Merck slips despite earnings beat, says it will cut $3 billion in costs

Merck fell 4% in premarket trading Tuesday despite reporting earnings results that beat Wall Street’s expectations.

The company reported adjusted earnings per share of $2.13, compared to the $2.02 analysts polled by FactSet were expecting. It also reported $15.8 billion in revenue, nearly matching the $15.9 billion the Street was penciling in.

Merck also said it would slash $3 billion in costs by the end of 2027 as it prepares for the patent to expire on its blockbuster cancer medication, Keytruda, in 2028. The drug accounted for about 40% of the company’s revenue last year.