Navigation Links
Schering-Plough Reports Financial Results for Third Quarter of 2008
Date:10/21/2008

Strong Financial Performance Driven By Strength and Diversity on Many Fronts; Productivity Transformation Taking Hold

KENILWORTH, N.J., Oct. 21 /PRNewswire-FirstCall/ -- Schering-Plough Corporation (NYSE: SGP) today reported financial results for the third quarter of 2008.

"Our performance this quarter again demonstrates the strength of our long-term strategies and our ability to execute on them," said Fred Hassan, chairman and CEO. "Despite a tough environment and challenges to the U.S. cholesterol joint venture products, we delivered strong sales and earnings while investing in R&D and paying down debt. Thanks to the new strength and diversity we have built on many fronts, we have continued to grow our top line, grow our pipeline, reduce costs and invest wisely."

Hassan added, "Now with almost one year of experience, we are seeing that the acquisition of Organon BioSciences (OBS) is resulting in a powerful combination. This integration is creating new product strength, new geographic strength, new strength with our customers and new R&D strength - including a late-stage pipeline that is now one of the strongest in our industry."

For the 2008 third quarter, Schering-Plough reported net income available to common shareholders of $551 million or 34 cents per common share on a GAAP basis. Earnings per common share for the 2008 third quarter would have been 39 cents on a reconciled basis, which excludes purchase accounting adjustments, special and acquisition-related items, a $160 million pre-tax gain on previously announced divestitures of certain animal health products and $19 million of income from the termination of a respiratory joint venture with Merck. For the 2007 third quarter, Schering-Plough reported net-centered global health care company. Through its own biopharmaceutical research and collaborations with partners, Schering-Plough creates therapies that help save and improve lives around the world. The company applies its research-and-development platform to human prescription and consumer products as well as to animal health products. Schering-Plough's vision is to "Earn Trust, Every Day" with the doctors, patients, customers and other stakeholders served by its colleagues around the world. The company is based in Kenilworth, N.J., and its Web site is http://www.schering-plough.com.

SCHERING-PLOUGH CORPORATION

U.S. GAAP report for the Third quarter ended September 30 (unaudited):

(Amounts in millions, except per share figures)

Third Quarter Nine Months

2008 2007 2008 2007

---- ---- ---- ----

Net sales 1/ $4,576 $2,812 $14,154 $8,965

Cost of sales 2/ 1,737 925 5,782 2,838

Selling, General and

administrative 1,660 1,262 5,208 3,833

Research and

development 3/ 893 669 2,679 2,071

Other expense/(income),

net 4/ (39) (390) 189 (451)

Special and acquisition-

related charges 5/. 101 20 218 32

Equity income 6/ (434) (506) (1,444) (1,483)

----- ----- ------- -------

Income before income

taxes 658 832 1,522 2,125

Income tax expense 69 82 207 272

-- -- --- ---

Net Income $589 $750 $1,315 $1,853

==== ==== ====== ======

Preferred stock

dividends 38 37 113 80

-- -- --- --

Net income available

to common

shareholders $551 $713 $1,202 $1,773

==== ==== ====== ======

Diluted Earnings per

common share

$0.34 $0.45 $0.74 $1.15

===== ===== ===== =====

Average shares outstanding

- diluted 1,636 1,622 1,635 1,596

The company incurs substantial costs related to the cholesterol joint

venture, such as selling, general and administrative costs, that are not

reflected in the "Equity income" and are borne by the overall cost

structure of Schering-Plough.

1/ Net sales for the three and nine months ended September 30, 2008,

include sales of $1.4 billion and $4.2 billion, respectively, from Organon

BioSciences (OBS) which was acquired on November 19, 2007.

2/ Cost of sales for the three and nine months ended September 30, 2008

include purchase accounting adjustments of $221 million and $1.3 billion,

respectively, related to the acquisition of OBS.

3/ Research and development for the three and nine months ended September

30, 2007 include $20 million and $176 million, respectively, related to

upfront R&D payments.

4/ Included in other expense/(income), net for the three and nine months

ended September 30, 2008 were $160 million related to the previously

announced divestiture of certain animal health products. Included in other

expense/(income), net for the three and nine months ended September 30,

2007 were mark-to-market gains of $314 million and $282 million,

respectively, related to Euro-denominated currency options related to the

acquisition of OBS.

5/ Special and acquisition-related charges relate to the Productivity

Transformation Program (PTP) which also incorporates the ongoing

integration of OBS. For the three and nine months ended September 30, 2008

these charges were $101 million ($93 million for severance costs and $8

million for integration-related costs) and $218 million, respectively.

