GO
Loading...

Enter multiple symbols separated by commas

Schering-Plough Quarterly Profit Boosted by Cholesterol Drugs

Schering-Plough on Monday said second-quarter earnings more than doubled, driven by growing demand for its Zetia and Vytorin cholesterol drugs and its treatments for arthritis and allergies.

The drug maker's quarterly profit increased to $517 million, or 34 cents per share, from $237 million, or 16 cents per share, in the year-ago period.

Excluding special items, Schering-Plough earned 41 cents per share. Analysts on average expected 35 cents a share, according to Reuters Estimates.

"Cost controls were the key to outperformance," J.P. Morgan analyst Roberto Cuca said in a research note.

Schering-Plough shares were up 37 cents, or 1.2 percent, to $31.86 in morning trade. Shares of rival Merck , which co-markets Zetia and Vytorin under a joint venture, were up more than 5 percent. Merck also reported strong results on Monday.

Schering-Plough said second-quarter sales rose 13 percent to $3.18 billion, excluding its 50 percent share of proceeds from the Merck cholesterol partnership. Sales topped Wall Street forecasts by about $110 million -- but would have grown only 10 percent if not for favorable foreign exchange factors.

Including revenue from its joint venture with Merck, sales jumped 15 percent to $3.8 billion. Zetia and Vytorin brought in $1.2 billion during the quarter, up 30 percent from a year earlier.

"Vytorin and Zetia are the only major cholesterol-lowering brands to have grown U.S. market share in 2007," Schering-Plough said in a statement.

Sales of less-potent treatments, including Pfizer's Lipitor, fell last year after inexpensive generic forms of the Merck cholesterol drug Zocor flooded the market.

Schering-Plough said it remains on track to complete its planned $14.65 billion purchase of the Organon drugs unit of Dutch chemical group Akzo Nobel by year-end.

The deal, announced in March, would bring Schering-Plough a number of promising experimental medicines that it hopes will reduce its reliance on Zetia and Vytorin for earnings growth.

The new medicines include contraceptives, an experimental treatment for schizophrenia, and a drug to reverse the effects of anesthesia.

The deal also includes animal health products. Sales of arthritis drug Remicade, which Schering-Plough sells outside the United States, soared 28 percent in the second quarter to $394 million. Sales of allergy treatment Nasonex jumped 22 percent to $295 million, bolstered by a strong marketing push.

Sales of the company's Peg-Intron treatment for hepatitis C edged up just 3 percent to $234 million, hurt by lower sales in the United States amid competition from Roche Holding's rival treatment, Pegasys.

Schering-Plough shares gained 10 cents to trade at $31.59 Monday morning on the New York Stock Exchange.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Learning your value

    How to make sure you get what you¿re worth at your job, why you should stop apologizing, and how to manage work-life balance. Anchor Mika Brzeznski, author of the new book "Grow Your Value," shares her strategies for juggling busy lives.

  • Why women cheat?

    Is cheating bad? Why do women cheat? The founder and CEO of affair website Ashley Madison tells all, including why he has his eye on China.

  • Judge's gavel

    The Financial Industry Regulatory Authority disciplined several financial services firms and individuals in May 2015.

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.