Press Release Supplementing Ad-hoc Announcement of September 29, 2020

Merck KGaA, Darmstadt, Germany, has just published the following ad-hoc announcement in accordance with Art. 17 of the German Market Abuse Regulation:

In the United States Merck KGaA, Darmstadt, Germany’s subsidiary EMD Serono, Inc. (Merck KGaA, Darmstadt, Germany) is involved in a US patent dispute with Biogen Inc., United States (Biogen). Biogen sued Merck KGaA, Darmstadt, Germany, for damages in connection with a patent infringement caused by Merck KGaA, Darmstadt, Germany’s product Rebif before the U.S. District Court New Jersey, Newark. Merck KGaA, Darmstadt, Germany, defended itself against the allegations and brought a countersuit claiming that Biogen’s patent is invalid. In February 2018 a jury declared Biogen’s patent invalid vis-à-vis Merck KGaA, Darmstadt, Germany. The jury verdict was overturned by the District Court Judge, who upheld the validity of Biogen’s patent. Merck KGaA, Darmstadt, Germany, filed a complaint with the U.S. Court of Appeals for the Federal Circuit against this ruling.

On 28 September 2020 the U.S. Court of Appeals for the Federal Circuit set aside the decision of the District Court Judge, invalidated Biogen’s patent and instructed the District Court to reinstate the jury verdict.

Therefore, Merck KGaA, Darmstadt, Germany, has decided today to reverse the provisions for the patent dispute proceedings in the amount of EUR 365 million. Thereof, up to a mid to high double-digit million amount might be booked into the financial result.

Merck KGaA, Darmstadt, Germany, will adjust its forecasts accordingly as part of its regular financial reporting.