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)
2008 | 2007 | 2008 | 2007 | 2nd Qtr | 2008 | 2007 | 2008 | 2007 | 6 Mos. | ||||||||||||||||||||||||||||||||
2nd Qtr | 2nd Qtr | 2nd Qtr | 2nd Qtr | vs. | Six Months | Six Months | Six Months | Six Months | vs. | ||||||||||||||||||||||||||||||||
U.S. | U.S. | * As | * As | 2nd Qtr | U.S. | U.S. | * As | * As | 6 Mos. | ||||||||||||||||||||||||||||||||
GAAP | GAAP | Reconciled | Reconciled | As | GAAP | GAAP | Reconciled | Reconciled | As | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | Reconciled | $ | $ | $ | $ | Reconciled | ||||||||||||||||||||||||||||||||
Net sales 1/ | 4,921 | 3,178 | 4,921 | 3,178 | 55 | % | 9,577 | 6,153 | 9,577 | 6,153 | 56 | % | |||||||||||||||||||||||||||||
Cost of sales | 1,908 | 977 | 1,554 | 977 | 59 | % | 4,044 | 1,913 | 3,002 | 1,913 | 57 | % | |||||||||||||||||||||||||||||
Gross profit | 3,013 | 2,201 | 3,367 | 2,201 | 53 | % | 5,533 | 4,240 | 6,575 | 4,240 | 55 | % | |||||||||||||||||||||||||||||
Selling, general and administrative | 1,870 | 1,358 | 1,869 | 1,358 | 38 | % | 3,547 | 2,572 | 3,545 | 2,572 | 38 | % | |||||||||||||||||||||||||||||
Research and development | 906 | 696 | 904 | 636 | 42 | % | 1,786 | 1,403 | 1,782 | 1,247 | 43 | % | |||||||||||||||||||||||||||||
Other expense/(income), net | 134 | (16 | ) | 134 | (51 | ) | N/M | 229 | (62 | ) | 246 | (93 | ) | N/M | |||||||||||||||||||||||||||
Special and acquisition-related charges | 94 | 11 | — | — | N/M | 117 | 12 | — | — | N/M | |||||||||||||||||||||||||||||||
Equity income | (493 | ) | (490 | ) | (429 | ) | (490 | ) | (12 | %) | (1,010 | ) | (978 | ) | (946 | ) | (978 | ) | (3 | %) | |||||||||||||||||||||
Income before income taxes | 502 | 642 | 889 | 748 | 19 | % | 864 | 1,293 | 1,948 | 1,492 | 31 | % | |||||||||||||||||||||||||||||
Income tax expense | 66 | 103 | 120 | 103 | 17 | % | 138 | 190 | 280 | 190 | 47 | % | |||||||||||||||||||||||||||||
Net income | 436 | 539 | 769 | 645 | 19 | % | 726 | 1,103 | 1,668 | 1,302 | 28 | % | |||||||||||||||||||||||||||||
Preferred stock dividends | 38 | 22 | 38 | 22 | 73 | % | 75 | 43 | 75 | 43 | 74 | % | |||||||||||||||||||||||||||||
Net income available to common shareholders | 398 | 517 | 731 | 623 | 17 | % | 651 | 1,060 | 1,593 | 1,259 | 27 | % | |||||||||||||||||||||||||||||
Diluted earnings per common share | 0.24 | 0.34 | 0.45 | 0.41 | 10 | % | 0.40 | 0.70 | 0.97 | 0.82 | 18 | % | |||||||||||||||||||||||||||||
Avg. shares outstanding — diluted | 1,632 | 1,587 | 1,632 | 1,587 | 1,635 | 1,579 | 1,635 | 1,579 | |||||||||||||||||||||||||||||||||
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 | 38.8 | % | 30.7 | % | 31.6 | % | 30.7 | % | 42.2 | % | 31.1 | % | 31.3 | % | 31.1 | % | |||||||||||||||||||||||||
Gross margin | 61.2 | % | 69.3 | % | 68.4 | % | 69.3 | % | 57.8 | % | 68.9 | % | 68.7 | % | 68.9 | % | |||||||||||||||||||||||||
Selling, general and administrative | 38.0 | % | 42.7 | % | 38.0 | % | 42.7 | % | 37.0 | % | 41.8 | % | 37.0 | % | 41.8 | % | |||||||||||||||||||||||||
Research and development | 18.4 | % | 21.9 | % | 18.4 | % | 20.0 | % | 18.6 | % | 22.8 | % | 18.6 | % | 20.3 | % | |||||||||||||||||||||||||
Income before income taxes | 10.2 | % | 20.2 | % | 18.1 | % | 23.5 | % | 9.0 | % | 21.0 | % | 20.3 | % | 24.2 | % | |||||||||||||||||||||||||
Net income | 8.9 | % | 17.0 | % | 15.6 | % | 20.3 | % | 7.6 | % | 17.9 | % | 17.4 | % | 21.2 | % |
1/ | Net sales for the three and six months ended June 30, 2008 include sales of Organon BioSciences (OBS) of $1.4 billion and $2.8 billion, respectively. | |
* | “As Reconciled” to exclude purchase accounting adjustments, special and 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.” | |
N/M- | Not a meaningful percentage. |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Net sales 1/ | 4,657 | 4,921 | 9,577 | 2,975 | 3,178 | 2,812 | 3,724 | 6,153 | 12,690 | 55 | % | 56 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cost of sales 2/ | 2,137 | 1,908 | 4,044 | 937 | 977 | 925 | 1,566 | 1,913 | 4,405 | 95 | % | 111 | % | |||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 2,520 | 3,013 | 5,533 | 2,038 | 2,201 | 1,887 | 2,158 | 4,240 | 8,285 | 37 | % | 31 | % | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 1,676 | 1,870 | 3,547 | 1,213 | 1,358 | 1,262 | 1,634 | 2,572 | 5,468 | 38 | % | 38 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development 3/ | 880 | 906 | 1,786 | 707 | 696 | 669 | 855 | 1,403 | 2,926 | 30 | % | 27 | % | |||||||||||||||||||||||||||||||||||||||||||||
Acquired in-process research and development 4/ | — | — | — | — | — | — | 3,754 | — | 3,754 | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||||||
Other expense/(income), net | 95 | 134 | 229 | (48 | ) | (16 | ) | (390 | ) | (231 | ) | (62 | ) | (683 | ) | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||
Special and acquisition-related charges 5/ | 23 | 94 | 117 | 1 | 11 | 20 | 52 | 12 | 84 | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||||||
