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Merck Slashes Research Budget, Boosts First-Quarter Profits

Shares of Merck are climbing on Tuesday after the pharmaceuticals company reported higher profits in its first quarter, boosted by cutting research spending by 20-percent.

Shares of Merck are climbing on Tuesday after the pharmaceuticals company reported higher profits in its first quarter. The second-largest drugmaker in the U.S. earned an adjusted 88 cents a share which came in 9 cents higher than analysts expected. Profitability was boosted over the quarter after research spending was cut 20-percent to $1.5 billion. For fiscal 2014, management guided for adjusted earnings of $3.35 to $3.53 a share, inline with expectations for $3.44 a share.

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