Exhibit 99.2
SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(U.S. GAAP and As Reconciled)
(Amounts in Millions, except Per Share Figures)
(Unaudited)
STATEMENTS OF CONSOLIDATED OPERATIONS
(U.S. GAAP and As Reconciled)
(Amounts in Millions, except Per Share Figures)
(Unaudited)
2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||
4th Qtr | 4th Qtr | 4th Qtr | 4th Qtr | 4th Qtr vs. | Full Year | Full Year | Full Year | Full Year | |||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | * As | * As | 4th Qtr | U.S. | U.S. | * As | * As | |||||||||||||||||||||||||||||||||||||||||
GAAP | GAAP | Reconciled | Reconciled | As | GAAP | GAAP | Reconciled | Reconciled | 2007 vs. 2006 | ||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | Reconciled | $ | $ | $ | $ | As Reconciled | ||||||||||||||||||||||||||||||||||||||||
Net sales | 3,724 | 2,650 | 3,724 | 2,650 | 41 | % | 12,690 | 10,594 | 12,690 | 10,594 | 20 | % | |||||||||||||||||||||||||||||||||||||
Cost of sales | 1,566 | 915 | 1,240 | 870 | 43 | % | 4,405 | 3,697 | 4,079 | 3,551 | 15 | % | |||||||||||||||||||||||||||||||||||||
Gross profit | 2,158 | 1,735 | 2,484 | 1,780 | 40 | % | 8,285 | 6,897 | 8,611 | 7,043 | 22 | % | |||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 1,634 | 1,250 | 1,634 | 1,250 | 31 | % | 5,468 | 4,718 | 5,468 | 4,718 | 16 | % | |||||||||||||||||||||||||||||||||||||
Research and development | 855 | 631 | 834 | 616 | 35 | % | 2,926 | 2,188 | 2,729 | 2,173 | 26 | % | |||||||||||||||||||||||||||||||||||||
Acquired in-process research and development | 3,754 | — | — | — | * | 3,754 | — | — | — | * | |||||||||||||||||||||||||||||||||||||||
Other income, net | (231 | ) | (46 | ) | 24 | (46 | ) | * | (683 | ) | (135 | ) | (146 | ) | (135 | ) | 8 | % | |||||||||||||||||||||||||||||||
Special and acquisition related charges | 52 | 12 | — | — | * | 84 | 102 | — | — | * | |||||||||||||||||||||||||||||||||||||||
Equity income | (566 | ) | (403 | ) | (566) | (403 | ) | 40 | % | (2,049 | ) | (1,459 | ) | (2,049 | ) | (1,459 | ) | 40 | % | ||||||||||||||||||||||||||||||
Income/(loss) before income taxes | (3,340 | ) | 291 | 558 | 363 | 54 | % | (1,215 | ) | 1,483 | 2,609 | 1,746 | 49 | % | |||||||||||||||||||||||||||||||||||
Income tax expense/(benefit) | (14 | ) | 87 | 78 | 87 | * | 258 | 362 | 350 | 362 | * | ||||||||||||||||||||||||||||||||||||||
Net income/(loss) before cumulative effect of a change in accounting principle | (3,326 | ) | 204 | 480 | 276 | 74 | % | (1,473 | ) | 1,121 | 2,259 | 1,384 | 63 | % | |||||||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | * | — | (22 | ) | — | — | * | ||||||||||||||||||||||||||||||||||||||
Net income/(loss) | (3,326 | ) | 204 | 480 | 276 | 74 | % | (1,473 | ) | 1,143 | 2,259 | 1,384 | 63 | % | |||||||||||||||||||||||||||||||||||
Preferred stock dividends | 38 | 22 | 38 | 22 | 73 | % | 118 | 86 | 118 | 86 | 37 | % | |||||||||||||||||||||||||||||||||||||
Net income/(loss) available to common shareholders | (3,364 | ) | 182 | 442 | 254 | 74 | % | (1,591 | ) | 1,057 | 2,141 | 1,298 | 65 | % | |||||||||||||||||||||||||||||||||||
Diluted earnings/(loss) per common share: | |||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/(loss) available to common shareholders before cumulative effect of a change in accounting principle | (2.08 | ) | 0.12 | 0.27 | 0.17 | 59 | % | (1.04 | ) | 0.69 | 1.37 | 0.87 | 57 | % | |||||||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | 0.02 | — | — | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings/(loss) per common share | (2.08 | ) | 0.12 | 0.27 | 0.17 | 59 | % | (1.04 | ) | 0.71 | 1.37 | 0.87 | 57 | % | |||||||||||||||||||||||||||||||||||
Avg. shares outstanding- diluted | 1,621 | 1,497 | 1,648 | 1,497 | 1,536 | 1,491 | 1,607 | 1,491 | |||||||||||||||||||||||||||||||||||||||||
Ratios to net sales | |||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||||
Cost of sales | 42.1 | % | 34.5 | % | 33.3 | % | 32.8 | % | 34.7 | % | 34.9 | % | 32.1 | % | 33.5 | % | |||||||||||||||||||||||||||||||||
Gross margin | 57.9 | % | 65.5 | % | 66.7 | % | 67.2 | % | 65.3 | % | 65.1 | % | 67.9 | % | 66.5 | % | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 43.9 | % | 47.2 | % | 43.9 | % | 47.2 | % | 43.1 | % | 44.5 | % | 43.1 | % | 44.5 | % | |||||||||||||||||||||||||||||||||
Research and development | 23.0 | % | 23.8 | % | 22.4 | % | 23.2 | % | 23.1 | % | 20.6 | % | 21.5 | % | 20.5 | % | |||||||||||||||||||||||||||||||||
Income/(loss) before income taxes | (89.7 | %) | 11.0 | % | 15.0 | % | 13.7 | % | (9.6 | %) | 14.0 | % | 20.6 | % | 16.5 | % | |||||||||||||||||||||||||||||||||
Net income/(loss) | (89.3 | %) | 7.7 | % | 12.9 | % | 10.4 | % | (11.6 | %) | 10.8 | % | 17.8 | % | 13.1 | % | |||||||||||||||||||||||||||||||||
* | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. See Non-GAAP Reconciliation tables posted on the Schering-Plough website at www.Schering-Plough.com under “Investor Relations/Financial Highlights” |
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 1
SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(U.S. GAAP)
(Amounts in Millions, except Per Share Figures)
(Unaudited)
STATEMENTS OF CONSOLIDATED OPERATIONS
(U.S. GAAP)
(Amounts in Millions, except Per Share Figures)
(Unaudited)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Net sales 1/ | 2,975 | 3,178 | 2,812 | 3,724 | 12,690 | 2,551 | 2,818 | 2,574 | 2,650 | 10,594 | 41 | % | 20 | % | |||||||||||||||||||||||||||||||||||||||||
Cost of sales 2/ | 937 | 977 | 925 | 1,566 | 4,405 | 893 | 1,004 | 885 | 915 | 3,697 | 71 | % | 19 | % | |||||||||||||||||||||||||||||||||||||||||
Gross profit | 2,038 | 2,201 | 1,887 | 2,158 | 8,285 | 1,658 | 1,814 | 1,689 | 1,735 | 6,897 | 24 | % | 20 | % | |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 1,213 | 1,358 | 1,262 | 1,634 | 5,468 | 1,086 | 1,224 | 1,158 | 1,250 | 4,718 | 31 | % | 16 | % | |||||||||||||||||||||||||||||||||||||||||
