Schering-Plough Sales Fall 18% in Q4

Schering-Plough Corp. reported financial results for the 2003 fourth quarter and full year, including lower 2003 sales and a loss for the year stemming primarily from the decline in sales and recognition of special charges. Fourth quarter 2003 sales of $1.9 billion were 18% lower than the 2002 period.

The company previously indicated in 2003 that fourth quarter comparisons would be affected by unusual dynamics of its hepatitis C business in that quarter as well as the absence of Losec revenues from Europe, which ended in the preceding quarter. The company’s 2002 patent for prescription Claritin also expired.

“We are taking the necessary steps now so that we can begin the turnaround in 2005 and get Schering-Plough on a sustainable growth path,” said Fred Hassan, Schering-Plough chairman and chief executive officer. “We are aggressively pursuing our Value Enhancement Initiative (VEI), which is expected to yield annual cost savings in excess of $200 million.”

Schering-Plough also noted that its continued focus on compliance in all key functions is negatively impacting the overall cost structure of the company.