Exhibit 99.2
SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(DOLLARS IN MILLIONS, EXCEPT EPS)
(UNAUDITED)
2005 2004
---------------------------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 1st Qtr.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 1st Qtr.
----- --- --- --- --- --- ---- ----- ----- ----- ----- ----- ----- ----- --------
Net Sales 2,369 1,963 2,147 4,110 1,978 6,088 2,184 8,272 21%
Cost of Sales 889 740 790 1,530 711 2,241 829 3,070 20%
----- ----- ----- ----- ----- ----- ----- ----- ----
Gross Margin 1,480 1,223 1,357 2,580 1,267 3,847 1,355 5,202 21%
Total SG&A 1,081 914 979 1,893 892 2,785 1,026 3,811 18%
Research & Development 1/ 384 372 451 824 378 1,201 406 1,607 3%
Other, Net 17 36 43 78 34 112 33 146 (52%)
Special Charges 2/ 27 70 42 112 26 138 15 153 (61%)
Equity Income from
Cholesterol Joint Venture (220) (78) (77) (154) (95) (249) (98) (347) N/M
----- ----- ----- ----- ----- ----- ----- ----- ----
Income/(Loss) before Income
Taxes 191 (91) (81) (173) 32 (140) (27) (168) N/M
Income Tax Expense/(Benefit) 3/ 64 (18) (16) (35) 6 (28) 807 779 N/M
----- ----- ----- ----- ----- ----- ----- ----- ----
Net Income/(Loss) 127 (73) (65) (138) 26 (112) (834) (947) N/M
===== ===== ===== ===== ===== ===== ===== ===== ====
Preferred Stock Dividends 22 - - - 12 12 22 34 N/M
----- ----- ----- ----- ----- ----- ----- ----- ----
Net Income/(Loss) Available to
Common Shareholders 105 (73) (65) (138) 14 (124) (856) (981) N/M
===== ===== ===== ===== ===== ===== ===== ===== ====
Diluted Earnings/(Loss) per
Common Share 0.07 (0.05) (0.04) (0.09) 0.01 (0.08) (0.58) (0.67) N/M
===== ===== ===== ===== ===== ===== ===== ===== ====
Avg. Shares Outstanding-
Diluted 1,480 1,471 1,472 1,471 1,475 1,472 1,473 1,472
Actual Shares Outstanding 1,475 1,472 1,472 1,472 1,472 1,472 1,474 1,474
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 37.5% 37.7% 36.8% 37.2% 35.9% 36.8% 37.9% 37.1%
Gross Margin 62.5% 62.3% 63.2% 62.8% 64.1% 63.2% 62.1% 62.9%
Total SG&A 45.6% 46.6% 45.6% 46.1% 45.1% 45.7% 47.0% 46.1%
Research & Development 16.2% 19.0% 21.0% 20.0% 19.1% 19.7% 18.6% 19.4%
Income/(Loss) Before Income
Taxes 8.0% (4.6%) (3.8%) (4.2%) 1.6% (2.3%) (1.3%) (2.0%)
Income Taxes Expense/(Benefit) 2.7% (0.9%) (0.8%) (0.8%) 0.3% (0.5%) 37.0% 9.4%
Net Income/(Loss) 5.3% (3.7%) (3.0%) (3.4%) 1.3% (1.8%) (38.2%) (11.4%)
Note: The Company noted that it incurs substantial costs, such as selling,
general and administrative costs, that are not reflected in the "Equity income
from cholesterol joint venture" and are borne by the overall cost structure of
Schering-Plough.
1/ Research and development in 2004 includes an $80 million upfront payment
in conjunction with the licensing from Toyama Chemical Company LTD. of
garenoxacin, a quinolone antibiotic in development.
2/ Special Charges for the first quarter ended March 31, 2005 related
primarily to employee termination costs for a headcount reduction at a
European manufacturing facility.
Special charges for the first quarter ended March 31, 2004 included $44
million of employee termination costs, as well as $26 million of asset
impairment charges primarily related to the Company's exit from a small
European research-and-development facility.
