portfolio Identify patients most likely to benefit using biomarkers Establish KEYTRUDA as foundational treatment across most tumor types and stages of disease # Dr. Roy Baynes H | 48#48KEYTRUDA: BROAD ACTIVITY IN >25 CANCER TYPES Change from baseline in tumor size (%) Melanoma NSCLC H&N Urothelial TNBC Gastric CHL 100 100 100 100 100 100 100 0 0 0 0 -100 -100 -100 -100 -100 -100 -100 NHL PMBCL Mesothelioma Ovarian SCLC Esophageal NPC Anal ☐ 100 100 1 100 100 100 100 100 0 = cancer types with approved indications -100 -100 -100 -100 -100 -100 -100 Biliary Tract HCC ER+/HER2- BC Cervical Thyroid Salivary Endometrial CCRCC 100 100 100 100 100 100 100 100 0 0 0 -100 -100 -100 -100 -100 -100 -100 -100 Prostate GBM MSI-H CRC MSI-H non-CRO Carcinoid PNET Merkel Cell nccRCC 100 100 100 100 100 100 100 100 0 0 0 0 0 0 -100 -100 -100 -100 -100 -100 -100 -100 MERCK H Dr. Roy Baynes H INVENTING FOR LIFE 49#49KEYTRUDA: REPEATED OVERALL SURVIVAL BENEFITS IN MONOTHERAPY AND IN COMBINATION Ipi-Naive Melanoma, 2L Bladder, Any PD-L1 Any PD-L1 KEYNOTE-006 Pembro vs Ipi KEYNOTE-045 Pembro vs Chemo 2L+ NSCLC, TPS ≥50% KEYNOTE-010 Pembro vs Docetaxel 2L+ NSCLC, TPS ≥1% KEYNOTE-010 Pembro vs Docetaxel 1L NSCLC, TPS ≥50% KEYNOTE-024 Pembro vs Chemo 1L RCC, Any PD-L1 KEYNOTE-426 Pembro + Axitinib vs Sunitinib 10 20 ; 24 10 30 60 Months No. al Risk 9 4D 50 Months 5 40 24 : :9 1L Esophageal, CPS ≥10 KEYNOTE-181 Pembro vs Chemo 1L HNSCC, CPS ≥20 KEYNOTE-048 Pembro vs EXTREME 1L HNSCC, CPS ≥1 KEYNOTE-048 Pembro vs EXTREME 1L NSCLC, TPS ≥50% KEYNOTE-042 Pembro vs Chemo 1L NSCLC, TPS ≥20% KEYNOTE-042 Pembro vs Chemo 1L NSCLC, TPS ≥1% KEYNOTE-042 Pembro vs Chemo 1L NSQ NSCLC, Any PD-L1 KEYNOTE-189 Pembro+ Pem/Platinum vs Placebo + Pem/Platinum Months Months : النسيا Months น Months : Nontha : 42 Months Months MERCK INVENTING FOR LIFE 1L Gastric, CPS ≥1 KEYNOTE-062 Pembro vs Chemo 1L Gastric, CPS ≥10 KEYNOTE-062 Pembro vs Chemo 2L HCC, Any PD-L1 KEYNOTĔ-240 Pembro vs Placebo 2L+HNSCC, Any PD-L1 KEYNOTE-040 Pembro vs SOC 1L HNSCC, Any PD-L1 KEYNOTE-048 Pembro vs EXTREME 1L HNSCC, CPS ≥1 KEYNOTE-048 Pembro + Platinum vs EXTREME 1L SQ NSCLC, Any PD-L1 KEYNOTE-407 Pembro + Carboplatin/Taxane vs Placebo + Carboplatin/Taxane Manths 12 16 42 20 30 36 Months Months Months لس 40- 10- 15 25 30 35 Months Months No. at Risk На : 188 Montha На # Dr. Roy Baynes H 50#50KEYTRUDA: STILL IN EARLY INNINGS OF DEVELOPMENT >100 Trials in adjuvant / neoadjuvant and earlier lines >1,000 Ongoing clinical >600 Combination trials trials O Continuing to build a wall of data >75 Registrational trials underway MERCK # Dr. Roy Baynes | INVENTING FOR LIFE 51#51KEYTRUDA: ROBUST I-O PROGRAM IN ADJUVANT / NEOADJUVANT AND EARLIER LINES OF THERAPY MERCK INVENTING FOR LIFE 2018 Adjuvant Melanoma (KN-054) APPROVED 2021 NSCLC Adjuvant (KN-091) HNSCC Adjuvant / Neoadjuvant (KN-689) 2023 Gastric & Esophageal Adjuvant / Neoadjuvant (KN-585) HNSCC Locally Advanced (KN-412) 2025 Adjuvant / Neoadjuvant MIBC (KN-866) Adjuvant / Neoadjuvant MIBC (KN-905) HCC Adjuvant (KN-937) NSCLC Stage I/lla (KN-867) # Dr. Roy Baynes H 2019 TNBC