Summary
Schering-Plough Corporation reported net sales of $4.6 billion for the second quarter of 2009, a 6% decrease year-over-year, influenced by a 10% unfavorable foreign exchange impact. For the first six months of 2009, net sales were $9.0 billion, also down 6%. The company's net income available to common shareholders was $633 million for the quarter and $1.4 billion for the six-month period. Key product areas like the cholesterol franchise (VYTORIN and ZETIA) saw a decline in sales, attributed to both operational decreases and foreign exchange headwinds. The company is in the process of a significant strategic shift with a pending merger with Merck & Co., Inc., announced in March 2009, with an expected completion in the fourth quarter of 2009. This merger is subject to shareholder and regulatory approvals. The financial statements reflect ongoing efforts like the "Productivity Transformation Program" aimed at cost reduction and efficiency improvements. Despite revenue pressures, particularly from foreign exchange and within its cholesterol franchise, the company's financial performance remains solid, with a substantial equity income contribution from the Merck/Schering-Plough cholesterol joint venture.
Financial Highlights
49 data points| Revenue | $5.90B |
| Cost of Revenue | $1.35B |
| Gross Profit | $4.55B |
| R&D Expenses | $1.40B |
| SG&A Expenses | $1.73B |
| Interest Expense | $99.50M |
| Net Income | $1.56B |
| EPS (Basic) | $0.74 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 2.11B |
| Shares Outstanding (Diluted) | 2.11B |
Key Highlights
- 1Net sales decreased by 6% to $4.6 billion in Q2 2009 and by 6% to $9.0 billion for the first six months of 2009 compared to the prior year periods, with a significant 10% unfavorable foreign exchange impact.
- 2Net income available to common shareholders was $633 million for Q2 2009 and $1.4 billion for the first six months of 2009.
- 3The cholesterol franchise (VYTORIN and ZETIA) experienced a sales decline of 8% in Q2 2009 and 15% for the first six months of 2009.
- 4Equity income from the Merck/Schering-Plough cholesterol joint venture was $370 million in Q2 2009 and $770 million for the first six months of 2009.
- 5The company announced a definitive merger agreement with Merck & Co., Inc. in March 2009, expected to close in Q4 2009, subject to approvals.
- 6Selling, General, and Administrative (SG&A) expenses decreased by 13% in Q2 2009 and 12% for the first six months of 2009, partly due to foreign exchange and cost-saving programs.
- 7Research and Development (R&D) spending decreased by 5% in Q2 2009 and 7% for the first six months of 2009.