Special and acquisition-related charges for the three and nine months

ended September 30, 2007 were $20 million and $32 million, respectively.

6/ Equity income for the three and nine months ended September 30, 2008

include $19 million and $83 million, respectively, of income related to

the termination of a respiratory joint venture with Merck.

SCHERING-PLOUGH CORPORATION

Reconciliation from Reported Net Income Available to Common Shareholders and Reported Diluted Earnings Per Common Share to As Reconciled Amounts for Net Income

Available to Common Shareholders and Diluted Earnings per Common Share

(Amounts in Millions, except per share figures)

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), Schering-Plough is providing the supplemental financial information below and on the following pages to reflect "As Reconciled" amounts related to Net income available to common shareholders and Diluted earnings per common share. "As Reconciled" amounts exclude the effects of purchase accounting adjustments, special and acquisition-related items and other specified items.

"As Reconciled" amounts related to Net income available to common shareholders and Diluted earnings per common share are non-U.S. GAAP measures used by management in evaluating the performance of Schering-Plough's overall business. The effects of purchase accounting adjustments, special and acquisition-related items and other specified items have been excluded from Net income available to common shareholders and Diluted earnings per common share as management of Schering-Plough does not consider these items to be indicative of continuing operating results. Schering-Plough believes that these "As Reconciled" performance measures contribute to a more complete understanding by investors of the overall results of the company and enhances investor understanding of items that impact the comparability of results between fiscal periods. Net income available to common shareholders and Diluted earnings per common share, as reported, are required to be presented under U.S. GAAP.

Three months ended September 30, 2008

(unaudited)

-------------------------------------------------------

Special and

Purchase Acquisition- Other As

As Accounting Related Specified Reconciled

Reported Adjustments Items Items (1)

-------------------------------------------------------

Net sales $4,576 $- $- $- $4,576

Cost of sales 1,737 (221) - - 1,516

Selling, general

and administrative 1,660 (1) - - 1,659

Research and

development 893 (3) - - 890

Other expense/

(income), net (39) - - 160 121

Special and

acquisition-related

charges 101 - (101) - -

Equity income (434) - - 19 (415)

----- ---- ---- ---- -----

Income before

income taxes 658 225 101 (179) 805

Income tax

expense/(benefit) 69 (54) (16) 11 128

-- ---- ---- -- ---

Net income $589 $171 $85 $(168) $677

---- ---- --- ------ ----

Preferred stock

dividends 38 - - - 38

-- --- --- --- --

Net income

available to

common

shareholders $551 $171 $85 $(168) $639

==== ==== === ====== ====

Diluted earnings

per common share $0.34 $0.39

===== =====

Average shares

outstanding-

diluted 1,636 1,636

(1) "As Reconciled" to exclude purchase accounting adjustments, special

and acquisition-related items and other specified items.

SCHERING-PLOUGH CORPORATION

Reconciliation from Reported Net Income Available to Common Shareholders

and Reported Diluted Earnings Per Common Share to As Reconciled Amounts for Net Income

Available to Common Shareholders and Diluted Earnings per Common Share

(Amounts in Millions, except per share figures)

Three months ended September 30, 2007

(unaudited)

-------------------------------------------------------

Special and

Purchase Acquisition- Other As

As Accounting Related Specified Reconciled

Reported Adjustments Items Items (1)

-------------------------------------------------------

Net sales $2,812 $- $- $- $2,812

Cost of sales 925 - - - 925

Selling, general and

administrative 1,262 - - - 1,262

Research and

development 669 - - (20) 649

Other expense/

(income), net (390) - 314 - (76)

Special and

acquisition-related

charges 20 - (20) - -

Equity income (506) - - - (506)

----- ---- ---- ---- -----

Income before

Income taxes 832 - (294) 20 558

Income tax expense 82 - - - 82

-- ---- ---- ---- --

Net income $750 $- $(294) $20 $476

---- ---- ------ --- ----

Preferred stock

dividends 37 - - - 37

-- ---- ---- ---- --

Net income available

to common

shareholders $713 $- $(294) $20 $439

==== ==== ====== === ====

Diluted earnings per

common share $0.45 $0.28

===== =====

Average shares

outstanding-

diluted 1,622 1,622

(1) "As Reconciled" to exclude purchase accounting adjustments, special

and acquisition-related items and other specified items.

(2) Diluted earnings per common share for the three month period ended

September 30, 2007 is calculated using a numerator of $731 million, which

is the arithmetic sum of net income available to common shareholders of

$713 million plus dividends of $18 million related to the 2004 preferred

stock which are dilutive, and a denominator of 1,622 which represents the

average diluted shares outstanding for the third quarter of 2007. The

2004 preferred stock was dilutive under accounting rules. The 2007

preferred stock was not dilutive for the three months ended September 30,

2007.