Neoadjuvant / Adjuvant (KN-522) CSCC Locally Advanced (KN-629) 2022 Adjuvant Melanoma (KN-716) RCC Adjuvant (KN-564) 2L NMIBC (KN-057) MIBC Locally Advanced (KN-676) 2024 NSCLC Neoadjuvant (KN-671) 2026+ TNBC Adjuvant (KN-242) CSCC Locally Advanced (KN-630) ER+ / HER2- Breast Cancer Adjuvant / Neoadjuvant (KN-756) Many registrational trials with readouts over the coming years 52 62#52KEYTRUDA: EARLY EVIDENCE IN BREAST CANCER; 10 ONGOING TRIALS 100 90 80 70 Pathological Complete Response (%) 60 50 40 30 10 10 50 60 80 80 80 80 60 60 20 30 50 50 20 20 урто урно ypTO/Tis ypNO N = 60 K KEYTRUDA Np = Nab-pac A = doxorubicin C cyclophosphamide Cb carboplatin T = paclitaxel Cohort A: KNp/KAC Cohort B: KNpCb/ KAC Reg 1 Cohort C: KNpCb/ KAC Reg 2 Cohort D: KNpCb/ KAC Reg 3 Cohort E: KTCb / KAC Reg 1 Cohort F: KTCb / KAC Reg 2 Encouraging results from KEYNOTE-173 show promise in adjuvant / neoadjuvant settings MERCK # Dr. Roy Baynes H INVENTING FOR LIFE 53#53Percentage Change From Baseline KEYTRUDA: EARLY STAGE PROSTATE CANCER DATA INFORM PHASE 3 DEVELOPMENT PROGRAM KEYNOTE-365 Cohort A 80- KEYTRUDA+Lynparza PCW3-Modified RECIST V1.1a,b 11/28 (39%) experienced reduction in tumor burden 60 40 • 8/28 (29%) experienced reduction ≥30% 20 -20- -40- -60- PD-L1+ -80- PD-L1 and Unknown -100- +20% -30% Percentage Change From Baseline 100 BO 60- 40- 20- 0 -20- -40- -60- -80- -100 KEYNOTE-365 Cohort B KEYTRUDA+Docetaxel 30/36 (83%) experienced reduction in tumor burden 11/36 (31%) experienced reduction 2.30% PD-L1+ PD-L1-and Unknown +20% -30% Percentage Change From Baseline 100 80 KEYNOTE-365 Cohort C KEYTRUDA+Enzalutamide 60- 40- 20 0 -20 -40- -60- -80 -100 11/25 (44%) experienced reduction in tumor burden 6/25 (24%) experienced reduction ≥ 30% PD-L1+ PD-L1- and unknown +20% -30% 54 MERCK INVENTING FOR LIFE # Dr. Roy Baynes H#54BROADEST PROSTATE CANCER PROGRAM WITH MULTIPLE PH 3 TRIALS ADDRESSING 40% OF PATIENTS PSA Primary Adjuvant Biochemical Recurrence (BCR) Met HSPC (incl de novo) mCRPC Pre-CTx mCRPC CTX mCRPC Post-CTx Non-metastatic CRPC KN-365 Cohort C Ph3 mHSPC Pembro Enzalutamide (MO) KN-199 Cohort 4,5 KN-921 Ph3 Pembro / Docetaxel (New trial to be posted) | KN-199 Cohort 1-3 KEYLYNK-010 Ph3 Pembro/Olaparib KN-641 Ph3 Non-metastatic Hormone-sensitive Asymptomatic Met Time Pembro / Enzalutamide PROpel Ph3 olaparib/ abiraterone PROfound Ph3 olaparib mono (post-NHA) ADT androgen deprivation therapy; BCR = biochemical recurrence; CRPC = castration-resistant prostate cancer; EBRT = external beam radiation therapy; HSPC = hormone-sensitive prostate cancer; PCa = prostate cancer; RP radical prostatectomy. *Cl indicates estimated ARCHES approval as of 4Q 2019 Metastatic Castration-resistant Symptomatic = KEYTRUDA combo trials = Lynparza trials MERCK # Dr. Roy Baynes | INVENTING FOR LIFE 55#55LYNPARZA: SHOWING EFFICACY BEYOND WOMEN'S CANCERS • 1L, nonBRCA, KEYTRUDA combo (KEYLYNK-001) • 1L Maintenance BRCA+ (SOLO-1) - Approved • • • • 1L Maintenance, All Comers Combo + Bev (PAOLA-1) PSR, All Comers Combo + Cediranib (GY004) PRR, All Comers Combo + Cediranib (GY005) 2L+ PSR (SOLO2/Study19) - Approved 3L+ PSR, gBRCA Treatment (SOLO3) Breast cancer Ovarian cancer . mBC, gBRCA (OlympiAD) - Approved • HER2- Adjuvant, gBRCAM (OlympiA) mCRPC, All Comers (KEYLYNK-010) • mCRPC, HRRm (PROfound) mCRPC, All Comers Combo + Abiraterone (PROpel) Pancreatic cancer 1L Maintenance gBRCA (POLO) Prostate cancer Efficacy • Lung cancer 1L NSQ NSCLC (KEYLYNK-006) • 1L SQ NSCLC (KEYLYNK-008) Median PFS for patients treated with olaparib nearly doubled (7.4 months) compared to patients treated with placebo (3.8 months) * 47%* reduction in risk of disease progression or death, compared to placebo *HR 0.53 [95% CI 0.35-0.82], p=0.0038 33.7% of patients receiving olaparib remained progression-free after one year 68% data maturity Tumor agnostic HRRm Basket (LYNK-002) 0.9- 0.8- 0.6- 05- Olaparib (N=92: 60 events) 02- 0.1- 0.0- Placebo (N-62; 44 events) 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 Months since randomization No. at Risk Olaparib 92 69 50 41 34 24 18 17 14 10 10 8 8 7 5 3 3 3 3 2 11 10 Placebo 62 39 23 10 6 6 4 4 4 2 2 2 2 1 1 0 Demonstrating potential in prostate cancer, pancreatic cancer and more Collaboration with AstraZeneca PRR: Platinum Relapsed Recurrent; PSR: Platinum Sensitive Recurrent MERCK H Dr. Roy Baynes INVENTING FOR LIFE 56#56LENVIMA: POTENTIAL ACROSS BROAD RANGE OF TUMOR TYPES ⚫1L Thyroid - Approved .1L RCC Combo with Evero or KEYTRUDA (KN-581/Study 307) ⚫2L Combo with Evero (Study 205) -Approved ⚫1L (LEAP-001) .2L (Study 309 / KN-775) Endometrial carcinoma Thyroid cancer Collaboration with Eisai Renal cell carcinoma Hepatocellular carcinoma • 1L HCC Combo (LEAP-002) • 1L NSQ Combo with KEYTRUDA and Chemo (LEAP-006) •1L PD-L1+ (LEAP-007) ⚫2L NSQ (LEAP-008) ⚫1L and 2L: Planning Stages cancer Urothelial cancer Head & neck Melanoma •1L (LEAP-003) ⚫2L (LEAP-004) Basket trial Lung cancer • TNBC • Gastric •Ovarian ⚫ Colorectal ⚫1L (LEAP-011) • Glioblastoma 1L HCC Mono (Study 304) - Approved 13 trials studying KEYTRUDA in combination with Lenvima spanning >13 tumor types • Biliary MERCK INVENTING FOR LIFE # Dr. Roy Baynes H | 57#57EXTENSIVE ONCOLOGY PIPELINE COVERING ALL ASPECTS OF THE TUMOR ENVIRONMENT CD27 CTLA4 CVA21 Other cancer vaccines and viruses PCVs RIG-I STING Antigen-presenting Cell (APC) or Tumor Cell T-Cell priming and trafficking to tumor CD27 PD-1 GITR CTLA-4 Activated T cell Antigen-presenting Cell (APC) or Tumor Cell 2 Immunosuppressive microenvironment Inhibitory ligand on tumor and stroma Immunosuppressive metabolic environment CCR5 CXCR2 GITR IDO/TDO CTLA-4 Suppressive myeloid cells and Treg PD-1 ILT3 Treg (Regulatory T Cells) ILT4 IL10 LAG-3 Naive T cell 3 Direct tumor cell killing (immunogenic) CDK ERK Treg GITR Activated T cell inhibitory signal IDO/TDO PD-1 .Arginase LAG-3 TIGIT IL-10 Myeloid Cell Anergic T cell PD-1 PD-1/LAG-3 bi-specific Pi3K-delta TGFẞ TIGIT CEACAM1 TLR4 MERCK # Dr. Roy Baynes | INVENTING FOR LIFE 58#58ESTABLISHING LEADERSHIP IN GROWING ONCOLOGY MARKET • Largest I-O clinical development • • program in the industry • Sizable long-term opportunity in new tumor types, including