Merck & Co. (NYSE: MRK) tightened its full-year forecast after incorporating the impact of an amended collaboration with AstraZeneca and reduced tariff expenses, partially offset by acquisition-related costs tied to its Verona Pharma deal.

The company now expects annual revenue between $64.5 billion and $65 billion, compared with its previous projection of $64.3 billion to $65.3 billion. Adjusted earnings per share are forecast at $8.93 to $8.98, up from prior guidance of $8.87 to $8.97.

Merck said its updated outlook includes benefits from changes to its AstraZeneca collaboration, which eliminated a prior revenue- and cost-sharing arrangement. The company also noted lower tariff-related expenses following President Donald Trump's import tariff reforms and a more favorable tax rate outlook, partly offset by the Verona acquisition's impact.

Merck announced its roughly $10 billion acquisition of Verona Pharma in July to expand its respiratory treatment portfolio and reduce dependence on cancer drug Keytruda, whose patents expire in 2028.

In the third quarter, revenue increased 3.7% year-over-year to $17.28 billion, surpassing Bloomberg's consensus estimate. Growth in Keytruda sales helped offset weaker demand for HPV vaccine Gardasil in China. Adjusted earnings came in at $2.58 per share.