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SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 October 24, 2002 Date of Report (Date of Earliest Event Reported) (Exact name of registrant as specified in its charter) (State or other jurisdiction (Commission File Number) (IRS Employer (Address of principal executive offices, including Zip Code) (908) 298-4000
of incorporation)
Identification Number)
Item 7. Financial Statements and Exhibits.
(c) Exhibits. The following exhibits are filed with the 8-K:
99.1 Press Release dated October 24, 2002
99.2 Product Sales Data
Item 9. Regulation FD Disclosure.
Schering-Plough Corporation today issued a press release reporting sales and earnings for the 2002 third quarter and provided additional product sales data. The press release is attached to this 8-K as Exhibit 99.1 and the product sales data is attached to this 8-K as Exhibit 99.2.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Schering-Plough Corporation
By: Thomas H. Kelly
Thomas H. Kelly
Vice President and Controller
Date: October 24, 2002
Exhibit Index
The following exhibits are filed with this 8-K:
99.1 Press Release dated October 24, 2002
99.2 Product Sales Data
Exhibit 99.1
News Release
Schering-Plough Corporation
2000 Galloping Hill Road
Kenilworth, New Jersey 07033-0530
FOR RELEASE: IMMEDIATELY Contact: Denise K. Foy
(908) 298-7616
SCHERING-PLOUGH REPORTS SALES, EARNINGS
FOR 2002 THIRD QUARTER
2002 Third Quarter Diluted Earnings Per Share 29 cents vs. 41 cents
Third Quarter Consolidated Sales $2.4 Billion, Up 2%
Third Quarter Worldwide Pharmaceutical Sales $2.1 Billion, Up 3%
Third Quarter R&D Spending $354 Million, Up 14%
KENILWORTH, N.J., Oct. 24, 2002 - Schering-Plough Corporation (NYSE: SGP) today reported financial results for the third quarter and first nine months of 2002. Diluted earnings per share for the 2002 third quarter were 29 cents on net income of $429 million, down 29 percent versus 41 cents per share on net income of $601 million in 2001. Schering-Plough in an Oct. 3 press release reported that 2002 third quarter diluted earnings per share would be in the range of 28 cents to 29 cents. Third quarter 2002 results were significantly lower than the comparable period in 2001 primarily due to the reduction of CLARITIN® (loratadine) trade inventories held by U.S. wholesalers in anticipation of the launch of CLARITIN as an over-the-counter (OTC) product (see CLARITIN Trade Inventory Update below), as previously projected in Oct. 3 and July 25 press releases.
Third quarter 2002 sales of $2.4 billion were 2 percent higher than the 2001 period. Excluding exchange, third quarter sales decreased 1 percent. In the third quarter, the contrast between 2 percent higher sales versus 29 percent lower earnings per share was primarily due to an increase in cost of sales, reflecting higher sales of products on which royalties are paid and higher manufacturing costs. In addition, R&D expenditures in the 2002 third quarter were 14 percent higher, totaling $354 million.
"Higher worldwide pharmaceutical sales for the third quarter reflected solid growth by most of the company's leading products, including the INTRONÒ franchise, REMICADE®, CLARINEX®, INTEGRILIN® and TEMODAR®," said Richard Jay Kogan, chairman and chief executive officer. "We are looking forward to receiving U.S. marketing approval of ZETIA™, our novel cholesterol absorption
inhibitor just approved in Germany. We continue to increase spending in research and development as we advance ZETIA and other therapeutic agents in our research pipeline," he added.
Kogan reiterated the company's earnings guidance for 2002 and its earnings projections for 2003-2005. He reiterated that earnings per share for the 2002 full year are expected to be approximately flat versus 2001. The 2002 earnings estimate is compared to 2001 earnings before a provision taken in the 2001 fourth quarter for a payment related to the terms of a consent decree reached with the U.S. Food and Drug Administration (FDA). He also reiterated the company's previously stated projections that earnings per share for the 2003 full year are expected to be in the range of $1.00 to $1.15; that 2004 growth in diluted earnings per share is expected to be in the range of 20 percent; and that 2005 growth in diluted earnings per share is expected to accelerate over 2004. Schering-Plough's earnings guidance for 2002 and its earnings projections for 2003-2005 were previously reported in an Oct. 3 press release.
CLARITIN TRADE INVENTORY UPDATE
The company today provided an update on its previously reported anticipated reduction by U.S. wholesalers of trade inventories of prescription CLARITIN products in anticipation of the launch of CLARITIN as an OTC product. The estimated net negative impact on pretax profits for 2002 of reducing CLARITIN inventories held by U.S. wholesalers and chain pharmacies is expected to be, as previously estimated, approximately $250 million.
The applications filed with the FDA to switch CLARITIN to OTC status have a targeted action date of Nov. 28, 2002. Upon the expected approval of OTC CLARITIN, the company now anticipates that there will be a market transition period during which prescription activity at the patient level will continue. During this transition period, the company will seek to ensure that prescription CLARITIN will be available at the U.S. wholesaler, chain and retail pharmacy levels in order to satisfy the remaining demand. This is a different situation than the company had anticipated earlier in the year. Previously, the company had anticipated that wholesaler and chain pharmacy inventories of prescription CLARITIN would be fully depleted by the time OTC CLARITIN was approved.