SCHERING-PLOUGH CORPORATION

Reconciliation from Reported Net Income Available to Common Shareholders

and Reported Diluted Earnings Per Common Share to As Reconciled Amounts for Net Income

Available to Common Shareholders and Diluted Earnings per Common Share

(Amounts in Millions, except per share figures)

Nine months ended September 30, 2008

(unaudited)

-------------------------------------------------------

Special and

Purchase Acquisition- Other As

As Accounting Related Specified Reconciled

Reported Adjustments Items Items (1)

-------------------------------------------------------

Net sales $14,154 $- $- $- $14,154

Cost of sales 5,782 (1,264) - - 4,518

Selling, general and

administrative 5,208 (3) - - 5,205

Research and

development 2,679 (7) - - 2,672

Other expense/

(income), net 189 - - 177 366

Special and

acquisition-related

charges 218 - (218) - -

Equity income (1,444) - - 83 (1,361)

------- ---- ---- -- -------

Income before

income taxes 1,522 1,274 218 (260) 2,754

Income tax

expense/(benefit) 207 (192) (25) 16 408

--- ----- ---- -- ---

Net income $1,315 $1,082 $193 $(244) $2,346

------ ------ ---- ------ ------

Preferred stock

dividends 113 - - - 113

--- ---- ---- ---- ---

Net income available

to common

shareholders $1,202 $1,082 $193 $(244) $2,233

====== ====== ==== ====== ======

Diluted earnings

per common

share $0.74 $1.37

===== =====

Average shares

outstanding-

diluted 1,635 1,635

(1) "As Reconciled" to exclude purchase accounting adjustments, special

and acquisition-related items and other specified items.

SCHERING-PLOUGH CORPORATION

Reconciliation from Reported Net Income Available to Common Shareholders

and Reported Diluted Earnings Per Common Share to As Reconciled Amounts for Net Income

Available to Common Shareholders and Diluted Earnings per Common Share

(Amounts in Millions, except per share figures)

Nine months ended September 30, 2007

(unaudited)

-------------------------------------------------------

Special and

Purchase Acquisition- Other As

As Accounting Related Specified Reconciled

Reported Adjustments Items Items (1)

-------------------------------------------------------Net sales $8,965 $- $- $- $8,965

Cost of sales 2,838 - - - 2,838

Selling, general and

administrative 3,833 - - - 3,833

Research and

development 2,071 - - (176) 1,895

Other expense/

(income), net (451) - 282 - (169)

Special and

acquisition-related

charges 32 - (32) - -

Equity income (1,483) - - - (1,483)

------- ---- ---- ---- -------

Income before

income taxes 2,125 - 250 176 2,051

Income tax

expense/(benefit) 272 - - - 272

--- ---- ---- ---- ---

Net income $1,853 $- $(250) $176 $1,779

------ ---- ------ ---- ------

Preferred stock

dividends 80 - - - 80

-- ---- ---- ---- --

Net income available

To common

shareholders $1,773 $- $(250) $176 $1,699

====== ===== ====== ==== ======

Diluted earnings

per common

share $1.15 $1.10

===== =====

Average shares

outstanding-

diluted 1,596 1,596

(1) "As Reconciled" to exclude purchase accounting adjustments, special

and acquisition-related items and other specified items.

(2) Diluted earnings per common share for the nine month period ended

September 30, 2007 is calculated using a numerator of $1.834 billion,

which is the arithmetic sum of net income available to common shareholders

of $1.773 billion plus dividends of $61 million related to the 2004

preferred stock, and a denominator of 1,596 which represents the average

diluted shares outstanding for the nine months ended September 30, 2007.

The 2004 preferred stock was dilutive under accounting rules. The 2007

preferred stock was not dilutive for the nine months ended September 30,

2007.

SCHERING-PLOUGH CORPORATION

Reconciliation from Reported Net Income Available to Common Shareholders

and Reported Diluted Earnings Per Common Share to As Reconciled Amounts for Net Income

Available to Common Shareholders and Diluted Earnings per Common Share

(Amounts in Millions)

"As Reconciled" amounts related to Net income available to common shareholders and Diluted earnings per common share reflect the following adjustments:

Third Quarter income available to common shareholders of $713 million or 45 cents per common share on a GAAP basis and 28 cents per common share on a reconciled basis.