Equity income 6/ | (517 | ) | (493 | ) | (1,010 | ) | (487 | ) | (490 | ) | (506 | ) | (566 | ) | (978 | ) | (2,049 | ) | 1 | % | 3 | % | ||||||||||||||||||||||||||||||||||||
Income/(loss) before income taxes | 363 | 502 | 864 | 652 | 642 | 832 | (3,340 | ) | 1,293 | (1,215 | ) | (22 | %) | (33 | %) | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense/(benefit) | 72 | 66 | 138 | 87 | 103 | 82 | (14 | ) | 190 | 258 | (36 | %) | (27 | %) | ||||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) | 291 | 436 | 726 | 565 | 539 | 750 | (3,326 | ) | 1,103 | (1,473 | ) | (19 | %) | (34 | %) | |||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | 38 | 38 | 75 | 22 | 22 | 37 | 38 | 43 | 118 | 73 | % | 74 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) available to common shareholders | 253 | 398 | 651 | 543 | 517 | 713 | (3,364 | ) | 1,060 | (1,591 | ) | (23 | %) | (39 | %) | |||||||||||||||||||||||||||||||||||||||||||
Diluted earnings/(loss) per common share | 0.15 | 0.24 | 0.40 | 0.36 | 0.34 | 0.45 | (2.08 | ) | 0.70 | (1.04 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Avg. shares outstanding- diluted | 1,637 | 1,632 | 1,635 | 1,571 | 1,587 | 1,622 | 1,621 | 1,579 | 1,536 | |||||||||||||||||||||||||||||||||||||||||||||||||
Actual shares outstanding | 1,621 | 1,626 | 1,626 | 1,489 | 1,496 | 1,620 | 1,621 | 1,496 | 1,621 | |||||||||||||||||||||||||||||||||||||||||||||||||
Ratios to net sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||
Cost of sales | 45.9 | % | 38.8 | % | 42.2 | % | 31.5 | % | 30.7 | % | 32.9 | % | 42.1 | % | 31.1 | % | 34.7 | % | ||||||||||||||||||||||||||||||||||||||||
Gross margin | 54.1 | % | 61.2 | % | 57.8 | % | 68.5 | % | 69.3 | % | 67.1 | % | 57.9 | % | 68.9 | % | 65.3 | % | ||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 36.0 | % | 38.0 | % | 37.0 | % | 40.8 | % | 42.7 | % | 44.9 | % | 43.9 | % | 41.8 | % | 43.1 | % | ||||||||||||||||||||||||||||||||||||||||
Research and development | 18.9 | % | 18.4 | % | 18.6 | % | 23.8 | % | 21.9 | % | 23.8 | % | 23.0 | % | 22.8 | % | 23.1 | % | ||||||||||||||||||||||||||||||||||||||||
Income/(loss) before income taxes | 7.8 | % | 10.2 | % | 9.0 | % | 21.9 | % | 20.2 | % | 29.6 | % | (89.7 | %) | 21.0 | % | (9.6 | %) | ||||||||||||||||||||||||||||||||||||||||
Net income/(loss) | 6.2 | % | 8.9 | % | 7.6 | % | 19.0 | % | 17.0 | % | 26.7 | % | (89.3 | %) | 17.9 | % | (11.6 | %) |
N/M- | 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 six months ended June 30, 2008 include sales of Organon BioSciences (OBS) of $1.4 billion and $2.8 billion, respectively. Net sales for the twelve months ended December 31, 2007, include $626 million of OBS sales as of the November 19, 2007 close of the acquisition through December 31, 2007. | |
2/ | Cost of sales for the three and six months ended June 30, 2008 include purchase accounting adjustments of $354 million and $1.0 billion, respectively, related to the acquisition of OBS. Cost of sales for the twelve months ended December 31, 2007 includes purchase accounting adjustments of $326 million related to the acquisition of OBS. | |
3/ | Research and development for the three and six months ended June 30, 2007 includes $60 million and $156 million, respectively, related to upfront R&D payments. Research and development for the twelve months ended December 31, 2007 include $197 million related to upfront R&D payments. | |
4/ | Acquired in-process research and development for the twelve months ended December 31, 2007 represents a charge of $3.8 billion in connection with the acquisition of OBS. | |
5/ | Special and acquisition-related charges relate to the Productivity Transformation Program (PTP) activities which also incorporates the ongoing integration of OBS. For the three and six months ended June 30, 2008 these charges were $94 million ($77 million for severance costs and $17 million for integration-related costs) and $117 million, respectively. Special and acquisition-related charges for the three and six months ended June 30, 2007 was $11 million and $12 million, respectively. Special and acquisition-related charges for the twelve months ended December 31, 2007 were $84 million. | |
6/ | Included in Equity Income is $64 million of income related to the termination of a respiratory joint venture with Merck. |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Cholesterol Joint Venture: | 1,216 | 1,133 | 2,348 | 1,150 | 1,248 | 1,277 | 1,443 | 2,397 | 5,119 | (9 | %) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 851 | 710 | 1,561 | 897 | 958 | 969 | 1,071 | 1,854 | 3,894 | (26 | %) | (16 | %) | |||||||||||||||||||||||||||||||||||||||||||||
International | 365 | 423 | 787 | 253 | 290 | 308 | 372 | 543 | 1,225 | 45 | % | 45 | % | |||||||||||||||||||||||||||||||||||||||||||||
