Schering-Plough Corporation has reported decline in net sales for the 2009 first quarter to $4.4 billion, down 6 per cent as compared to the first quarter of 2008, reflecting 4 per cent operational growth and an unfavourable impact from foreign exchange of 10 per cent. Net sales of the global cholesterol joint venture, which include Vytorin and Zetia, totalled $931 million in the 2009 first quarter. The company's net profit, however, moved up to $804 million from $314 million.

The company does not record sales of its cholesterol joint venture with Merck as the venture is accounted for under the equity method. Including an adjustment of an assumed 50 per cent of the global cholesterol joint venture net sales, Schering-Plough's adjusted net sales for the 2009 first quarter would have been $4.9 billion.

"Schering-Plough powered through to deliver a solid performance in the first quarter," said Fred Hassan, chairman and CEO. "We overcame difficult currency comparisons and challenges in the US by driving operational sales growth in overseas markets and the continuing successful implementation of our Productivity Transformation Programme.

"The people of Schering-Plough can take pride in executing a remarkable transformation of this company over the past six years of our Action Agenda, including the successful acquisition of Organon BioSciences," said Hassan. "They triumphed over the huge challenges we faced in '03 and '04, and then again in '08."

Looking ahead to the company's planned merger with Merck announced on March 9, Hassan said, "We remain focused on driving our business. We will continue to implement our basic strategy: Grow the top line, grow the pipeline, reduce costs and invest wisely."

"We are gratified that we were able to drive both operational sales growth and reconciled earnings growth, in the midst of a severe global recession," said Hassan. "And at a time when regulatory approvals for new chemical entities are scarce, we achieved the first major market approval of Simponi (golimumab) - one of our 'Five Stars' - in Canada earlier this month. These accomplishments show the strength of our strategies, and the strength of our execution."

Sales of Prescription Pharmaceuticals for the 2009 first quarter decreased 5 per cent to $3.4 billion, reflecting operational growth of 5 percent and an unfavourable impact from foreign exchange of 10 per cent. Sales of Remicade increased 2 per cent (22 per cent operational growth offset by 20 per cent unfavourable foreign exchange impact) to $518 million in the first quarter of 2009 due to continued market growth and expanded penetration in certain indications.

Research and development spending for the 2009 first quarter totalled $804 million, a 9 per cent decline due to PTP actions, the impact of foreign exchange and the timing of clinical trials and related activities.

The previously announced merger with Merck remains on track. Merger pre-integration planning teams have been established at both Schering-Plough and Merck, and these teams have been meeting collaboratively in order to plan for a smooth and effective integration. Until the merger closes, both companies will continue to operate independently.