GAAP net sales for the 2008 third quarter totaled $4.6 billion, up 63 percent as compared to the third quarter of 2007. Sales for the quarter benefited from the inclusion of net sales of products from OBS as well as a favorable impact from foreign exchange. Net sales of the global cholesterol joint venture, which include VYTORIN and ZETIA, totaled $1.1 billion in the 2008 third quarter, down 15 percent, with lower U.S. sales partly offset by growth in international markets. Schering-Plough does not record sales of its cholesterol joint venture with Merck as the venture is accounted for under the equity method. Including an adjustment of an assumed 50 percent of the global cholesterol joint venture net sales, Schering-Plough's adjusted sales for the 2008 third quarter would have been $5.1 billion.

Commenting on third quarter results, Hassan said, "While the U.S. market remained difficult, we continued to take advantage of our growing international presence and opportunities." Approximately 70 percent of Schering-Plough's 2008 third quarter GAAP net sales were generated outside the United States. "Our concerted effort over the last five years to invest in newer markets - such as Brazil, China, Russia and countries in Central and Eastern Europe - is paying off," Hassan added, "with dynamic sales in these markets contributing to the overall growth rate of our company." The company noted that sales in these newer markets contributed about 12 percent of the company's overall net sales, more than double the percentage contributed by those markets in 2005.

"Importantly, our company continued to generate good cash flow in the third quarter, paid off additional debt and still increased cash balances," Hassan noted.

As a result of actions during the last five years, Hassan said that the company is Nine Months

(unaudited) (unaudited)

---------------- --------------

2008 2007 2008 2007

---- ---- ---- ----

Purchase accounting

adjustments:

-------------------

Amortization of

intangibles in

connection with the

acquisition of

Organon

BioSciences (a) $136 $- $407 $-

Depreciation related

to the fair value

adjustment of fixed

assets related to the

acquisition of Organon

BioSciences (b) 11 - 27 -

Charge related to the

fair value adjustment

to inventory related

to the acquisition of

Organon BioSciences (a) 78 - 840 -

-- ---- --- ----

Total Purchase accounting

adjustments, pre-tax 225 - 1,274 -

Income tax benefit 54 - 192 -

-- ---- --- ----

Total purchase accounting

adjustments $171 $- $1,082 $-

---- ---- ------ ----

Special And acquisition-

related items:

------------------------

Special and

integration-related

activities (e) $101 $20 $218 $32

Acquisition-related gains

on currency-related and

interest-related items (d) - (314) - (282)

---- ----- ---- -----

Total special and

acquisition-related items,

pre-tax 101 (294) 218 (250)

Income tax benefit 16 - 25 -

-- ---- -- ----

Total Special and

acquisition-related items $85 $(294) $193 $(250)

--- ------ ---- ------

Other specified items:

----------------------

Gain on sale of

previously announced

divestiture of

certain Animal Health

products (d) $(160) $- $(160) $-

Income from

respiratory JV

termination (f) (19) - (83) -

Gain on sale of

manufacturing plant (d) - - (17) -

Upfront R&D

payments (c) - 20 - 176

---- -- ---- ---

Total other specified

items, pre-tax (179) 20 (260) 176

Income tax expense 11 - 16 -

-- ---- -- ----

Total other specified items $(168) $20 $(244) $176

------ --- ------ ----

Total purchase accounting

adjustments, special and

acquisition-related items

and other specified items $88 $(274) $1,031 $(74)

=== ====== ====== =====

(a) Included in Cost of sales

(b) Included in Cost of sales, Selling, general and administrative and

Research and development

(c) Included in Research and development

(d) Included in Other expense/(income), net

(e) Included in Special and acquisition-related charges

(f) Included in Equity income

SCHERING-PLOUGH CORPORATION

Report for the period ended September 30 (unaudited):

GAAP Net Sales by Key Product

(Dollars in millions) Third Quarter Nine Months

--------------------- -------------------

2008 2007 % 2008 2007 %

---- ---- - ---- ---- -

HUMAN PRESCRIPTION

PHARMACEUTICALS a/ $3,539 $2,291 54% $10,798 $7,209 50%

REMICADE 564 426 32% 1,627 1,193 36%

TEMODAR 273 215 27% 760 627 21%

NASONEX 258 242 6% 876 821 7%

PEGINTRON 235 221 6% 689 672 3%

CLARINEX / AERIUS 176 171 3% 630 625 1%

FOLLISTIM/PUREGON c/ 142 - - 450 - -

NUVARING c/ 118 - - 330 - -

CLARITIN RX 87 83 5% 326 297 10%

INTEGRILIN 84 78 7% 236 241 (2%)

