Welcome & Introductions Welcome & Introductions Ken - - PowerPoint PPT Presentation

SLIDE 1

47

Welcome Welcome & Introductions & Introductions Finan Financial cial & Value & Value Creation Creation Overvi Overview ew Commercial Commercial Growt Growth h Drivers: Drivers: KEYTRUDA KEYTRUDA & Beyond & Beyond Animal Animal Health Health Inno Innovation vation Merck Merck R&D R&D Str Strategy Overview ategy Overview Pipeline Opportunities Pipeline Opportunities Future Future of

• f Merck

Merck R&D: R&D: Panel Discuss Panel Discussion ion Q&A Q&A / / Closing Closing Remarks Remarks Lun Lunch ch Break Break Breako Breakout ut Sessions Sessions

Ken Frazier, Chairman and Chief Executive Officer Rob Davis, Chief Financial Officer and Head of Global Services Frank Clyburn, Chief Commercial Officer Rick DeLuca, President, Merck Animal Health

• Dr. Roger M. Perlmutter, President, Merck Research Laboratories
• Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer

Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda Pipeline Deep Dive Next Generation Discovery International Opportunity & China All All

SLIDE 2

BROAD BROAD ONCO ONCOLOG LOGY Y STRATEGY TO IMPROVE STRATEGY TO IMPROVE OUTCOMES OUTCOMES FOR CANCER FOR CANCER PATIENTS PATIENTS GLOBALLY GLOBALLY

• Dr. Roy Baynes

Establish KEYTRU RUDA as foun

• unda

dation tional al tr trea eatme tment nt across most tumor types and stages of disease

Identify patients Identify patients most likely to benefit using biomarkers biomarkers Broadly Broadly explore explore combinations combinations to reach more patients Advance pipeline and pursue strategic collaborations and acquisitions to expand portfolio

48

1Peloton acquisition expected to close in 3Q 2019

1

SLIDE 3

49

KEYTRUDA: KEYTRUDA: BROAD BROAD ACTIVIT ACTIVITY Y IN >25 CANCER IN >25 CANCER TYPES TYPES

• 100

100

• 100

100

• 100

100

• 100

100

• 100

100

• 100

100

• 100

100

NSCLC

• 100

100

Gastric

• 100

100

• 100

100

H&N TNBC

• 100

100

cHL Urothelial

Change from baseline in tumor size (%)

• 100

100

Mesothelioma

• 100

100

Anal

• 100

100

• 100

100

SCLC

• 100

100

NPC HCC Esophageal

• 100

100

Ovarian

• 100

100 ER+/HER2– BC

Cervical Thyroid Salivary Endometrial

• 100

100

Melanoma

• 100

100 NHL PMBCL

• 100

100 Biliary Tract

• 100

100

Prostate GBM

• 100

100

• 100

100

MSI-H CRC

• 100

100

• 100

100

Carcinoid

• 100

100

pNET

• 100

100

ccRCC nccRCC

• 100

100MSI-H non-CRC

• 100

100

Merkel Cell

= cancer types with approved indications

• Dr. Roy Baynes

SLIDE 4

KEYTRUDA: KEYTRUDA: REPEAT REPEATED ED OVERALL SURVIVAL OVERALL SURVIVAL BENEFITS BENEFITS IN MON IN MONOTHERAPY AND OTHERAPY AND IN COMBINATION IN COMBINATION

50

Ipi-Naive Melanoma, Any PD-L1 KEYNOTE-006 Pembro vs Ipi 2L+ NSCLC, TPS ≥50% KEYNOTE-010 Pembro vs Docetaxel 2L+ NSCLC, TPS ≥1% KEYNOTE-010 Pembro vs Docetaxel 2L Bladder, Any PD-L1 KEYNOTE-045 Pembro vs Chemo 1L NSCLC, TPS ≥50% KEYNOTE-024 Pembro vs Chemo 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 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

