Schering-Plough reports stable first quarter
This article was originally published in Scrip
Schering-Plough's first-quarter profits almost trebled to $767 million after the previous year was affected by the costs associated with the Organon acquisition.
However, net sales were down by 6% to $4.4 billion owing to a negative 10% foreign exchange impact. As a result, sales of prescription pharmaceuticals fell by 5% to $3.4 billion. The company's cholesterol joint venture with Merck & Co, Zetia (ezetimibe) and Vytorin (ezetimibe plus simvastatin), reported a 21% decline in global sales, which was primarily due to lower sales in the US. This equated to a $30 million shortfall on Credit Suisse's estimates.
Elsewhere in the pipeline, sales of the TNF-blocker Remicade increased by 2% to $518 million. The company hopes that Remicade's position as the number one anti-TNF product in Canada will pave the way for its once-monthly Simponi (golimumab), which has recently received its first marketing approval there.
Product | 1stquarter | % change |
Remicade | 518 | +2 |
Nasonex | 306 | - |
Temodar | 247 | +5 |
Pegintron | 216 | -4 |
Clarinex/Aerius | 174 | -19 |
Claritin RX | 132 | +3 |
Follistim/Puregon | 131 | -10 |
Nuvaring | 115 | +19 |
Avelox | 109 | -23 |
Integrilin | 76 | +3 |
The company has saved more than $300 million in the first quarter through its productivity transformation programme (PTP), which was launched last April to make its operations more efficient. The PTP is aimed at saving $1.5 billion by the end of the 2012, and with first quarter savings, the company believes it is on track to achieve this.
Benefiting from the strong dollar and PTP savings, SG&A expenses decreased by 11% to $1.5 billion and R&D expenditure declined by 9% to $800 million.
"We believe that our pipeline is on track," said the company's chief financial officer, Robert Bertolini. "Our registration trials for boceprevir completed enrolment this quarter and our Phase III TRA programme is progressing well. We continue to make investments in our pipeline and expect our full year 2009 R&D expenses to grow in a low- to mid-single digit range." The company added that its merger with Merck & Co remained on track.