2017 ANNUAL MEETING OF

SHAREHOLDERS
BRIDGEWATER MARRIOTT

May 23, 2017

Forward-Looking Statement
This presentation of Merck & Co., Inc., Kenilworth, NJ, 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 1995. These statements are based upon the current
beliefs and expectations of the Companys 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 healthcare legislation in the
United States and internationally; global trends toward healthcare cost containment; technological advances, new products and patents
attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the Companys 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 Companys 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 Companys 2016 Annual Report on Form 10-K and the Companys other filings with the Securities and Exchange
Commission (SEC) available at the SECs Internet site (www.sec.gov).
KEN FRAZIER
CHAIRMAN AND CEO
BUSINESS UPDATE
Ken Frazier, Chairman and CEO
 Merck Has A Rich Heritage of Bringing
Groundbreaking Products To Market With Potential
Future Innovations

ALZHEIMERS
MMR INTRON A VARIVAX JANUVIA KEYTRUDA AMR
FOSAMAX GARDASIL
PRIMAXIN RECOMBIVAX ZEPATIER
ATHEROSCLEROSIS
PNEUMOVAX ZOCOR CRIXIVAN ISENTRESS BELSOMRA
MEFOXIN VASOTEC SINGULAIR ZOSTAVAX VICTRELIS
DIABETES
.. .. .. ..
.
..
. . . . HIV
VACCINES

And Many More

< 1970s 1980s 1990s 2000s 2010s
What 95%
Invention Cant
OF PEOPLE SURVEYED
DONT THINK OF
NEW MEDICINES
You Wait For? AS THE MOST
Impactful
Inventions
NINI, Age 3
in remission
since 2016

WE THINK THEYRE THE

Most
Important Kind
Performance Driven by Broad and Balanced Portfolio

Oncology | Diabetes | Vaccines

2016
GROWTH
Animal Health | Hospital Acute Care
2017: Strong First Quarter Performance

Launches Results
1Q17
GROWTH $0.56
GAAP EPS

Oncology $0.88
Vaccines Non-GAAP EPS
Animal Health
 NSCLC: Approved in 1L as monotherapy (PD-L1+ high expressers) and
in combination (pemetrexed/carboplatin) in all comers non-squamous;
approved in all PD-L1+ in 2L
Melanoma: Approved in 1L+
Head and Neck: Approved in U.S.
Classical Hodgkin Lymphoma: Approved in U.S. and E.U.
Bladder: Approved in 1L and 2L settings
Launched in >50 Markets FDA Breakthrough Therapy Designation in multiple tumor types
>10 internally-owned I/O mechanisms with several already in the clinic
Broadest clinical program of any Anti-PD-1/PD-L1
> 500 clinical studies across
30 tumor types
> 300 combinations
> 40 potential registration-enabling studies
KEYTRUDA: Progress in Developing More Effective Cancer Treatments

Roger M. Perlmutter, M.D., Ph.D.

May 23, 2017
PD-1 and PD-L1/L2 Pathway
PD-1 is an immune
checkpoint receptor
Binding of PD-1 by its
ligands PD-L1 or PD-L2
leads to downregulation
of T-cell function
This mechanism is
usurped by many tumors
PD-1 blockade through
mAb therapy can reveal
effective anti-tumor immunity
Topalian et al. N Engl J Med. 2012.
Garon et al. N Engl J Med. 2015.
Robert et al. Lancet. 2014.
Treatment of Advanced, Metastatic Melanoma with KEYTRUDA
Baseline: 13 April 2012 27 July 2012

Courtesy of A. Ribas M.D.

72 year-old male with melanoma whose disease progressed following chemotherapy,

high-dose IL-2, and ipilimumab
Patient was placed on oxygen support due to progressive lung disease burden and
pleural effusion
After 3 months of MK-3475, the patient no longer required oxygen support
 KEYTRUDA Monotherapy Has Shown Activity in >20 Tumors

Melanoma1 100
NSCLC2 100
H&N3 100
Urothelial4 TNBC5 Gastric6 cHL7
100 100 100 100