The estimated net negative impact on pretax profits for 2002 of reducing CLARITIN inventories held by U.S. wholesalers and chain pharmacies remains as previously estimated at approximately $250 million. The estimate of the annual impact is unchanged from previous estimates because the positive effect of not having to fully deplete wholesaler and chain pharmacy inventories by the time of OTC approval has been offset by higher than previously estimated CLARITIN inventory levels being held by wholesalers and chain pharmacies. The majority of the negative pretax profit impact was realized in the third quarter (approximately $200 million).
WORLDWIDE PHARMACEUTICALS
In the 2002 third quarter, worldwide pharmaceutical sales totaled $2.1 billion, up 3 percent (up 1 percent when foreign exchange is excluded). Worldwide sales of CLARINEX (desloratadine), a once-daily nonsedating antihistamine, were $164 million. Sales of the CLARITIN family of nonsedating antihistamines declined 51 percent to $402 million. Third quarter 2002 worldwide sales of NASONEXÒ (mometasone furoate monohydrate) Nasal Spray, a once-daily nasal-inhaled steroid for allergies, increased 17 percent to $160 million. Sales of the INTRON franchise totaled $703 million, more than double the sales for the comparable 2001 period. The INTRON franchise includes the anticancer/antiviral agent INTRON A (interferon alfa-2b) Injection, as monotherapy and in combination with REBETOLÒ (ribavirin, USP) Capsules for treating hepatitis C; PEG-INTRONÒ (peginterferon alfa-2b) Powder for Injection, a longer-acting form of INTRON A, as monotherapy and in combination with REBETOL for treating hepatitis C; and REBETRONÒ Combination Therapy containing INTRON A and REBETOL.
Also contributing to higher third quarter worldwide sales were REMICADE (infliximab), for the treatment of rheumatoid arthritis and Crohn's disease, with sales of $92 million, more than double the sales for the comparable 2001 period; TEMODAR (temozolomide) Capsules, for treating certain types of brain tumors, with sales up 70 percent to $76 million; and INTEGRILIN (eptifibatide) Injection, a glycoprotein platelet aggregation inhibitor for the treatment of patients with acute coronary syndromes, up 31 percent to $77 million.
U.S. PHARMACEUTICALS
U.S. pharmaceutical sales in the 2002 third quarter totaled $1.2 billion, down 11 percent versus the 2001 period. In allergy/respiratory, third quarter 2002 U.S. sales of CLARINEX were $132 million. Launched in January 2002, CLARINEX is the first and only nonsedating antihistamine approved in the United States for the treatment of seasonal outdoor allergies and year-round indoor allergies. U.S. sales of the CLARITIN family were $303 million, down 58 percent due to a reduction in CLARITIN trade inventories held by U.S. wholesalers in anticipation of the launch of CLARITIN as an OTC product (see CLARITIN Trade Inventory Update above), the conversion of patients to CLARINEX and a decline in market share. Domestic sales of NASONEX increased 15 percent to $124 million in the 2002 third quarter due to the timing of product shipments and changes in trade inventory levels versus the comparable 2001 period. Sales of PROVENTIL®, including generic and other albuterol products, declined 75 per cent to $22 million due to changes in trade inventory levels versus the prior period.
In anti-infective/anticancer, U.S. sales of the INTRON franchise increased more than threefold from the comparable 2001 period to $426 million, benefiting from the October 2001 market introduction of PEG-INTRON in combination with REBETOL for hepatitis C, and sales of TEMODAR rose 80 percent to $42 million. As of early October 2002, the temporary wait list implemented under the PEG-INTRON Access Assurance Program has been cleared of patients and the wait list has been eliminated. The Access Assurance Program was established in October 2001, and will continue, to ensure that patients who begin treatment have uninterrupted access to a full course of PEG-INTRON therapy. In cardiovasculars, domestic sales of INTEGRILIN increased 36 percent to $72 million due to increased utilization. Sales of K-DUR® (potassium chloride USP), a sustained-release potassium supplement, declined sharply due to generic competition.
INTERNATIONAL PHARMACEUTICALS
International pharmaceutical sales in the 2002 third quarter increased 26 percent to $984 million (up 19 percent excluding foreign exchange). In allergy/respiratory, international sales of CLARINEX were $32 million. Sales of the CLARITIN family were $99 million, benefiting from the September 2002 launch of the product in Japan tempered by conversion to CLARINEX in other international markets. Sales of NASONEX totaled $36 million, up 24 percent due to market share gains.
In anti-infective/anticancer, sales of the INTRON franchise totaled $277 million, up 61 percent versus the comparable 2001 period. The increase in sales was due to growth in European markets of PEG-INTRON in combination with REBETOL for hepatitis C, launched in March 2001, and the December 2001 introduction in Japan of INTRON A in combination with REBETOL for hepatitis C. Also contributing to higher third quarter 2002 international sales were REMICADE, with sales of $92 million, more than double the sales for the comparable 2001 period, and TEMODAR, with sales of $34 million, up 60 percent, both up due to increased market penetration.
