Merck falls 8%, company announces it will cut $3 billion in annual costs.

In early trading on Tuesday, Merck stock plummeted more than 8% in the U.S. Eastern Time, after the company announced plans to cut $3 billion in annual costs to cope with the upcoming generic competition for its cancer drug Keytruda. The restructuring plan, expected to be completed by 2027, aims to reallocate resources to new growth areas. Despite slightly lower revenue than expected, Merck's adjusted earnings per share for the second quarter reached $2.13, exceeding market expectations.