1	Identifying Alternative Sources for New Products
2	We Developed a Transparent and Straightforward Licensing Process
3	Come to us or we’ll come to you Merck’s Regional Scientific Scouting Network
4	We Constantly Scan for Partnering Opportunities
5	Success in Building Partnerships
6	Key Transactions (2006 – 2008)
7	Merck’s Areas of Interest – on the web!
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9	External Basic Research Site: Goals Mission: Develop and implement an integrated strategy to expand the scope and size of Merck’s early pipeline utilizing external sources of innovation Foster an external research portfolio with the appropriate balance among: Franchise areas Target modalities (small molecules, biologics, siRNA) Stage of development (target ID through PCC) Short term vs. long-term investments
10	EBR: Structure & Key Responsibilities Deliver a successful full-scale research portfolio across MRL franchise areas. Key deliverables will include: Validated targets New technologies Biomarkers to aid development Product candidates for the early pipeline Externally facing site: identify appropriate biotech and academic collaborations to expand the early pipeline Provide scientific leadership and MRL governance of external basic research alliances Oversee the strategic balance and budget of external basic research
11	We have developed Guiding Principles for Partnerships…and we live by them! Alliances driven by strategic priorities No floor or ceiling for number of licensed programs and projects Equal incentives for licensed programs and internal programs Transactions in all stages of research, development Flexibility in deal structures Speed in deal making Creation of value for each partner Leverage strengths of each partner Long-term thinking
12	Collaboration with FoxHollow on Atherosclerosis Characterize the components of arterial plaque Identify markers of plaque growth, regression Drive the development of novel treatments for atherosclerosis
13	Gladstone Institute - small molecule modulators of ApoE4-induced AD Pathogenicity
14	Collaboration with Harvard to identify inhibitors of the Visual Cycle for the treatment of AMD
15	Sirna Acquisition Merck acquired Sirna Therapeutics, Inc., a leader in developing RNA interference (RNAi) therapies Latest example of Merck’s aggressive strategy of targeted acquisitions and external research collaborations in order to complement our internal research efforts. The acquisition of Sirna complements the RNA expression analysis that Merck has been doing since the 2001 acquisition of Rosetta Inpharmatics, Inc. RNAi could significantly change the way we go about discovering and developing drugs, and could become a new way to treat patients with unmet medical needs
16	Merck Acquires GlycoFi and Abmaxis Acquisitions position Merck to become a significant player in biologic drug discovery and development Complement Merck’s expertise in yeast expression technology GlycoFi, Inc.: Novel, yeast-based proprietary protein optimization technology Glycoengineering provides advantage over current methods in protein production (monoclonal antibodies and protein therapeutic agents): Increased quality, decreased cost, increased speed Abmaxis, Inc.: Leader in Discovery and Optimization of Monoclonal Antibodies Break-through antibody engineering technology platform AISIM™: Abmaxis in-silico Immunization
17	Idera – Novel Vaccine Collaboration Broad collaboration to research, develop and commercialize Idera’s Toll-like Receptor agonists by incorporating them in therapeutic and prophylactic vaccines being developed by Merck for oncology, infectious disease and Alzheimer’s disease “We are extremely pleased to collaborate with Merck, a global pharmaceutical leader with a reputation for innovative research… we look forward to working closely with Merck’s world-class chemists to expand our portfolio of novel TLR’s…” - Sudhir Agrawal, D. Phil., chief executive officer and chief scientific officer of Idera
18	Moffitt Collaboration: Personalized Medicine to Treat Cancer Collaboration to link molecular technology and clinical data to enhance the ability to diagnose and treat patients, and to discover and develop new targeted therapies Identify the right drug for the right patient - individualize treatment for patients with various types of cancer Partnership between patients, community providers, industry and government to personalize and improve cancer care