Merck Animal Health and State of Kansas Announce $895 Million Investment in Manufacturing and Research & Development Facilities in De Soto

Merck Animal Health unveils its largest economic development project in recent history

Merck Animal Health, known as MSD Animal Health outside of the United States and Canada, a division of Merck & Co., Inc., Rahway, N.J., USA (NYSE:MRK), and Kansas Governor Laura Kelly jointly announced today the $895 million expansion of Merck Animal Health's manufacturing facility in De Soto, Kansas.

The $895 million capital expansion will be constructed on an existing Merck-owned property that is the site of its biologics facility in De Soto, Kansas. It includes an $860 million investment in the site's existing manufacturing facility and a further $35 million investment in its research and development laboratories.

The 200,000-square-foot manufacturing facility project will expand filling and freeze dryer capacity for large molecule vaccines and biologic products for Merck Animal Health. As a Center of Excellence, it will play a pivotal role in the manufacturing of Merck Animal Health's products and will complement Merck Animal Health's extensive U.S. and international network of animal health product manufacturing plants.

Site preparation and facility design will start immediately, creating 2,500 construction jobs. Commercial manufacturing is expected to begin in 2030, creating more than 200 full-time roles.

Merck Animal Health's significant investment in its research and development laboratories will enhance its research capabilities, focusing on advancing Merck Animal Health's global drug discovery and development initiatives. The investment will continue to drive Merck Animal Health's innovative research and development of novel parasiticides and therapeutics, reinforcing the company's dedication to improving animal health and welfare worldwide.

"Our De Soto, Kansas manufacturing facility is strategically located in the heart of the Animal Health Corridor. This region is renowned for its concentration of animal health companies, fostering an unparalleled ecosystem for innovation, collaboration and industry leadership," said Richard DeLuca, president, Merck Animal Health. "This investment in our site is designed to increase Merck Animal Health's ability to meet the growing customer demand for its portfolio of animal biologics products and ensure the company remains at the forefront of innovation in the animal health sector. This initiative also reflects our dedication to advancing animal health and our on-going investment in the communities where we operate."

Merck Animal Health is partnering with the state of Kansas on expansion of the existing manufacturing facility. The investment demonstrates Merck Animal Health's commitment to the U.S. market, in which the company has significantly invested to deliver innovative health solutions that advance the prevention and treatment of animal diseases. This marks one of the largest economic development projects in Kansas' recent history and the largest for Merck Animal Health.

Since the advent of the 2017 Tax Cuts and Jobs Act, Merck has allocated more than $12 billion to enhance its domestic manufacturing and research capabilities, with additional planned investments of more than $9 billion by the end of 2028.

"This extraordinary investment by Merck Animal Health underscores my administration's commitment to securing a strong economic future for our state and ensuring prosperity for generations to come," Governor Laura Kelly said. "Public-private partnerships that lead to major global projects, such as those with Merck, Fiserv and Panasonic – just to name a few recent successes – are occurring because people believe in Kansas. They believe in who we are, what we are doing, and the direction we have taken."

"Merck's massive expansion in De Soto further elevates Kansas' long-established status as a global leader in animal health," Lieutenant Governor and Secretary of Commerce David Toland said. "The opportunities and ripple effects of having almost $1 billion surge into the local economy will have far-reaching and long-lasting reverberations across the entire state. Historic investments such as these truly benefit all Kansans, both now and into the future."

Please visit the Merck Animal Health media library for images, b-roll and fact sheets about our De Soto facility.

About Merck Animal Health

At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than a century, we've been at the forefront of research, bringing forward medicines, vaccines and innovative health solutions for the world's most challenging diseases. Merck Animal Health, a division of Merck & Co., Inc., Rahway, N.J., USA, is the global animal health business of Merck. Through its commitment to The Science of Healthier Animals^®, Merck Animal Health offers veterinarians, farmers, producers, pet owners and governments one of the widest ranges of veterinary pharmaceuticals, vaccines and health management solutions and services as well as an extensive suite of connected technology that includes identification, traceability and monitoring products. Merck Animal Health is dedicated to preserving and improving the health, well-being and performance of animals and the people who care for them. 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 and connect with us on LinkedIn, Facebook, X (formerly Twitter) and Instagram.

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

This news release of Merck & Co., Inc., Rahway, 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 candidates that the candidates 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 Annual Report on Form 10-K for the year ended December 31, 2024 and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov).

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