1 0 2 0 3 0 4 0 5 0 6 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 90 1 78 1 31 1 01 1 1 52 58 29 21 1 50 10 1 0 2 0 3 0 4 0 5 0 6 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 6 90 3 74 2 48 1 71 5 3 43 1 35 57 40 2 86 20 6 1 2 1 8 2 4 3 0 3 6 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 1 54 1 21 1 06 89 5 1 51 1 07 80 61 5 52 31 6 1 2 1 8 2 4 3 0 3 6 4 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 99 2 24 1 89 1 07 22 3 00 2 31 1 49 75 11 59 40 2 1 6 1 2 1 8 2 4 3 0 3 6 4 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 4 13 3 05 2 51 1 44 24 4 05 3 13 2 10 1 06 14 73 53 2 1 6 1 2 1 8 2 4 3 0 3 6 4 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 6 37 4 63 3 65 2 14 35 3 67 4 85 3 16 1 66 24 1 12 88 2 1 4 8 1 2 1 6 2 0 2 4 2 8 3 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 1 07 86 59 45 13 1 15 76 48 23 4 29 14 5 3 1 2 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 1 33 1 06 85 65 24 1 22 1 00 64 42 12 47 22 11 5 2 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 57 1 96 1 52 1 10 34 2 55 2 07 1 31 89 21 74 47 17 9 2 1 4 8 1 2 1 6 2 0 2 4 2 8 3 2 3 6 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 70 1 95 1 48 1 16 80 2 72 1 73 1 09 73 42 98 59 67 34 33 18 7 4 1 0 2 0 3 0 4 0 5 0 6 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 5 56 4 16 3 17 2 64 2 78 1 58 1 11 94 2 33 85 6 1 2 1 8 2 4 3 0 3 6 4 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 56 1 62 1 20 2 50 1 92 1 14 94 75 59 38 23 15 4 2 6 1 2 1 8 2 4 3 0 3 6 4 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 92 62 52 90 70 42 45 28 32 16 13 7 4 4 8 1 2 1 6 2 0 2 4 2 8 3 2 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 78 2 37 1 90 1 10 1 35 1 13 84 42 1 52 65 57 23 16 8 1 1 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 3 01 2 26 1 72 1 25 75 3 00 2 45 1 58 1 07 51 99 72 46 28 22 11 13 6 1 5 1 0 1 5 2 0 2 5 3 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 47 1 60 1 03 2 48 1 51 82 48 34 14 10 2 1

2L+ HNSCC, Any PD-L1 KEYNOTE-040 Pembro vs SOC 2L HCC, Any PD-L1 KEYNOTE-240 Pembro vs Placebo 1L HNSCC, Any PD-L1 KEYNOTE-048 Pembro vs EXTREME 1L Gastric, CPS ≥1 KEYNOTE-062 Pembro vs Chemo 1L Gastric, CPS ≥10 KEYNOTE-062 Pembro vs Chemo 1L NSQ NSCLC, Any PD-L1 KEYNOTE-189 Pembro + Pem/Platinum vs Placebo + Pem/Platinum

3 6 9 1 2 1 5 1 8 2 1 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 4 10 3 77 3 47 2 78 71 2 06 1 83 1 49 1 04 25 1 63 59 18 8 4 8 1 2 1 6 2 0 2 4 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 4 32 4 17 3 78 2 56 18 4 29 4 01 3 41 2 11 20 1 36 1 10

1L RCC, Any PD-L1 KEYNOTE-426 Pembro + Axitinib vs Sunitinib 1L SQ NSCLC, Any PD-L1 KEYNOTE-407 Pembro + Carboplatin/Taxane vs Placebo + Carboplatin/Taxane

3 6 9 1 2 1 5 1 8 2 1 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 78 2 56 1 88 1 24 17 2 81 2 46 1 75 93 16 62 45 2 4

1L HNSCC, CPS ≥1 KEYNOTE-048 Pembro + Platinum vs EXTREME

5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 M o n t h s O S , % N o . a t R is k 2 81 2 27 1 69 1 22 40 2 78 2 27 1 47 1 00 20 75 51 10 5 1 1

