Merck results flag, but cancer-drug deals lift shares

Merck & Co Inc's quarterly profit and sales just missed expectations as its medicines faced competition from cheaper generics, but the company announced potentially lucrative new cancer-drug partnerships with rival U.S. drugmakers. For the full year, Merck expected to earn $3.35 to $3.53 per share, excluding special items. "Overall, I view this guidance as 'good enough,' given fairly widespread Street concerns about a 'mega-miss,'" ISI Group analyst Mark Schoenebaum said, adding that investors remain more focused on prospects for the company's array of experimental drugs. Separately on Wednesday, Merck said it plans to test its closely followed immuno-oncology drug MK-3475, in combination with medicines being developed by Pfizer Inc, Amgen Inc and Incyte Corp. Financial terms of the deals were not disclosed.