Subsequent Events

On January 11, 2017, Merck announced a licensing agreement with ­Vertex Pharmaceuticals Inc., Boston, USA, (Vertex). Within the scope of this agreement, Vertex will transfer to Merck the worldwide development and commercialization of four research and development programs that represent novel approaches to the treatment of cancer. In return, Merck will make an upfront payment of US$ 230 million (€ 218 million based on the exchange rate on January 11, 2017). In addition, Merck is obligated to pay royalties on future product sales.

On February 6, 2017, Merck entered into a contractual agreement according to which Merck will receive a one-time payment as compensation for future royalty and license payments. As a consequence of this agreement, in 2017 Merck will receive cash inflows of US$ 123 million (€ 114 million based on the exchange rate on February 6, 2017), which will be recognized as income in the Healthcare business sector.

Subsequent to the balance sheet date, no further events of special importance occurred that could have a material impact on the net assets, financial position or results of operations.