Research and development 3/ | 707 | 696 | 669 | 855 | 2,926 | 481 | 539 | 536 | 631 | 2,188 | 35 | % | 34 | % | |||||||||||||||||||||||||||||||||||||||||
Acquired in-process research and development 4/ | — | — | — | 3,754 | 3,754 | — | — | — | — | — | * | * | |||||||||||||||||||||||||||||||||||||||||||
Other income, net 5/ | (48 | ) | (16 | ) | (390 | ) | (231 | ) | (683 | ) | (34 | ) | (19 | ) | (37 | ) | (46 | ) | (135 | ) | * | * | |||||||||||||||||||||||||||||||||
Special and acquisition related charges 6/ | 1 | 11 | 20 | 52 | 84 | — | 80 | 10 | 12 | 102 | * | * | |||||||||||||||||||||||||||||||||||||||||||
Equity income | (487 | ) | (490 | ) | (506 | ) | (566 | ) | (2,049 | ) | (311 | ) | (355 | ) | (390 | ) | (403 | ) | (1,459 | ) | 40 | % | 40% | ||||||||||||||||||||||||||||||||
Income/(loss)before income taxes | 652 | 642 | 832 | (3,340 | ) | (1,215 | ) | 436 | 345 | 412 | 291 | 1,483 | * | * | |||||||||||||||||||||||||||||||||||||||||
Income tax expense/(benefit)7/ | 87 | 103 | 82 | (14 | ) | 258 | 86 | 86 | 103 | 87 | 362 | * | * | ||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) before cumulative effect of a change in accounting principle | 565 | 539 | 750 | (3,326 | ) | (1,473 | ) | 350 | 259 | 309 | 204 | 1,121 | * | * | |||||||||||||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | (22 | ) | — | — | — | (22 | ) | * | * | |||||||||||||||||||||||||||||||||||||||||
Net income/(loss) | 565 | 539 | 750 | (3,326 | ) | (1,473 | ) | 372 | 259 | 309 | 204 | 1,143 | * | * | |||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | 22 | 22 | 37 | 38 | 118 | 22 | 22 | 22 | 22 | 86 | * | * | |||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) available to common shareholders | 543 | 517 | 713 | (3,364 | ) | (1,591 | ) | 350 | 237 | 287 | 182 | 1,057 | * | * | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings/(loss) per common share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/(loss) available to common shareholders before cumulative effect of a change in accounting principle | 0.36 | 0.34 | 0.45 | (2.08 | ) | (1.04 | ) | 0.22 | 0.16 | 0.19 | 0.12 | 0.69 | |||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | 0.02 | — | — | — | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings/(loss) per common share | 0.36 | 0.34 | 0.45 | (2.08 | ) | (1.04 | ) | 0.24 | 0.16 | 0.19 | 0.12 | 0.71 | |||||||||||||||||||||||||||||||||||||||||||
Avg. shares outstanding- diluted | 1,571 | 1,587 | 1,622 | 1,621 | 1,536 | 1,486 | 1,489 | 1,492 | 1,497 | 1,491 | |||||||||||||||||||||||||||||||||||||||||||||
Actual shares outstanding | 1,489 | 1,496 | 1,620 | 1,621 | 1,621 | 1,481 | 1,481 | 1,483 | 1,487 | 1,487 | |||||||||||||||||||||||||||||||||||||||||||||
Ratios to net sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||||||
Cost of sales | 31.5 | % | 30.7 | % | 32.9 | % | 42.1 | % | 34.7 | % | 35.0 | % | 35.6 | % | 34.4 | % | 34.5 | % | 34.9 | % | |||||||||||||||||||||||||||||||||||
Gross margin | 68.5 | % | 69.3 | % | 67.1 | % | 57.9 | % | 65.3 | % | 65.0 | % | 64.4 | % | 65.6 | % | 65.5 | % | 65.1 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 40.8 | % | 42.7 | % | 44.9 | % | 43.9 | % | 43.1 | % | 42.6 | % | 43.4 | % | 45.0 | % | 47.2 | % | 44.5 | % | |||||||||||||||||||||||||||||||||||
Research and development | 23.8 | % | 21.9 | % | 23.8 | % | 23.0 | % | 23.1 | % | 18.8 | % | 19.1 | % | 20.8 | % | 23.8 | % | 20.6 | % | |||||||||||||||||||||||||||||||||||
Income/(loss) before income taxes | 21.9 | % | 20.2 | % | 29.6 | % | (89.7 | %) | (9.6 | %) | 17.1 | % | 12.2 | % | 16.0 | % | 11.0 | % | 14.0 | % | |||||||||||||||||||||||||||||||||||
Net income/(loss) | 19.0 | % | 17.0 | % | 26.7 | % | (89.3 | %) | (11.6 | %) | 14.6 | % | 9.2 | % | 12.0 | % | 7.7 | % | 10.8 | % | |||||||||||||||||||||||||||||||||||
* | Not a meaningful percentage | |
Note: The Company incurs substantial costs, such as selling, general and administrative costs, that are not reflected in “Equity income” and are borne by the overall cost structure of Schering-Plough. | ||
1/ | Net sales for the three and twelve months ended December 31, 2007, both include $626 million of Organon BioSciences (OBS) net sales as of the November 19, 2007 close of the acquisition through year-end. | |
2/ | Cost of sales for the three and twelve months ended December 31, 2007 both include purchase accounting adjustments of $326 million related to the acquisition of OBS. Included in cost of sales for the three and twelve months ended December 31, 2006 is $45 million and $146 million, respectively, related to the manufacturing changes announced June 1, 2006. | |
3/ | Research and development for the three months ended December 31, 2007 includes $21 million related to an upfront R&D payment. Research and development for the twelve months ended December 31, 2007 includes $197 million related to upfront R&D payments. Included in research and development for the three and twelve months ended December 31, 2006 is a $15 million payment for licensing of a product. | |
4/ | Acquired in-process research and development for the three and twelve months ended December 31, 2007 both include a charge of $3.8 billion in connection with the acquisition of OBS. | |
5/ | Included in other income, net for the three months ended December 31, 2007 are $255 million of acquisition-related gains on currency-related items. Included in other income, net for the twelve months ended December 31, 2007 are $537 million of acquisition-related net gains on currency-related and interest rate-related items. | |
6/ | Special and acquisition related charges for the three and twelve months ended December 31, 2007, reflects $52 million and $84 million, respectively, related to the acquisition of OBS. Special and acquisition related charges of $102 million for the twelve months ended December 31, 2006 include severance and fixed asset write-offs related to the manufacturing changes in June 2006. | |
