Schering-Plough 1Q net income rises to $350 million, reports continued sales growth

By Lisa Kerner

Erie, Pa., April 20 - Schering-Plough Corp. reported net income of $350 million in the first quarter, or $0.24 per common share, compared with $105 million, or $0.07 per share, in the 2005 period.

First quarter 2006 GAAP net sales of $2.6 billion were 8% higher than the 2005 period. Schering-Plough attributed the increase to the growth of the prescription pharmaceuticals Remicade, Nasonex, Temodar and Peg-Intron.

First-quarter 2006 GAAP net sales of prescription pharmaceuticals, not including sales of the cholesterol joint venture, totaled $2.0 billion, up 10%. Sales in the Consumer Health Care segment decreased 6% to $311 million.

The company noted that GAAP net sales do not include sales of the cholesterol products marketed in partnership with Merck. The global cholesterol joint venture net sales, including Vytorin and Zetia, were about $778 million for the first-quarter 2006, versus net sales of $505 million in the comparable 2005 period.

The 2006 first-quarter financial results represent the sixth consecutive quarter of year-over-year net sales growth on a GAAP basis and the seventh consecutive quarter on an adjusted basis.

"Our cholesterol franchise is pivotal and continues to gain share in the United States and other major markets," chairman and chief executive officer Fred Hassan said in a news release.

As a franchise, Vytorin and Zetia are ready to cross the 15% threshold of new prescriptions in the U.S. cholesterol management market, officials added.

Schering-Plough expects to face some challenges with the June 2006 U.S. introduction of generic versions of Merck's Zocor (simvastatin). On a positive note, three of the company's leading phase 2 projects have been granted fast track status by the Food and Drug Administration.

Located in Kenilworth, N.J., Schering-Plough provides prescription, consumer and animal health products.

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