• Dr. Roy Baynes

SLIDE 5

KEYTRUDA: KEYTRUDA: STILL STILL IN EARLY INN IN EARLY INNINGS INGS OF DEVEL OF DEVELOPMENT OPMENT

Conti tinuing g to to build a wall o

• f d

data ta

51

• Dr. Roy Baynes

>1,000 >1,000

Ongoing Ongoing clinical linical tr trials ials Registr gistrationa tional l tr trials ials unde underw rway

>75 >75

Combina Combination tion tr trials ials

>600 >600

Trials in rials in adjuva adjuvant / nt / neoad neoadjuv juvant t and and ear earlier lier lines lines

>100 >100

SLIDE 6

KEYTRUDA: KEYTRUDA: ROBUST I ROBUST I-O O PROGRAM PROGRAM IN ADJUVANT IN ADJUVANT / / NEOADJUVANT AND NEOADJUVANT AND EARLIER LINES EARLIER LINES OF THERAPY OF THERAPY

Many r registrati tiona nal t trials w with r readout

• uts o
• ver t

the comi ming g years

2018 2018

Adjuvant Melanoma (KN-054) APPROVED

2019 2019

TNBC Neoadjuvant / Adjuvant (KN-522) cSCC Locally Advanced (KN-629)

2021 2021

NSCLC Adjuvant (KN-091) HNSCC Adjuvant / Neoadjuvant (KN-689)

2022 2022

Adjuvant Melanoma (KN-716) RCC Adjuvant (KN-564) 2L NMIBC (KN-057) MIBC Locally Advanced (KN-676)

2023 2023

Gastric & Esophageal Adjuvant / Neoadjuvant (KN-585) HNSCC Locally Advanced (KN-412)

2024 2024

NSCLC Neoadjuvant (KN-671)

2026+ 2026+

TNBC Adjuvant (KN-242) cSCC Locally Advanced (KN-630) ER+ / HER2- Breast Cancer Adjuvant / Neoadjuvant (KN-756)

2025 2025

Adjuvant / Neoadjuvant MIBC (KN-866) Adjuvant / Neoadjuvant MIBC (KN-905) HCC Adjuvant (KN-937) NSCLC Stage I/IIa (KN-867)

52

• Dr. Roy Baynes

SLIDE 7

KEYTRUDA: KEYTRUDA: EARLY EVIDEN EARLY EVIDENCE IN CE IN BREAST CANCER; BREAST CANCER; 10 ON 10 ONGOI GOING NG TRIALS TRIALS

53

ypT0 ypN0 ypT0/Tis ypN0

Encour uragi ging results ts f from K m KEYNOTE-173 3 show w promi mise in adjuvant t / n neoadj djuvant s t settings

Cohort C: KNpCb / KAC Reg 2

Pa Patho thologica logical l Complete Complete Resp Respon

• nse

se (%) (%)

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 D: KNpCb / KAC Reg 3 Cohort E: KTCb / KAC Reg 1 Cohort F: KTCb / KAC Reg 2

• Dr. Roy Baynes

10 20 30 40 50 60 70 80 90 100

SLIDE 8

KEYTRUDA: KEYTRUDA: EARLY STAGE PROSTATE CANCER EARLY STAGE PROSTATE CANCER DATA DATA INFORM PHASE 3 DEVELOPMENT PROGRAM INFORM PHASE 3 DEVELOPMENT PROGRAM

KEYNOTE-365 5 Cohort B KEYTRUDA+Docetaxel KEYNO KEYNOTE TE-365 365 Cohor Cohort t C KEYTRUDA+Enzalutamide KEYNO KEYNOTE TE-365 365 Cohor Cohort t A KEYTRUDA+Lynparza

54

• Dr. Roy Baynes
• 11/25 (44%) experienced reduction in tumor burden
• 6/25 (24%) experienced reduction ≥ 30%

SLIDE 9

BR BROADEST PR ADEST PROST OSTATE TE CANCER CANCER PR PROGRAM WITH OGRAM WITH MUL MULTIPLE PH 3 TRIALS TIPLE PH 3 TRIALS ADDRE ADDRESSING 40% OF SSING 40% OF P PATIENTS TIENTS