7/ | Tax expense or benefit for all periods presented primarily relates to foreign taxes as the Company did not recognize the benefit of U.S. tax operating losses. |
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 2
SCHERING-PLOUGH CORPORATION
ANALYSIS OF NET SALES AND ADJUSTED NET SALES
(Dollars in Millions)
ANALYSIS OF NET SALES AND ADJUSTED NET SALES
(Dollars in Millions)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Cholesterol Joint Venture: | 1,150 | 1,248 | 1,277 | 1,443 | 5,119 | 778 | 958 | 1,010 | 1,082 | 3,829 | 33% | 34% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 897 | 958 | 969 | 1,071 | 3,894 | 634 | 784 | 820 | 852 | 3,091 | 26% | 26% | |||||||||||||||||||||||||||||||||||||||||||
International | 253 | 290 | 308 | 372 | 1,225 | 144 | 174 | 190 | 230 | 738 | 62% | 66% | |||||||||||||||||||||||||||||||||||||||||||
50% of Cholesterol Joint Venture: | 575 | 624 | 639 | 722 | 2,559 | 389 | 479 | 505 | 541 | 1,915 | 33% | 34% | |||||||||||||||||||||||||||||||||||||||||||
Prescription Pharma (1): | 2,398 | 2,520 | 2,291 | 2,963 | 10,173 | 2,032 | 2,230 | 2,087 | 2,211 | 8,561 | 34% | 19% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 802 | 771 | 709 | 855 | 3,138 | 656 | 718 | 733 | 800 | 2,908 | 7% | 8% | |||||||||||||||||||||||||||||||||||||||||||
International | 1,596 | 1,749 | 1,582 | 2,108 | 7,035 | 1,376 | 1,512 | 1,354 | 1,411 | 5,653 | 49% | 24% | |||||||||||||||||||||||||||||||||||||||||||
Consumer Health Care | 345 | 394 | 273 | 254 | 1,266 | 311 | 349 | 259 | 205 | 1,123 | 24% | 13% | |||||||||||||||||||||||||||||||||||||||||||
Animal Health (2): | 232 | 264 | 248 | 507 | 1,251 | 208 | 239 | 228 | 234 | 910 | 117% | 37% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 58 | 58 | 63 | 99 | 278 | 57 | 62 | 72 | 50 | 240 | 98% | 16% | |||||||||||||||||||||||||||||||||||||||||||
International | 174 | 206 | 185 | 408 | 973 | 151 | 177 | 156 | 184 | 670 | 121% | 45% | |||||||||||||||||||||||||||||||||||||||||||
Consolidated GAAP Net Sales: | 2,975 | 3,178 | 2,812 | 3,724 | 12,690 | 2,551 | 2,818 | 2,574 | 2,650 | 10,594 | 41% | 20% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 1,179 | 1,195 | 1,028 | 1,194 | 4,597 | 999 | 1,103 | 1,047 | 1,043 | 4,192 | 15% | 10% | |||||||||||||||||||||||||||||||||||||||||||
International | 1,796 | 1,983 | 1,784 | 2,530 | 8,093 | 1,552 | 1,715 | 1,527 | 1,607 | 6,402 | 57% | 26% | |||||||||||||||||||||||||||||||||||||||||||
Adjusted Net Sales: | 3,550 | 3,802 | 3,451 | 4,446 | 15,249 | 2,940 | 3,297 | 3,079 | 3,191 | 12,509 | 39% | 22% | |||||||||||||||||||||||||||||||||||||||||||
(1) | Prescription Pharma for both the fourth quarter and full year 2007 include sales of Organon, the human health business of Organon BioSciences, of $84 million in the U.S. and $325 million Internationally. Sales of Organon BioSciences are reflected as of the closing date of the acquisition on November 19, 2007 through year-end. | |
(2) | Animal Health for both the fourth quarter and full year 2007 include sales of Intervet, the animal health business of Organon BioSciences, of $35 million in the U.S. and $182 million Internationally. Sales of Organon BioSciences are reflected as of the closing date of the acquisition on November 19, 2007 through year-end. |
NOTE: As Schering-Plough integrates systems during 2008 separate sales information for Organon and Intervet is not expected to be presented separately.
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 3
SCHERING-PLOUGH CORPORATION
CHOLESTEROL FRANCHISE NET SALES
(Dollars in Millions)
CHOLESTEROL FRANCHISE NET SALES
(Dollars in Millions)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Global ZETIA: 1/ | 544 | 605 | 606 | 680 | 2,436 | 415 | 474 | 501 | 535 | 1,925 | 27% | 27% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 408 | 424 | 443 | 489 | 1,764 | 315 | 363 | 389 | 405 | 1,472 | 21% | 20% | |||||||||||||||||||||||||||||||||||||||||||
International | 136 | 181 | 163 | 191 | 672 | 100 | 111 | 112 | 130 | 453 | 47% | 48% | |||||||||||||||||||||||||||||||||||||||||||
Global VYTORIN: 1/ | 616 | 683 | 684 | 778 | 2,761 | 371 | 491 | 517 | 554 | 1,933 | 40% | 43% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 489 | 534 | 526 | 582 | 2,130 | 319 | 421 | 431 | 448 | 1,619 | 30% | 32% | |||||||||||||||||||||||||||||||||||||||||||
International | 127 | 149 | 158 | 196 | 631 | 52 | 70 | 86 | 106 | 314 | 85% | 101% | |||||||||||||||||||||||||||||||||||||||||||
Global Cholesterol: 1/ | 1,160 | 1,288 | 1,290 | 1,458 | 5,197 | 786 | 965 | 1,018 | 1,089 | 3,858 | 34% | 35% | |||||||||||||||||||||||||||||||||||||||||||
U.S. | 897 | 958 | 969 | 1,071 | 3,894 | 634 | 784 | 820 | 852 | 3,091 | 26% | 26% | |||||||||||||||||||||||||||||||||||||||||||
International | 263 | 330 | 321 | 387 | 1,303 | 152 | 181 | 198 | 237 | 767 | 64% | 70% |
1/ Substantially all sales of cholesterol products are not included in Schering-Plough’s net sales. Global franchise sales include sales under the Merck/Schering-Plough joint venture, plus any sales that are not part of the joint venture, such as Schering-Plough sales of cholesterol products in Latin America and Japan. In Japan, Schering-Plough co-markets Zetia with Bayer HealthCare. Zetia was launched in Japan in June 2007. In the fourth quarter of 2007 and 2006, sales in non-joint venture territories of the cholesterol franchise totaled $15 million and $7 million, respectively. For the twelve months of 2007 and 2006, sales in non-joint venture territories of the cholesterol franchise totaled $78 million and $29 million, respectively.
The results of the operation of the joint venture are reflected in equity income. As a result, Schering-Plough’s gross margin and ratios of selling, general and administrative expenses and R&D expenses as a percentage of sales do not reflect the benefit of the impact of the cholesterol joint venture’s operating results.
