EMD Serono, Inc.

Tailwind thanks to robust global growth trends in all three business sectors Life Science to be back on course as company’s growth engine Healthcare with ambition for mid-single-digit long-term growth Age of artificial intelligence (AI) drives medium-term growth upgrade for Electronics Acquisitions remain an integral component of company strategy Merck KGaA, Darmstadt, Germany, a leading science and technology company, is looking confidently toward the future. At today’s Capital Markets Day, the company shared its expectation of profitable and financially strong growth in the coming years. After the transitional year of 2023, Merck KGaA, Darmstadt, Germany, considers the medium-term growth opportunities in its markets to be intact. With its three business sectors, the company is in a strong strategic position to partake in these opportunities. In Electronics, which develops solutions for the semiconductor and display industries, the Group even expects business performance to accelerate in the next few years. This is thanks in particular to the trend toward artificial intelligence. “We committed to return to growth in 2024 and this is materializing already,” said Belén Garijo, Chair of the Executive Board and CEO of Merck KGaA, Darmstadt, Germany. “Furthermore, we are well positioned to deliver sustainable growth through innovation and our high-performing global talent.” Innovations as growth drivers Merck KGaA, Darmstadt, Germany, relies on its diversified business model to spark discovery and elevate humanity in accordance with its new company vision. In its Life Science business sector, the company sees the globally growing later-stage pipeline of complex molecules and novel modalities, among other things, as key growth drivers. Novel modalities include new therapies such as viral vector-based cell and gene therapies, antibody-drug conjugates (ADCs), and mRNA applications. The company has in-depth knowledge and offers a broad portfolio of products and services in these areas. ADCs are experiencing remarkable growth, for example. The Group has significantly increased its ADC and highly potent active pharmaceutical ingredient (HPAPI) capacities in recent years. In Healthcare, Merck KGaA, Darmstadt, Germany, takes up leading positions in therapeutic areas within its Fertility and Cardiovascular, Metabolic & Endocrinology franchises, leveraging the company’s broad geographical footprint. Innovations in Oncology and Neurology & Immunology will continue to drive long-term growth. In June 2024, the company started a Phase III trial with cladribine capsules to treat the neurological disease myasthenia gravis. With enpatoran, developed for lupus erythematosus, it expects the full Phase II readout in early 2025. For pimicotinib [1] for the treatment of benign tumors of the joints, the Phase III readout is expected later this year. In addition, the company is executing its early-stage oncology development strategy, which it outlined in its R&D update call earlier this year . In the Electronics business sector, Merck KGaA, Darmstadt, Germany, has deliberately focused on solutions for the semiconductor and display industries. The company supports its customers in developing ever smaller, more powerful, and more efficient chips, among other things. In doing so, it helps to meet global demand for AI applications and modern semiconductors. For example, with the intended acquisition of Unity-SC , the Group will expand its portfolio with high-precision metrology instruments to optimize the quality and production yield and thus also the manufacturing costs of chips for its customers. Merck KGaA, Darmstadt, Germany, is also recording growing sales from sustainable solutions. For example, the company has increased its portfolio of more sustainable products in Life Science by an average of 30% annually since 2020. For example, Milli-Q ® systems for the purification of lab water that contain the ERA ™ technology can save up to 50% in water usage compared with other systems. The company’s innovative power drives organic growth. At the same time, the strong market position and stringent cost management of Merck KGaA, Darmstadt, Germany, ensure good profitability. It intends to normalize its current capital expenditure (capex) of approximately € 1.6 billion to € 1.8 billion per year at a slightly lower level once again from 2026 onwards. In previous years, the company had significantly increased its capex to prepare for medium- and long-term growth trends by expanding capacities in research and development as well as production, for example. Having reached these goals, Merck KGaA, Darmstadt, Germany, now expects less capital-intensive growth, which will facilitate stronger cash flow development. Strategic acquisitions Acquisitions also remain an integral component of the strategy of Merck KGaA, Darmstadt, Germany. On July 31, 2024, it acquired Mirus Bio . The U.S. life science company specializes in transfection reagents, which help introduce genetic material into cells and play a key role in the production of viral vectors for cell and gene therapies. Also in July 2024, Merck KGaA, Darmstadt, Germany, announced the acquisition of Unity-SC . For larger future transactions, the company is focusing on the Life Science business sector. The company will additionally intensify the in-licensing of drug candidates in Healthcare. Belén Garijo said: “M&A remains a key priority for us. And we remain disciplined and patient in our approach in order to maximize the strategic impact of any acquisitions. Our guiding principle is and always has been: The right target, at the right time, for the right price.” Medium-term ambitions: Growth trends in the markets remain intact At Capital