50% of Cholesterol Joint Venture: | 607 | 566 | 1,174 | 575 | 624 | 639 | 722 | 1,199 | 2,559 | (9 | %) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Human Prescription Pharma (1): | 3,557 | 3,702 | 7,259 | 2,398 | 2,520 | 2,291 | 2,963 | 4,918 | 10,173 | 47 | % | 48 | % | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 975 | 926 | 1,899 | 802 | 771 | 709 | 855 | 1,573 | 3,138 | 20 | % | 21 | % | |||||||||||||||||||||||||||||||||||||||||||||
International | 2,582 | 2,776 | 5,360 | 1,596 | 1,749 | 1,582 | 2,108 | 3,345 | 7,035 | 59 | % | 60 | % | |||||||||||||||||||||||||||||||||||||||||||||
Animal Health (2): | 723 | 818 | 1,540 | 232 | 264 | 248 | 507 | 496 | 1,251 | 210 | % | 211 | % | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 131 | 138 | 269 | 58 | 58 | 63 | 99 | 116 | 278 | 139 | % | 132 | % | |||||||||||||||||||||||||||||||||||||||||||||
International | 592 | 680 | 1,271 | 174 | 206 | 185 | 408 | 380 | 973 | 230 | % | 235 | % | |||||||||||||||||||||||||||||||||||||||||||||
Consumer Health Care | 377 | 401 | 778 | 345 | 394 | 273 | 254 | 739 | 1,266 | 2 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Consolidated GAAP Net Sales: | 4,657 | 4,921 | 9,577 | 2,975 | 3,178 | 2,812 | 3,724 | 6,153 | 12,690 | 55 | % | 56 | % | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 1,453 | 1,434 | 2,885 | 1,179 | 1,195 | 1,028 | 1,194 | 2,374 | 4,597 | 20 | % | 22 | % | |||||||||||||||||||||||||||||||||||||||||||||
International | 3,204 | 3,487 | 6,692 | 1,796 | 1,983 | 1,784 | 2,530 | 3,779 | 8,093 | 76 | % | 77 | % | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted Net Sales: | 5,264 | 5,487 | 10,751 | 3,550 | 3,802 | 3,451 | 4,446 | 7,352 | 15,249 | 44 | % | 46 | % |
(1) | Human Prescription Pharma Net sales for the three and six months ended June 30, 2008 include $921 million and $1.8 billion, respectively, of sales of the human health segment of Organon BioSciences (OBS). Human Prescription Pharma Net sales for both the fourth quarter and full year 2007 include $409 million of OBS human health segment sales as of the closing date of the acquisition on November 19, 2007 through December 31, 2007. | |
(2) | Animal Health Net sales for the three and six months ended June 30, 2008 includes $526 million and $980 million, respectively, of sales of the animal health segment of OBS. Animal Health Net sales for both the fourth quarter and full year 2007 include $217 million of OBS animal health segment sales as of the closing date of the acquisition on November 19, 2007 through December 31, 2007. |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
GlobalZetia (1): | 588 | 578 | 1,166 | 544 | 605 | 606 | 680 | 1,149 | 2,436 | (5 | %) | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 395 | 349 | 745 | 408 | 424 | 443 | 489 | 832 | 1,764 | (18 | %) | (10 | %) | |||||||||||||||||||||||||||||||||||||||||||||
International | 193 | 229 | 421 | 136 | 181 | 163 | 191 | 317 | 672 | 26 | % | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||
GlobalVytorin (1): | 647 | 586 | 1,233 | 616 | 683 | 684 | 778 | 1,299 | 2,761 | (14 | %) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 456 | 361 | 816 | 489 | 534 | 526 | 582 | 1,022 | 2,130 | (32 | %) | (20 | %) | |||||||||||||||||||||||||||||||||||||||||||||
International | 191 | 225 | 417 | 127 | 149 | 158 | 196 | 277 | 631 | 51 | % | 51 | % | |||||||||||||||||||||||||||||||||||||||||||||
Global Cholesterol (1): | 1,235 | 1,164 | 2,399 | 1,160 | 1,288 | 1,290 | 1,458 | 2,448 | 5,197 | (10 | %) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||
U.S. | 851 | 710 | 1,561 | 897 | 958 | 969 | 1,071 | 1,854 | 3,894 | (26 | %) | (16 | %) | |||||||||||||||||||||||||||||||||||||||||||||
International | 384 | 454 | 838 | 263 | 330 | 321 | 387 | 594 | 1,303 | 37 | % | 41 | % |
(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 second quarter of 2008 and 2007, sales in non-joint venture territories of the cholesterol franchise totaled $31 million and $40 million, respectively. For the six months of 2008 and 2007 sales in non-joint venture territories of the cholesterol franchise totaled $50 million and $51 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 in recording its share of activity from the Merck/Schering-Plough cholesterol joint venture. Schering-Plough’s Net sales do not include the sales of the joint venture. The cholesterol joint venture agreements provide for the sharing of operating income generated by the joint venture based upon percentages that vary by product, sales level and country. Equity income also includes milestone and other payments. Either company’s share of the joint venture’s income from operations is subject to a reduction if that 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.
In the U.S. market, Schering-Plough receives a greater share of profits on the first $300 million of annual ZETIA sales. As such, Schering-Plough’s share of operating income from the joint venture in the first fiscal quarter is generally higher than subsequent quarters.
