Merck on Wednesday reported a 2.5 percent fall in quarterly revenue, hurt by a strong dollar and declining sales of its Remicade arthritis treatment.
Merck's stock price dropped more then 2 percent in premarket trading after the release of the earnings report. (Click here for the latest price.)
Net income fell to $981 million, or 35 cents per share, for the fourth quarter ended Dec. 31 from $7.32 billion, or $2.54 per share, from a year earlier.
On an adjusted basis, the company earned 93 cents per share. Revenue fell to $10.22 billion from $10.48 billion.
Analysts had expected Merck to report adjusted earnings of about 91 cents a share on $10.35 billion in revenue, according to a consensus estimate from Thomson Reuters.
Last week, the Food and Drug Administration , Zepatier, expanding the number of advanced treatment options available to patients. According to The Associated Press, the number of hepatitis C therapies on the market will not only pressure companies to limit the prices of their drugs but also increase the chances of each patient finding a treatment that works for them.
Read MoreMerck CEO discussed drug prices with Obama
Separately, Reuters reported last week that the Gavi global alliance for vaccines and immunization group signed a with Merck as an advanced purchase of the pharmaceutical company's Ebola vaccine in development.
— Associated Press, Reuters, and CNBC's Christine Wang contributed to this report.