0 0 0 0 0 0
0
Change From Baseline in Tumor Size, %

-100 -100 -100 -100 -100 -100

-100

NHL PMBCL8 Mesothelioma9 Ovarian10 SCLC11 Esophageal12 NPC13 Anal14

100 100 100
100 100 100 100

0 0 0 0 0
0 0

-100 -100 -100 -100 -100 -100 -100

Biliary Tract15 Colorectal16 ER+/HER2 BC17 Cervical18 Thyroid19 Salivary20

100 100 100 100 100 100

0 0 0 0 0 0

-100 -100 -100

-100 -100 -100

1. Daud A et al. ASCO 2015; 2. Garon EB et al. ESMO 2014; 3. Seiwert T et al. ASCO 2015; 4. Plimack E et al. ASCO 2015; 5. Nanda R et al. SABCS 2014; 6. Bang YJ et al. ASCO 2015 ; 7. Moskowitz C et al. ASH 2014; 8. Zinzani PL et
al. ASH 2015; 9. Alley EA et al. AACR 2015; 10. Varga A et al. ASCO 2015; 11. Ott PA et al. 2015 ASCO; 12. Doi T et al. ASCO 2015; 13. Hsu C et al. ECC 2015; 14. Ott PA et al. ECC 2015; 15. Bang Y-J et al. ECC 2015; 16. ONeil B et al.
ECC 2015; 17. Rugo HS et al. SABCS 2015;
18. Frenel JS et al. ASCO 2016; 19. Mehnert JM et al. ASCO 2016; 20. Cohen R et al. ASCO 2016.
KEYTRUDA Development Efforts are Increasing Rapidly with Many
Trials Just Beginning. . .Including Many Combination Studies
ANAL OVARIAN
SCLC
PMBCL
COLORECTAL
UROTHELIAL
NPC ESOPHAGEAL
GASTRIC RENAL
MESOTHELIOMA
H& N cHL
MELANOMA TNBC Number of Clinical Trials
Bladder
NSCLC

Broad global clinical program with more

than 500 studies (largest PD-1/PD-LI
program)

Updated 02-Mar-2017; source: clinicaltrials.gov

 KEYTRUDA Provides Meaningful Benefit to Patients with Non-Small
Cell Lung Cancer in Combination with Traditional Chemotherapy

ORR nearly doubled with KEYTRUDA combo vs.

chemo alone

47% risk reduction of disease progression

Median PFS = 13.0 Months

Adapted from presentation by C. Langer, ESMO 2016

From a grateful patient:

The license plate is

my advertisement
for all to see!

16
Committed to Being the Premier Research-Intensive
Biopharmaceutical Company

Innovate
Pursue the most promising science to
address significant unmet medical
needs

Adapt Execute
Develop culture and business model Prioritize resources to high-
that evolve with internal and external growth areas, key markets and
landscape customers
Total Shareholder Returns (TSRs)
Cumulative Returns as of December 30, 2016
85.7%

Merck
74.3%
Peer Avg

29.5%

15.1% 14.5%

-4.0%

1 Year 3 Year 5 Year

Peers: AbbVie (1y, 3y), Amgen, Astra, BMS, GSK, J&J, Lilly, Novartis, Pfizer, Roche, Sanofi
Source: Bloomberg (TSR based on actual closing prices)
 Weve Continued Strong R&D Investment
Merck R&D Investment
(non-GAAP)
$9.00
$8.00
$7.00 $6.5B $6.6B $6.8B
$USD Billions

$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2014 2015 2016
 Engaged in Critical Policy Efforts Top Policy Priorities
Donald Trumps Economic Team Sustainable pricing and
House Passes Obamacare Repeal
in Razor-Thin GOP Victory
Unveils Its Ambitious Plan for Tax access to medicines &
Reform
vaccines

Innovation and
Trump Calls for Deep Cuts in
Business Taxes, Changes for House Passes Measure to Repeal intellectual property
Individuals and Replace the Affordable Care Act protection

Comprehensive tax
reform (U.S.)
Trump plan to slash
business taxes to test
Congress on deficit
 Improved access to care
to more than 6 million
women

90 partners, 50 programs,
30 countries

Celebrating 30 Years:
MECTIZAN
DONATION PROGRAM
LYMPHATIC FILARIASIS RIVER BLINDNESS ALSO
NOW ELIMINATED IN ELIMINATED IN
Togo Colombia, Ecuador
Guatemala, Mexico
2017 ANNUAL MEETING OF
SHAREHOLDERS
BRIDGEWATER MARRIOTT

May 23, 2017

For voting results, call
1-800-CALLMRK
(1-800-225-5675)
or visit www.Merck.com