TNBC and prostate cancer Broad combination program with Lynparza, Lenvima and others Significant long-term opportunities in adjuvant / neoadjuvant settings $300 Worldwide oncology sales ($B) $250 ■IO/PARP/VEGF/R ■Cytotoxic, CD20, CDK, BTK, CD38 $200 ■■Hormonal, EGFR, HER 2/3, Other, Other Targeted, Next Wave $150 $100 $50 $0 Source: EvaluatePharma 2019 Well positioned to grow faster than the market 2028 MERCK H Mike Nally I INVENTING FOR LIFE 59#59EARLY STAGE - INCLUDING ADJUVANT / NEOADJUVANT - REPRESENTS SIGNIFICANT PORTION OF CANCER PREVALENCE Early stage HEAD AND NECK Early stage MELANOMA Metastatic Early stage Unknown Metastatic Unknown Early stage BLADDER RENAL Metastatic Unknown Early stage Early stage Metastatic Unknown BREAST LUNG Unknown Metastatic Unknown Metastatic 18 registrational trials across these tumor types and more, representing meaningful growth opportunity Source: SEER 2018: Cancer Prevalence by Stage in U.S. MERCK Mike Nally I INVENTING FOR LIFE 60#60ADDRESSING TUMOR TYPES WITH HIGHEST INCIDENCE, INCLUDING BREAST AND PROSTATE Breast cancer market expected to grow to $38B by 20281 ⚫ TNBC represents 10-15% and ER+/HER2- represents ~65% of all breast cancers • Program addresses different stages of disease and lines of therapy Prostate cancer market expected to grow to $15B by 20281 mCRPC represents 20% and mHSPC represents 20% of all prostate cancers • Broadest I-O development program addressing all stages of mCRPC and moving into mHSPC 1Representative of U.S., EU5, and Japan Source: GLOBOCAN 2018. International Cancer Research Agency 2018 Global incidence of top tumor types Other cancers 7,753,946 (42.9%) Lung 2,093,876 (11.6%) Breast 2,088,849 (11.6%) MERCK INVENTING FOR LIFE Colorectal 1,849,518 (10.2%) Cervical 569,847 (3.2%) Esophageal Liver 572,034 (3.2%) Prostate 1,276,106 (7.1%) Stomach 1,033,701 (5.7%) 841,080 (4.7%) # Mike Nally 61#61MERCK INVENTING FOR LIFE Ebola Others EXTENSIVE VACCINES PIPELINE TARGETING DISEASES WITH SIGNIFICANT UNMET NEED HPV PCV RSV CMV Dengue V114 Adults & Peds GARDASIL V116 Other PCVs MK-1654 V172 (Moderna) V160 V181 V920 Instituto Butantan Dr. Roy Baynes Supporting global appeals to eliminate cervical cancer by improving access to GARDASIL • Increasing gender-neutral vaccination • • Need for prevention of residual disease 13 Phase 3 trials across adults and pediatrics for V114 • Major unmet medical need in infants and elderly • Leading non- genetic cause of neurologic disability • Identified by . CDC / FDA and others as area of critical need • • Major cause of hemorrhagic fever and death ⚫ Partnership with Instituto Butantan allows early access to Phase 3 study results • ⚫ Licensing application under review at FDA, EMA, WHO and African countries • Addressing key areas of unmet need with broad early vaccine pipeline HPV=Human papillomavirus; PCV=Pneumococcal conjugate vaccine; CMV-Cytomegalovirus; RSV=Respiratory syncytial virus | 62 62#62GROWING GLOBAL DEMAND FOR VACCINES PROVIDES SUSTAINABLE MARKET OPPORTUNITY MERCK INVENTING FOR LIFE Growth over the next decade driven by: • Increasing Coverage: Driving penetration of inline products in high income markets (U.S./EU) • Globalization: Expanding markets and increasing penetration for inline and future pipeline products • Innovation: Launching pipeline products Global vaccine sales ($B)¹ $35 +6% $40 - $45 $55 - $65 1Source: Evaluate Pharma, IMS, Company reports, DCVM projections # 2018 2023 2028 Mike Nally | 63#63UNIQUE PNEUMOCOCCAL PORTFOLIO TARGETING PROTECTION IN ADULTS AND CHILDREN MERCK INVENTING FOR LIFE PNEUMOVAX 23 Foundation of adult prevention Unique combination of serotype coverage and cost effectiveness V114 Advancing protection across pediatric and adult populations Expanded serotype coverage to potentially address the highest burden of pneumococcal disease Awarded Breakthrough Therapy Designation in Pediatric and Adult Populations V116 Targeted approach to adult prevention Focus on potential to broaden protection in adult population OTHER PCVs Aiming for broadest protection for pediatric population Potential to establish long-term leadership in pediatric market FOUNDATION NEXT-GENERATION PNEUMOCOCCAL PIPELINE Mike Nally I 64#64PNEUMOCCOCAL MARKET EXPECTED TO REMAIN LARGE WITH SIGNIFICANT ADDITIONAL OPPORTUNITY . • PEDIATRICS ADULTS Represent two-thirds of market Even with vaccine progress, still close to 500,000 deaths annually in children <5 years old around the world Children <5, % IPD Coverage Residual Disease Post-PCV13 • Significant remaining opportunity driven by aging population, limited National Immunization Programs and low vaccination rates (~400,000 hospitalization per year in the U.S.) Adults ≥65, % IPD Coverage Residual Disease Post-PCV13 100 Percent of residual disease 75 50 25 0 PCV13 V114 Other Ped PCVs ■PCV13 ■22F/33F ■ Additional 100 Percent of residual disease 75 75 50 50 25 0 PCV13 V114 ■PCV13 ■22F/33F ■ Additional PPV23 V116 MERCK INVENTING FOR LIFE Mike Nally I 65#65MULTIPLE PROGRAMS TARGETING A MARKET OF OVER $10B GLOBALLY RSV . Most common respiratory pathogen in infants with >50,000 hospitalizations each year in the U.S. alone and >3 million hospitalizations globally RSV infection occurs in up to 10% of adults 65 and over in the U.S. each year, resulting in >175,000 hospitalizations Total RSV market estimated to be >$5 billion • . CMV . Dengue #1 non-genetic cause of hearing loss in infants in the U.S. 0.3-2.0% global prevalence of congenital cytomegalovirus >$3 billion market size expected globally . V160 has potential to be first in class • 400 million dengue infections annually with 4 billion patients at risk worldwide >$3 billion market size across travel and endemic segments V181 data suggests potential for all 4 dengue serotypes to be covered by 1 dose CMV=Cytomegalovirus; RSV-Respiratory syncytial virus MERCK # Mike Nally INVENTING FOR LIFE 66#6630 YEARS OF HIV INNOVATION CONTINUES 1980s 1983 HIV is discovered 1990s 2000s 1996 CRIXIVAN (dinovir sulfate, MSD) 1989 Role of protease published - AZT launches 1998 Once Daily STOCRIN (efavirenz) 1African Comprehensive HIV/AIDS Partnerships 2010s 2020+ 2000 ACHAP1 Partnership with Botswana and Bill and