OTHER SALES
Third quarter 2002 sales of animal health products decreased 4 percent to $162 million (down 7 percent excluding foreign exchange), due to market conditions for swine products in the United States coupled
with weakness in certain international markets. Sales of Schering-Plough's foot care products in the 2002 third quarter were $65 million, down 16 percent due to increased competition, tempered by the launch of LOTRIMIN® ULTRA™ (butenafine hydrochloride), an antifungal product. Third quarter sales of OTC products decreased 5 percent to $40 million versus the comparable 2001 period, due to
manufacturing issues. Third quarter 2002 sales of sun care products totaled $14 million and were higher versus the 2001 period.
COSTS AND EXPENSES
Cost of sales as a percentage of sales increased to 26.6 percent in the 2002 third quarter compared with 20.4 percent in the 2001 period, primarily due to higher sales of products on which royalties are paid and higher manufacturing costs. Selling, general and administrative expenses in the 2002 third quarter increased 5 percent to $870 million and represented 35.9 percent of sales, with the increase primarily due to higher spending to support the continued launch of new and recently introduced products, particularly in key international markets. Research and development spending increased 14 percent to $354 million in the 2002 third quarter. Research and development spending reflects the company's continued expenditures on both internal research efforts and research collaborations with various partners to discover and develop a steady flow of innovative products. The effective tax rate was 23.0 percent in the third quarter.
2002 FIRST NINE MONTHS
Diluted earnings per share for the 2002 first nine months decreased 7 percent to $1.13 on net income of $1.7 billion versus $1.22 on net income of $1.8 billion in 2001. Sales in the first nine months totaled $7.8 billion, up 7 percent. Foreign exchange had no impact on first nine months' sales comparisons.
Worldwide pharmaceutical sales in the 2002 first nine months increased 9 percent to $6.8 billion. Foreign exchange had no impact on 2002 first nine months' sales for worldwide pharmaceuticals.
Sales of domestic pharmaceuticals totaled $3.9 billion, up 2 percent versus the 2001 first nine months. Higher sales were recorded for the INTRON franchise and CLARINEX, tempered by lower sales of CLARITIN, K-DUR and dermatologicals.
International pharmaceutical sales for the period rose 20 percent and totaled $2.9 billion. Foreign exchange had no impact on sales for the 2002 first nine months. Higher sales were led by the
INTRON franchise, REMICADE, TEMODAR and CLARINEX.
Sales of animal health products decreased 2 percent in the 2002 first nine months, with foreign exchange having no impact on sales for the period. Sales of Schering-Plough's foot care products, sun care products and OTC products were lower compared with the 2001 period.
Cost of sales as a percentage of sales increased to 24.3 percent in the first nine months of 2002 compared with 20.4 percent in the 2001 period, primarily due to higher sales of products on which royalties are paid and higher manufacturing costs. Selling, general and administrative expenses in the first nine months of 2002 increased 6 percent to $2.8 billion and represented 35.6 percent of sales, with
the increase primarily due to higher spending to support the continued launch of new and recently introduced products. Research and development spending increased 9 percent to $1.0 billion in the 2002 first nine months. Research and development spending reflects the company's continued expenditures on both internal research efforts and research collaborations with various partners to discover and develop a steady flow of innovative products. The effective tax rate was 23.0 percent in the first nine months. DISCLOSURE NOTICE: The information in this press release includes certain "forward-looking" statements relating to the company's projected earnings for the full years 2002, 2003, 2004 and 2005 and the company's business prospects. The ability of the company to achieve the projected earnings and the market viability of the company's marketed and pipeline products are subject to substantial risks and uncertainties. Further, there are no assurances that NDAs or foreign equivalents for the pipeline products will be filed with the FDA or its foreign counterparts, or that, if such applications are filed, they will be approved. The reader of this release should also understand that the forward-looking statements may also be adversely affected by general market and economic factors, competitive product development, market acceptance of new products, product availability, current and future branded, generic or OTC competition, federal and state regulations and legislation, the regulatory process for new products and indications, existing and new manufacturing issues that may arise, trade buying patterns, patent positions, litigation and investigations, and the elimination of trade inventories in a manner different than the company expected. For further details and a discussion of these and other risks and uncertainties, see the company's Securities and Exchange Commission filings, including the company's 2001 annual report on Form 10-K and subsequent quarterly reports on Form 10-Q and current reports on F orm 8-K.
Schering-Plough is a research-based company engaged in the discovery, development, manufacturing and marketing of pharmaceutical products worldwide.
SCHERING-PLOUGH CORPORATION
Report for the third quarter and nine months ended September 30 (unaudited):
(Amounts in millions, except per share figures)
Third Quarter |
Nine Months |
||||||
2002 |
2001 |
% |
2002 |
2001 |
% |
||
Net Sales |
$2,421 |
$2,377 |
2 |
$7,810 |
$7,301 |
7 |
|
Costs and Expenses: |
|||||||
Cost of Sales |
644 |
486 |
33 |
1,898 |
1,490 |
27 |
|
Selling, General and Administrative |
870 |
830 |
5 |
2,784 |
2,624 |
6 |
|
Research and Development |
354 |
310 |
14 |
1,017 |
934 |
9 |
|
Other, Net |
(4) |
(30) |
83 |
(47) |
(84) |
45 |
|
1,864 |
1,596 |
17 |
5,652 |
4,964 |
14 |
||
Income Before Income Taxes |
557 |
781 |
(29) |
2,158 |
2,337 |
(8) |
|
Income Taxes |
128 |
180 |
(29) |
496 |
537 |
(8) |
|
Net Income |
$ 429 |
$ 601 |
(29) |
$1,662 |
$1,800 |
(8) |
|
Diluted Earnings per |
|||||||
Common Share |
$ 0.29 |
$ 0.41 |
(29) |
$ 1.13 |
$ 1.22 |
(7) |
|
Effective Tax Rate |
23.0% |
23.0% |
23.0% |
23.0% |
|||
Average Common Shares |
|||||||
Outstanding - Diluted |
1,469 |
1,470 |
1,470 |
1,470 |
|||
Actual Number of Common Shares |
|||||||
Outstanding at September 30 |
1,467 |
1,464 |
1,467 |
1,464 |
Exchange had no impact on diluted earnings per share for the third quarter. Excluding exchange, diluted earnings per share for the first nine months of 2002 decreased 8 percent.