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 | ||||||||||||||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||||||||||
2nd | 2nd | 2nd Qtr | 2nd | 2nd | 2nd Qtr | 2nd | 2nd | 2nd Qtr | ||||||||||||||||||||||||||||||
Qtr. | Qtr. | vs | Qtr. | Qtr. | vs | Qtr. | Qtr. | vs | ||||||||||||||||||||||||||||||
$ | $ | 2nd Qtr | $ | $ | 2nd Qtr | $ | $ | 2nd Qtr | ||||||||||||||||||||||||||||||
Human Prescription Pharma (1): | 3,702 | 2,520 | 47 | % | 926 | 771 | 20 | % | 2,776 | 1,749 | 59 | % | ||||||||||||||||||||||||||
Remicade | 557 | 394 | 41 | % | — | — | — | 557 | 394 | 41 | % | |||||||||||||||||||||||||||
Nasonex | 311 | 295 | 6 | % | 166 | 175 | (5 | %) | 145 | 120 | 21 | % | ||||||||||||||||||||||||||
Temodar | 251 | 216 | 16 | % | 82 | 79 | 3 | % | 169 | 137 | 24 | % | ||||||||||||||||||||||||||
Clarinex / Aerius | 240 | 250 | (4 | %) | 79 | 106 | (25 | %) | 161 | 144 | 11 | % | ||||||||||||||||||||||||||
PegIntron | 229 | 234 | (2 | %) | 40 | 46 | (13 | %) | 189 | 188 | 1 | % | ||||||||||||||||||||||||||
Follistim/Puregon (2) | 162 | — | — | 45 | — | — | 117 | — | — | |||||||||||||||||||||||||||||
Nuvaring (2) | 116 | — | — | 68 | — | — | 48 | — | — | |||||||||||||||||||||||||||||
Claritin Rx | 111 | 102 | 8 | % | — | — | — | 111 | 102 | 8 | % | |||||||||||||||||||||||||||
Integrilin | 78 | 78 | — | 73 | 73 | (1 | %) | 5 | 5 | — | ||||||||||||||||||||||||||||
Caelyx | 78 | 65 | 20 | % | — | — | — | 78 | 65 | 20 | % | |||||||||||||||||||||||||||
Rebetol | 70 | 74 | (5 | %) | — | 1 | — | 70 | 73 | (5 | %) | |||||||||||||||||||||||||||
Zemuron (2) | 67 | — | — | 33 | — | — | 34 | — | — | |||||||||||||||||||||||||||||
Avelox | 67 | 75 | (12 | %) | 67 | 75 | (12 | %) | — | — | — | |||||||||||||||||||||||||||
Subutex / Suboxone | 62 | 52 | 18 | % | — | — | — | 62 | 52 | 18 | % | |||||||||||||||||||||||||||
Remeron (2) | 61 | — | — | 2 | — | — | 59 | — | — | |||||||||||||||||||||||||||||
Intron A | 61 | 55 | 10 | % | 29 | 28 | 3 | % | 32 | 27 | 17 | % | ||||||||||||||||||||||||||
Livial (2) | 50 | — | — | — | — | — | 50 | — | — | |||||||||||||||||||||||||||||
Cerazette (2) | 49 | — | — | — | — | — | 49 | — | — | |||||||||||||||||||||||||||||
Asmanex | 48 | 42 | 16 | % | 45 | 39 | 16 | % | 3 | 3 | — | |||||||||||||||||||||||||||
Mercilon (2) | 47 | — | — | 1 | — | — | 46 | — | — | |||||||||||||||||||||||||||||
Elocon | 47 | 43 | 10 | % | 1 | — | — | 46 | 43 | 8 | % | |||||||||||||||||||||||||||
Implanon (2) | 44 | — | — | 14 | — | — | 30 | — | — | |||||||||||||||||||||||||||||
Marvelon (2) | 40 | — | — | 3 | — | — | 37 | — | — | |||||||||||||||||||||||||||||
Proventil / Albuterol cfc | 38 | 61 | (37 | %) | 38 | 61 | (37 | %) | — | — | — | |||||||||||||||||||||||||||
Noxafil | 38 | 20 | 91 | % | 10 | 7 | 48 | % | 28 | 13 | 114 | % | ||||||||||||||||||||||||||
Foradil | 25 | 26 | (1 | %) | 24 | 25 | (1 | %) | 1 | 1 | — | |||||||||||||||||||||||||||
(1) | Human Prescription Pharma Net sales for the three months ended June 30, 2008 include $921 million of sales of the human health segment of Organon BioSciences (OBS). U.S. Pharma and International Pharma include OBS human health segment sales of $209 million and $712 million, respectively. | |
(2) | Products acquired in OBS acquisition on November 19, 2007. | |
N/M — Not a meaningful percentage |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Human Prescription Pharma (1): | 3,557 | 3,702 | 7,259 | 2,398 | 2,520 | 2,291 | 2,963 | 4,918 | 10,173 | 47 | % | 48 | % | |||||||||||||||||||||||||||||||||||||||||||||
Remicade | 507 | 557 | 1,064 | 373 | 394 | 426 | 455 | 767 | 1,648 | 41 | % | 39 | % | |||||||||||||||||||||||||||||||||||||||||||||
Nasonex | 307 | 311 | 618 | 284 | 295 | 242 | 271 | 579 | 1,092 | 6 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Temodar | 236 | 251 | 487 | 196 | 216 | 215 | 234 | 412 | 861 | 16 | % | 18 | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarinex / Aerius | 213 | 240 | 454 | 204 | 250 | 171 | 174 | 455 | 799 | (4 | %) | — | ||||||||||||||||||||||||||||||||||||||||||||||
PegIntron | 225 | 229 | 454 | 217 | 234 | 221 | 239 | 451 | 911 | (2 | %) | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Follistim/Puregon (2) | 145 | 162 | 308 | — | — | — | 57 | — | 57 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Nuvaring (2) | 96 | 116 | 212 | — | — | — | 45 | — | 45 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Claritin Rx | 128 | 111 | 239 | 112 | 102 | 83 | 93 | 214 | 391 | 8 | % | 11 | % | |||||||||||||||||||||||||||||||||||||||||||||
Integrilin | 74 | 78 | 152 | 84 | 78 | 78 | 91 | 163 | 332 | — | (7 | %) | ||||||||||||||||||||||||||||||||||||||||||||||
Caelyx | 74 | 78 | 152 | 62 | 65 | 64 | 66 | 127 | 257 | 20 | % | 20 | % | |||||||||||||||||||||||||||||||||||||||||||||
Rebetol | 59 | 70 | 130 | 71 | 74 | 60 | 71 | 146 | 277 | (5 | %) | (11 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Zemuron (2) | 63 | 67 | 130 | — | — | — | 25 | — | 25 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Avelox | 142 | 67 | 209 | 115 | 75 | 78 | 115 | 191 | 384 | (12 | %) | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||
