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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