Merck Slashes Profit Outlook Amid Terns Acquisition Charges

Merck's profits took a significant hit due to charges related to its acquisition of Terns. The pharmaceutical giant reported an adjusted loss of 13 cents per share, which was narrower than analysts' expectations of a 27-cent loss.

The company's revenue increased by 5% year over year to $16.61 billion, beating the consensus estimate of $16.36 billion.

Chairman and CEO Robert Davis stated that the company made substantial progress across its business this quarter, driven by strong execution and growing contributions from new product launches.

The pharmaceutical segment generated $14.76 billion in revenue, up 5% from a year earlier, led by growth in oncology and cardiometabolic and respiratory products, partly offset by weaker diabetes sales.