Merck Animal Health to Acquire Harrisvaccines

Acquisition Expands and Complements Merck Animal Health’s Strong
Vaccine Portfolio

MADISON, N.J.–(BUSINESS WIRE)–Merck Animal Health (known as MSD Animal Health outside the United
States and Canada) and Harrisvaccines, Inc., today announced the
companies have entered into an agreement under which Merck Animal Health
will acquire Harrisvaccines, a privately-held company that develops,
manufactures and sells vaccines for food production and companion
animals.

“As a leader in biologics, Merck Animal Health has built a robust
portfolio of vaccines across all animal species,” stated Rick DeLuca,
president, Merck Animal Health. “Combining Harrisvaccines’ R&D and
portfolio of products with our strong capabilities and global reach will
enable us to address even more devastating diseases that are impacting
production animals and reinforce our commitment to the science of
healthier animals.”

Harrisvaccines offers innovative technology and an important portfolio
of vaccines, with a focus on production animals, an increasingly
important segment as consumer demand for protein continues to grow
worldwide. The company has a unique RNA Particle technology which
represents a breakthrough in vaccine development. It also has a highly
versatile production platform able to target a wide range of viruses and
bacteria. Pathogens are collected from a farm and specific genes are
sequenced and inserted into RNA particles, making safe, potent vaccines
able to provide herd-specific protection.

This pioneering system is rapidly adaptable to new disease challenges
and was instrumental in producing the first conditionally licensed
vaccine to help control Porcine Epidemic Diarrhea Virus (PEDv), a deadly
virus that has killed more than eight million piglets since suddenly
emerging in the U.S. in 2013. In September 2015, Harrisvaccines received
a conditional approval for a Eurasian H5 subtype avian influenza vaccine
and was subsequently awarded a contract by the United States Department
of Agriculture’s Animal and Plant Health Inspection Service (USDA/APHIS)
to produce the vaccine.

“We are excited to join forces with Merck Animal Health,” said Dr. Hank
Harris, founder and CEO of Harrisvaccines. “Their vaccine expertise,
commercial reach and worldwide network of R&D and manufacturing sites,
combined with our knowledge and novel technology, represents a
tremendous opportunity to best serve producers and veterinarians as they
protect the health of animals worldwide.”

The terms of the agreement were not disclosed. The companies expect the
transaction to close in the fourth quarter of 2015.

About Merck Animal Health

Today’s Merck is a global healthcare leader working to help the world be
well. Merck Animal Health, known as MSD Animal Health outside the United
States and Canada, is the global animal health business unit of Merck.
Through its commitment to the Science of Healthier Animals™, Merck
Animal Health offers veterinarians, farmers, pet owners and governments
one of the widest range of veterinary pharmaceuticals, vaccines and
health management solutions and services. Merck Animal Health is
dedicated to preserving and improving the health, well-being and
performance of animals. It invests extensively in dynamic and
comprehensive R&D resources and a modern, global supply chain. Merck
Animal Health is present in more than 50 countries, while its products
are available in some 150 markets. For more information, visit www.merck-animal-health.com or
connect with us on LinkedIn
and Twitter at @MerckAH.

Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA

This news release 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 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 2014 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).

Contacts

For Merck Animal Health
Media:
Pam Eisele, 267-305-3558
Noreen
Verbrugge, 973-937-5450
or
Investors:
Teri Loxam,
908-740-1986
Justin Holko, 908-740-1879