CAELYX 80 64 24% 232 191 22%

ZEMURON c/ 72 - - 202 - -

AVELOX 65 78 (17%) 274 269 2%

REBETOL 63 60 5% 193 206 (6%)

SUBUTEX / SUBOXONE 63 55 15% 178 163 10%

REMERON c/ 61 - - 190 - -

INTRON A 61 61 - 177 176 1%

CERAZETTE c/ 49 - - 142 - -

LIVIAL c/ 48 - - 143 - -

ELOCON 45 40 12% 137 119 15%

ASMANEX 40 36 12% 131 121 9%

NOXAFIL 40 24 62% 111 60 85%

PROVENTIL / ALBUTEROL

CFC 38 52 (26%) 127 166 (23%)

MERCILON c/ 38 - - 128 - -

IMPLANON c/ 37 - - 119 - -

MARVELON c/ 37 - - 114 - -

FORADIL 25 25 - 76 77 (2%)

Other Pharmaceuticals 740 360 106% 2,200 1,185 86%

ANIMAL HEALTH b/ 759 248 206% 2,299 744 209%

CONSUMER HEALTH CARE 278 273 2% 1,057 1,012 4%

OTC 160 162 (1%) 550 521 6%

OTC CLARITIN 92 104 (11%) 350 368 (5%)

MiraLAX 31 16 90% 85 30 N/M

Other OTC 37 42 (11%) 115 123 (7%)

Foot Care 96 92 5% 286 272 5%

Sun Care 22 19 11% 221 219 1%

-- -- --- ---

CONSOLIDATED GAAP NET

SALES $4,576 $2,812 63% $14,154 $8,965 58%

====== ====== ======= ======

a/ Human Prescription Pharmaceuticals Net sales for the three and nine

months ended September 30, 2008 include net sales of $896 million and $2.7

billion, respectively, from the human health segment of Organon

BioSciences (OBS), which was acquired on November 19, 2007.

b/ Animal Health Net sales for the three and nine months ended September

30, 2008 include net sales of $503 million and $1.5 billion, respectively,

from the animal health segment of OBS, which was acquired on November 19,

2007.

c/ Products acquired in OBS acquisition on November 19, 2007.

NOTE: Additional information about U.S. and international sales for

specific products is available by calling the company or visiting the

Investor Relations Web site at http://ir.schering-plough.com.

SCHERING-PLOUGH CORPORATION

Reconciliation of Non-U.S. GAAP Financial Measures

Adjusted net sales, defined as Net sales plus an assumed 50 percent of global cholesterol joint venture net sales.

(Dollars in millions) Three months ended September 30,

(unaudited)

--------------------------------

2008 2007 %

--------------------------------

Net sales, as reported a/ $4,576 $2,812 63%

50 percent of cholesterol joint

venture net sales b/ 545 639 (15%)

Adjusted net sales b/ $5,121 $3,451 48%

(Dollars in millions) Nine months ended September 30,

(unaudited)

--------------------------------

2008 2007 %

--------------------------------

Net sales, as reported a/ $14,154 $8,965 58%

50 percent of cholesterol joint

venture net sales b/ 1,719 1,838 (6%)

Adjusted net sales b/ $15,873 $10,803 47%

a/ Net sales for the three and nine months ended September 30, 2008

include sales from Organon BioSciences (OBS) which was acquired on

November 19, 2007.

b/ Total Net sales of the cholesterol joint venture for the three months

ended September 30, 2008 and 2007 were $1.1 billion and $1.3 billion,

respectively. Total Net sales of the cholesterol joint venture for the

nine months ended September 30, 2008 and 2007 were $3.4 billion and $3.7

billion, respectively.

NOTE: Adjusted net sales, defined as net sales plus an assumed 50 percent

of global cholesterol joint venture net sales, is a non-U.S. GAAP measure

used by management in evaluating the performance of the Schering-Plough's

overall business. Schering-Plough believes that this performance measure

contributes to a more complete understanding by investors of the overall

results of the company. Schering-Plough provides this information to

supplement the reader's understanding of the importance to the company of

its share of results from the operations of the cholesterol joint venture.

Net sales (excluding the cholesterol joint venture net sales) is required

to be presented under U.S. GAAP. The cholesterol joint venture's net sales

are included as a component of income from operations in the calculation

of Schering-Plough's "Equity income." Net sales of the cholesterol joint

venture do not include net sales of cholesterol products in non-joint

venture territories.

now "particularly well positioned" for the following reasons:

-- Broad diversification in geographic markets and businesses, with the

consumer and animal health segments together generating about 23 percent

of GAAP net sales;

-- Relatively long period of expected market exclusivity for key

prescription products, affording protection well into the next decade;

-- Robust research pipeline, with 10 projects in Phase III;

-- Near-term opportunities, including the biologic golimumab, filed in the

EU; sugammadex, now being launched as BRIDION in EU countries; and

asenapine, under U.S. regulatory review; and

-- Sound financial management, with rigorous cost controls in place to

reduce costs and improve efficiencies and productivity.