Subutex / Suboxone | 54 | 62 | 115 | 56 | 52 | 55 | 57 | 108 | 220 | 18 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Remeron (2) | 68 | 61 | 129 | — | — | — | 33 | — | 33 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Intron A | 55 | 61 | 116 | 60 | 55 | 61 | 57 | 115 | 233 | 10 | % | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Livial (2) | 45 | 50 | 95 | — | — | — | 24 | — | 24 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Cerazette (2) | 44 | 49 | 93 | — | — | — | 20 | — | 20 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Asmanex | 42 | 48 | 91 | 43 | 42 | 36 | 41 | 85 | 162 | 16 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Mercilon (2) | 43 | 47 | 90 | — | — | — | 18 | — | 18 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Elocon | 45 | 47 | 92 | 36 | 43 | 40 | 37 | 79 | 156 | 10 | % | 16 | % | |||||||||||||||||||||||||||||||||||||||||||||
Implanon (2) | 38 | 44 | 82 | — | — | — | 15 | — | 15 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Marvelon (2) | 37 | 40 | 77 | — | — | — | 20 | — | 20 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Proventil / Albuterol cfc | 50 | 38 | 89 | 53 | 61 | 52 | 41 | 114 | 207 | (37 | %) | (22 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Noxafil | 34 | 38 | 72 | 16 | 20 | 24 | 29 | 36 | 89 | 91 | % | 101 | % | |||||||||||||||||||||||||||||||||||||||||||||
Foradil | 25 | 25 | 51 | 26 | 26 | 25 | 25 | 52 | 102 | (1 | %) | (2 | %) |
(1) | Human Prescription Pharma Net sales for the three and six months ended June 30, 2008 include $921 million and $1.8 billion, respectively, of sales of the human health segment of Organon BioSciences (OBS). Human Prescription Pharma Net sales for both the fourth quarter and full year 2007 include $409 million of OBS human health segment sales as of the closing date of the acquisition on November 19, 2007 through December 31, 2007. | |
(2) | Products acquired in OBS acquisition on November 19, 2007. | |
N/M — Not a meaningful percentage |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Pharma (1): | 975 | 926 | 1,899 | 802 | 771 | 709 | 855 | 1,573 | 3,138 | 20 | % | 21 | % | |||||||||||||||||||||||||||||||||||||||||||||
Nasonex | 172 | 166 | 338 | 177 | 175 | 153 | 162 | 352 | 667 | (5 | %) | (4 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Temodar | 80 | 82 | 162 | 74 | 79 | 79 | 83 | 154 | 315 | 3 | % | 6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarinex / Aerius | 76 | 79 | 156 | 91 | 106 | 83 | 82 | 197 | 362 | (25 | %) | (21 | %) | |||||||||||||||||||||||||||||||||||||||||||||
PegIntron | 39 | 40 | 79 | 49 | 46 | 46 | 42 | 95 | 183 | (13 | %) | (16 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Follistim/Puregon (2) | 44 | 45 | 89 | — | — | — | 14 | — | 14 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Nuvaring (2) | 54 | 68 | 122 | — | — | — | 26 | — | 26 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Integrilin | 69 | 73 | 142 | 80 | 73 | 73 | 85 | 153 | 312 | (1 | %) | (8 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Zemuron (2) | 34 | 33 | 67 | — | — | — | 10 | — | 10 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Avelox | 142 | 67 | 209 | 115 | 75 | 78 | 115 | 191 | 384 | (12 | %) | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||
Remeron (2) | 4 | 2 | 6 | — | — | — | 2 | — | 2 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Intron A | 27 | 29 | 56 | 31 | 28 | 29 | 28 | 59 | 117 | 3 | % | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Asmanex | 39 | 45 | 85 | 40 | 39 | 34 | 38 | 80 | 152 | 16 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Implanon (2) | 11 | 14 | 26 | — | — | — | 3 | — | 3 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Marvelon (2) | 2 | 3 | 5 | — | — | — | 2 | — | 2 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Proventil / Albuterol cfc | 50 | 38 | 89 | 53 | 61 | 52 | 41 | 114 | 207 | (37 | %) | (22 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Noxafil | 9 | 10 | 20 | 6 | 7 | 8 | 10 | 13 | 31 | 48 | % | 57 | % | |||||||||||||||||||||||||||||||||||||||||||||
Foradil | 24 | 24 | 49 | 25 | 25 | 24 | 24 | 50 | 98 | (1 | %) | (2 | %) |
(1) | U.S. Pharma Net sales for the three and six months ended June 30, 2008 include $209 million and $398 million, respectively, of sales of the human health segment of Organon BioSciences (OBS). U.S. Pharma Net sales for both the fourth quarter and full year 2007 include $84 million of OBS human health segment sales as of the closing date of the acquisition on November 19, 2007 through December 31, 2007. | |
(2) | Products acquired in OBS acquisition on November 19, 2007. | |
N/M — Not a meaningful percentage |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Total International Pharma (1): | 2,582 | 2,776 | 5,360 | 1,596 | 1,749 | 1,582 | 2,108 | 3,345 | 7,035 | 59 | % | 60 | % | |||||||||||||||||||||||||||||||||||||||||||||
Remicade | 507 | 557 | 1,064 | 373 | 394 | 426 | 455 | 767 | 1,648 | 41 | % | 39 | % | |||||||||||||||||||||||||||||||||||||||||||||
Nasonex | 135 | 145 | 280 | 107 | 120 | 89 | 109 | 227 | 425 | 21 | % | 24 | % | |||||||||||||||||||||||||||||||||||||||||||||
Temodar | 156 | 169 | 325 | 122 | 137 | 136 | 151 | 258 | 546 | 24 | % | 26 | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarinex / Aerius | 137 | 161 | 298 | 113 | 144 | 88 | 92 | 258 | 437 | 11 | % | 16 | % | |||||||||||||||||||||||||||||||||||||||||||||
PegIntron | 186 | 189 | 375 | 168 | 188 | 175 | 197 | 356 | 728 | 1 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Follistim/Puregon (2) | 101 | 117 | 219 | — | — | — | 43 | — | 43 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Nuvaring (2) | 42 | 48 | 90 | — | — | — | 19 | — | 19 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Claritin Rx | 128 | 111 | 239 | 112 | 102 | 83 | 93 | 214 | 391 | 8 | % | 11 | % | |||||||||||||||||||||||||||||||||||||||||||||
