Merck Shares Fall After Earnings, Spin-off Announcements
February 05 2020 - 10:33AM
Dow Jones News
By Allison Prang
Merck & Co. Inc. (MRK) shares fell 2.7% after the company
said it would spin off some of its products into a new firm and
reported mixed fourth-quarter results.
Merck said Wednesday it is spinning off a chunk of the company
that accounts for about $6.5 billion of Merck's 2020 revenue into a
different company. The new company's products will include women's
health offerings, cholesterol treatments and others. The deal,
expected to close in 2021, will save Merck over $1.5 billion by
2024, the company said.
Merck reported adjusted earnings that beat analysts' consensus
from FactSet, but sales fell short. The company's 2020 guidance for
both metrics was in line with Wall Street estimates.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
February 05, 2020 10:18 ET (15:18 GMT)
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