Schering-Plough 1st-qtr profits leap 55%

Turn-around expert Fred Hassan, chief executive of US drug major Schering-Plough, has produced another set of stompingly good results for the company, reporting that first-quarter 2007 net income had leapt 55% to $543.0 million, or $0.36 a share. Turnover, on a generally-accepted accounting principles basis, grew 17% to $3.0 billion, with global pharmaceutical sales up 18% at $2.40 billion, consumer health care rising 11% to $345.0 million and animal health up 12% to $232.0 million. He discussed S-P's proposed acquisition of Organon Biosciences (Marketletter March 19), saying it will build on the company's momentum, and noting that, since the Action Agenda was commenced four years ago, S-P has "been on a journey of transformation."

"Schering-Plough has now delivered 10 consecutive quarters of double-digit adjusted sales growth on a year-over-year basis," said Mr Hassan. "We are growing our core businesses across all major geographic regions. We have sustained the strength of our cholesterol, respiratory, immunology and oncology franchises...Our strategy of growing the top line while maintaining financial discipline is clearly paying off - with higher bottom-line earnings and growing financial headroom," he added.

Gaining momentum in R&D