Integrilin | 5 | 5 | 10 | 4 | 5 | 5 | 6 | 10 | 20 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Caelyx | 74 | 78 | 152 | 62 | 65 | 64 | 66 | 127 | 257 | 20 | % | 20 | % | |||||||||||||||||||||||||||||||||||||||||||||
Rebetol | 59 | 70 | 129 | 71 | 73 | 59 | 70 | 144 | 273 | (5 | %) | (11 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Zemuron (2) | 29 | 34 | 63 | — | — | — | 15 | — | 15 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Subutex / Suboxone | 54 | 62 | 115 | 56 | 52 | 55 | 57 | 108 | 220 | 18 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Remeron (2) | 64 | 59 | 123 | — | — | — | 31 | — | 31 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Intron A | 28 | 32 | 60 | 29 | 27 | 32 | 29 | 56 | 116 | 17 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Livial (2) | 45 | 50 | 95 | — | — | — | 24 | — | 24 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Cerazette (2) | 44 | 49 | 93 | — | — | — | 20 | — | 20 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Asmanex | 3 | 3 | 6 | 3 | 3 | 2 | 3 | 5 | 10 | — | 15 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Mercilon (2) | 42 | 46 | 88 | — | — | — | 18 | — | 18 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Elocon | 45 | 46 | 91 | 36 | 43 | 40 | 39 | 79 | 158 | 8 | % | 16 | % | |||||||||||||||||||||||||||||||||||||||||||||
Implanon (2) | 27 | 30 | 56 | — | — | — | 12 | — | 12 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Marvelon (2) | 35 | 37 | 72 | — | — | — | 18 | — | 18 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Noxafil | 25 | 28 | 52 | 10 | 13 | 16 | 19 | 23 | 58 | 114 | % | 126 | % | |||||||||||||||||||||||||||||||||||||||||||||
Foradil | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 2 | 4 | — | — |
(1) | International Pharma Net sales for the three and six months ended June 30, 2008 include $712 million and $1.4 billion, respectively, of sales of the human health segment of Organon BioSciences (OBS). International Pharma Net sales for both the fourth quarter and full year 2007 include $325 million of OBS human health segment sales as of the closing date of the acquisition on November 19, 2007 through December 31, 2007. | |
(2) | Products acquired in OBS acquisition on November 19, 2007. | |
N/M — Not a meaningful percentage |
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)
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | vs | vs | |||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 2nd Qtr | 6 Mos. | |||||||||||||||||||||||||||||||||||||||||||||
Global Consumer Health Care: | 377 | 401 | 778 | 345 | 394 | 273 | 254 | 739 | 1,266 | 2 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
OTC: | 209 | 181 | 389 | 177 | 182 | 162 | 161 | 359 | 682 | (1 | %) | 8 | % | |||||||||||||||||||||||||||||||||||||||||||||
OTC Claritin | 139 | 120 | 258 | 127 | 137 | 104 | 94 | 264 | 462 | (12 | %) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||
MiraLAX | 26 | 28 | 54 | 8 | 6 | 16 | 18 | 14 | 48 | N/M | N/M | |||||||||||||||||||||||||||||||||||||||||||||||
Other OTC | 44 | 33 | 77 | 42 | 39 | 42 | 49 | 81 | 172 | (16 | %) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Foot Care | 85 | 105 | 190 | 78 | 102 | 92 | 74 | 180 | 345 | 3 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Sun Care | 83 | 115 | 199 | 90 | 110 | 19 | 19 | 200 | 239 | 5 | % | (1 | %) |
N/M — Not a meaningful percentage |
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)
2008 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | ||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr.(1) | Qtr. | Qtr. | Mos.(1) | Year | Qtr. | Qtr. | Qtr. | Qtr.(1) | Mos. | Year(1) | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Geographic net sales | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | 1,453 | 1,434 | 2,885 | 1,179 | 1,195 | 1,028 | 1,194 | 2,374 | 4,597 | ||||||||||||||||||||||||||||||||||||||||
Europe and Canada | 2,235 | 2,449 | 4,686 | 1,215 | 1,343 | 1,199 | 1,743 | 2,558 | 5,500 | ||||||||||||||||||||||||||||||||||||||||
Latin America | 482 | 524 | 1,006 | 311 | 327 | 324 | 398 | 638 | 1,359 | ||||||||||||||||||||||||||||||||||||||||
Asia Pacific | 487 | 514 | 1,000 | 270 | 313 | 261 | 389 | 583 | 1,234 | ||||||||||||||||||||||||||||||||||||||||
Consolidated net sales | 4,657 | 4,921 | 9,577 | 2,975 | 3,178 | 2,812 | 3,724 | 6,153 | 12,690 | ||||||||||||||||||||||||||||||||||||||||
2008 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 6 | Full | 1st | 2nd | 3rd | 4th | 6 | Full | ||||||||||||||||||||||||||||||||||||||
Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | Qtr. | Qtr. | Qtr. | Qtr. | Mos. | Year | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Other expense/(income), net | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (22 | ) | (17 | ) | (39 | ) | (82 | ) | (86 | ) | (117 | ) | (112 | ) | (167 | ) | (395 | ) | |||||||||||||||||||||||||||||||
Interest expense | 138 | 140 | 278 | 37 | 39 | 45 | 125 | 76 | 245 | ||||||||||||||||||||||||||||||||||||||||
Acquisition-related (gains)/losses on currency-related and interest rate-related items (2) | — | — | — | (3 | ) | 35 | (314 | ) | (255 | ) | 31 | (537 | ) | ||||||||||||||||||||||||||||||||||||
Foreign exchange (gains)/losses | (4 | ) | 11 | 7 | — | (3 | ) | (4 | ) | 3 | (2 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||
Other (income)/expense (3) | (17 | ) | — | (17 | ) | — | (1 | ) | — | 8 | — | 7 | |||||||||||||||||||||||||||||||||||||
