Schering-Plough to invest in pipeline advancements; says quarterly net sales, income up

By Lisa Kerner

Charlotte, N.C., Oct. 20 - Schering-Plough Corp. has entered the "Build the Base" stage of its planned five-phase Action Agenda designed to transform the company, according to chairman and chief executive officer Fred Hassan. As part of this new phase, the company will invest in pipeline advancements through phases 2 and 3 as well as focus on "development excellence."

Hassan made the announcement as part of Schering-Plough's release of third-quarter financial results.

GAAP net income was up at $287 million, or $0.19 per share, from net income of $43 million, or $0.03 per share, for the third quarter of 2005.

GAAP net sales for the quarter increased by 13% over the prior-year period to $2.6 billion. The company said the increase was driven by higher sales of Remicade ($317 million, up 34%), Nasonex ($221 million, up 30%) and Temodar ($179 million, up 18%).

Global cholesterol joint venture net sales, including Vytorin and Zetia, reached slightly more than $1.0 billion in the third quarter of 2006, compared with net sales of $616 million in the comparable 2005 period.

Sales of the company's consumer health care products rose 10% to $259 million for the third quarter.

Schering-Plough's research and development expenses were down 5% at $536 million for the third quarter. The company attributed the decrease to a one-time charge of $124 million in the third quarter of 2005 related to the rights and commercialization of golimumab.

"While our cholesterol franchise has been pivotal to our success, we are also pleased with the important contributions from other key products, such as our rejuvenated Nasonex allergy treatment and Remicade with its expanded range of indications," Hassan noted.

Third-quarter company highlights include U.S. approval of Noxafil Oral Suspension, a novel triazole antifungal agent, and European Union approval for Suboxone Sublingual Tablets for opioid dependence.

Schering-Plough is a Kenilworth, N.J., health care company.

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