The Productivity Transformation Program (PTP), announced in April 2008, is expected to realize savings of $1.5 billion by the end of 2012, with $1.25 billion in savings targeted to be accomplished by 2010. The $1.5 billion target includes $500 million of previously announced integration synergy targets from the OBS acquisition. The company is making steady progress toward achieving these savings targets.

Third Quarter 2008 Results

For the 2008 third quarter, Schering-Plough reported net income available to common shareholders of $551 million or 34 cents per common share on a GAAP basis. Earnings per common share for the 2008 third quarter would have been 39 cents on net income of $639 million on a reconciled basis, which excludes purchase accounting adjustments, special and acquisition-related items, a $160 million pre-tax gain from the previously announced divestitures of certain animal health products and $19 million of income from the termination of a respiratory joint venture with Merck. For the 2007 third quarter, Schering-Plough reported net income available to common shareholders of $713 million or 45 cents per common share on a GAAP basis and 28 cents per common share on a reconciled basis, which excludes acquisition-related items and an upfront R&D payment.

GAAP net sales for the 2008 third quarter totaled $4.6 billion, including $1.4 billion in sales of products from the OBS acquisition. Excluding sales from products from OBS, net sales of Schering-Plough's stand-alone business reflected an estimated favorable impact of 6 percent from foreign exchange during the quarter.

Global cholesterol joint venture net sales, which include VYTORIN and ZETIA, totaled $1.1 billion, a decrease of 15 percent when compared to the third quarter of 2007. Schering-Plough does not record sales of its cholesterol joint venture with Merck as the venture is accounted for under the equity method. Including an adjustment of an assumed 50 percent of the global cholesterol joint venture net sales, Schering-Plough's adjusted sales for the 2008 third quarter would have been $5.1 billion.

Overall, Schering-Plough shares in approximately 50 percent of the profits of the joint venture with Merck, although there are different profit-sharing arrangements for the cholesterol products in countries around the world. Schering-Plough records its share of the income from operations in "Equity income," which totaled $434 million in the 2008 third quarter, as compared to $506 million in the third quarter of 2007. Included in third quarter 2008 GAAP equity income is $19 million of income related to the termination of the respiratory joint venture. Schering-Plough noted that it incurs substantial costs such as selling, general and administrative costs that are not reflected in "Equity income" and are borne by its overall cost structure. There is a separate co-marketing agreement with Bayer for ZETIA in Japan, where the product was launched in June 2007.

Sales of Global Pharmaceuticals for the 2008 third quarter totaled $3.5 billion. Included in the third quarter of 2008 are $896 million in net sales of products from Organon, the OBS human health business acquired in 2007.

Sales of REMICADE increased 32 percent to $564 million in the third quarter of 2008 benefiting from continued market growth, expanded penetration and the favorable impact of foreign exchange. REMICADE is a treatment for inflammatory diseases that Schering-Plough markets in countries outside the United States (except in Japan and certain other Asian markets) for rheumatoid arthritis, early rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis, plaque psoriasis, Crohn's disease, pediatric Crohn's disease and ulcerative colitis.

Sales of TEMODAR, a treatment for certain types of brain tumors, grew 27 percent to $273 million, with higher sales in all geographic regions.

Global sales of NASONEX, an inhaled nasal corticosteroid for allergies, rose 6 percent to $258 million versus the 2007 period, due to increased sales in international markets, partially offset by a decline in U.S. sales.

Sales of PEGINTRON for hepatitis C increased 6 percent to $235 million in the 2008 third quarter, primarily due to favorable foreign exchange.

In the women's health franchise, sales for FOLLISTIM/PUREGON, a fertility treatment, for the third quarter of 2008 were $142 million. Sales of NUVARING, a contraceptive product, in the 2008 third quarter were $118 million. These women's health products were obtained as part of the OBS acquisition.

Global sales of CLARINEX, a nonsedating antihistamine, in the third quarter of 2008 were $176 million, an increase of 3 percent as compared to the third quarter of 2007.

International sales of prescription CLARITIN were $87 million in the third quarter of 2008, a 5 percent increase compared to sales of $83 million in the third quarter of 2007 due primarily to foreign exchange.

