Schering-Plough Reports Financial Results for 2007 Fourth Quarter,...(rter included $217 million related to In...)

Date:2/12/2008

rter included $217 million related to Intervet, the OBS animal health business. Sales benefited from the inclusion of OBS sales and solid growth in all geographic areas, led by the cattle and companion animal product lines, coupled with a positive impact from foreign currency exchange rates. With the Intervet business, there was also significant growth in sales of vaccine products in the fourth quarter. On a combined basis, the animal health business is one of the leading companies in the vaccine segment.

Schering-Plough does not record sales of its cholesterol joint venture and incurs substantial costs such as selling, general and administrative costs that are not reflected in "Equity income" and are borne by the overall cost structure of Schering-Plough. As a result, Schering-Plough's gross margin and ratios of selling, general and administrative (SG&A) expenses and R&D expenses as a percentage of sales do not reflect the benefit of the impact of the cholesterol joint venture's operating results.

Schering-Plough's gross margin on a GAAP basis was unfavorably affected by purchase accounting adjustments and as a result was 57.9 percent for the 2007 fourth quarter as compared to 65.5 percent in the 2006 period. The gross margin percentage excluding purchase accounting adjustments and other specified items decreased to 66.7 percent for the fourth quarter of 2007 as compared to 67.2 percent for the fourth quarter of 2006.

SG&A expenses were $1.6 billion in the fourth quarter of 2007 versus $1.3 billion in the prior-year period. SG&A in the fourth quarter of 2007 increased primarily due to the impact of the inclusion of SG&A expenses from OBS and increased promotional spending.

Research and development spending for the 2007 fourth quarter increased to $855 million compared to $631 million in the fourth quarter of 2006. The increase in R&D expenses was due to the inclusion of OBS expenses, higher spending for clinical trials and related activi
'/>"/>

SOURCE Schering-Plough Corporation Copyright©2008 PR Newswire. All rights reserved

0 GOOD

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Related biology technology :

1. Schering-Plough and OraSure Technologies Sign International Collaboration for Rapid Point-of-Care Oral Hepatitis C Test
2. Schering-Plough Announces Organizational Changes at Schering-Plough Research Institute
3. FDA Grants Priority Review for Schering-Ploughs Peginterferon Alfa-2b for the Adjuvant Treatment of Patients With Stage III Melanoma
4. Schering-Plough Announces Sugammadex New Drug Application Filed in Japan
5. Schering-Plough Announces New Drug Application for Sugammadex Assigned Priority Review Status by U.S. FDA
6. Schering-Plough to Webcast Presentation at Morgan Stanley Pharmaceutical CEOs Unplugged Conference
7. Schering-Plough Schedules Conference Call and Webcast for 2007 Fourth Quarter, Full-Year Financial Result
8. Schering-Plough Wins Three of Scrips Top Pharma Industry Awards
9. Schering-Plough Completes Acquisition of Organon BioSciences
10. Schering-Plough Receives Approval from European Commission for Planned Acquisition of Organon BioSciences N.V.
11. Schering-Plough to Webcast Presentation at Merrill Lynch Global Pharmaceutical, Biotech & Medtech Conference