Melinda Gates Foundation 2007 2017 Isentress HD raltegravir 2018 Pifeltro doravirine aleta 000 ** CONTINUING TO INNOVATE MK-8591: Investigational NRTTI for the treatment and prevention of HIV Many additional mechanisms in early development ISENTRESS raltegravir film-coated tablets 400 mg Delstrigo doravirine/lamivudine/ tenofovir disoproxil fumarate MERCK Dr. Roy Baynes | INVENTING FOR LIFE 67 20#67MK-8591: UNIQUE PHARMACOLOGY ENABLING POTENTIAL LONG DURATION THERAPY Long-Duration Oral & Implantable Monthly Implantable Continue to simplify HIV care Daily Oral Weekly Elimination Radical simplification Maximize simplicity, of HIV care potency and tolerability Free patients from daily dosing Aspiring to cure Daily dosing for antiretroviral suppression ↓↓Dosing frequency 11 Adherence Sustained viral response or cure Potential to reduce risk of HIV infection ↓↓↓Dosing frequency 111 Adherence PREVENTION [PrEP] TREATMENT CURE MERCK Dr. Roy Baynes | INVENTING FOR LIFE 68#68HIV REMAINS A PARAMOUNT WORLDWIDE HEALTH THREAT 36.9M 1.8M 940K Number of people living with HIV People newly infected with HIV in 2017 AIDS- related deaths in 2017 MERCK Mike Nally INVENTING FOR LIFE 69#69MK-8591: UNIQUE ATTRIBUTES ALIGN WELL WITH UNMET NEED MERCK 3:: Mike Nally INVENTING FOR LIFE MK-8591 Simple, efficacious regimens that support lifelong therapy with high QoL HIV UNMET NEED Extended coverage for missed doses (forgiveness) Pill fatigue Reduced toxicity Easy, effective options for PrEP 70#70GEFAPIXANT (MK-7264): EXPLORING ROLE OF P2X3 PATHWAY IN DISORDERS OF SENSORY PATHOLOGY MERCK INVENTING FOR LIFE Pathologically sensitized afferents send aberrant signals of disease Sensory Pathology P2X3 Blockade ⚫ Headache/migraine ⚫ Hypertension •Pathologic cough • Bronchoconstriction • Breathlessness Sleep apnea ⚫ IBS-C/D • Urinary urgency • Bladder/pelvic pain • Endometrial-related pain ⚫ Neuropathic pain • Muscle pain Blocking P2X3 receptors restores normal sensory function Development focused on the role of P2X3 receptor mediated signaling in: Unexplained or refractory chronic cough • Visceral pain syndromes • Altered sympathetic function • Itch Pathologies currently being explored Dr. Roy Baynes | 71#71GEFAPIXANT (MK-7264): OPPORTUNITY FOR BROAD APPLICABILITY 10% global prevalence for chronic cough, of which ~20% are refractory chronic cough or unexplained chronic cough Endometrial- related pain Chronic cough Impacts ~176 million women worldwide ~29 million Americans suffer from sleep apnea, of which 80% are undiagnosed Other sensory functions Sleep apnea Potential pipeline in a product MERCK 3:: Mike Nally INVENTING FOR LIFE 72#72DIVERSE PIPELINE WITH STRONG GROWTH POTENTIAL THROUGH NEXT DECADE 鱼 H MERCK € :: Mike Nally INVENTING FOR LIFE ONCOLOGY Broadest I-O program with strong pipeline of oncology products to drive long-term leadership VACCINES Durable business with extensive portfolio, and pipeline and global growth opportunity HOSPITAL / SPECIALTY Innovative pipeline targeting areas of significant unmet need 73#73Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, President, Merck