Animal Health sales totaled $759 million in the 2008 third quarter. Included in the third quarter of 2008 were net sales of $503 million related to products from the acquired OBS animal health business. Animal Health sales benefited from growth in all geographic regions. In Europe, the company recently launched a vaccine for bluetongue disease (Bovilis BTV8), which has seen increasing market penetration. The company has also had a successful recent launch of NORVAX Compact PD, a patented fish vaccine. Animal Health sales also benefited from foreign exchange.

Consumer Health Care sales were $278 million in the 2008 third quarter, up 2 percent versus the 2007 period. The increase was mainly due to higher sales of OTC MIRALAX, launched in February 2007, partially offset by lower sales of OTC CLARITIN and other over-the-counter (OTC) products.

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 62.0 percent for the 2008 third quarter as compared to 67.1 percent in the 2007 period. The gross margin percentage excluding purchase accounting adjustments was 66.9 percent in the third quarter of 2008.

SG&A expenses were $1.7 billion in the third quarter of 2008 versus $1.3 billion in the prior-year period. SG&A in the third quarter of 2008 increased primarily due to the impact of the inclusion of SG&A expenses from OBS and foreign exchange, partially offset by PTP savings.

Research and development spending for the 2008 third quarter increased to $893 million compared to $669 million in the third quarter of 2007. Included in R&D spending in the third quarter of 2007 was $20 million related to an upfront payment made for a licensing transaction. The increase in R&D expenses was due to the inclusion of OBS expenses, higher spending for clinical trials and related activities, and investments to build greater breadth and capacity to support Schering-Plough's expanding global R&D pipeline.

Recent Developments

The company also offered the following summary of recent significant developments that have previously been announced, including:

-- Gained European Commission (EC) approval of BRIDION (sugammadex)

injection, the first and only selective relaxant binding agent and the

first major pharmaceutical advance in the field of anesthesia in two

decades. (Announced July 29)

-- Received a "not-approvable" letter from the U.S. Food and Drug

Administration for sugammadex. (Announced August 1)

-- Reported top-line results from a planned interim analysis of a Phase II

study of boceprevir, an investigational oral hepatitis C protease

inhibitor. (Announced August 4)

-- Announced expansion of the company's presence in China and

establishment of Shanghai Schering-Plough Pharmaceutical Co. Ltd., as a

wholly owned operation based in Shanghai through the acquisition of

shares of former joint venture partners. (Announced August 12)

-- Began the European launch of BRIDION injection. (Announced September

10)

-- Closed a transaction with Pfizer Animal Health to divest to Pfizer

certain animal health products from selected franchises in the European

Economic Area as requested by the EC as part of clearing

Schering-Plough's acquisition of OBS. (Announced September 10)

-- Ranked No. 5 in the Top 20 list of Science magazine's annual online

Top Employer Survey. (Reported October 10)

-- Announced the transition of leadership of its Animal Health unit from

Ruurd Stolp, D.V.M., Ph.D., to Raul E. Kohan, who was previously Deputy

Head of the Animal Health unit. (Announced October 17)

Third Quarter 2008 Conference Call and Webcast

Schering-Plough will conduct a conference call today at 8 a.m. (EDT) to review the 2008 third quarter results. To listen live to the call, dial 1-877-565-9664 or 1-706-634-5003 and enter conference ID # 64088992. A replay of the call will be available beginning later on Oct. 21 through 5 p.m. on Oct. 28. To listen to the replay, dial 1-800-642-1687 or 1-706-645-9291 and enter the conference ID # 64088992. A live audio webcast of the conference call also will be available by going to the Investor Relations section of the Schering-Plough corporate Web site, http://www.schering-plough.com, and clicking on the "Presentations/Webcasts" link. A replay of the webcast will be available starting on Oct. 21 through 5 p.m. on Nov. 21.