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. *CI indicates estimated ARCHES approval as of 4Q 2019

Hormone-sensitive Castration-resistant Asymptomatic Symptomatic Time Non-metastatic Metastatic

PSA

Primary Met HSPC (incl de novo) mCRPC Pre-CTx mCRPC CTx mCRPC Post-CTx Non-metastatic CRPC (M0) Adjuvant

Met

Biochemical Recurrence (BCR) KN-199 Cohort 1-3 KN-365 Cohort C KN-641 Ph3 Pembro / Enzalutamide KN-199 Cohort 4, 5 KN-921 Ph3 Pembro / Docetaxel KEYLYNK-010 Ph3 Pembro / Olaparib PROfound Ph3 olaparib mono (post-NHA) PROpel Ph3 olaparib / abiraterone Ph3 mHSPC Pembro / Enzalutamide (New trial to be posted)

55

= KEYTRUDA combo trials

• Dr. Roy Baynes

= Lynparza trials

SLIDE 10

LYNPAR LYNPARZA: SHOWI ZA: SHOWING NG EFF EFFICACY BEYOND ICACY 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)
• mBC, gBRCA (OlympiAD) - Approved
• HER2- Adjuvant, gBRCAm (OlympiA)
• 1L Maintenance gBRCA

(POLO)

• mCRPC, All Comers (KEYLYNK-010)
• mCRPC, HRRm (PROfound)
• mCRPC, All Comers Combo + Abiraterone

(PROpel)

• 1L NSQ NSCLC (KEYLYNK-006)
• 1L SQ NSCLC (KEYLYNK-008)
• HRRm Basket (LYNK-002)

Breast Cancer Lung Cancer Tumor Agnostic

56

Ovarian Ovarian cancer cancer

Demonstrati ting pote tent ntial i in prosta tate te cancer er, p pancr creati tic cance ncer r and nd more

Br Brea east st cancer cancer Pan ancr crea eatic tic cancer cancer Pr Prosta

• state

te cancer cancer Lung Lung cancer cancer Tumo umor agn gnostic

• stic

PRR: Platinum Relapsed Recurrent; PSR: Platinum Sensitive Recurrent Collaboration with AstraZeneca

• Dr. Roy Baynes

SLIDE 11

LENVIMA: PO LENVIMA: POTENTIAL TENTIAL ACROSS BRO ACROSS BROAD AD RANGE OF TUMOR TY RANGE OF TUMOR TYPES PES

• 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)
• 1L HCC Combo (LEAP-002)
• 1L HCC Mono (Study 304) – Approved
• 1L (LEAP-003)
• 2L (LEAP-004)
• 1L (LEAP-011)
• 1L and 2L:

Planning Stages

• TNBC
• Gastric
• Ovarian
• Colorectal
• Glioblastoma
• Biliary
• 1L NSQ Combo with KEYTRUDA

and Chemo (LEAP-006)

• 1L PD-L1+ (LEAP-007)
• 2L NSQ (LEAP-008)
• 1L Thyroid -

Approved

Endome Endometrial trial carcinoma carcinoma Hepatocell Hepatocellular ular ca carc rcinoma inoma Melanoma Melanoma Rena Renal l cell cell carcinoma carcinoma Thyroid Thyroid cancer cancer Lung Lung cancer cancer Ur Urothelial

• thelial

cancer cancer Hea Head d & & neck neck cancer cancer Basket Basket trial trial

57

13 trials study dying ng KEYTR TRUDA i in combi mbina nati tion

• n

with L Lenvima spanning g >1 >13 tumor t r types

Collaboration with Eisai

• Dr. Roy Baynes

SLIDE 12

EXTENSIVE EXTENSIVE ONCO ONCOLOGY PI LOGY PIPELINE PELINE COVERING COVERING ALL ALL ASPECTS ASPECTS OF THE OF THE TUMOR ENVIRONMENT TUMOR ENVIRONMENT