The Emerging Issues Task Force (EITF) issued EITF Issue No. 00-25, "Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products," which addresses the income statement classification of certain sales incentives given to customers. The Company adopted EITF Issue No. 00-25 in the first quarter of 2002 and, therefore, has classified the cost of these sales incentives as a reduction of Net Sales. All prior periods are presented on a comparable basis. The adoption of EITF Issue No. 00-25 has no effect on Net Income.
SCHERING-PLOUGH CORPORATION
Report for the third quarter and nine months ended September 30 (unaudited):
Net Sales by Major Product:
(Dollars in Millions) |
Third Quarter |
Nine Months |
|||||
2002 |
2001 |
% |
2002 |
2001 |
% |
||
ALLERGY & RESPIRATORY |
$805 |
$1,121 |
(28) |
$2,966 |
$3,293 |
(10) |
|
Clarinex* |
164 |
* |
N/M |
422 |
* |
N/M |
|
Claritin |
402 |
828 |
(51) |
1,853 |
2,471 |
(25) |
|
Nasonex |
160 |
136 |
17 |
398 |
411 |
(3) |
|
Proventil |
22 |
88 |
(75) |
111 |
194 |
(43) |
|
ANTI-INFECTIVE & ANTICANCER |
957 |
496 |
93 |
2,645 |
1,531 |
73 |
|
Intron franchise** |
703 |
301 |
N/M |
1,919 |
942 |
N/M |
|
Remicade |
92 |
42 |
N/M |
228 |
105 |
N/M |
|
Temodar |
76 |
45 |
70 |
209 |
132 |
59 |
|
|
|||||||
CARDIOVASCULARS |
99 |
160 |
(38) |
331 |
457 |
(28) |
|
Integrilin |
77 |
59 |
31 |
223 |
164 |
36 |
|
K-Dur |
(2) |
59 |
N/M |
23 |
153 |
(85) |
|
Nitro-Dur |
17 |
30 |
(43) |
62 |
85 |
(27) |
|
DERMATOLOGICALS |
121 |
150 |
(19) |
353 |
468 |
(25) |
|
OTHER PHARMACEUTICALS |
158 |
150 |
5 |
526 |
502 |
5 |
|
WORLDWIDE PHARMACEUTICALS |
2,140 |
2,077 |
3 |
6,821 |
6,251 |
9 |
|
ANIMAL HEALTH |
162 |
169 |
(4) |
483 |
493 |
(2) |
|
FOOT CARE |
65 |
77 |
(16) |
225 |
246 |
(9) |
|
OTC |
40 |
42 |
(5) |
119 |
135 |
(12) |
|
SUN CARE |
14 |
12 |
17 |
162 |
176 |
(8) |
|
CONSOLIDATED NET SALES |
$2,421 |
$2,377 |
2 |
$7,810 |
$7,301 |
7 |
|
N/M - not a meaningful percentage
Certain amounts in prior periods have been reclassified from Selling, General and Administrative expenses to Net Sales to comply with EITF Issue No. 00-25, "Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products." See note on prior page.
*In 2001, sales of CLARINEX, launched in international markets only, are included in CLARITIN.
**The Intron franchise includes INTRON A, PEG-INTRON (monotherapy for treating hepatitis C and in combination with REBETOL), and REBETRON Combination Therapy.
NOTE: Additional information about U.S. and international sales for specific products is available by calling the company or visiting the corporate Web site on the world wide web at schering-plough.com.
