#15. Schering-Plough
2000 Galloping Hill Rd.
Kenilworth, NJ 07033-0530
Tel: (908) 298-4000
Fax: (908) 298-7653
www.schering-plough.com
| Headcount | 32,600 | |
| Year Established | 1971 | |
| Pharma Revenues* | $8,759 | +25% |
| Total Revenues* | $10,703 | +21% |
| Net Income** | $269 | -- |
| R&D Budget | $1,865 | +16% |
* Includes 50% of revenue from Vytorin and Zetia sales, which are accounted for as income from a joint venture.
** Net loss of $947 million in 2004.
| Drugs Approved/Launched | |
| Drug | Indication |
| zetia | expanded label, lipid lowering (in Japan) |
| temodar | glioblastoma multiforme |
| remicade | moderately to severely active ulcerative colitis, severe plaque psoriasis (in EU) early rheumatoid arthritis (in Australia) |
| peg-intron and rebetol | chronic hepatitis C (in Japan) |
| avelox | complicated intra-abdominal infections, CSSSI |
| noxafil | oral suspension for serious invasive fungal infections (in EU) |
| temodal | glioblastoma multiforme (in EU) |
| asmanex | asthma, once daily |
| Drugs Pending approval | |
| Drug | Indication |
| garenoxacin | gram+/gram-bacterial infections |
| noxafil | prophylaxis, oropharyngeal candidiasis |
| remicade | second-line Crohn’s disease |
| temodar | astrocytoma/glioblastoma multiforme |
| Drugs in Phase IIb and Beyond | |
| Drug | Indication |
| sch 530348 | secondary prevention of CV morbidity |
| vicriviroc | HIV |
| sch 503034 | chronic hepatitis C infection |
| golimumab | inflammatory disease |
| integrilin | acute coronary syndrome |
| peg-intron | malignant melanoma |
| remicade | psoriatic arthritis monotherapy |
| sarasar | myelodysplastic syndrome |
| temodar | metastatic melanoma |
| Top Selling Drugs | |||
| Drug | Indication | Sales | (+/- %) |
| vytorin* | cholesterol | $1,195 | 99% |
| remicade | anti-inflammatory | $942 | 26% |
| PEG-intron | hepatitis C | $751 | 33% |
| nasonex | allergic rhinitis | $737 | 24% |
| clarinex | allergy | $646 | -7% |
| temodar | oncology (brain) | $588 | 28% |
| claritin (int’l) | allergy | $371 | 16% |
| rebetol | hepatitis C | $331 | 15% |
| integrilin | coronary disease | $315 | -3% |
| intron-A | hepatitis | $287 | -10% |
* Vytorin gained revenues of $2.4 billion in 2005; this amount is divided evenly by Merck and Schering-Plough, although it is not accounted as product revenue.
Account for 70% of total pharma sales, same as in 2004.
PROFILE
Schering-Plough continues to work its way through the post-Claritin era, but it looks like there’s light at the end of the tunnel. SP’s biggest hit doesn’t even show up on the official records (but we factor it into our results). In 2005, cholesterol drugs Zetia and Vytorin notched combined sales of $2.4 billion for Merck and SP, and are on the rise. In 1Q2006, Zetia/Vytorin sales reached $778 million. Generic statins may slow Vytorin down, but it’s clearly a cash cow for SP and Merck.
Beyond the cholesterol franchise, SP’s other major success comes from its Remicade partnership with J&J subsidiary Centocor. SP’s sales of that RA drug grew 26% in 2005 to $942 million, and 26% in 1Q2006 to $278 million. Their followup project, Golimumab, recently posted good Phase II results.
In 4Q2005, SP announced that it was entering its “Turnaround” phase, the third of five phases in its rebuilding plan. “Turnaround” followed “Stabilize” and “Repair,” but we’re not sure what term best describes the company’s June 2006 announcement that it’s closing manufacturing operations in Manati, PR and reducing staff in Las Piedras, PR and Kenil-worth and Union, NJ. The closures will lead to 1,100 people being laid off and a $235 million hit in severance, writeoffs and depreciation. The company contends that it’ll see savings of $100 million starting in 2007.
In January 2006, the company announced that it had completed the 212 significant steps and 30 validation actions delineated in its consent decree with the FDA. So, the company still has issues, but it’s working on them. SP’s newer drugs are showing surprising strength and its pipeline includes several NDAs with fast-track status at the FDA. A sales surge or a favorable exchange rate could move it as high as #13 next year, but SP can’t move into the upper ranks without an invitation from a big dance partner.