58

• Dr. Roy Baynes

CCR5 CCR5 CX CXCR2 CR2 GITR GITR IDO/TDO IDO/TDO IL ILT3 T3 IL ILT4 T4 IL10 IL10 LA LAG-3 PD PD-1 PD PD-1/LA 1/LAG-3 3 bi bi-sp specific ecific Pi3K Pi3K-delta delta TGF GFβ TIGIT TIGIT TLR4 TLR4 CD27 CD27 CTLA4 CTLA4 CV CVA21 A21 Other Other canc cancer r va vaccine ccines s and and vir virus uses es PCVs PCVs RIG RIG-I ST STING ING CDK CDK ERK ERK

SLIDE 13

Source: EvaluatePharma

$0 $50 $100 $150 $200 $250 $300 2019 2028

IO/PARP/VEGF/R Cytotoxic, CD20, CDK, BTK, CD38 Hormonal, EGFR, HER 2/3, Other, Other Targeted, Next Wave

ESTABLISHING ESTABLISHING LEADERSHIP IN LEADERSHIP IN GROWI GROWING NG ONCOLOGY MARKET 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

59

Well positioned ed to g grow faster t r than the market et

Mike Nally

Global oncolog Global oncology y mar market et potential potential ($ ($B)

SLIDE 14

EARLY STAGE – INCLUDING ADJUVANT / NEOADJUVANT – REPRESENTS SIGNIFICANT PORTION OF CANCER PREVALENCE

60

Early stage Metastatic Unknown

HEAD HEAD AND AND NECK NECK

Early stage Metastatic Unknown

BLAD BLADDER DER

Early stage Metastatic Unknown

BR BREAST EAST

Early stage Metastatic Unknown

LUN UNG

Early stage Metastatic Unknown

REN RENAL AL

Early stage Metastatic Unknown

MEL MELAN ANOM OMA

Source: SEER 2018: Cancer Prevalence by Stage in U.S.

18 registrati tiona nal t trials a acros

• ss t

these tu tumor r types a and more, repres esenti ting meaningfu gful g growt wth opp ppor

• rtu

tunity ty

Mike Nally

SLIDE 15

ADDRESSING TUMOR TYPES WITH HIGHEST ADDRESSING TUMOR TYPES WITH HIGHEST INCIDEN INCIDENCE, CE, INCLUDIN INCLUDING G BREAST AND PRO BREAST AND PROSTATE STATE

Breast Breast cancer cancer market market expected expected to grow to grow to $38B to $38B by 2028 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 Prostate cancer cancer market market expected expected to grow to grow to $15B to $15B by 2028 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

61 Source: GLOBOCAN 2018. International Cancer Research Agency 2018

Global incidence Global incidence

• f
• f top

top tumor tumor types types

Mike Nally

Lung Breast Colorectal Prostate Stomach Liver Esophageal Cervical Other cancers

2,093,876 (11.6%) 2,088,849 (11.6%) 1,849,518 (10.2%) 1,276,106 (7.1%) 1,033,701 (5.7%) 841,080 (4.7%) 572,034 (3.2%) 569,847 (3.2%) 7,753,946 (42.9%)

1Representative of U.S., EU5, and Japan

SLIDE 16

EXTENSIVE EXTENSIVE VACCINES PI VACCINES PIPELINE PELINE TARGETIN TARGETING G DISEASES DISEASES WITH WITH SIGNIFICANT SIGNIFICANT UNMET NEED UNMET NEED

HPV=Human papillomavirus; PCV=Pneumococcal conjugate vaccine; CMV=Cytomegalovirus; RSV=Respiratory syncytial virus

PCV CMV Ebola RSV HPV Dengue

• Supporting global

appeals to eliminate cervical cancer by improving access to GARDASIL

• Increasing

gender-neutral vaccination

62

• Need for

prevention

• f residual

disease

• 13 Phase 3

trials across adults and pediatrics for V114

• Major unmet

medical need in infants and elderly

• Leading non-

genetic cause

• f 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

Others

• Addressing key

areas of unmet need with broad early vaccine pipeline

V114 Adults & Peds V116 Other PCVs MK-1654 V172 (Moderna) V160 V181 Instituto Butantan V920 GARDASIL