Schering-Plough Corporation | ||||||||||||||||
Statements of Consolidated Income | ||||||||||||||||
(Dollars in Millions, except EPS) | ||||||||||||||||
2002 | 2001 | |||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | 3rd Qtr. | 9 Mos. | |||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | vs | vs | |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 3rd Qtr. | 9 Mos. | |
Net Sales | 2,556 | 2,833 | 5,389 | 2,421 | 7,810 | 2,306 | 2,618 | 4,924 | 2,377 | 7,301 | 2,461 | 9,762 | 2% | 7% | ||
Cost of Sales | 579 | 675 | 1,254 | 644 | 1,898 | 470 | 535 | 1,005 | 486 | 1,490 | 588 | 2,078 | 33% | 27% | ||
Gross Margin | 1,977 | 2,158 | 4,135 | 1,777 | 5,912 | 1,836 | 2,083 | 3,919 | 1,891 | 5,811 | 1,873 | 7,684 | (6%) | 2% | ||
Total SG&A | 919 | 995 | 1,914 | 870 | 2,784 | 839 | 955 | 1,794 | 830 | 2,624 | 820 | 3,444 | 5% | 6% | ||
Research & Development | 305 | 357 | 662 | 354 | 1,017 | 289 | 334 | 624 | 310 | 934 | 378 | 1,312 | 14% | 9% | ||
Other, Net* | (26) | (16) | (41) | (4) | (47) | (25) | (29) | (55) | (30) | (84) | 489 | 405 | 83% | 45% | ||
Income before Income Taxes | 779 | 822 | 1,600 | 557 | 2,158 | 733 | 823 | 1,556 | 781 | 2,337 | 186 | 2,523 | (29%) | (8%) | ||
Income Taxes | 179 | 189 | 368 | 128 | 496 | 169 | 189 | 358 | 180 | 537 | 43 | 580 | (29%) | (8%) | ||
Net Income | 600 | 633 | 1,232 | 429 | 1,662 | 564 | 634 | 1,198 | 601 | 1,800 | 143 | 1,943 | (29%) | (8%) | ||
Diluted Earnings per Common Share** | 0.41 | 0.43 | 0.84 | 0.29 | 1.13 | 0.38 | 0.43 | 0.81 | 0.41 | 1.22 | 0.10 | 1.32 | (29%) | (7%) | ||
Avg. Shares Outstanding- Diluted | 1,471 | 1,470 | 1,470 | 1,469 | 1,470 | 1,472 | 1,470 | 1,471 | 1,470 | 1,470 | 1,470 | 1,470 | ||||
Actual Shares Outstanding | 1,466 | 1,466 | 1,466 | 1,467 | 1,467 | 1,463 | 1,463 | 1,463 | 1,464 | 1,464 | 1,465 | 1,465 | ||||
Ratios To Net Sales | ||||||||||||||||
Net Sales | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||
Cost of Sales | 22.6% | 23.8% | 23.3% | 26.6% | 24.3% | 20.4% | 20.4% | 20.4% | 20.4% | 20.4% | 23.9% | 21.3% | ||||
Gross Margin | 77.4% | 76.2% | 76.7% | 73.4% | 75.7% | 79.6% | 79.6% | 79.6% | 79.6% | 79.6% | 76.1% | 78.7% | ||||
Total SG&A | 35.9% | 35.1% | 35.5% | 35.9% | 35.6% | 36.4% | 36.5% | 36.4% | 34.9% | 35.9% | 33.3% | 35.3% | ||||
Research & Development | 11.9% | 12.6% | 12.3% | 14.6% | 13.0% | 12.5% | 12.8% | 12.7% | 13.1% | 12.8% | 15.4% | 13.4% | ||||
Income Before Income Taxes | 30.5% | 29.0% | 29.7% | 23.0% | 27.6% | 31.8% | 31.4% | 31.6% | 32.8% | 32.0% | 7.6% | 25.8% | ||||
Income Taxes | 7.0% | 6.7% | 6.8% | 5.3% | 6.4% | 7.3% | 7.2% | 7.3% | 7.6% | 7.4% | 1.8% | 5.9% | ||||
Net Income | 23.5% | 22.3% | 22.9% | 17.7% | 21.3% | 24.5% | 24.2% | 24.3% | 25.3% | 24.6% | 5.8% | 19.9% | ||||
* 4th quarter and year-to-date 2001 includes a $500 million provision for a consent decree payment. | ||||||||||||||||
** Excluding the provision for a consent decree, diluted EPS declined 8% to $.36 for fourth quarter 2001 and declined 4% to $1.58 for full-year 2001. | ||||||||||||||||
Notes: Certain amounts in prior periods have been reclassified from Selling, General and Administrative expenses to Net Sales to comply with EITF No. 00-25, "Vendor Income | ||||||||||||||||
Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products." | ||||||||||||||||
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | ||||||||||||||||
SCHERING-PLOUGH CORPORATION | ||||||||||||||||
ALLERGY/RESPIRATORY PRODUCT SALES | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
2002 | 2001 | |||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | 3rd Qtr. | 9 Mos. | |||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | vs | vs | |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 3rd Qtr. | 9 Mos. | |
U.S: | 805 | 899 | 1,703 | 579 | 2,282 | 719 | 1,006 | 1,725 | 937 | 2,662 | 725 | 3,387 | (38%) | (14%) | ||
Clarinex | 70 | 137 | 207 | 132 | 340 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/M | N/M | ||
