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$19.79 0.32 (1.64%)
7/3/2008 1:02 PM

Schering-Plough Corp (SGP)

CAPS Rating:
****

The Company discovers, develops, manufactures and markets medical therapies and treatments to enhance human health.

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Avatar NetscribePhrmtcl (91.40) Submitted: 12/14/06 9:03 AM : Outperform Start Price: $22.94 SGP Score: -2.77

Schering-Plough Corporation operates in three segments: Prescription Pharmaceuticals, Consumer Health Care, and Animal Health in the U.S., Europe, and Asia.

The company is on a high following several FDA approvals for its investigational drugs. Recently, the company’s investigational drug called Noxafil was approved by the FDA and European Commission for the treatment of invasive fungal infections (IFIs). Considering the fact that IFIs are common among people who have impaired immune system, and is a leading cause of death in high-risk populations, this approval comes as a vital achievement for the company.

Moreover, the European Commission has also approved Noxafil for the treatment of Oropharyngeal Candidiasis (OPC). To add to the success story, the company also received marketing approval for its investigational drug, Suboxone, for the treatment of Opioid dependence from the European Commission on October 6, 2006.

The company continues to show strong growth in its top line in the third quarter of 2006 primarily driven by potential blockbuster drugs like Remicade for the treatment of rheumatoid arthritis (RA) and Nasonex for nasal allergy. In 2006, Remicade received the European Commission’s approval to be used as second line of therapy on patients with Crohn’s disease. In view of the potential market for RA and multiple treatments approved for the drug Remicade, it is expected to display strong performance from the company’s leading drug in 2007. One concern for the company’s second largest selling drug Nasonex is the fact that its growth in future could to be affected by the launch of generic Flonase, an allergy nasal spray marketed by GlaxoSmithKline.

Nevertheless, with expected drug launches, rich pipeline, and continued growth of the existing drugs, the company’s stock would see a northward trend in 2007.

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Avatar OneRona (91.24) Submitted: 2/12/07 11:00 AM

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A very helpful report and slowly the facts are showing up, which may help SGP to
move further away from it's long term base.

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Avatar NetscribePhrmtcl (91.40) Submitted: 5/31/07 7:50 AM

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Fiscal 2006 had been a year of good performance for Schering-Plough and 2007 has started with a series of new plans. High growth prescription pharmaceuticals segment accounted for about 81% of total sales, consumer health care products for 11%, and animal health items for 8% in fiscal 2006.

On March 12, 2007 the company announced the acquisition of Organon BioSciences for $14.4 billion; the deal is expected to close by the end of fiscal 2007. The deal makes strategic sense given additional operating leverage, strengthened animal health business, enlarged biologics production competence and superior late-stage pipeline involving five Phase III products.

Thanks to the joint venture with Merck, Schering-Plough shares in the flourishing profits of two cholesterol-lowering drugs. These are Zetia, discovered by Schering-Plough, a novel lipid-lowering agent; and Vytorin, a combination of Zetia with Merck's Zocor statin cholesterol agent, generating nearly $4 billion in sales. Vytorin accounts for 10% of cholesterol drug prescriptions, and Zetia has 8% in the US.

Recently on March 26, 2007 Merck and Schering-Plough also announced that they will develop a single pill that combines their Zetia cholesterol drug with Pfizer's Lipitor, the world's top- selling cholesterol lowering medicine, only after the Lipitor patent expires in 2010. Clinical tests have shown that Lipitor & Zetia together lower cholesterol by 55%-63% compared to 37%-52% of Lipitor alone. This will give a boost to Schering-Plough’s competence in the $22 billion US cholesterol lowering pills market.

Schering-Plough’s revenues in fiscal 2006 witnessed an 11% growth at $10.6 billion. Net Income in 2006 was $1.1 billion, as compared to $183 million in 2005. Increased sales of pharmaceutical products such as PEG-Intron, Remicade, Nasonex and Clarinex contributed favorably to overall operating results. Given the inherent product strength, a strategic acquisition, consistently escalating sales and an aggressive drug development plan, the company appears to be a compelling investment opportunity.

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Avatar StudioBytes (31.10) Submitted: 10/03/07 2:09 PM

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They are also in one announce and one (soon to be or by now already announced) joint venture with MRK. They are the second on one of the ventures and they are Heading up the other. I recommend looking into what they are doing, very interesting possibility's for growth from both ventures.

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