Total — Other expense/(income), net | 95 | 134 | 229 | (48 | ) | (16 | ) | (390 | ) | (231 | ) | (62 | ) | (683 | ) | ||||||||||||||||||||||||||||||||||
(1) | Second quarter and first half of 2008 include $1.4 billion and $2.8 billion, respectively, of Organon BioSciences (OBS) sales. Fourth quarter and full year of 2007 include $626 million of OBS sales as of the closing date of the acquisition on November 19, 2007 through December 31, 2007. | |
(2) | Included in acquisition-related (gains)/losses on currency-related and interest rate-related items are gains from foreign currency options in the amount of $510 million for the twelve months ended December 31, 2007. | |
(3) | Other expense/(income) for the first quarter of 2008 reflects a $17 million gain on sale of a manufacturing plant. |
All figures rounded. Totals may not add due to rounding.
Janet Barth | 908-298-7011 | |
Joe Romanelli | 908-298-7904 |
Page 10
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net Income Available to Common Shareholders
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amount in Millions, except per share figures)
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(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 following supplemental financial information to reflect “As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share. “As Reconciled” amounts exclude the effects of purchase accounting adjustments, special and acquisition-related items and other specified items.
“As Reconciled” amounts related to Net income available to common shareholders and Diluted 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, special and acquisition-related items and other specified items have been excluded from Net income available to common shareholders and Diluted 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 income available to common shareholders and Diluted earnings per common share, as reported, are required to be presented under U.S. GAAP.
Three months ended June 30, 2008 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Purchase | Special and | Other | ||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 4,921 | $ | — | $ | — | $ | — | $ | 4,921 | ||||||||||
Cost of sales | 1,908 | (354 | ) | — | — | 1,554 | ||||||||||||||
Selling, general and administrative | 1,870 | (1 | ) | — | — | 1,869 | ||||||||||||||
Research and development | 906 | (2 | ) | — | — | 904 | ||||||||||||||
Other expense/(income), net | 134 | — | — | — | 134 | |||||||||||||||
Special and acquisition-related charges | 94 | — | (94 | ) | — | — | ||||||||||||||
Equity income | (493 | ) | — | — | 64 | (429 | ) | |||||||||||||
Income before income taxes | 502 | 357 | 94 | (64 | ) | 889 | ||||||||||||||
Income tax expense/(benefit) | 66 | (47 | ) | (7 | ) | — | 120 | |||||||||||||
Net income | $ | 436 | $ | 310 | $ | 87 | $ | (64 | ) | $ | 769 | |||||||||
Preferred stock dividends | 38 | — | — | — | 38 | |||||||||||||||
Net income available to common shareholders | $ | 398 | $ | 310 | $ | 87 | $ | (64 | ) | $ | 731 | |||||||||
Diluted earnings per common share | $ | 0.24 | $ | 0.45 | ||||||||||||||||
Average shares outstanding-diluted | 1,632 | 1,632 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, special and acquisition-related items and other specified items. |
Page 11
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net Income Available to Common Shareholders
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amount in Millions, except per share figures)
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amount in Millions, except per share figures)
Three months ended June 30, 2007 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Purchase | Special and | Other | ||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 3,178 | $ | — | $ | — | $ | — | $ | 3,178 | ||||||||||
Cost of sales | 977 | — | — | — | 977 | |||||||||||||||
Selling, general and administrative | 1,358 | — | — | — | 1,358 | |||||||||||||||
Research and development | 696 | — | — | (60 | ) | 636 | ||||||||||||||
Other expense/(income), net | (16 | ) | — | (35 | ) | — | (51 | ) | ||||||||||||
Special and acquisition-related charges | 11 | — | (11 | ) | — | — | ||||||||||||||
Equity income | (490 | ) | — | — | — | (490 | ) | |||||||||||||
Income before income taxes | 642 | — | 46 | 60 | 748 | |||||||||||||||
Income tax expense | 103 | — | — | — | 103 | |||||||||||||||
Net income | $ | 539 | $ | — | $ | 46 | $ | 60 | $ | 645 | ||||||||||
Preferred stock dividends | 22 | — | — | — | 22 | |||||||||||||||
Net income available to common shareholders | $ | 517 | $ | — | $ | 46 | $ | 60 | $ | 623 | ||||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.41 | ||||||||||||||||
Average shares outstanding-diluted | 1,587 | 1,587 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. |
Page 12
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net Income Available to Common Shareholders
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amount in Millions, except per share figures)
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amount in Millions, except per share figures)
Six months ended June 30, 2008 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Purchase | Special and | Other | ||||||||||||||||||
As | Accounting | Acquisition- | Specified | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Items | (1) | ||||||||||||||||
Net sales | $ | 9,577 | $ | — | $ | — | $ | — | $ | 9,577 | ||||||||||
Cost of sales | 4,044 | (1,042 | ) | — | — | 3,002 | ||||||||||||||