Special Charges for the twelve months ended December 31, 2004 included
$119 million of employee termination costs, as well as $27 million of
asset impairment charges and $7 million of closure costs primarily
related to the aforementioned research-and-development facility.
3/ Tax expense during the first quarter of 2005 primarily related to
foreign tax expense as the company did not recognize the benefit of
U.S. tax operating losses. In the fourth quarter ended December 31,
2004, the Company recorded the impact of the intended repatriation
of funds under the American Jobs Creation Act of 2004.
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful
percentage.
Page 1
SCHERING-PLOUGH CORPORATION
CONSOLIDATED SALES
(DOLLARS IN MILLIONS)
2005 2004
----------------------------------------- ---------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 1st Qtr.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 1st Qtr.
----- ---- ---- ---- ---- ---- ---- ----- ----- ----- ----- ----- ----- ----- --------
PRESCRIPTION PHARM: 1,846 1,481 1,644 3,125 1,556 4,681 1,737 6,417 25%
U.S. 549 411 495 906 518 1,424 584 2,007 33%
International 1,297 1,070 1,150 2,220 1,037 3,257 1,153 4,410 21%
CONSUMER HEALTH CARE: 330 312 317 629 239 868 217 1,085 6%
OTC: 162 157 150 306 150 456 121 578 4%
OTC Claritin * 116 117 117 234 110 344 75 419 (1%)
Other OTC 46 40 32 72 41 112 46 159 18%
FOOT CARE: 84 76 89 166 86 252 79 331 10%
SUN CARE: 84 79 78 157 3 160 17 176 5%
ANIMAL HEALTH: 193 170 186 356 183 539 230 770 14%
U.S. 44 41 36 77 56 133 61 194 8%
International 149 129 150 279 127 406 169 575 15%
TOTAL CONSOLIDATED: 2,369 1,963 2,147 4,110 1,978 6,088 2,184 8,272 21%
----- ----- ----- ----- ----- ----- ----- -----
U.S. 897 738 827 1,565 800 2,365 854 3,219 21%
International 1,472 1,225 1,320 2,545 1,178 3,723 1,330 5,053 20%
* Includes net sales of Claritin in Canada.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Page 2
SCHERING-PLOUGH CORPORATION
PRESCRIPTION PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
GLOBAL PRESCRIPTION PHARM U.S. INTERNATIONAL
-------------------------- --------------------- ----------------------
2005 2004 2005 2004 2005 2004
----- ----- ---- ---- ----- -----
1st 1st 1st Qtr. 1st 1st 1st Qtr. 1st 1st 1st Qtr.
Qtr. Qtr. vs Qtr. Qtr. vs Qtr. Qtr. vs
$ $ 1st Qtr. $ $ 1st Qtr. $ $ 1st Qtr.
----- ----- -------- ---- ---- --------- ----- ----- --------
PRESCRIPTION PHARM: 1,846 1,481 25% 549 411 33% 1,297 1,070 21%
Remicade 220 165 33% - - - 220 165 33%
Nasonex 183 140 30% 109 82 32% 74 58 27%
PEG-Intron 170 148 14% 52 63 (17%) 118 85 38%
Clarinex / Aerius 144 130 11% 67 69 (3%) 77 61 26%
Temodar 131 86 52% 57 37 54% 74 49 50%
Claritin Rx 1/ 111 91 22% - - - 111 91 22%
Integrilin 75 73 3% 71 68 6% 4 5 (25%)
Intron A 73 69 6% 32 18 80% 41 51 (20%)
Avelox 2/ 73 - N/M 73 - N/M - - N/M
Rebetol 64 99 (35%) - 31 N/M 70 68 2%
Subutex 51 44 16% - - - 51 44 16%
Caelyx 43 34 27% - - - 43 34 27%
Elocon 41 38 6% 4 7 (46%) 37 31 18%
Cipro 2/ 37 - N/M 37 - N/M - - N/M
1/ Includes international net sales of Claritin Rx only. Canadian net sales
of Claritin are reported in the OTC Claritin line within Consumer Health
Care.