Markets Day 2024, Merck KGaA, Darmstadt, Germany, slightly adjusted the mid-term growth ambitions for its three business sectors. The company is confident that the growth opportunities in its markets remain intact after the transitional year of 2023. It expects the following average annual organic sales growth rates: Life Science: 7% to 9% (previously: 7% to 10%) and therefore still above the market average. The main reason for the refined ambition is the updated view on China’s mid-term growth prospects. Healthcare: slight growth (previously: growth in the mid-single-digit percentage range). This is due to the recently announced pipeline setbacks. In the long term, the company intends to return to growth in the mid-single-digit percentage range, also supported by external innovation. Electronics: 5% to 9%, a significant uplift from the previous 3% to 6%. This is largely driven by Electronics becoming a pure play in the areas of Semiconductor and Display Solutions and enabling the trend toward artificial intelligence. The company benefits here from its unique position as a supplier of semiconductor solutions that meet the high demands of chips for AI applications. Company confirms guidance for fiscal 2024 For fiscal 2024, Merck KGaA, Darmstadt, Germany, confirms its guidance and the return to profitable growth : Sales: between € 20.7 billion and € 22.1 billion (organic growth: +2% to +5%). EBITDA pre: between € 5.8 billion and € 6.4 billion (organic growth: +4% to +10%). EPS pre: € 8.20 to € 9.30. [1] Sponsor: Abbisko Therapeutics Co. Ltd.; Merck KGaA, Darmstadt, Germany, holds an exclusive license to commercialize pimicotinib in China, Hong Kong, Macau, and Taiwan, with an option for the rest of the world. About Merck KGaA, Darmstadt, Germany Merck KGaA, Darmstadt, Germany, a leading science and technology company, operates across life science, healthcare and electronics. Around 63,000 employees work to make a positive difference to millions of people’s lives every day by creating more joyful and sustainable ways to live. From providing products and services that accelerate drug development and manufacturing as well as discovering unique ways to treat the most challenging diseases to enabling the intelligence of devices – the company is everywhere. In 2023, Merck KGaA, Darmstadt, Germany, generated sales of € 21 billion in 65 countries. The company holds the global rights to the name and trademark “Merck” internationally. The only exceptions are the United States and Canada, where the business sectors of Merck KGaA, Darmstadt, Germany, operate as MilliporeSigma in life science, EMD Serono in healthcare and EMD Electronics in electronics. Since its founding in 1668, scientific exploration and responsible entrepreneurship have been key to the company’s technological and scientific advances. To this day, the founding family remains the majority owner of the publicly listed company. All Merck KGaA, Darmstadt, Germany, press releases are distributed by e-mail at the same time they become available on the EMD Group website. In case you are a resident of the USA or Canada, please go to www.emdgroup.com/subscribe to register for your online, change your selection or discontinue this service.

Facility consolidates biosafety testing, analytical development, and cell bank manufacturing services into single building New rapid test offering with Blazar ® CHO Animal Origin Free (AOF) delivers results 60% faster Enables the company to meet increased global demand for biosafety testing MilliporeSigma, the U.S. and Canada Life Science business of Merck KGaA, Darmstadt, Germany, has opened its new €290 million biosafety testing facility in Rockville, Maryland, USA. Biosafety testing and analytical development are fundamental components of drug development and commercialization for traditional and novel modalities. Global demand for these services is growing at a double-digit rate[1]. “This expansion is the largest investment in contract testing in the company’s history and will allow us to drive automation and technology development in one integrated hub,” said Benjamin Hein, Head of Life Science Services, Life Science business of Merck KGaA, Darmstadt, Germany. “It reflects our commitment to providing our clients with disruptive platforms that shorten biosafety testing timelines, meet the growing global demand, and ensure the safety of the world’s medicines for patients.” The 23,000-square-meter facility will house biosafety testing, analytical development, and cell banking manufacturing services. It consolidates labs currently spread across four buildings into a single facility. This will increase collaboration between scientists and enable a higher level of automation and digitalization to increase Right First Time (RFT). The Life Science business of Merck KGaA, Darmstadt, Germany, has made significant investments over the last five years to expand its biosafety testing capabilities for clients across the globe. The company’s global biosafety testing network includes sites in Shanghai, China; Singapore; Stirling and Glasgow, UK; and Rockville, MD, USA. The new site will feature advanced testing capabilities, including a rapid methods package, designed to accelerate virus testing of bulk harvest material. This package is the first to include the Blazar ® CHO Animal Origin Free (AOF) panel, a targeted molecular method for detecting virus families. By combining the Blazar ® CHO AOF panel with assays for mycoplasma, sterility, and retrovirus-like particle detection, test results can be obtained in just 14 days, compared to 35 days with traditional assay methods. The Life Science business of Merck KGaA, Darmstadt, Germany, offers a broad multi-modality testing portfolio, which features