Animal Health Merck R&D Strategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Merck R&D: Panel Discussion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda Q&A / Closing Remarks All Lunch Break All Breakout Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China MERCK INVENTING FOR LIFE 74#74EMBEDDING IMMUNOBIOLOGY ACROSS DISCOVERY EFFORTS Immunology is linked to most disease states Unlocking new opportunities to address unmet needs in areas Other Neuro- science Oncology previously "undruggable” Renal Immunology Increased understanding of biology and importance of the immune system Metabolic Disorders . Leveraging experience from immuno- oncology - KEYTRUDA and GARDASIL — across discovery Infectious Diseases Cardio- vascular Vaccines efforts Immunology is the common thread across disease areas MERCK Dr. Dean Li INVENTING FOR LIFE 75#75DELIVERING OUR MISSION ACROSS MODALITIES • Working across a number of modalities, which allows us to address new and complex biology Complexity of biological targets is increasing Therapeutic modalities expand the druggable universe Choice of modality defines addressable biology and impacts success of the drug MW 400 2000 20000 150000 Small Molecules Peptides Proteins mAbs Modality-agnostic approach to research 20000000 Virus like particle MERCK Dr. Dean Li INVENTING FOR LIFE 76#76OVER 150 DISCOVERY & EARLY DEVELOPMENT PROGRAMS ACROSS BROAD SET OF DISEASE AREAS • Innate Activation / Checkpoint / Costimulatory Immunocytokines • Tumor Intrinsic • Myeloid and Stromal • Metabolism Virus and Vaccines • Other • • • Neuronal Signaling Cell Homeostasis Neuroimmunology Lipid Biology • Redox / Stress . Other 1 CRMO - Cardiovascular, Renal, Metabolic, Other Immuno- Oncology CRMO¹ 15% 35% Neurology 20% ID/Vaccines 30% Heart Failure Vascular Disease Complications of diabetes / obesity Other · HIV % Programs per area Therapeutic-agnostic approach Vaccines Antibacterial / Antifungal Antivirals Other MERCK INVENTING FOR LIFE Dr. Dean Li 77#77NEW DISCOVERY HUBS LONDON Studying diseases facing aging populations SOUTH SAN FRANCISCO Our newest, cutting- edge multi-disciplinary research facility CAMBRIDGE Exploring emerging areas of disease biology . MERCK INVENTING FOR LIFE Unleashing the power of Merck Research Labs Demonstrating keen scientific experience and insight Maximizing the ecosystems of the key scientific and technology innovation hub cities Exploring science beyond the boundaries of therapeutic areas • Reinvigorated discovery network Dr. Dean Li 78#78MERCK'S DISCOVERY STRATEGY MERCK INVENTING FOR LIFE -▸ Human biology drives our approach to discovery - Understanding of immuno-oncology provides new insights into the role of immunology across every other therapeutic area - Accessing biology through whatever modality necessary - Broad and diversified emerging pipeline of unique molecular entities -> New cutting-edge discovery centers and new talent drive our research Translating breakthroughs in fundamental biomedical research into meaningful new therapeutics and vaccines Dr. Dean Li 79#79MERCK INVENTING FOR LIFE