2/ Includes net sales in Puerto Rico
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Page 3
SCHERING-PLOUGH CORPORATION
GLOBAL PRESCRIPTION PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
2005 2004
------------------------------------------ ---------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 1st Qtr.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 1st Qtr.
----- ----- ---- ---- ---- ---- ---- ----- ----- ----- ----- ----- ----- ----- --------
GLOBAL PRESCRIPTION PHARM: 1,846 1,481 1,644 3,125 1,556 4,681 1,737 6,417 25%
Remicade 220 165 182 347 188 535 212 746 33%
Nasonex 183 140 156 296 153 449 145 594 30%
PEG-Intron 170 148 144 293 132 425 138 563 14%
Clarinex / Aerius 144 130 226 356 175 530 162 692 11%
Temodar 131 86 102 188 121 309 150 459 52%
Claritin Rx 1/ 111 91 82 173 67 240 80 321 22%
Integrilin 75 73 78 151 94 245 81 325 3%
Intron A 73 69 89 158 81 239 79 318 6%
Avelox 2/ 73 - - - - - 44 44 N/M
Rebetol 64 99 88 187 52 239 49 287 (35%)
Subutex 51 44 47 91 45 136 50 185 16%
Caelyx 43 34 35 70 39 109 40 150 27%
Elocon 41 38 46 84 42 127 42 168 6%
Cipro 2/ 37 - - - - - 43 43 N/M
1/ Includes international net sales of Claritin Rx only. Canadian net sales
of Claritin are reported in the OTC Claritin line within Consumer Health
Care.
2/ Includes net sales in Puerto Rico
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Page 4
SCHERING-PLOUGH CORPORATION
U.S. PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
2005 2004
---------------------------------------- ----------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 1st Qtr.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 1st Qtr.
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----- ---- ----- --------
TOTAL U.S. PHARM: 549 411 495 906 518 1,424 584 2,007 33%
Nasonex 109 82 85 167 104 271 81 353 32%
PEG-Intron 52 63 50 113 49 163 42 205 (17%)
Clarinex / Aerius 67 69 126 195 118 313 107 420 (3%)
Temodar 57 37 45 82 60 142 79 220 54%
Integrilin 71 68 72 139 88 228 74 301 6%
Intron A 32 18 33 51 30 81 29 109 80%
Avelox 1/ 73 - - - - - 44 44 N/M
Rebetol - 31 23 53 - 54 - 45 N/M
Elocon 4 7 12 19 12 31 9 40 (46%)
Cipro 1/ 37 - - - - - 43 43 N/M
1/ Includes net sales in Puerto Rico
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Page 5
SCHERING-PLOUGH CORPORATION
INTERNATIONAL PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
2005 2004
----------------------------------------- ---------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 1st Qtr.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 1st Qtr.
----- ---- ---- ---- ---- ---- ---- ---- ----- ----- ----- ----- ----- ----- --------
TOTAL INTERNATIONAL PHARM: 1,297 1,070 1,150 2,220 1,037 3,257 1,153 4,410 21%
Remicade 220 165 182 347 188 535 212 746 33%
Nasonex 74 58 71 129 48 178 64 242 27%
PEG-Intron 118 85 94 179 83 262 96 358 38%
Clarinex / Aerius 77 61 100 161 57 218 55 272 26%
Temodar 74 49 57 106 61 168 72 239 50%
Claritin Rx 1/ 111 91 82 173 67 240 80 321 22%
Integrilin 4 5 6 12 5 17 7 24 (25%)
Intron A 41 51 56 107 51 158 50 208 (20%)
Rebetol 70 68 65 133 52 185 57 242 2%
Subutex 51 44 47 91 45 136 50 185 16%
Caelyx 43 34 35 70 39 109 40 150 27%
Elocon 37 31 34 65 31 96 32 128 18%
1/ Canadian net sales of Claritin are reported in the OTC Claritin line
within Consumer Health Care.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Page 6
SCHERING-PLOUGH CORPORATION
CHOLESTEROL FRANCHISE SALES
(DOLLARS IN MILLIONS)
2005 2004
--------------------------------------- ---------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 1st Qtr.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 1st Qtr.
--- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----- --------
GLOBAL ZETIA: 1/ 331 189 242 431 294 725 328 1,052 N/M
U.S. 269 169 212 381 256 637 274 910 59%
International 62 20 30 50 38 88 54 142 N/M
GLOBAL VYTORIN: 1/ 2/ 178 - 5 5 50 55 75 131 N/M
U.S. 157 - - - 42 42 59 102 N/M
International 21 - 5 5 8 13 16 29 N/M
GLOBAL CHOLESTEROL: 1/ 509 189 247 436 344 780 403 1,183 N/M
U.S. 426 169 212 381 298 679 333 1,012 N/M
International 83 20 35 55 46 101 70 171 N/M
1/ Substantially all sales of cholesterol products are not included in the
Company's net sales. Global sales include sales under the Merck/Schering-Plough
partnership, plus any sales that are not part of the partnership, such as
Schering-Plough sales of cholesterol products in Latin America. In the first
quarter of 2005 and 2004, sales in non-joint venture territories of the
cholesterol franchise totaled $4 and $1, respectively.
2/ Vytorin received first regulatory approval in 2004.
The results of the operation of the joint venture are reflected in equity income
and have no impact on the Company's gross and other operating margins.
The company utilizes the equity method of accounting for the joint venture. The
cholesterol agreements provide for the sharing of net income/(loss) 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 of ZETIA
sales. Above $300 of ZETIA sales, the companies share profits equally.
Schering-Plough's allocation of joint venture income is increased by milestones
earned. Further, either partner's share of the joint venture's net income/(loss)
is subject to a reduction if the partner fails to perform a specified minimum
number of physician details in a particular country. The partners agree annually
to the minimum number of physician details by country.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Page 7
STATEMENTS OF CONSOLIDATED OPERATIONS
(DOLLARS IN MILLIONS)
(UNAUDITED)
2005 2004
----------------------------------------- -----------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $ $ $ $ $ $ $ $
----- ---- ---- ---- ---- ---- ---- ----- --- ----- ----- ----- ----- -----
GEOGRAPHIC SALES
U.S. 897 738 827 1,565 800 2,365 854 3,219
EUROPE AND CANADA 1,035 874 972 1,846 820 2,666 929 3,595
LATIN AMERICA 210 174 182 356 204 560 223 782
PACIFIC AREA AND ASIA 227 177 166 343 154 497 178 676
----- ----- ----- ----- ----- ----- ----- -----
CONSOLIDATED SALES 2,369 1,963 2,147 4,110 1,978 6,088 2,184 8,272
----- ----- ----- ----- ----- ----- ----- -----
2005 2004
----------------------------------------- --------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $ $ $ $ $ $ $ $
----- ---- ---- ---- ---- ---- ---- ----- ----- ----- ----- ------ ------ ------
CONSOLIDATED SALES
GROWTH RATES:
As Reported 21% (6%) (7%) (6%) (1%) (5%) 12% (1%)
Excluding Exchange 17% (12%) (10%) (11%) (4%) (9%) 8% (5%)
OTHER, NET
Interest Income $33 $14 $15 $29 $20 $50 $31 $80
Interest Expense (45) (48) (43) (91) (39) (130) (38) (168)
FX Gains/(Losses) (4) (1) (4) (4) 0 (4) (1) (5)
Other Income/(Expense) (1) (1) (11) (12) (15) (28) (25) (53)
--- --- ---- ---- ---- ---- ---- ----
Total - Other, Net ($17) ($36) ($43) ($78) ($34) ($112) ($33) ($146)
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Alex Kelly 908-298-7450
Janet M. Barth 908-298-7417
Page 8