Schering-Plough utilizes the equity method of accounting for the joint venture. The cholesterol agreements provide for the sharing of operating income based upon percentages that vary by product, sales level and country. In the U.S. market, Schering-Plough receives a greater share of profits on the first $300 million of annual ZETIA sales. Above $300 million of annual ZETIA sales, the companies share profits equally. Schering-Plough’s allocation of joint venture income is increased by milestones earned. Further, either company’s share of the joint venture’s operating income is subject to a reduction if either company fails to perform a specified minimum number of physician details in a particular country. The companies agree annually to the minimum number of physician details by country.
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 4
SCHERING-PLOUGH CORPORATION
PRESCRIPTION PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
PRESCRIPTION PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
Global Prescription Pharma | U.S. | International | ||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||
4th | 4th | 4th Qtr | 4th | 4th | 4th Qtr | 4th | 4th | 4th Qtr | ||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | vs | Qtr. | Qtr. | vs | Qtr. | Qtr. | vs | ||||||||||||||||||||||||||||||||||||
$ | $ | 4th Qtr | $ | $ | 4th Qtr | $ | $ | 4th Qtr | ||||||||||||||||||||||||||||||||||||
Prescription Pharma: | 2,963 | 2,211 | 34 | % | 855 | 800 | 7 | % | 2,108 | 1,411 | 49 | % | ||||||||||||||||||||||||||||||||
Remicade | 455 | 337 | 35 | % | — | — | — | 455 | 337 | 35 | % | |||||||||||||||||||||||||||||||||
Nasonex | 271 | 253 | 7 | % | 162 | 171 | (5 | %) | 109 | 82 | 33 | % | ||||||||||||||||||||||||||||||||
PegIntron | 239 | 208 | 15 | % | 42 | 49 | (14 | %) | 197 | 159 | 25 | % | ||||||||||||||||||||||||||||||||
Temodar | 234 | 189 | 23 | % | 83 | 74 | 12 | % | 151 | 115 | 31 | % | ||||||||||||||||||||||||||||||||
Clarinex / Aerius | 174 | 164 | 6 | % | 82 | 94 | (12 | %) | 92 | 70 | 30 | % | ||||||||||||||||||||||||||||||||
Claritin rx | 93 | 78 | 19 | % | — | — | — | 93 | 78 | 19 | % | |||||||||||||||||||||||||||||||||
avelox | 115 | 103 | 12 | % | 115 | 103 | 12 | % | — | — | — | |||||||||||||||||||||||||||||||||
Integrilin | 91 | 85 | 7 | % | 85 | 81 | 6 | % | 6 | 4 | 29 | % | ||||||||||||||||||||||||||||||||
Rebetol | 71 | 75 | (6 | %) | 1 | 2 | (55 | %) | 70 | 73 | (4 | %) | ||||||||||||||||||||||||||||||||
Caelyx | 66 | 49 | 33 | % | — | — | — | 66 | 49 | 33 | % | |||||||||||||||||||||||||||||||||
Intron A | 57 | 57 | — | 28 | 29 | (4 | %) | 29 | 28 | 3 | % | |||||||||||||||||||||||||||||||||
Subutex / Suboxone | 57 | 51 | 11 | % | — | — | — | 57 | 51 | 11 | % | |||||||||||||||||||||||||||||||||
Proventil / Albuterol cfc | 41 | 55 | (25 | %) | 41 | 55 | (25 | %) | — | — | — | |||||||||||||||||||||||||||||||||
Asmanex | 41 | 36 | 16 | % | 38 | 33 | 17 | % | 3 | 3 | — | |||||||||||||||||||||||||||||||||
Elocon | 37 | 33 | 10 | % | 39 | 32 | 21 | % | ||||||||||||||||||||||||||||||||||||
Foradil | 25 | 28 | (11 | %) | 24 | 27 | (10 | %) | 1 | 1 | — | |||||||||||||||||||||||||||||||||
Noxafil | 29 | 10 | N/M | 10 | 3 | N/M | 19 | 7 | N/M | |||||||||||||||||||||||||||||||||||
Follistim (2) | 57 | — | N/M | 14 | — | N/M | 43 | — | N/M | |||||||||||||||||||||||||||||||||||
Nuvaring (2) | 45 | — | N/M | 26 | — | N/M | 19 | — | N/M | |||||||||||||||||||||||||||||||||||
Remeron (2) | 33 | — | N/M | 2 | — | N/M | 31 | — | N/M | |||||||||||||||||||||||||||||||||||
Zemuron (2) | 25 | — | N/M | 10 | — | N/M | 15 | — | N/M | |||||||||||||||||||||||||||||||||||
Livial (2) | 24 | — | N/M | — | — | N/M | 24 | — | N/M | |||||||||||||||||||||||||||||||||||
Cerazette (2) | 20 | — | N/M | — | — | N/M | 20 | — | N/M | |||||||||||||||||||||||||||||||||||
MARVELON (2) | 20 | — | N/M | 2 | — | N/M | 18 | — | N/M | |||||||||||||||||||||||||||||||||||
Mercilon (2) | 18 | — | N/M | — | — | N/M | 18 | — | N/M | |||||||||||||||||||||||||||||||||||
Implanon (2) | 15 | — | N/M | 3 | — | N/M | 12 | — | N/M |
(1) | Prescription Pharma for the fourth quarter includes sales of Organon, the human health business of Organon BioSciences, of $84 million in the U.S. and $325 million Internationally. Sales of Organon BioSciences are reflected as of the closing date of the acquisition on November 19, 2007 through year-end. | |
(2) | Products acquired in OBS acquisition reflect net sales for the period from November 19, 2007 through year-end. |
NOTE: As Schering-Plough integrates systems during 2008 separate sales information for Organon is not expected to be presented separately.
