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July 1, 2016 11:05 am ET

Manufacturer Offers Substantial Portfolio of Animal Vaccines in Latin America

Merck Animal Health (known as MSD Animal Health outside the United
States and Canada) today announced it has executed an agreement to
acquire a controlling interest in Vallée S.A., a leading privately-held
producer of animal health products in Brazil.

Vallée has an extensive portfolio of more than 100 products spanning
parasiticides, anti-infectives and vaccines. The company’s portfolio
includes products for livestock, horses, and companion animals. Vallée
was founded with the mission of producing a Foot and Mouth Disease (FMD)
vaccine for Brazil and has expanded significantly, with distribution
centers in Brazil and operations in Paraguay, Venezuela, Mexico and
Bolivia.

“Merck Animal Health has a broad portfolio of products to protect
against some of the most important pathogens affecting livestock,” said
Rick DeLuca, president, Merck Animal Health. “We are pleased to
complement our portfolio with products from Vallée, which will further
strengthen our presence in Latin America and help us respond even more
quickly and effectively to the region’s needs.”

The agriculture industry is an important driver of the economy in Latin
America. This region contributes 11% of the value of the world food
production¹ and a significant number of the cattle in the
region are vaccinated with Vallée S.A. vaccines.

“As one of the largest producers of protein in the world, Brazil is an
important market for us,” explains Ralph Cabezas, vice president, Latin
America region, Merck Animal Health. “Vallée has been a trusted
manufacturing partner in this region for a number of years and we are
pleased to offer their products to our customers to help protect animals
from diseases.”

Under terms of the agreement, Merck Animal Health, through a subsidiary,
will acquire approximately 93% of the shares of Vallée S.A. at closing,
in exchange for a payment of $400 million, based on current exchange
rates. This agreement is subject to regulatory review and certain
closing conditions.

About Merck Animal Health

For 125 years, Merck has been a global health care 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 (NYSE:MRK). 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,
Facebook
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. 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 2015 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).

¹ Inter-American Development Bank website http://www.iadb.org/en/topics/agriculture/latin-american-agriculture-statistics,2342.html.
Accessed on May 24, 2016.

Merck Animal Health
Media:
Amy Firsching, +1-973-937-5453
amy.firsching@merck.com
or
Pam Eisele, + 1-267-305-3558
pamela.eisele@merck.com
or
Investors:
Amy Klug, +1-908-740-1898
Amy.klug@merck.com