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Schering-Plough posts profits on cholesterol-drug sales
1/30/2006, 11:18 a.m. ET
By BONNIE PFISTER The Associated Press
TRENTON, N.J. (AP) — Schering-Plough Corp. reported a fourth-quarter profit Monday, boosted by a strong performance of its cholesterol-fighting drugs and lower income taxes.
The Kenilworth-based drugmaker earned $104 million, or 7 cents per share, in the October-December period compared to a loss of $856 million, or 58 cents per share, during the same period in 2004. Those figures are after a preferred stock dividend payment of $22 million in both quarters.
The profit fell below expectations of 8 cents per share on sales of $2.39 billion, according to 20 analysts surveyed by Thomson Financial.
Revenue increased 6 percent to $2.32 billion from $2.18 billion.
In a conference call with analysts, Chief Executive Fred Hassan described 2005 as a pivotal year for Schering-Plough.
"We faced critical tests on many fronts, and we passed them," Hassan said. "We are moving from survive mode into thrive mode."
The year-ago loss reflected a tax provision of $807 million, or 55 cents per share, related primarily to repatriating overseas profits under a law that allowed for a sharply lower tax rate.
Schering-Plough does not specifically record sales of cholesterol drugs in its total revenue because they are sold through a partnership with Merck & Co, but it does record profits. Including an assumed 50 percent of these sales, Hassan said revenue would have been $2.7 billion, a 13 percent increase.
The cholesterol-product sales growth came from the introduction of Vytorin, launched in the third quarter of 2004, and Zetia, he said.
Schering-Plough said its Remicade, Peg-Intron, Nasonex and Temodar drugs also posted growth. Remicade, a rheumatoid arthritis drug that is the company's top seller, saw sales grow 10 percent to $1.91 billion.
For the year, Schering-Plough earned $183 million, or 12 cents per share, after preferred divided payments on sales of $9.51 billion. It lost $981 million, or 67 cents a share, after preferred dividends on sales of $8.27 billion a year earlier.
Schering-Plough shares fell 43 cents to $19.65 in morning trading on the New York Stock Exchange.
___
On the Net:
Schering-Plough Corp.: http://www.sch-plough.com
Schering-Plough posts profits on cholesterol-drug sales
1/30/2006, 11:18 a.m. ET
By BONNIE PFISTER The Associated Press
TRENTON, N.J. (AP) — Schering-Plough Corp. reported a fourth-quarter profit Monday, boosted by a strong performance of its cholesterol-fighting drugs and lower income taxes.
The Kenilworth-based drugmaker earned $104 million, or 7 cents per share, in the October-December period compared to a loss of $856 million, or 58 cents per share, during the same period in 2004. Those figures are after a preferred stock dividend payment of $22 million in both quarters.
The profit fell below expectations of 8 cents per share on sales of $2.39 billion, according to 20 analysts surveyed by Thomson Financial.
Revenue increased 6 percent to $2.32 billion from $2.18 billion.
In a conference call with analysts, Chief Executive Fred Hassan described 2005 as a pivotal year for Schering-Plough.
"We faced critical tests on many fronts, and we passed them," Hassan said. "We are moving from survive mode into thrive mode."
The year-ago loss reflected a tax provision of $807 million, or 55 cents per share, related primarily to repatriating overseas profits under a law that allowed for a sharply lower tax rate.
Schering-Plough does not specifically record sales of cholesterol drugs in its total revenue because they are sold through a partnership with Merck & Co, but it does record profits. Including an assumed 50 percent of these sales, Hassan said revenue would have been $2.7 billion, a 13 percent increase.
The cholesterol-product sales growth came from the introduction of Vytorin, launched in the third quarter of 2004, and Zetia, he said.
Schering-Plough said its Remicade, Peg-Intron, Nasonex and Temodar drugs also posted growth. Remicade, a rheumatoid arthritis drug that is the company's top seller, saw sales grow 10 percent to $1.91 billion.
For the year, Schering-Plough earned $183 million, or 12 cents per share, after preferred divided payments on sales of $9.51 billion. It lost $981 million, or 67 cents a share, after preferred dividends on sales of $8.27 billion a year earlier.
Schering-Plough shares fell 43 cents to $19.65 in morning trading on the New York Stock Exchange.
___
On the Net:
Schering-Plough Corp.: http://www.sch-plough.com
posted by Jones Lang LaSalle NJ News Blog at 11:39 AM
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