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 5
SCHERING-PLOUGH CORPORATION
GLOBAL PRESCRIPTION PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
GLOBAL PRESCRIPTION PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Global Prescription Pharma (1): | 2,398 | 2,520 | 2,291 | 2,963 | 10,173 | 2,032 | 2,230 | 2,087 | 2,211 | 8,561 | 34% | 19% | |||||||||||||||||||||||||||||||||||||||||||
Remicade | 373 | 394 | 426 | 455 | 1,648 | 278 | 307 | 317 | 337 | 1,240 | 35% | 33% | |||||||||||||||||||||||||||||||||||||||||||
Nasonex | 284 | 295 | 242 | 271 | 1,092 | 229 | 242 | 221 | 253 | 944 | 7% | 16% | |||||||||||||||||||||||||||||||||||||||||||
PegIntron | 217 | 234 | 221 | 239 | 911 | 196 | 226 | 206 | 208 | 837 | 15% | 9% | |||||||||||||||||||||||||||||||||||||||||||
Temodar | 196 | 216 | 215 | 234 | 861 | 163 | 171 | 179 | 189 | 703 | 23% | 22% | |||||||||||||||||||||||||||||||||||||||||||
Clarinex / Aerius | 204 | 250 | 171 | 174 | 799 | 160 | 226 | 171 | 164 | 722 | 6% | 11% | |||||||||||||||||||||||||||||||||||||||||||
Claritin rx | 112 | 102 | 83 | 93 | 391 | 101 | 104 | 74 | 78 | 356 | 19% | 10% | |||||||||||||||||||||||||||||||||||||||||||
Avelox | 115 | 75 | 78 | 115 | 384 | 80 | 58 | 63 | 103 | 304 | 12% | 26% | |||||||||||||||||||||||||||||||||||||||||||
Integrilin | 84 | 78 | 78 | 91 | 332 | 80 | 82 | 82 | 85 | 329 | 7% | 1% | |||||||||||||||||||||||||||||||||||||||||||
Rebetol | 71 | 74 | 60 | 71 | 277 | 78 | 86 | 72 | 75 | 311 | (6%) | (11%) | |||||||||||||||||||||||||||||||||||||||||||
Caelyx | 62 | 65 | 64 | 66 | 257 | 51 | 53 | 52 | 49 | 206 | 33% | 25% | |||||||||||||||||||||||||||||||||||||||||||
Intron A | 60 | 55 | 61 | 57 | 233 | 60 | 64 | 57 | 57 | 237 | — | (2%) | |||||||||||||||||||||||||||||||||||||||||||
Subutex / Suboxone | 56 | 52 | 55 | 57 | 220 | 48 | 53 | 51 | 51 | 203 | 11% | 8% | |||||||||||||||||||||||||||||||||||||||||||
Proventil / Albuterol cfc | 53 | 61 | 52 | 41 | 207 | 41 | 63 | 45 | 55 | 203 | (25%) | 2% | |||||||||||||||||||||||||||||||||||||||||||
Asmanex | 43 | 42 | 36 | 41 | 162 | 20 | 20 | 28 | 36 | 103 | 16% | 57% | |||||||||||||||||||||||||||||||||||||||||||
Elocon | 36 | 43 | 40 | 37 | 156 | 34 | 38 | 36 | 33 | 141 | 10% | 11% | |||||||||||||||||||||||||||||||||||||||||||
Foradil | 26 | 26 | 25 | 25 | 102 | 21 | 23 | 22 | 28 | 94 | (11%) | 8% | |||||||||||||||||||||||||||||||||||||||||||
Noxafil | 16 | 20 | 24 | 29 | 89 | 2 | 3 | 6 | 10 | 19 | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Follistim (2) | — | — | — | 57 | 57 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Nuvaring (2) | — | — | — | 45 | 45 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Remeron (2) | — | — | — | 33 | 33 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Zemuron (2) | — | — | — | 25 | 25 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Livial (2) | — | — | — | 24 | 24 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Cerazette (2) | — | — | — | 20 | 20 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Marvelon (2) | — | — | — | 20 | 20 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Mercilon (2) | — | — | — | 18 | 18 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Implanon (2) | — | — | — | 15 | 15 | — | — | — | — | — | N/M | N/M |
(1) | Global Prescription Pharma for both the fourth quarter and full year 2007 include sales of Organon, the human health business of Organon BioSciences, of $84 million in the U.S. and $325 million Internationally. Sales of Organon BioSciences are reflected as of the closing date of the acquisition on November 19, 2007 through year-end. | |
(2) | Products acquired in OBS acquisition reflect net sales for the period from November 19, 2007 through year-end . |
NOTE: As Schering-Plough integrates systems during 2008 separate sales information for Organon is not expected to be presented separately.
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 6
SCHERING-PLOUGH CORPORATION
U.S. PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
U.S. PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Pharma (1): | 802 | 771 | 709 | 855 | 3,138 | 656 | 718 | 733 | 800 | 2,908 | 7 | % | 8% | ||||||||||||||||||||||||||||||||||||||||||
Nasonex | 177 | 175 | 153 | 162 | 667 | 144 | 144 | 153 | 171 | 611 | (5 | %) | 9 | % | |||||||||||||||||||||||||||||||||||||||||
PegIntron | 49 | 46 | 46 | 42 | 183 | 43 | 57 | 51 | 49 | 201 | (14 | %) | (9 | %) | |||||||||||||||||||||||||||||||||||||||||
Temodar | 74 | 79 | 79 | 83 | 315 | 67 | 72 | 72 | 74 | 286 | 12 | % | 10 | % | |||||||||||||||||||||||||||||||||||||||||
Clarinex / Aerius | 91 | 106 | 83 | 82 | 362 | 70 | 97 | 98 | 94 | 358 | (12 | %) | 1 | % | |||||||||||||||||||||||||||||||||||||||||
Avelox | 115 | 75 | 78 | 115 | 384 | 80 | 58 | 63 | 103 | 304 | 12 | % | 26 | % | |||||||||||||||||||||||||||||||||||||||||
Integrilin | 80 | 73 | 73 | 85 | 312 | 76 | 78 | 78 | 81 | 312 | 6 | % | — | ||||||||||||||||||||||||||||||||||||||||||
Intron a | 31 | 28 | 29 | 28 | 117 | 30 | 33 | 28 | 29 | 120 | (4 | %) | (3 | %) | |||||||||||||||||||||||||||||||||||||||||
Proventil / Albuterolcfc | 53 | 61 | 52 | 41 | 207 | 41 | 63 | 45 | 55 | 203 | (25 | %) | 2 | % | |||||||||||||||||||||||||||||||||||||||||
Asmanex | 40 | 39 | 34 | 38 | 152 | 18 | 18 | 26 | 33 | 94 | 17 | % | 61 | % | |||||||||||||||||||||||||||||||||||||||||
Foradil | 25 | 25 | 24 | 24 | 98 | 20 | 22 | 22 | 27 | 91 | (10 | %) | 8 | % | |||||||||||||||||||||||||||||||||||||||||
Noxafil | 6 | 7 | 8 | 10 | 31 | — | — | 2 | 3 | 4 | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Follistim (2) | — | — | — | 14 | 14 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Nuvaring (2) | — | — | — | 26 | 26 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Remeron (2) | — | — | — | 2 | 2 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Zemuron (2) | — | — | — | 10 | 10 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Marvelon (2) | — | — | — | 2 | 2 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Implanon (2) | — | — | — | 3 | 3 | — | — | — | — | — | N/M | N/M |
(1) | U.S. Pharma for both the fourth quarter and full year 2007 include sales of Organon, the human health business of Organon BioSciences, of $84 million. Sales of Organon BioSciences are reflected as of the closing date of the acquisition on November 19, 2007 through year-end. | |
(2) | Products acquired in OBS acquisition reflect net sales for the period from November 19, 2007 through year-end. |
NOTE: As Schering-Plough integrates systems during 2008 separate sales information for Organon is not expected to be presented separately.
