Schering-Plough has incurred a net loss of US 1,591 million during the year ended December 2007 as compared to a net profit of $1,057 million mainly on account of on going integration of Organon BioSciences N.V. (OBS), including the Organon human health business and Intervet animal health business. The company included $3,838 million as acquisition expenses of OBS during 2007.The net sales increased by 19.8 per cent to $12,690 million from $10,594 million in the previous year. The net sales included $626 million of OBS subsequent to the acquisition during November 2007.
Fred Hassan, chairman and CEO, said, "We continued the remarkable transformation that began in 2003. on track with our action agenda, we grew the top line, built greater diversity in our business portfolio, improved our financial strength and cash flows, and established R&D as an engine for future growth. Our acquisition of OBS was a substantial strategic achievement. Today, we are a much stronger and more diverse company than ever before, and we are better positioned to deal with the new challenges confronting us in 2008."
"Schering-Plough now has four full years of accomplishments since we began this transformation." said Hassan. "As we begin 2008, new challenges have emerged, especially the initial reaction to the enhance trial. We and our joint venture partner Merck acted with integrity and good faith with respect to that trial. We stand behind Vytorin and Zetia, behind the validity of the science, and behind our commitment to doing what's right for patients and physicians."
The company's pharmaceutical sales increased by 19 per cent to $10,173 million from $8,561 million and that of Consumer Health Care division increased by 13 per cent to $1,266 million. Its leading brand Remicade generated sales of $1,648 million during 2007 as compared to $1,240 million, a growth of 33 per cent. Similarly, sales of Nasonex and Pegintron went up by 16 per cent and 9 per cent to $1,092 million and $911 million respectively.
The sales of Animal Health division went up sharply by 37 per cent to $ 1,251 million from $910 million. Selling, general and administrative expenses 15.9 per cent to $5,468 million during the year ended December 2007 from $4,718 million in the previous year. Its R&D expenditure increased by 33.7 per cent to $2,926 million from $2,188 million.