Summary
Schering-Plough Corporation reported its third quarter and nine-month results for the period ending September 30, 2009. For the nine months, net sales decreased by 4% to $13.5 billion compared to the prior year, impacted by a 6% unfavorable foreign exchange rate. Net income available to common shareholders was $1.9 billion. The company's cholesterol franchise, VYTORIN and ZETIA, saw a 12% decline in global sales year-to-date, with a significant drop in the U.S. market, highlighting a persistent challenge for the company. Financially, Schering-Plough maintained a strong operating cash flow, providing $2.6 billion for the nine months. The company ended the period with substantial cash and cash equivalents of $4.3 billion. A major event shaping the company's future is the pending merger with Merck & Co., Inc., which was approved by shareholders and received regulatory clearance from the European Commission, with an expected completion in the fourth quarter of 2009.
Financial Highlights
50 data points| Revenue | $6.05B |
| Cost of Revenue | $1.43B |
| Gross Profit | $4.62B |
| R&D Expenses | $1.25B |
| SG&A Expenses | $1.73B |
| Interest Expense | $130.70M |
| Net Income | $3.42B |
| EPS (Basic) | $1.62 |
| EPS (Diluted) | $1.61 |
| Shares Outstanding (Basic) | 2.11B |
| Shares Outstanding (Diluted) | 2.11B |
Key Highlights
- 1Net sales for the nine months ended September 30, 2009, were $13.5 billion, a 4% decrease year-over-year, impacted by a 6% unfavorable foreign exchange rate.
- 2Net income available to common shareholders for the nine months was $1.9 billion, leading to diluted earnings per share of $1.13.
- 3Global sales of the cholesterol franchise (VYTORIN and ZETIA) declined 12% year-to-date, with U.S. sales down 18%, indicating ongoing market challenges.
- 4Operating cash flow remained strong, generating $2.6 billion for the nine months ended September 30, 2009.
- 5The company ended the period with a healthy cash position of $4.3 billion.
- 6Significant progress was made towards the planned merger with Merck & Co., Inc., with expected completion in the fourth quarter of 2009.
- 7The Productivity Transformation Program (PTP) is on track, aiming for $1.5 billion in annualized savings by 2012, with cost reductions evident in SG&A expenses.