disruptive platforms that reduce biosafety testing timelines and deliver the highest quality standards. The portfolio includes a rapid methods package with the Blazar ® CHO AOF panel, and the recently launched Aptegra™ platform, the first all-in-one, validated genetic stability assay of its kind. These innovations will enable the company to continue delivering high-quality testing services and regulatory expertise to bring life-changing medicines to patients more quickly and safely. [1] https://www.gminsights.com/industry-analysis/biological-safety-testing-market About the Life Science business of Merck KGaA, Darmstadt, Germany The Life Science business of Merck KGaA, Darmstadt, Germany, which operates as MilliporeSigma in the U.S. and Canada, has more than 27,000 employees and more than 55 total manufacturing and testing sites worldwide, with a portfolio of more than 300,000 products focused on scientific discovery, biomanufacturing and testing services. Merck KGaA, Darmstadt, Germany, a leading science and technology company, operates across healthcare, life science and electronics. Around 63,000 employees work to make a positive difference to millions of people’s lives every day by creating more joyful and sustainable ways to live. From providing products and services that accelerate drug development and manufacturing as well as discovering unique ways to treat the most challenging diseases to enabling the intelligence of devices – the company is everywhere. In 2023, Merck KGaA, Darmstadt, Germany, generated sales of € 21 billion in 65 countries. The company holds the global rights to the name and trademark “Merck” internationally. The only exceptions are the United States and Canada, where the business sectors of Merck KGaA, Darmstadt, Germany, operate as MilliporeSigma in life science, EMD Serono in healthcare and EMD Electronics in electronics. Since its founding in 1668, scientific exploration and responsible entrepreneurship have been key to the company’s technological and scientific advances. To this day, the founding family remains the majority owner of the publicly listed company. For more information about Merck KGaA, Darmstadt, Germany, visit http://www.emdgroup.com Follow MilliporeSigma on Twitter @MilliporeSigma, on Facebook @MilliporeSigma and on LinkedIn. All Merck KGaA, Darmstadt, Germany news releases are distributed by email at the same time they become available on the EMD Group website. 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PatientPoint, a patient engagement company, announced a partnership with MyHealthTeam, a social network company. The partnership aims to provide patients in more than 35,000 PatientPoint locations the chance to connect with and get support from other people who have the same chronic health problems. PatientPoint's waiting room and exam room screens feature messages that touts MyHealthTeam's platform which serves patients via a growing network of greater than 60 patient communities. When patients scan a QR code on PatientPoint's devices, they become part of pertinent online communities where they can get support from other patients, as well as information to help guide them in managing their healthcare. According to the two companies in a five-week pilot program, the partnership witnessed a strong commitment among patients with obesity or diabetes. "Our partnership with MyHealthTeam underscores PatientPoint's dedication to delivering relevant resources and information in the critical moments when care decisions are made," Mike Collette, founder and chief executive officer at PatientPoint, said in a statement. "This collaboration reinforces our leadership in the point-of-care space and furthers our purpose of empowering better health for all. We know educated, engaged, empowered patients make better decisions about their health, leading to patients living more supported, informed and fulfilled lives as they manage their conditions." Eric Peacock, cofounder and chief executive officer of MyHealthTeam noted that with the partnership, patients will be able to get the care they need from their doctor, plus ongoing support, guidance and education they need when they are not with their doctor. "By making MyHealthTeam's patient communities available through PatientPoint's extensive network of physician offices, we can improve health outcomes by providing timely support and information helping people feel more connected and informed before, during and after their visit with the doctor," said Peacock. THE LARGER TREND In 2021, PatientPoint merged with Outcome Health creating a new platform, PatientPoint Health Technologies, aimed at facilitating patient-clinician communications. In 2019, PatientPoint joined forces with the American Medical Association (AMA), to help in the management of Type 2 diabetes and cardiovascular disease. The tech companies teamed up to disseminate AMA-developed chronic disease education and engagement content via its point of care digital platform. In 2022, MyHealthTeam created a network for people with long COVID. The myCOVIDteam tool was the result of a partnership between MyHealthTeam and South African payer Discovery. The new community is designed to offer individuals living with long COVID foundational information, including risk facts, symptoms and treatment options. In 2020, MyHealthTeam teamed up with EMD Serono for a new information resource for patients with multiple sclerosis (MS) who are pregnant or might become pregnant. The tool, Family Planning Resource Center, is available within MyMS team, part of MyHealthTeam’s social network, designed to help individuals experiencing MS connect to each other. Patients use the feature to read about common myths linked with MS and pregnancy.