Selling, general and administrative | 3,547 | (2 | ) | — | — | 3,545 | ||||||||||||||
Research and development | 1,786 | (4 | ) | — | — | 1,782 | ||||||||||||||
Other expense/(income), net | 229 | — | — | 17 | 246 | |||||||||||||||
Special and acquisition related charges | 117 | — | (117 | ) | — | — | ||||||||||||||
Equity income | (1,010 | ) | — | — | 64 | (946 | ) | |||||||||||||
Income before income taxes | 864 | 1,048 | 117 | (81 | ) | 1,948 | ||||||||||||||
Income tax expense/(benefit) | 138 | (138 | ) | (9 | ) | 5 | 280 | |||||||||||||
Net income | $ | 726 | $ | 910 | $ | 108 | $ | (76 | ) | $ | 1,668 | |||||||||
Preferred stock dividends | 75 | — | — | — | 75 | |||||||||||||||
Net income available to common shareholders | $ | 651 | $ | 910 | $ | 108 | $ | (76 | ) | $ | 1,593 | |||||||||
Diluted earnings per common share | $ | 0.40 | $ | 0.97 | ||||||||||||||||
Average shares outstanding-diluted | 1,635 | 1,635 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, special and acquisition-related items and other specified items. |
Page 13
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net Income Available to Common Shareholders
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share (unaudited)
(Amount in Millions, except per share figures)
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share (unaudited)
(Amount in Millions, except per share figures)
Six months ended June 30, 2007 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Purchase | Special and | |||||||||||||||||||
As | Accounting | Acquisition- | Other | As Reconciled | ||||||||||||||||
Reported | Adjustments | Related Items | Specified Items | (1) | ||||||||||||||||
Net sales | $ | 6,153 | $ | — | $ | — | $ | — | $ | 6,153 | ||||||||||
Cost of sales | 1,913 | — | — | — | 1,913 | |||||||||||||||
Selling, general and administrative | 2,572 | — | — | — | 2,572 | |||||||||||||||
Research and development | 1,403 | — | — | (156 | ) | 1,247 | ||||||||||||||
Other expense/(income), net | (62 | ) | — | (31 | ) | — | (93 | ) | ||||||||||||
Special and acquisition related charges | 12 | — | (12 | ) | — | — | ||||||||||||||
Equity income | (978 | ) | — | — | — | (978 | ) | |||||||||||||
Income before income taxes | 1,293 | — | 43 | 156 | 1,492 | |||||||||||||||
Income tax expense | 190 | — | — | — | 190 | |||||||||||||||
Net income | $ | 1,103 | $ | — | $ | 43 | $ | 156 | $ | 1,302 | ||||||||||
Preferred stock dividends | 43 | — | — | — | 43 | |||||||||||||||
Net income available to common shareholders | $ | 1,060 | $ | — | $ | 43 | $ | 156 | $ | 1,259 | ||||||||||
Diluted earnings per common share | $ | 0.70 | $ | 0.82 | ||||||||||||||||
Average shares outstanding-diluted | 1,579 | 1,579 |
(1) | “As Reconciled” to exclude purchase accounting adjustments, acquisition-related items and other specified items. |
Page 14
SCHERING-PLOUGH CORPORATION
Reconciliation from Reported Net Income Available to Common Shareholders
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amounts in millions)
and Reported Diluted Earnings Per Share to As Reconciled Amounts for Net Income
Available to Common Shareholders and Diluted Earnings per Common Share
(Amounts in millions)
“As Reconciled” amounts related to Net income available to common shareholders and Diluted earnings per common share reflect the following adjustments:
Second Quarter | Six Months | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Purchase accounting adjustments: | ||||||||||||||||
Amortization of intangibles in connection with the acquisition of Organon BioSciences (a) | $ | 138 | $ | — | $ | 270 | $ | — | ||||||||
Depreciation related to the fair value adjustment of fixed assets related to the acquisition of Organon BioSciences (b) | 8 | — | 16 | — | ||||||||||||
Charge related to the fair value adjustment to inventory related to the acquisition of Organon BioSciences (a) | 211 | — | 762 | — | ||||||||||||
Total purchase accounting adjustments, pre-tax | 357 | — | 1,048 | — | ||||||||||||
Income tax benefit | 47 | — | 138 | — | ||||||||||||
Total purchase accounting adjustments | $ | 310 | $ | — | $ | 910 | $ | — | ||||||||
Special and Acquisition-related items: | ||||||||||||||||
Special and Integration-related activities (e) | $ | 94 | $ | 11 | $ | 117 | $ | 12 | ||||||||
Acquisition-related loss on currency-related items (d) | — | 35 | — | 31 | ||||||||||||
Total acquisition-related items, pre-tax | 94 | 46 | 117 | 43 | ||||||||||||
Income tax benefit | 7 | — | 9 | — | ||||||||||||
Total acquisition-related items | $ | 87 | $ | 46 | $ | 108 | $ | 43 | ||||||||
Other specified items: | ||||||||||||||||
Income from Respiratory JV termination (f) | $ | (64 | ) | $ | — | (64 | ) | — | ||||||||
(Gain) on sale of manufacturing plant (d) | — | — | (17 | ) | ||||||||||||
Upfront R&D payments (c) | — | 60 | — | 156 | ||||||||||||
Total other specified items, pre-tax | (64 | ) | 60 | (81 | ) | 156 | ||||||||||
Income tax expense | — | — | (5 | ) | — | |||||||||||
Total other specified items | $ | (64 | ) | $ | 60 | $ | (76 | ) | $ | 156 | ||||||
Total purchase accounting adjustments, special and acquisition-related items and other specified items | $ | 333 | $ | 106 | $ | 942 | $ | 199 | ||||||||
(a) | Included in Cost of sales | |
(b) | Included in Cost of sales, Selling, general and administrative and Research and development | |
(c) | Included in Research and development | |
(d) | Included in Other expense/(income), net | |
(e) | Included in Special and acquisition-related charges | |
(f) | Included in Equity income |
Page 15