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 7
SCHERING-PLOUGH CORPORATION
INTERNATIONAL PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
INTERNATIONAL PHARMACEUTICAL SALES — KEY PRODUCT NET SALES
(Dollars in Millions)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Total International Pharma (1): | 1,596 | 1,749 | 1,582 | 2,108 | 7,035 | 1,376 | 1,512 | 1,354 | 1,411 | 5,653 | 49% | 24% | |||||||||||||||||||||||||||||||||||||||||||
Remicade | 373 | 394 | 426 | 455 | 1,648 | 278 | 307 | 317 | 337 | 1,240 | 35% | 33% | |||||||||||||||||||||||||||||||||||||||||||
Nasonex | 107 | 120 | 89 | 109 | 425 | 85 | 98 | 68 | 82 | 333 | 33% | 28% | |||||||||||||||||||||||||||||||||||||||||||
PegIntron | 168 | 188 | 175 | 197 | 728 | 153 | 169 | 155 | 159 | 636 | 25% | 14% | |||||||||||||||||||||||||||||||||||||||||||
Temodar | 122 | 137 | 136 | 151 | 546 | 96 | 99 | 107 | 115 | 417 | 31% | 31% | |||||||||||||||||||||||||||||||||||||||||||
Clarinex / Aerius | 113 | 144 | 88 | 92 | 437 | 90 | 129 | 73 | 70 | 364 | 30% | 20% | |||||||||||||||||||||||||||||||||||||||||||
Claritin Rx | 112 | 102 | 83 | 93 | 391 | 101 | 104 | 74 | 78 | 356 | 19% | 10% | |||||||||||||||||||||||||||||||||||||||||||
Integrilin | 4 | 5 | 5 | 6 | 20 | 4 | 4 | 4 | 4 | 17 | 29% | 17% | |||||||||||||||||||||||||||||||||||||||||||
Rebetol | 71 | 73 | 59 | 70 | 273 | 76 | 84 | 72 | 73 | 306 | (4%) | (11%) | |||||||||||||||||||||||||||||||||||||||||||
Caelyx | 62 | 65 | 64 | 66 | 257 | 51 | 53 | 52 | 49 | 206 | 33% | 25% | |||||||||||||||||||||||||||||||||||||||||||
Intron A | 29 | 27 | 32 | 29 | 116 | 30 | 31 | 29 | 28 | 117 | 3% | (1%) | |||||||||||||||||||||||||||||||||||||||||||
Subutex / Suboxone | 56 | 52 | 55 | 57 | 220 | 48 | 53 | 51 | 51 | 203 | 11% | 8% | |||||||||||||||||||||||||||||||||||||||||||
Asmanex | 3 | 3 | 2 | 3 | 10 | 2 | 2 | 2 | 3 | 9 | — | 14% | |||||||||||||||||||||||||||||||||||||||||||
Elocon | 36 | 43 | 40 | 39 | 158 | 34 | 37 | 35 | 32 | 138 | 21% | 14% | |||||||||||||||||||||||||||||||||||||||||||
Noxafil | 10 | 13 | 16 | 19 | 58 | 2 | 3 | 4 | 7 | 15 | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Follistim (2) | — | — | — | 43 | 43 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Nuvaring (2) | — | — | — | 19 | 19 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Remeron (2) | — | — | — | 31 | 31 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Zemuron (2) | — | — | — | 15 | 15 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Livial (2) | — | — | — | 24 | 24 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Cerazette (2) | — | — | — | 20 | 20 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Marvelon (2) | — | — | — | 18 | 18 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Mercilon (2) | — | — | — | 18 | 18 | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||
Implanon (2) | — | — | — | 12 | 12 | — | — | — | — | — | N/M | N/M |
(1) | International Pharma for both the fourth quarter and full year 2007 include sales of Organon, the human health business of Organon BioSciences, of $325 million. Sales of Organon BioSciences are reflected as of the closing date of the acquisition on November 19, 2007 through year-end. | |
(2) | Products acquired in OBS acquisition reflect net sales for the period from November 19, 2007 through year-end. |
NOTE: As Schering-Plough integrates systems during 2008 separate sales information for Organon is not expected to be presented separately.
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 8
SCHERING-PLOUGH CORPORATION
GLOBAL CONSUMER HEALTH CARE
NET SALES ANALYSIS
(Dollars in Millions)
GLOBAL CONSUMER HEALTH CARE
NET SALES ANALYSIS
(Dollars in Millions)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | vs | vs | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 4th Qtr | 12 Mos. | ||||||||||||||||||||||||||||||||||||||||||||
Global Health Care: | 345 | 394 | 273 | 254 | 1,266 | 311 | 349 | 259 | 205 | 1,123 | 24 | % | 13 | % | |||||||||||||||||||||||||||||||||||||||||
OTC: | 177 | 182 | 162 | 161 | 682 | 153 | 149 | 138 | 118 | 558 | 37 | % | 22 | % | |||||||||||||||||||||||||||||||||||||||||
OTC Claritin | 127 | 137 | 104 | 94 | 462 | 111 | 111 | 95 | 72 | 390 | 30 | % | 18 | % | |||||||||||||||||||||||||||||||||||||||||
Other OTC | 50 | 45 | 58 | 67 | 220 | 42 | 38 | 43 | 46 | 168 | 47 | % | 31 | % | |||||||||||||||||||||||||||||||||||||||||
Foot Care | 78 | 102 | 92 | 74 | 345 | 83 | 96 | 92 | 73 | 343 | 1 | % | 1 | % | |||||||||||||||||||||||||||||||||||||||||
Sun Care | 90 | 110 | 19 | 19 | 239 | 75 | 104 | 29 | 14 | 222 | 38 | % | 8 | % |
All figures rounded. Totals may not add due to rounding. Percentages based on unrounded figures.