• Dr. Roy Baynes

SLIDE 17

GROWI GROWING GLOBAL DEMAND NG GLOBAL DEMAND FOR VACCINES FOR VACCINES PROVIDES PROVIDES SUSTAINABLE SUSTAINABLE MARKET OPPORTUNIT MARKET OPPORTUNITY

Gr Growth wth over er the the ne next xt decade decade driv driven en by: by:

• Increasing Coverage: Driving penetration
• f 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

1Source: Evaluate Pharma, IMS, Company reports, DCVM projections

Glob Global vacc al vaccines ines mar market et pote potential ntial ($ ($B) B)1

2018 $35 2023 $40 - $45 2028 $55 - $65

+6%

63

Mike Nally

SLIDE 18

UNI UNIQUE QUE PNEUMO PNEUMOCOCCAL PORTFOLIO COCCAL PORTFOLIO T TARGETING ARGETING PROTECTION PROTECTION IN AD IN ADULTS AND CHILDREN ULTS AND CHILDREN

64

• Unique combination of

serotype coverage and cost effectiveness

PNE PNEUMOVAX UMOVAX 23 23

Foundat ation of adult prevention

• Potential to establish

long-term leadership in pediatric market

OTHE OTHER PCVs R PCVs

Aiming fo for broadest protection fo for pediat atric populat ation

• Focus on potential to

broaden protection in adult population

V116 V116

Targeted approach ch to adult prevention

• Expanded serotype

coverage to potentially address the highest burden of pneumococcal disease

V114 V114

Advancing protection across pediat atric and adult populat ations

NEXT-GENERATION PNEUMOCOCCAL P PIPELINE FOUN FOUNDATION DATION

Awarded Breakthrough Therapy Designation in Pediatric and Adult Populations

Mike Nally

SLIDE 19

PNEUMOCCOCA PNEUMOCCOCAL MARKET E L MARKET EXPECTED XPECTED TO TO REMAIN REMAIN LAR LARGE WITH SIGN GE WITH SIGNIFICA IFICANT A NT ADDITIO DDITIONAL NAL OPPO OPPORTUN RTUNITY ITY

PEDIATRICS

• Represent two-thirds of market
• Even with vaccine progress, still close to 500,000 deaths

annually in children <5 years old around the world

ADULTS

• Significant remaining opportunity driven by aging

population, limited National Immunization Programs and low vaccination rates (~400,000 hospitalization per year in the U.S.)

25 50 75 100 PCV13 V114 Other Ped PCVs PCV13 22F/33F Additional

Children <5, % IPD Coverage

Residual Disease Post-PCV13

Percent of residual disease 25 50 75 100 PCV13 V114 PPV23 V116 PCV13 22F/33F Additional

Adults ≥65, % IPD Coverage

Residual Disease Post-PCV13

Percent of residual disease

65

Mike Nally

SLIDE 20

MULTIPLE PROGRAMS TARGETING MULTIPLE PROGRAMS TARGETING A M A MARKET OF ARKET OF OVER $1 OVER $10B GLOBALL 0B GLOBALLY

CMV=Cytomegalovirus; RSV=Respiratory syncytial virus

CMV Dengue 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

66

• #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

Mike Nally

SLIDE 21

30 YEARS OF HIV IN 30 YEARS OF HIV INNOVATIO NOVATION N CONTI CONTINUES NUES

1980s 1980s 1990s 1990s 2000s 2000s 2010s 2010s 2020+ 2020+

1989 Role of protease published – AZT launches 1983 HIV is discovered 1996 2000 ACHAP1 Partnership with Botswana and Bill and Melinda Gates Foundation 2007 2018 2017 MK-8591: Investigational NRTTI for the treatment and prevention of HIV Many additional mechanisms in early development CONTINUING TO INNOVATE

67

1998

1African Comprehensive HIV/AIDS Partnerships

• Dr. Roy Baynes

SLIDE 22

Long Long-Duration Oral & Implantable Oral

Monthly Monthly Implantable Implantable Daily Daily Weekly Weekly Eliminati Elimination

