Merck Assigns Chimeric Antigen Receptor T-cell (CAR-T) Rights toIntrexon

Darmstadt, Germany (ots/PRNewswire) – Not intended for distribution
in the USA, Canada or UK

* Agreement enables Merck to maintain an investment in the rapidly
advancing oncology field of CAR-T, while focusing its R&D efforts

* Intrexon to issue Merck $150 million of Intrexon stock and a $25
million convertible note; Intrexon to receive a $25 million cash
investment

Merck, a leading science and technology company, today announced that
it has evolved its agreement with Intrexon Corporation (NASDAQ: XON)
for the development of Chimeric Antigen Receptor T-cell (CAR-T)
therapies, genetically engineered T-cells with synthetic receptors
that recognize a specific antigen expressed on tumor cells. The
agreement with Intrexon and its wholly-owned subsidiary, Precigen,
Inc., enables Merck to continue to implement its focused R&D
strategy, while maintaining an investment in the future potential of
next-generation CAR-T development.

Under the terms of the agreement, Merck will assign its exclusive
CAR-T development rights to Intrexon. Merck will receive shares of
Intrexon common stock valued at $150 million in exchange for
assigning Intrexon its CAR-T rights.

„Merck is excited to maintain its interest in the potential of CAR-T
technology, which may offer significant future benefits to patients
fighting cancer,“ said Belén Garijo, Member of the Executive Board
and CEO Healthcare, Merck. „The agreement is also illustrative of our
efforts to enhance our focus on accelerating the delivery of our
innovative clinical pipeline to patients.“

Merck first entered into a collaboration and license agreement with
Intrexon in 2015 to develop and commercialize CAR-T cancer therapies
utilizing Intrexon’s proprietary RheoSwitch Therapeutic System® and
the Sleeping Beauty non-viral gene integration technology. The
combination of these platforms enables regulation of gene expression
and delivery with a non-viral approach and preclinical data indicate
the potential to improve therapeutic safety and facilitate shortened
manufacturing to improve time-to-treatment. As of December 31, 2017,
these rights were considered intangible assets not yet available for
use with a carrying amount of EUR 104 million.

„Merck’s leading immuno-oncology research and commitment to
developing innovative medicines made them an ideal partner for us in
advancing targeted and controllable CAR-T therapies,“ said Helen
Sabzevari, PhD, President of Precigen. „We look forward to continued
development of these promising treatments with the goal of delivering
more cost-effective, powerful and precise therapies to patients in
need.“

In addition to receiving $150 million of Intrexon common stock, this
agreement also includes a further $25 million investment in Intrexon.
In return, Merck will receive a $25 million convertible note,
providing the option to receive either Precigen or Intrexon stock.
The closing of the transactions contemplated by the agreement is
subject to customary closing conditions, including the expiration of
the waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act.

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About Merck

Merck, the vibrant science and technology company, operates across
healthcare, life science and performance materials. Around 51,000
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 advancing gene editing technologies and discovering unique ways
to treat the most challenging diseases to enabling the intelligence
of devices – Merck is everywhere. In 2017, Merck generated sales of
EUR 15.3 billion in 66 countries.

Scientific exploration and responsible entrepreneurship have been key
to Merck’s technological and scientific advances. This is how Merck
has thrived since its founding in 1668. The founding family remains
the majority owner of the publicly listed company. Merck holds the
global rights to the Merck name and brand. The only exceptions are
the United States and Canada, where the business sectors of Merck
operate as EMD Serono in healthcare, MilliporeSigma in life science,
and EMD Performance Materials.

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