Claritin | 392 | 479 | 871 | 243 | 1,114 | 504 | 514 | 1,018 | 432 | 1,449 | 499 | 1,948 | (44%) | (23%) | ||
Claritin D | 173 | 198 | 371 | 60 | 431 | 106 | 268 | 375 | 297 | 671 | 96 | 768 | (80%) | (36%) | ||
Total Claritin Family | 565 | 677 | 1,242 | 303 | 1,545 | 610 | 782 | 1,393 | 728 | 2,121 | 595 | 2,716 | (58%) | (27%) | ||
Nasonex | 101 | 54 | 155 | 124 | 279 | 63 | 145 | 208 | 107 | 316 | 75 | 391 | 15% | (12%) | ||
Proventil | 59 | 30 | 89 | 22 | 111 | 40 | 66 | 106 | 88 | 194 | 36 | 230 | (75%) | (43%) | ||
Other | 10 | 1 | 10 | (2) | 7 | 6 | 13 | 18 | 14 | 31 | 19 | 50 | N/M | (77%) | ||
International: | 209 | 249 | 458 | 226 | 684 | 208 | 239 | 447 | 184 | 631 | 199 | 830 | 23% | 8% | ||
Clarinex * | 14 | 36 | 50 | 32 | 82 | * | * | * | * | * | * | * | N/M | N/M | ||
Claritin | 64 | 90 | 154 | 77 | 231 | 79 | 119 | 198 | 77 | 275 | 61 | 336 | 1% | (16%) | ||
Claritin D | 30 | 25 | 55 | 22 | 77 | 28 | 24 | 52 | 23 | 75 | 32 | 107 | (4%) | 3% | ||
Total Claritin Family | 94 | 115 | 209 | 99 | 308 | 108 | 143 | 250 | 99 | 350 | 93 | 443 | - | (12%) | ||
Nasonex | 37 | 47 | 83 | 36 | 119 | 29 | 37 | 66 | 29 | 95 | 39 | 134 | 24% | 26% | ||
Other | 64 | 51 | 116 | 59 | 175 | 71 | 59 | 131 | 56 | 186 | 67 | 253 | 5% | (6%) | ||
Total: | 1,014 | 1,147 | 2,161 | 805 | 2,966 | 927 | 1,244 | 2,171 | 1,121 | 3,293 | 924 | 4,217 | (28%) | (10%) | ||
Clarinex * | 85 | 173 | 258 | 164 | 422 | * | * | * | * | * | * | * | N/M | N/M | ||
Claritin | 456 | 568 | 1,025 | 321 | 1,346 | 583 | 633 | 1,216 | 508 | 1,725 | 560 | 2,285 | (37%) | (22%) | ||
Claritin D | 203 | 223 | 426 | 82 | 508 | 135 | 292 | 427 | 319 | 746 | 128 | 875 | (74%) | (32%) | ||
Total Claritin Family | 659 | 792 | 1,451 | 402 | 1,853 | 718 | 925 | 1,643 | 828 | 2,471 | 688 | 3,159 | (51%) | (25%) | ||
Nasonex | 138 | 101 | 238 | 160 | 398 | 92 | 183 | 274 | 136 | 411 | 114 | 524 | 17% | (3%) | ||
Proventil | 59 | 30 | 89 | 22 | 111 | 40 | 66 | 106 | 88 | 194 | 36 | 230 | (75%) | (43%) | ||
Other | 73 | 51 | 125 | 57 | 182 | 77 | 70 | 148 | 69 | 217 | 86 | 304 | (17%) | (16%) | ||
* International sales of CLARINEX were included in CLARITIN sales in 2001. | ||||||||||||||||
Notes: All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | ||||||||||||||||
SCHERING-PLOUGH CORPORATION | ||||||||||||||||
ANTI-INFECTIVE/ANTICANCER PRODUCT SALES | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
2002 | 2001 | |||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | 3rd Qtr. | 9 Mos. | |||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | vs | vs | |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 3rd Qtr. | 9 Mos. | |
U.S.: | 411 | 420 | 830 | 472 | 1,302 | 251 | 194 | 445 | 177 | 622 | 334 | 956 | N/M | N/M | ||
Intron franchise* | 342 | 377 | 719 | 426 | 1,145 | 187 | 147 | 334 | 129 | 463 | 287 | 750 | N/M | N/M | ||
Temodar | 34 | 47 | 80 | 42 | 122 | 26 | 26 | 51 | 23 | 75 | 24 | 99 | 80% | 63% | ||
Other | 35 | (4) | 31 | 4 | 35 | 38 | 21 | 60 | 25 | 84 | 23 | 107 | (84%) | (58%) | ||
International: | 387 | 471 | 858 | 485 | 1,343 | 274 | 316 | 590 | 319 | 909 | 409 | 1,317 | 52% | 48% | ||
Intron franchise* | 215 | 282 | 497 | 277 | 774 | 139 | 169 | 307 | 172 | 479 | 218 | 697 | 61% | 62% | ||
Remicade | 60 | 76 | 137 | 92 | 228 | 27 | 36 | 63 | 42 | 105 | 61 | 166 | N/M | N/M | ||
Temodar | 25 | 28 | 53 | 34 | 87 | 17 | 18 | 35 | 21 | 57 | 25 | 82 | 60% | 54% | ||
Other | 87 | 85 | 171 | 82 | 254 | 91 | 93 | 185 | 84 | 268 | 105 | 372 | (2%) | (5%) | ||
Total: | 797 | 891 | 1,688 | 957 | 2,645 | 525 | 510 | 1,035 | 496 | 1,531 | 742 | 2,273 | 93% | 73% | ||
Intron franchise* | 556 | 659 | 1,216 | 703 | 1,919 | 326 | 315 | 641 | 301 | 942 | 504 | 1,447 | N/M | N/M | ||
Remicade | 60 | 76 | 137 | 92 | 228 | 27 | 36 | 63 | 42 | 105 | 61 | 166 | N/M | N/M | ||
Temodar | 59 | 74 | 133 | 76 | 209 | 43 | 44 | 87 | 45 | 132 | 49 | 180 | 70% | 59% | ||
Other | 122 | 82 | 202 | 86 | 289 | 129 | 115 | 244 | 108 | 352 | 128 | 480 | (20%) | (18%) | ||
