Schering-Plough Reports Sales, Earnings for 2001 Second Quarter, First Half
...Second quarter worldwide sales of TEMODAR® (temozolomide), for treating certain types of brain tumors,...
Jul 25 6:48 AM ET
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Posted on: 07/25/2001
"Yahoo - Schering-Plough Reports Sales, Earnings for 2001 Second Quarter, First Half"
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Wednesday July 25, 6:49 am Eastern Time
Schering-Plough Reports Sales, Earnings for 2001 Second Quarter, First Half
2001 Second Quarter Diluted Earnings Per Share 43 Cents
KENILWORTH, N.J., July 25 /PRNewswire/ --
Schering-Plough Corporation (NYSE: SGP - news) today reported financial results for
the 2001 second quarter and first half.
Diluted earnings per share for the
2001 second quarter were 43 cents (as estimated in a June 28, 2001, press
release) on net income of $634 million, which is flat compared with 43 cents
on net income of $634 million in the 2000 second quarter.
Second quarter 2001
sales of $2.6 billion were also flat compared with last year.
exchange, second quarter sales increased 3 percent.
Diluted earnings per share for the 2001 first half decreased 5 percent to
81 cents on net income of $1.2 billion versus 85 cents on net income of
$1.3 billion in 2000.
First half 2001 sales of $4.9 billion were 1 percent
lower than the $5.0 billion recorded in 2000.
Excluding exchange, 2001 first
half sales increased 1 percent.
"Worldwide pharmaceutical sales for the second quarter included strong
demand for a number of the company's newer products," said Richard Jay Kogan,
chairman and chief executive officer.
"We also continue to see good growth in
our international markets, driven by higher sales in the allergy/respiratory
and anti-infective/anticancer product categories."
Commenting on previously
reported manufacturing issues, he said, "We have made progress toward
resolving these manufacturing issues and I remain committed to getting
Schering-Plough back on a solid growth track."
2001 SECOND QUARTER RESULTS
In the 2001 second quarter, worldwide pharmaceutical sales totaled
$2.2 billion, with growth flat compared with the 2000 period (up 2 percent
when foreign exchange is excluded).
Higher sales for the 2001 second quarter
were recorded in the allergy/respiratory and dermatologicals categories.
Worldwide sales of the CLARITIN® (loratadine) nonsedating antihistamine
line, the world's No. 1 antihistamine, grew 3 percent to $925 million.
quarter 2001 worldwide sales of NASONEX® (mometasone furoate monohydrate)
Nasal Spray, a once-daily nasal spray for allergies, increased 51 percent to
Sales of the anti-infective/anticancer INTRON® A franchise
totaled $315 million, down 13 percent versus the comparable year-ago period.
The franchise includes INTRON A (interferon alfa-2b); PEG-INTRON(TM)
(peginterferon alfa-2b), a longer-acting form of INTRON A (as monotherapy for
treating hepatitis C and, internationally, in combination with REBETOL®
(ribavirin, USP) Capsules); and REBETRON(TM) Combination Therapy containing
INTRON A and REBETOL.
Second quarter worldwide sales of TEMODAR® (temozolomide), for treating
certain types of brain tumors, were $44 million, up 46 percent.
INTEGRILIN® (eptifibatide) Injection, a glycoprotein platelet aggregation
inhibitor for the treatment of patients with acute coronary syndromes, totaled
$67 million, up 60 percent, and sales of REMICADE® (infliximab), for the
treatment of rheumatoid arthritis and Crohn's disease, were $36 million.
U.S. pharmaceutical sales in the 2001 second quarter totaled $1.4 billion,
down 4 percent versus the 2000 period, with sales affected by manufacturing
issues and changes in the timing of trade buying, tempered by increased demand
for certain products.
In allergy/respiratory, second quarter 2001 U.S. sales
of the CLARITIN line were $782 million, up 2 percent.
Domestic sales of
NASONEX increased 56 percent to $145 million in the 2001 second quarter.
anti-infective/anticancer, U.S. sales of the INTRON A franchise totaled
$147 million, down 32 percent.
Second quarter domestic sales of TEMODAR rose
to $26 million, up 55 percent.
Sales of cardiovascular products in the
2001 second quarter were down 24 percent due to continued generic competition
for IMDUR® (isosorbide mononitrate), a once-daily, long-acting oral nitrate
for angina, and lower sales of K-DUR® (potassium chloride USP), a
sustained-release potassium supplement.
