Merck slashed its full-year profit outlook due to charges from its acquisition of Terns Pharmaceuticals, though it raised sales guidance as new product launches drove second-quarter revenue above expectations. The company now projects adjusted earnings per share of $2.66 to $2.76, down sharply from its prior forecast of $5.04 to $5.16.

The revised guidance incorporates previously excluded acquisition-related charges, including a one-time hit of $2.31 a share tied to the Terns deal. Merck also expects financing costs of about 12 cents a share and expenses from advancing Terns's drug candidate for chronic myeloid leukemia.

Despite the profit downgrade, Merck lifted its full-year sales outlook, citing momentum from recent product launches that bolstered the topline in the second quarter. Sales came in ahead of Wall Street estimates, providing some offset to the acquisition-driven earnings pressure.