Page 9
SCHERING-PLOUGH CORPORATION
CONSOLIDATED OPERATIONS DATA
(Dollars in Millions)
(Unaudited)
CONSOLIDATED OPERATIONS DATA
(Dollars in Millions)
(Unaudited)
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | ||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr.(1) | Year(1) | Qtr. | Qtr. | Qtr. | Qtr. | Year | ||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Geographic net sales | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 1,179 | 1,195 | 1,028 | 1,194 | 4,597 | 999 | 1,103 | 1,047 | 1,043 | 4,192 | |||||||||||||||||||||||||||||||||||
Europe and Canada | 1,215 | 1,343 | 1,199 | 1,743 | 5,500 | 1,046 | 1,206 | 1,044 | 1,107 | 4,403 | |||||||||||||||||||||||||||||||||||
Latin America | 311 | 327 | 324 | 398 | 1,359 | 260 | 248 | 233 | 249 | 990 | |||||||||||||||||||||||||||||||||||
Asia Pacific | 270 | 313 | 261 | 389 | 1,234 | 246 | 261 | 250 | 251 | 1,009 | |||||||||||||||||||||||||||||||||||
Consolidated net sales | 2,975 | 3,178 | 2,812 | 3,724 | 12,690 | 2,551 | 2,818 | 2,574 | 2,650 | 10,594 | |||||||||||||||||||||||||||||||||||
2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Full | 1st | 2nd | 3rd | 4th | Full | ||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Year | ||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||||||||||||||||||||||||
Interest income | (82 | ) | (86 | ) | (117 | ) | (112 | ) | (395 | ) | (68 | ) | (69 | ) | (77 | ) | (83 | ) | (297 | ) | |||||||||||||||||||||||||
Interest expense | 37 | 39 | 45 | 125 | 245 | 46 | 45 | 40 | 41 | 172 | |||||||||||||||||||||||||||||||||||
Acquisition-related (gains)/losses on currency-related and interest rate-related items (2) | (3 | ) | 35 | (314 | ) | (255 | ) | (537 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign exchange (gains)/losses | — | (3 | ) | (4 | ) | 3 | (3 | ) | — | 5 | — | (4 | ) | 2 | |||||||||||||||||||||||||||||||
Other (income)/expense | — | (1 | ) | — | 8 | 7 | (12 | ) | — | — | — | (12 | ) | ||||||||||||||||||||||||||||||||
Total — Other income, net | (48 | ) | (16 | ) | (390 | ) | (231 | ) | (683 | ) | (34 | ) | (19 | ) | (37 | ) | (46 | ) | (135 | ) | |||||||||||||||||||||||||
All figures rounded. Totals may not add due to rounding. | ||
(1) | Fourth quarter and full year 2007 includes sales of Organon BioSciences which was acquired on November 19, 2007 | |
(2) | Included in acquisition-related (gains)/losses in currency-related and interest rate-related items are gains from foreign currency options in the amount of $221 and $510 for the three and twelve months ended December 31, 2007, respectively. |
Alex Kelly 908-298-7450
Robyn Brown 908-298-7417
Page 10
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amount in Millions, except per share figures)
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amount in Millions, except per share figures)
To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), Schering-Plough is providing the supplemental financial information to reflect “As Reconciled” amounts related to Net (loss)/income available to common shareholders and diluted (loss)/earnings per common share. “As Reconciled” amounts exclude the effects of purchase accounting adjustments, acquisition-related items and other specified items.
“As Reconciled” amounts related to Net (loss)/income available to common shareholders and diluted (loss)/earnings per common share are non-U.S. GAAP measures used by management in evaluating the performance of Schering-Plough’s overall business. The effects of purchase accounting adjustments, acquisition-related items and other specified items have been excluded from net (loss)/income available to common shareholders and diluted (loss)/earnings per common share as management of Schering-Plough does not consider these charges to be indicative of continuing operating results. Schering-Plough believes that these “As Reconciled” performance measures contribute to a more complete understanding by investors of the overall results of the company and enhances investor understanding of items that impact the comparability of results between fiscal periods. Net (loss)/income available to common shareholders and diluted (loss)/earnings per common share, as reported, are required to be presented under U.S. GAAP.
Three months ended December 31, 2007 | ||||||||||||||||||||
Purchase | Other | |||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 3,724 | $ | — | $ | — | $ | — | $ | 3,724 | ||||||||||
Cost of sales | 1,566 | (326 | ) | — | — | 1,240 | ||||||||||||||
Selling, general and administrative | 1,634 | — | — | — | 1,634 | |||||||||||||||
Research and development | 855 | — | — | (21 | ) | 834 | ||||||||||||||
Acquired in-process research and development | 3,754 | (3,754 | ) | — | — | — | ||||||||||||||
Other (income)/expense, net | (231 | ) | — | 255 | — | 24 | ||||||||||||||
Special and acquisition related charges | 52 | — | (52 | ) | — | — | ||||||||||||||
Equity income | (566 | ) | — | — | — | (566 | ) | |||||||||||||
(Loss)/income before income taxes | (3,340 | ) | 4,080 | (203 | ) | 21 | 558 | |||||||||||||
Income tax (benefit)/expense | (14 | ) | 89 | 2 | 1 | 78 | ||||||||||||||
Net (loss)/income before cumulative effect of a change in accounting principle | $ | (3,326 | ) | $ | 3,991 | $ | (205 | ) | $ | 20 | $ | 480 | ||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | |||||||||||||||
Net (loss)/income | $ | (3,326 | ) | $ | 3,991 | $ | (205 | ) | $ | 20 | $ | 480 | ||||||||
Preferred stock dividends | 38 | — | — | — | 38 | |||||||||||||||
Net (loss)/income available to common shareholders | $ | (3,364 | ) | $ | 3,991 | $ | (205 | ) | $ | 20 | $ | 442 | ||||||||
Diluted (loss)/earnings per common share: | ||||||||||||||||||||
(Loss)/earnings available to common shareholders before cumulative effect of a change in accounting principle | $ | (2.08 | ) | $ | 0.27 | |||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | ||||||||||||||||||
Diluted (loss)/earnings per common share | $ | (2.08 | ) | $ | 0.27 | |||||||||||||||
Average common shares outstanding-diluted | 1,621 | 1,648 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. |
Page 11
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Three months ended December 31, 2006 | ||||||||||||||||||||
Purchase | Other | |||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 2,650 | $ | — | $ | — | $ | — | $ | 2,650 | ||||||||||
Cost of sales | 915 | — | — | (45 | ) | 870 | ||||||||||||||
Selling, general and administrative | 1,250 | — | — | — | 1,250 | |||||||||||||||
Research and development | 631 | — | — | (15 | ) | 616 | ||||||||||||||
Acquired in-process research and development | — | — | — | — | — | |||||||||||||||
Other income, net | (46 | ) | — | — | — | (46 | ) | |||||||||||||
Special and acquisition related charges | 12 | — | — | (12 | ) | — | ||||||||||||||
Equity income | (403 | ) | — | — | — | (403 | ) | |||||||||||||
Income before income taxes | 291 | — | — | 72 | 363 | |||||||||||||||
Income tax expense | 87 | — | — | — | 87 | |||||||||||||||
Net income before cumulative effect of a change in accounting principle | $ | 204 | $ | — | $ | — | $ | 72 | $ | 276 | ||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | |||||||||||||||
Net income | $ | 204 | $ | — | $ | — | $ | 72 | $ | 276 | ||||||||||
Preferred stock dividends | 22 | — | — | — | 22 | |||||||||||||||