Domestic sales of INTEGRILIN
increased 58 percent to $61 million.
International pharmaceutical sales in the 2001 second quarter increased
6 percent (up 13 percent when foreign exchange is excluded) to $833 million.
In allergy/respiratory, combined international sales of CLARITIN and
CLARINEX® (desloratadine), a non-sedating antihistamine, were $143 million,
up 9 percent, and sales of NASONEX were $37 million, up 35 percent.
anti-infective/anticancer, sales of the INTRON A franchise totaled
$169 million, up 16 percent versus the comparable 2000 period, benefiting from
the March 2001 European Union approval of PEG-INTRON and REBETOL combination
therapy for the treatment of chronic hepatitis C.
Also contributing to second
quarter international sales were TEMODAR, with sales of $18 million, up
34 percent, and REMICADE.
Second quarter sales of animal health products were down 1 percent
(up 3 percent when foreign exchange is excluded).
Sales of Schering-Plough's
foot care products decreased 3 percent and over-the-counter (OTC) products
were down 5 percent versus the comparable 2000 period.
Sales of sun care
products were up 28 percent versus the 2000 period.
2001 FIRST HALF RESULTS
Worldwide pharmaceutical sales in the 2001 first half decreased 2 percent
(up 1 percent when foreign exchange is excluded) to $4.2 billion.
Sales of domestic pharmaceuticals totaled $2.6 billion, down 6 percent
versus the 2000 first half, with sales affected by manufacturing issues and
changes in the timing of trade buying, tempered by increased demand for
The sales decline was due to lower sales of VANCENASE and
the VANCERIL® (beclomethasone dipropionate) line of orally inhaled steroids
for asthma; lower sales of K-DUR, and lower sales of the INTRON A franchise.
Also contributing to lower sales in the 2001 first half were LOTRISONE®
(clotrimazole and betamethasone dipropionate), a topical
antifungal/anti-inflammatory, and IMDUR, which declined due to continued
The overall sales decline for U.S. pharmaceuticals was
moderated by higher sales of CLARITIN, NASONEX, TEMODAR and INTEGRILIN.
International pharmaceutical sales for the period rose 5 percent
(up 12 percent when foreign exchange is excluded) and totaled $1.6 billion.
Higher sales were led by NASONEX, the INTRON A franchise, REMICADE and
Sales of animal health products decreased 2 percent in the 2001 first half
(up 2 percent when foreign exchange is excluded) and totaled $324 million.
Sales of Schering-Plough's foot care products decreased 7 percent versus the
Sales of OTC products were up 12 percent compared with the prior
Schering-Plough's sun care products were up 10 percent in the 2001
first half versus the prior year.
In addition to historical information, this press
release includes certain "forward-looking" statements relating to the
company's business prospects and the expected impact on the company of the
manufacturing process and control and current Good Manufacturing Practices
(GMP) issues identified by the FDA, the company's efforts going forward to
resolve those issues, remedies the FDA may seek with respect to those issues,
the expected need for and cost of any additional remedial actions the company
may take and the pendency of the company's New Drug Applications (NDA) for
CLARINEX, which remain subject to FDA approval.
The reader of this release
should understand that the resolution of the issues with the FDA, as well as
the potential impact of those issues on the company's full-year 2001 sales and
earnings, are subject to substantial risks and uncertainties, and those issues
could cause actual results to differ materially from the company's
Many factors could cause actual results to differ
materially from the company's forward-looking statements, including that the
timing, scope and duration of a resolution of the manufacturing process and
control and GMP issues will depend on the ability of the company to assure FDA
of the quality and reliability of its manufacturing systems and controls, and
the extent of remedial and prospective obligations undertaken by the company.
Other risk factors include that the FDA approval process is uncertain and can
cause delays in the release of products, seizure or recall of products,
suspension or revocation of the authority necessary for the production and
sale of products, fines and other civil or criminal sanctions.
In addition to
the risks and uncertainties relating to the company's manufacturing
deficiencies, the forward-looking statements may also be adversely affected by
general market factors, competitive product development, product availability,
current and future branded and generic competition for the company's products,
federal and state regulations and legislation, the regulatory process for new
products and indications, new manufacturing issues that may arise, timing of
trade buying, exchange rate fluctuations, patent positions, litigation and
For further details and a discussion of these and other risks
and uncertainties, see the company's Securities and Exchange Commission
filings, including the company's 2000 annual report on Form 10-K and
subsequent quarterly report on Form 10-Q.
