Merck reported quarterly earnings that beat analysts' expectations on Monday, but global sales dropped 4 percent amid patent expirations and a drop in sales of its hepatitis C drugs.
In addition to divesting non-core assets, selling its consumer business to Bayer and reducing expenses, Merck gave investors good news on its drug pipeline, Barbara Ryan, managing director of FTI Consulting told CNBC's "Squawk Box."
Among the advances were approval for oncology agent Keytruda and insomnia drug Belsomra, which Ryan chalked up to Merck's commitment to research and modest growth in research and development spending under CEO Ken Frazier, even as rivals such as Pfizer scale back.
"What we see now is the fruits of those labors coming through with these announcements on the new product announcements," said Ryan.
Following the report, the drug giant's shares were lower in premarket trade. (Click here to track its shares.)
The company's third-quarter earnings fell to 90 cents per share from 92 cents a share in the year-earlier period.
Global sales slipped to $10.56 billion from $11.03 billion a year ago.