* The INTRON franchise consists of INTRON A, PEG-INTRON (monotherapy and in combination with REBETOL), and REBETRON Combination Therapy. | ||||||||||||||||
Notes: All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | ||||||||||||||||
SCHERING-PLOUGH CORPORATION | ||||||||||||||||
CARDIOVASCULAR PRODUCT SALES | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
2002 | 2001 | |||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | 3rd Qtr. | 9 Mos. | |||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | vs | vs | |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 3rd Qtr. | 9 Mos. | |
U.S.: | 95 | 89 | 184 | 74 | 258 | 142 | 109 | 251 | 133 | 384 | 134 | 519 | (45%) | (33%) | ||
Integrilin | 62 | 71 | 134 | 72 | 206 | 34 | 61 | 95 | 53 | 148 | 60 | 208 | 36% | 39% | ||
K-Dur | 19 | 5 | 24 | (2) | 21 | 74 | 19 | 92 | 59 | 151 | 62 | 213 | N/M | (86%) | ||
Nitro-Dur | 10 | 6 | 16 | 1 | 17 | 12 | 13 | 25 | 12 | 37 | 8 | 45 | (89%) | (54%) | ||
Other | 4 | 7 | 10 | 3 | 14 | 22 | 16 | 39 | 9 | 48 | 4 | 53 | (67%) | (71%) | ||
International: | 22 | 26 | 48 | 26 | 74 | 22 | 25 | 46 | 27 | 73 | 32 | 105 | (4%) | 1% | ||
Integrilin | 6 | 6 | 12 | 5 | 17 | 4 | 6 | 10 | 6 | 16 | 7 | 23 | (19%) | 5% | ||
K-Dur | - | 1 | 1 | 1 | 2 | 1 | 1 | 1 | - | 2 | - | 2 | 38% | (12%) | ||
Nitro-Dur | 13 | 16 | 29 | 16 | 45 | 14 | 16 | 31 | 18 | 49 | 20 | 69 | (13%) | (7%) | ||
Other | 3 | 3 | 6 | 4 | 10 | 3 | 2 | 4 | 3 | 6 | 5 | 11 | 33% | 67% | ||
Total: | 117 | 115 | 232 | 99 | 331 | 164 | 134 | 297 | 160 | 457 | 166 | 623 | (38%) | (28%) | ||
Integrilin | 68 | 78 | 146 | 77 | 223 | 38 | 67 | 105 | 59 | 164 | 67 | 231 | 31% | 36% | ||
K-Dur | 20 | 5 | 25 | (2) | 23 | 74 | 19 | 94 | 59 | 153 | 63 | 216 | N/M | (85%) | ||
Nitro-Dur | 23 | 22 | 45 | 17 | 62 | 26 | 29 | 55 | 30 | 85 | 28 | 113 | (43%) | (27%) | ||
Other | 6 | 10 | 16 | 7 | 23 | 26 | 19 | 43 | 12 | 55 | 8 | 63 | (42%) | (58%) | ||
Notes: All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | ||||||||||||||||
SCHERING-PLOUGH CORPORATION | ||||||||||||||||
DERMATOLOGICALS, OTHER PHARMACEUTICAL, TOTAL PHARMACEUTICAL | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
2002 | 2001 | |||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | 3rd Qtr. | 9 Mos. | |||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | vs | vs | |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 3rd Qtr. | 9 Mos. | |
U.S. | 32 | 20 | 52 | 27 | 79 | 52 | 82 | 133 | 57 | 190 | 23 | 214 | (53%) | (59%) | ||
International | 88 | 92 | 180 | 94 | 274 | 90 | 95 | 185 | 93 | 278 | 102 | 380 | 2% | (1%) | ||
Dermatologicals: | 120 | 112 | 232 | 121 | 353 | 142 | 176 | 318 | 150 | 468 | 126 | 593 | (19%) | (25%) | ||
Other Pharm: | 159 | 209 | 368 | 158 | 526 | 190 | 163 | 354 | 150 | 502 | 153 | 656 | 5% | 5% | ||
U.S. | 1,337 | 1,441 | 2,778 | 1,156 | 3,934 | 1,166 | 1,394 | 2,560 | 1,294 | 3,854 | 1,222 | 5,076 | (11%) | 2% | ||
International | 870 | 1,033 | 1,903 | 984 | 2,887 | 782 | 833 | 1,615 | 783 | 2,397 | 889 | 3,286 | 26% | 20% | ||
Total Pharm: | 2,207 | 2,474 | 4,681 | 2,140 | 6,821 | 1,948 | 2,227 | 4,175 | 2,077 | 6,251 | 2,111 | 8,362 | 3% | 9% | ||
Notes: Excluding exchange, international pharmaceutical sales increased 19 percent for the third quarter of 2002. Exchange had no impact on international pharmaceutical | ||||||||||||||||
sales for the first nine months of 2002. | ||||||||||||||||
Certain amounts in prior periods have been reclassified from Selling, General and Administrative expenses to Net Sales to comply with EITF No. 00-25, "Vendor | ||||||||||||||||
Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products." | ||||||||||||||||
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | ||||||||||||||||
SCHERING-PLOUGH CORPORATION | ||||||||||||||||
ANIMAL HEALTH, OTC, FOOT CARE, SUN CARE & CONSOLIDATED SALES | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
2002 | 2001 | |||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | 3rd Qtr. | 9 Mos. | |||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | vs | vs | |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | 3rd Qtr. | 9 Mos. | |