DISCLOSURE NOTICE: The information in this press release, the comments of Schering-Plough officers during the earnings teleconference/webcast on Oct. 21, 2008, beginning at 8 a.m. (EDT), and other written reports and oral statements made from time to time by the company may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and are based on current expectations or forecasts of future events. You can identify these forward-looking statements by their use of words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "project," "intend," "plan," "potential," "will," and other similar words and terms. In particular, forward-looking statements include statements relating to the company's plans; its strategies; its progress under the Action Agenda and anticipated timing regarding future performance of the Action Agenda; business prospects; anticipated growth; timing and level of savings achieved from the Productivity Transformation Program, including the ongoing integration of OBS; prospective products or product approvals; trends in performance; anticipated timing of clinical trials and its impact on R&D spending; anticipated exclusivity periods; actions to enhance clinical, R&D, manufacturing and post-marketing systems; and the potential of products and trending in therapeutic markets, including the cholesterol market. Actual results may vary materially from the company's forward-looking statements, and there are no guarantees about the performance of Schering-Plough stock or Schering-Plough's business. Schering-Plough does not assume the obligation to update any forward-looking statement. A number of risks and uncertainties could cause results to differ materially from forward-looking statements, including, among other uncertainties, market viability of the company's (and the cholesterol joint venture's) marketed and pipeline products; market forces; economic factors such as interest rate and exchange rate fluctuations; the outcome of contingencies such as litigation and investigations including litigation and investigations relating to the ENHANCE clinical trial; product availability; patent and other intellectual property protection; current and future branded, generic or over-the-counter competition; the regulatory process (including product approvals, labeling and post-marketing actions); scientific developments relating to marketed products or pipeline projects; and media and societal reaction to such developments. For further details of these and other risks and uncertainties that may impact forward-looking statements, see Schering-Plough's Securities and Exchange Commission filings, including Item 8.01 of the company's 8-K filed today.

Schering-Plough is an innovation-driven, science
'/>"/>

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

Related medicine news :

1. Schering-Plough Announces Transition of Animal Health Leadership
2. Schering-Plough and Merck Announce Withdrawal of Loratadine/Montelukast NDA and Termination of Respiratory Joint Venture
3. Hagens Berman Appointed Co-Lead Counsel in Case Against Schering-Plough and Merck
4. Emerging Combination Therapies, Including Drugs from Novartis/Schering-Plough and GlaxoSmithKline/Theravance Will Drive the COPD Drug Market to More Than $11 Billion in 2017
5. Bayer/Schering-Plough/Shionogis Avelox Has Advantages Over Levofloxacin in the Treatment of Community-Acquired Pneumonia
6. Schering-Plough Announces Expanded Stock Retention Guidelines for Senior Management
7. Schering-Plough to Webcast Presentation by CEO Fred Hassan at Lehman Brothers Eleventh Annual Global Healthcare Conference
8. Schering-Plough Promotes Ian Mcinnes to President of Global Supply Chain
9. CORRECTED: Hagens Berman Sobol Shapiro Files Suit Against Merck and Schering-Plough
10. Lawsuit Filed in Florida Federal Court Over Marketing of Vytorin and Zetia By Merck and Schering-Plough
11. Schering-Plough CEO to Buy $2 Million in Common Shares
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... ... February 11, 2016 , ... Talix today ... Practice , will be presenting at the 2016 HIMSS Annual Conference & Exhibition, ... , During his session, “ Coding for Care: Using Data Analytics for Risk ...
(Date:2/11/2016)... (PRWEB) , ... February 11, 2016 , ... Be ... new office in the heart of Old Town at 108 South Columbus St, Suite ... businesses the highest level of medical care in the convenience of their homes, offices ...
(Date:2/11/2016)... MA (PRWEB) , ... February 11, 2016 , ... The ... overpaying for IT services, what questions to ask your IT consultant before signing a ... access to your computer network. , “With companies relying heavily on e-mail and technology, ...
(Date:2/10/2016)... Los Angeles, CA (PRWEB) , ... February 10, ... ... Neuro-Linguistic Programming (NLP) practitioner, is known locally for a series of therapeutic sessions ... be in-the-moment in their characters and in their lives. The series, known as ...
(Date:2/10/2016)... (PRWEB) , ... February 10, 2016 , ... ... company is unveiling its revolutionary new 2.0 version at the International Roofing Expo ... “put the power of the world's most advanced weather technology in the hands ...
Breaking Medicine News(10 mins):
(Date:2/11/2016)...  AcelRx Pharmaceuticals, Inc. (NASDAQ: ACRX ) today ... the 38th annual John A. Boswick , ... being held February 14-18, 2016 in Hawaii ... in wound healing, burn care, and infection control, and ... Burns Association, Academy of Physicians in Wound Care and ...
(Date:2/11/2016)... , Feb. 11, 2016  NanoViricides, Inc. ... it has entered into an agreement with the ... nanoviricides® drug candidates in standard animal models of ... , Research Director. Dr. Romanowski has extensive experience ... --> Eric Romanowski , Research ...
(Date:2/11/2016)... Israel , Feb. 11, 2016  Galmed Pharmaceuticals Ltd. ... company focused on the development of a once-daily, oral ... that its Chief Medical Officer, Dr. Maya Halpern ... Galmed as Chief Medical Officer and from its Board ... to her reaching retirement age. Allen Baharaff ...
Breaking Medicine Technology: