Merck & Co. today reported that its third-quarter profit plunged 35 percent because of competition from generic drugs, lower sales of its top-selling medicine, and restructuring and acquisition charges. Still, it beat profit expectations, but sharply lowered its own forecast for the full year, sending shares down.

Merck said net income was $1.12 billion, or 38 cents per share, down from $1.73 billion, or 56 cents per share, a year earlier. Excluding one-time items, net income would have been $2.73 billion, or 92 cents per share. Analysts were expecting 88 cents per share.

One-time-tems included $1.2 billion for merger and integration costs and $967 million for restructuring costs.

Revenue totaled $11.03 billion, down 4 percent. That missed expectations for $11.13 billion in revenue.

The company lowered its 2013 profit forecast to $1.61 to $1.79 per share, from its July forecast of $1.84 to $2.05. The company said unfavorable foreign exchange rates would account for about 2.5 percentage points of its expected sales drop for the full year.

Earlier this month Merck announced it would lay off 8,500 workers, cut $2.5 billion in costs over two years and restructure its research and development efforts.

Merck & Co Inc. (MRK)

Merck & Company Inc. (MRK) is up +10.92% year-to-date.