• n

Continue to simplify HIV care Radical simplification

• f HIV care

Maximize simplicity, potency and tolerability Free patients from daily dosing Aspiring to cure Potential to reduce risk

• f HIV infection

↓↓↓ Dosing frequency ↑↑↑ Adherence Daily dosing for antiretroviral suppression ↓↓ Dosing frequency ↑↑ Adherence Sustained viral response or cure

CURE CURE

MK MK-8591 8591: : UNI UNIQUE QUE PHARMACOLOGY PHARMACOLOGY ENABLING ENABLING POTENTIAL POTENTIAL LONG DURATION THE LONG DURATION THERAPY RAPY

TREATMENT PREV PREVENT ENTION [PrEP] ION [PrEP]

68

• Dr. Roy Baynes

SLIDE 23

HIV REMAINS A PARAMO HIV REMAINS A PARAMOUNT UNT WORLDWIDE WORLDWIDE HEALTH HEALTH THREAT THREAT

69

People eople newl newly y inf infected ected with HIV with HIV in 2017 in 2017 Number Number

• f
• f peo

people ple living living with HIV with HIV AIDS AIDS- rela elated ted dea deaths ths in in 2017 2017

36.9M 36.9M 1.8M 1.8M 940K 940K

Mike Nally

SLIDE 24

MK MK-8591 8591: : UNI UNIQUE QUE ATTRIBUTES ATTRIBUTES ALIGN WELL WITH ALIGN WELL WITH UNMET NEED UNMET NEED

MK MK-8591 8591 HIV U UNMET NEED

70

Simple, efficacious regimens that support lifelong therapy with high QoL

Extended co Extended cover erage ge for

• r

missed doses (f missed doses (for

• rgiv

giveness) eness) Pill f Pill fatigue tigue Reduced to educed toxicity xicity Easy Easy, , ef effectiv ective

• ptions f
• ptions for PrEP
• r PrEP

Mike Nally

SLIDE 25

GEFAPIXANT (MK GEFAPIXANT (MK-7264): EXP 7264): EXPLORING ROLE OF P2X3 LORING ROLE OF P2X3 PATHWAY PATHWAY IN IN DISORDERS DISORDERS OF SEN OF SENSORY PATHOLO SORY PATHOLOGY GY

Development focused on the role

• f P2X3 receptor mediated

signaling in:

• Unexplained or refractory

chronic cough

• Visceral pain syndromes
• Altered sympathetic function

71

P2X3 Blockade Sensory Pathology

• Headache/migraine
• Hypertension
• Pathologic cough
• Bronchoconstriction
• Breathlessness
• Sleep apnea
• IBS-C/D
• Urinary urgency
• Bladder/pelvic pain
• Endometrial-related pain
• Neuropathic pain
• Muscle pain
• Itch

Pathologically sensitized afferents send aberrant signals of disease Blocking P2X3 receptors may restore normal sensory function

Pathologies currently being explored

• Dr. Roy Baynes

SLIDE 26

GEFAPIXANT (MK GEFAPIXANT (MK-7264 7264): ): OPPORTUNITY OPPORTUNITY FOR BROAD APPLICABILITY FOR BROAD APPLICABILITY

72

Chronic cough Endometrial- related pain Other sensory functions Sleep apnea

10% global prevalence for chronic cough, of which ~20% are refractory chronic cough or unexplained chronic cough Impacts ~176 million women worldwide ~29 million Americans suffer from sleep apnea,

• f which 80% are

undiagnosed

Potent ntial p pipeline in a a p produc uct

Mike Nally

SLIDE 27

DIVERSE PIPELINE DIVERSE PIPELINE WITH STRONG GROWTH WITH STRONG GROWTH POTENTIAL POTENTIAL THROUGH NEXT THROUGH NEXT DECA DECADE DE

73

Durable business with extensive portfolio, and pipeline and global growth opportunity Broadest I-O program with strong pipeline of

• ncology products to

drive long-term leadership Innovative pipeline targeting areas of significant unmet need

ONCOLOGY HOSPITAL / SPECIALTY VACCINES

Mike Nally