U.S. | 57 | 49 | 106 | 59 | 165 | 54 | 58 | 112 | 60 | 172 | 78 | 250 | (1%) | (4%) | ||
International | 94 | 122 | 215 | 103 | 318 | 99 | 112 | 212 | 110 | 321 | 123 | 444 | (6%) | (1%) | ||
Animal Health: | 150 | 171 | 321 | 162 | 483 | 153 | 170 | 323 | 169 | 493 | 201 | 694 | (4%) | (2%) | ||
Foot Care: | 76 | 83 | 160 | 65 | 225 | 76 | 93 | 169 | 77 | 246 | 64 | 310 | (16%) | (9%) | ||
OTC: | 41 | 39 | 79 | 40 | 119 | 53 | 40 | 93 | 42 | 135 | 53 | 188 | (5%) | (12%) | ||
Sun Care: | 82 | 66 | 148 | 14 | 162 | 76 | 88 | 164 | 12 | 176 | 31 | 207 | 17% | (8%) | ||
U.S. | 1,577 | 1,659 | 3,236 | 1,324 | 4,560 | 1,411 | 1,648 | 3,059 | 1,472 | 4,531 | 1,442 | 5,973 | (10%) | 1% | ||
International | 979 | 1,175 | 2,153 | 1,096 | 3,250 | 895 | 970 | 1,865 | 905 | 2,770 | 1,019 | 3,789 | 21% | 17% | ||
Total Consolidated: | 2,556 | 2,833 | 5,389 | 2,421 | 7,810 | 2,306 | 2,618 | 4,924 | 2,377 | 7,301 | 2,461 | 9,762 | 2% | 7% | ||
Notes: Excluding exchange, consolidated sales decreased 1 percent for the third quarter of 2002. Exchange had no impact on consolidated sales for the first nine months of 2002. | ||||||||||||||||
Certain amounts in prior periods have been reclassified from Selling, General and Administrative expenses to Net Sales to comply with EITF No. 00-25, "Vendor Income | ||||||||||||||||
Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products." | ||||||||||||||||
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | ||||||||||||||||
MISCELLANEOUS DATA | |||||||||||||||
(Dollars in Millions) | |||||||||||||||
2002 | 2001 | ||||||||||||||
1st | 2nd | 6 | 3rd | 9 | 4th | 1st | 2nd | 6 | 3rd | 9 | 4th | ||||
Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | Qtr. | Qtr. | Mos. | Qtr. | Mos. | Qtr. | Year | ||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||
Consolidated Sales | |||||||||||||||
Growth Rates: | |||||||||||||||
As Reported | 11% | 8% | 9% | 2% | 7% | (3%) | - % | (1%) | - % | (1%) | 2% | - % | |||
Excluding Exchange | 13% | 8% | 10% | (1%) | 7% | (1%) | (3%) | 1% | 2% | 1% | 3% | 2% | |||
Other, Net | |||||||||||||||
Interest Income | $17 | $18 | $35 | $18 | $53 | $38 | $32 | $70 | $29 | $99 | $22 | $121 | |||
Interest Expense | (5) | (12) | (17) | (4) | (21) | (11) | (12) | (22) | (8) | (30) | (10) | (40) | |||
FX Gains/(Losses) | 2 | 2 | 4 | (1) | 4 | (6) | 2 | (4) | (3) | (7) | 4 | (4) | |||
Other Income/(Expense)* | 12 | 8 | 19 | (9) | 11 | 4 | 7 | 11 | 12 | 22 | (505) | (482) | |||
Total - Other, Net | $26 | $16 | $41 | $4 | $47 | $25 | $29 | $55 | $30 | $84 | ($489) | ($405) | |||
Effective Tax Rate | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | 23.0% | |||
* 4th quarter and year-to-date 2001 includes a $500 million provision for a consent decree payment. | |||||||||||||||
Excluding the provision for a consent decree, diluted EPS declined 8% to $.36 for fourth quarter 2001 and declined 4% to $1.58 for full-year 2001. | |||||||||||||||
Notes: Certain amounts in prior periods have been reclassified from Selling, General and Administrative expenses to Net Sales to comply with EITF No. 00-25, | |||||||||||||||
"Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products." | |||||||||||||||
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. | |||||||||||||||
3rd Quarter 2002 | 9 Mos. 2002 | ||||||||||||||
Actual Shares Outstanding | Actual Shares Outstanding | 3rd Quarter Highlights | |||||||||||||
As of 6/30/02 | 1,466,350,959 | As of 12/31/01 | 1,465,399,110 | - Japanese approval of CLARITIN | |||||||||||
Shares Issued | Shares Issued | - EU launch of PEG-INTRON Pre-Filled Pen | |||||||||||||
Employee Stock Programm | 163,933 | Employee Stock Programs | 1,115,782 | ||||||||||||
- Bristol-Myers Squibb ro reacquire U.S. | |||||||||||||||
Shares Repurchased | 0 | Shares Repurchased | 0 | co-promotion rights for TEQUIN | |||||||||||
As of 9/30/02 | 1,466,514,892 | As of 9/30/02 | 1,466,514,892 | ||||||||||||