Third Quarter results confirm SPs solid position

For the 2007 third quarter, Schering-Plough reported net income available to common shareholders of $713 million or 45 cents per common share on a GAAP basis. Excluding acquisition-related items and an up front R&D payment, earnings per share for the 2007 third quarter would have been 28 cents. For the same period in 2006 the company reported net income of $287 million or 19 cents per common share on a GAAP basis.

Strong sales
Net sales for the 2007 third quarter rose nine percent on a GAAP basis and 12 percent on an adjusted basis versus the 2006 period. GAAP net sales for the 2007 third quarter totaled $2.8 billion; adjusted net sales, which includes an assumed 50 percent of global cholesterol net sales from its joint venture with Merck & Co.(human health), would have totaled $3.5 billion. This compares with $3.1 billion for a similar adjusted basis for the 2006 third quarter.

Consumer health care sales were $273 million in the 2007 third quarter, up five percent versus the 2006 period. Animal health sales increased 8 percent to $248 million, reflecting solid growth internationally, led by the poultry, companion animal, aquaculture and swine product lines, coupled with a positive impact from foreign currency exchange rates. The growth in international markets was tempered by a decline in the United States.

Research and development spending for the 2007 third quarter also increased to $669 million, compared to $536 million in the third quarter of last year.

Aqusition part of long-term plan
The aquisition of Organon BioSciences from Akzo Nobel, which includes animal health company Intervet, falls in line with SP's long-term strategy to continue to grow the top line, exercise financial discipline and expand it's R&D pipeline. The company beleives this formular will continue to deliver strong results.

"Our focus on building R&D excellence is beginning to bear fruit and with the upcoming acquisition of Organon BioSciences, we will have a total of 12 significant projects in Phase III," said Fred Hassan, company chairman and CEO.
"This, combined with relatively long exclusivity of our product portfolio, puts Schering-Plough in a substantially stronger position in terms of its late-stage pipeline and portfolio than only four years ago," he added.

The deal has already gained European Commission approval and most of the financing plan, involving nearly $9 billion secured through a mix of equity and debt of varying maturities, has been finalised. The customary consultative process with the OBS Works Council in the Netherlands is also complete.

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