Net income available to common shareholders | $ | 182 | $ | — | $ | — | $ | 72 | $ | 254 | ||||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Earnings available to common shareholders before cumulative effect of a change in accounting principle | $ | 0.12 | $ | 0.17 | ||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | ||||||||||||||||||
Diluted earnings per common share | $ | 0.12 | $ | 0.17 | ||||||||||||||||
Average common shares outstanding-diluted | 1,497 | 1,497 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. |
Page 12
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Twelve months ended December 31, 2007 | ||||||||||||||||||||
Purchase | Other | |||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 12,690 | $ | — | $ | — | $ | — | $ | 12,690 | ||||||||||
Cost of sales | 4,405 | (326 | ) | — | — | 4,079 | ||||||||||||||
Selling, general and administrative | 5,468 | — | — | — | 5,468 | |||||||||||||||
Research and development | 2,926 | — | — | (197 | ) | 2,729 | ||||||||||||||
Acquired in-process research and development | 3,754 | (3,754 | ) | — | — | — | ||||||||||||||
Other (income)/expense, net | (683 | ) | — | 537 | — | (146 | ) | |||||||||||||
Special and acquisition related charges | 84 | — | (84 | ) | — | — | ||||||||||||||
Equity income | (2,049 | ) | — | — | — | (2,049 | ) | |||||||||||||
(Loss)/income before income taxes | (1,215 | ) | 4,080 | (453 | ) | 197 | 2,609 | |||||||||||||
Income tax expense | 258 | 89 | 2 | 1 | 350 | |||||||||||||||
Net (loss)/income before cumulative effect of a change in accounting principle | $ | (1,473 | ) | $ | 3,991 | $ | (455 | ) | $ | 196 | $ | 2,259 | ||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | |||||||||||||||
Net (loss)/income | $ | (1,473 | ) | $ | 3,991 | $ | (455 | ) | $ | 196 | $ | 2,259 | ||||||||
Preferred stock dividends | 118 | — | — | — | 118 | |||||||||||||||
Net (loss)/income available to common shareholders | $ | (1,591 | ) | $ | 3,991 | $ | (455 | ) | $ | 196 | $ | 2,141 | ||||||||
Diluted (loss)/earnings per common share: | ||||||||||||||||||||
(Loss)/earnings available to common shareholders before cumulative effect of a change in accounting principle | $ | (1.04 | ) | $ | 1.37 | |||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | ||||||||||||||||||
Diluted (loss)/earnings per common share | $ | (1.04 | ) | $ | 1.37 | |||||||||||||||
Average common shares outstanding-diluted | 1,536 | 1,607 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. |
Page 13
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Twelve months ended December 31, 2006 | ||||||||||||||||||||
Purchase | Other | |||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 10,594 | $ | — | $ | — | $ | — | $ | 10,594 | ||||||||||
Cost of sales | 3,697 | — | — | (146 | ) | 3,551 | ||||||||||||||
Selling, general and administrative | 4,718 | — | — | — | 4,718 | |||||||||||||||
Research and development | 2,188 | — | — | (15 | ) | 2,173 | ||||||||||||||
Acquired in-process research and development | — | — | — | — | — | |||||||||||||||
Other income, net | (135 | ) | — | — | — | (135 | ) | |||||||||||||
Special and acquisition related charges | 102 | — | — | (102 | ) | — | ||||||||||||||
Equity income | (1,459 | ) | — | — | — | (1,459 | ) | |||||||||||||
Income before income taxes | 1,483 | — | — | 263 | 1,746 | |||||||||||||||
Income tax expense | 362 | — | — | — | 362 | |||||||||||||||
Net income before cumulative effect of a change in accounting principle | $ | 1,121 | $ | — | $ | — | $ | 263 | $ | 1,384 | ||||||||||
Cumulative effect of a change in accounting principle, net of tax | (22 | ) | — | — | 22 | — | ||||||||||||||
Net income | $ | 1,143 | $ | — | $ | — | $ | 241 | $ | 1,384 | ||||||||||
Preferred stock dividends | 86 | — | — | — | 86 | |||||||||||||||
Net income available to common shareholders | $ | 1,057 | $ | — | $ | — | $ | 241 | $ | 1,298 | ||||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Earnings available to common shareholders before cumulative effect of a change in accounting principle | $ | 0.69 | $ | 0.87 | ||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | 0.02 | — | ||||||||||||||||||
Diluted earnings per common share | $ | 0.71 | $ | 0.87 | ||||||||||||||||
Average common shares outstanding-diluted | 1,491 | 1,491 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. |
Page 14
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
Reconciliation from Reported Net (Loss)/Income Available to Common Shareholders
and Reported Diluted (Loss)/Earnings Per Share to As Reconciled Amounts for Net (Loss)/Income
Available to Common Shareholders and Diluted (Loss)/Earnings per Common Share (unaudited)
(Amounts in Millions, except per share figures)
“As Reconciled” amounts related to Net (loss)/income available to common shareholders and diluted (loss) earnings per common share reflect the following adjustments:
Fourth Quarter | Twelve Months | |||||||||||||||
(Amounts in millions) | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Purchase accounting adjustments: | ||||||||||||||||
Amortization of intangibles in connection with the acquisition of Organon BioSciences (a) | $ | 65 | $ | — | $ | 65 | $ | — | ||||||||
Depreciation related to the fair value adjustment of fixed assets related to the acquisition of Organon BioSciences (a) | 3 | — | 3 | — | ||||||||||||
Charge related to the fair value adjustment to inventory related to the acquisition of Organon BioSciences (a) | 258 | — | 258 | — | ||||||||||||
Acquired IPR&D related to the Organon BioSciences acquisition (b) | 3,754 | — | 3,754 | — | ||||||||||||
Total purchase accounting adjustments, pre-tax | 4,080 | — | 4,080 | — | ||||||||||||
Income tax benefit | 89 | — | 89 | — | ||||||||||||
Total purchase accounting adjustments | $ | 3,991 | $ | — | $ | 3,991 | $ | — | ||||||||
Acquisition-related items: | ||||||||||||||||
Acquisition-related (gains)/losses on currency-related and interest-related items (c) | $ | (255 | ) | $ | — | $ | (537 | ) | $ | — | ||||||
Integration-related activities (d) | 52 | — | 84 | — | ||||||||||||
Total acquisition-related items, pre-tax | (203 | ) | — | (453 | ) | — | ||||||||||
Income tax benefit | 2 | — | 2 | — | ||||||||||||
Total acquisition-related items | $ | (205 | ) | $ | — | $ | (455 | ) | $ | — | ||||||
Other specified items: | ||||||||||||||||
Manufacturing changes announced June 1, 2006 (e) | $ | — | $ | 57 | $ | — | $ | 248 | ||||||||
Upfront R&D payments (b) | 21 | 15 | 197 | 15 | ||||||||||||
Change in accounting principle (f) | — | — | — | (22 | ) | |||||||||||
Total other significant items, pre-tax | 21 | 72 | 197 | 241 | ||||||||||||
Income tax benefit | 1 | — | 1 | — | ||||||||||||
Total other specified items | $ | 20 | $ | 72 | $ | 196 | $ | 241 | ||||||||
Total purchase accounting adjustments, acquisition-related items and other specified items | $ | 3,806 | $ | 72 | $ | 3,732 | $ | 241 | ||||||||
(a) | Included in cost of sales | |
(b) | Included in research and development | |
(c) | Included in other (income)/expense, net | |
(d) | Included in special and acquisition-related charges | |
(e) | Included in cost of sales and special and acquisition-related charges | |
(f) | Included in cumulative effect in change in accounting principle, net |
Page 15