Schering-Plough is a research-based company engaged in the discovery,
development, manufacturing and marketing of pharmaceutical products worldwide.
- SCHERING-PLOUGH CORPORATION
- Report for the second quarter and six months ended June 30 (unaudited):
- (Amounts in millions, except per share figures)
Second Quarter Six Months
2001 2000 % 2001 2000 %
Net Sales $2,630 $2,626 -- $4,949 $5,015 (1)
Costs and Expenses:
Cost of Sales 535 489 9 1,005 946 6
Administrative 967 977 (1) 1,819 1,818 --
Development 334 345 (3) 624 635 (2)
Other, Net (29) (19) 53 (55) (44) 27
1,807 1,792 1 3,393 3,355 1
Income Taxes 823 834 (1) 1,556 1,660 (6)
Income Taxes 189 200 (5) 358 398 (10)
Net Income $ 634 $ 634 -- $1,198 $1,262 (5)
Share $ 0.43 $ 0.43 -- $ 0.81 $ 0.85 (5)
Rate 23.0% 24.0% 23.0% 24.0%
Diluted 1,470 1,476 1,471 1,478
at June 30 1,463 1,465 1,463 1,465
Excluding exchange, diluted earnings per share for the second quarter
increased 2 percent and for the first half of 2001 decreased 1 percent.
Report for the second quarter and six months ended June 30 (unaudited):
Net Sales by Major Product:
(Dollars in Millions) Second Quarter Six Months
2001 2000 % 2001 2000 %
RESPIRATORY $ 1,244 $1,216 2 $2,171 $2,172 --
Claritin 925 897 3 1,643 1,562 5
Nasonex 183 121 51 274 202 36
Vancenase (2) 54 N/M 1 110 (99)
Proventil 66 55 21 106 99 7
Vanceril 22 27 (17) 34 64 (47)
& ANTICANCER 510 508 -- 1,035 1,000 3
Eulexin 19 26 (25) 49 63 (23)
Intron A franchise* 315 361 (13) 641 697 (8)
Remicade 36 12 N/M 63 20 N/M
Temodar 44 30 46 87 51 69
CARDIOVASCULARS 134 168 (20) 297 351 (15)
Imdur 18 33 (46) 39 68 (43)
Integrilin 67 42 60 105 70 51
K-Dur 19 54 (64) 94 132 (29)
Nitro-Dur 29 32 (8) 55 67 (17)
DERMATOLOGICALS 176 170 4 318 342 (7)
Elocon 51 44 15 103 88 17
Lotrisone 48 48 1 60 98 (38)
PHARMACEUTICALS 164 174 (6) 355 383 (7)
PHARMACEUTICALS 2,228 2,236 -- 4,176 4,248 (2)
ANIMAL HEALTH 171 173 (1) 324 330 (2)
FOOT CARE 97 100 (3) 176 190 (7)
OTC 42 45 (5) 98 87 12
SUN CARE 92 72 28 175 160 10
SALES $2,630 $2,626 -- $4,949 $5,015 (1)
N/M - not a meaningful percentage
* The Intron A franchise includes INTRON A, PEG-INTRON (monotherapy for
treating hepatitis C and, internationally, in combination with
REBETOL), and REBETRON Combination Therapy.
Additional information about U.S. and international sales for
specific products is available by calling the company or visiting the
corporate Web site at www.schering-plough.com .
NOTE TO EDITORS:
Schering-Plough is inviting any interested parties to
listen to its one-way conference call reviewing second quarter 2001 sales and
earnings results on July 25, 2001, at 9 a.m. EDT.
To listen live to the call,
dial 1-800-547-8954 or 1-706-634-5003.
A replay of the call will be available
starting at 11 a.m. on July 25 through 5 p.m. on July 28.
To listen to the
replay, dial 1-800-642-1687 or 1-706-645-9291 and enter conference ID #497136
Additional information about sales for specific products is
available by calling the media relations and investor relations contacts
listed below or by going to the company's corporate Web site at
A live audio Webcast of the conference call is
available by visiting the Web site.
Following the live broadcast, a replay of
the conference call Webcast will be available starting at approximately
11 a.m. on July 25 through 5 p.m. on August 1.
Schering-Plough press releases are available on the company's Web site at
http://www.schering-plough.com and through PR Newswire's fax service.
menu of Schering-Plough press releases or to retrieve a specific release, call
1-800-758-5804, extension 777050, or use the Internet via
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