Schering-Plough Corporation: PharmaVitae Profile

Schering-Plough Corporation: PharmaVitae Profile

Introduction

This analysis examines the historical and forecast performance for Schering-Plough in the ethical pharma sector. The profile encompasses global company strategy, portfolio and pipeline analysis and assessment of financial performance, with 1-6 year sales forecasts for key drugs. An interactive forecasting and analysis tool provides continually updated quantitative and qualitative information.

Reasons to Purchase

*Benchmark Schering-Plough's performance against key rivals in the ethical pharmaceutical sector

*Analyze the impact of Schering-Plough's acquisition of Organon Biosciences, completed in 2007

*Assess the diversity of Schering-Plough's product portfolio in light of forecast declining sales for its recent sales growth driver Zetia/Vytorin

CHAPTER 1 ABOUT THIS PROFILE 2
Executive summary 2
Quarterly news update 2
Company introduction 2
Company sales 2
Company financials 2
Key products and competitors 3
Data sourcing 3
Sales data 3
Analyst consensus 3
CHAPTER 2 EXECUTIVE SUMMARY 4
Key findings 4
Prescription pharmaceutical sales performance, 2001-13 5
Financial performance, 2001-13 6
Schering-Plough: PharmaVitae forecasts at a glance 7
Strategic insight 8
Five principal events orchestrate SGP's performance as action agenda progresses 8
Business-model crumbles under pressure from loratadine generics 8
Widening portfolio to helps restore sales growth 9
SGP 'Build the Base' phase in a single move through the OBS acquisition 12
ENHANCE trial fallout threatens Zetia/Vytorin income stream 13
Cost-cutting implementations and pipeline to drive long-term profit growth 15
SWOT analysis 16
Strengths 16
Weaknesses 19
Opportunities 20
Threats 22
CHAPTER 3 QUARTERLY NEWS UPDATE 26
Key findings 26
Product developments 27
Deals and alliances 28
Product deals 28
Technology deals 28
M&A activity 29
Company announcements 29
Future product milestones 30
CHAPTER 4 COMPANY STRUCTURE 31
Key findings 31
Company overview 32
Company history 33
M&A history 35
Schering Corp merger with Plough Corp 35
Neogenesis 35
Organon Biosciences 35
M&A strategy 36
CHAPTER 5 COMPANY SALES 38
Key findings 38
Prescription pharmaceutical sales and growth rate analysis, 2001-13 39
Historical analysis 40
Forecast analysis 40
Product analysis 42
Product analysis, 2001-07 42
Product analysis, 2007-13 44
Therapy area analysis 49
Therapy area analysis, 2001-07 50
Therapy area analysis, 2007-13 52
Therapy area focus, 2001-13 57
Geographic analysis 59
Geographic analysis, 2001-07 60
Geographic analysis, 2007-13 62
Geographic focus, 2001-13 64
Launch/core/expiry analysis 66
Explanation of launch/core/expiry analysis 66
Launch analysis, 2007-13 67
Core analysis, 2007-13 68
Expiry analysis, 2007-13 69
Launch/core/expiry configuration, 2007-13 71
Molecule type analysis 72
Molecule type analysis, 2001-07 73
Molecule type analysis, 2007-13 74
Externalization analysis 78
Externalization analysis, 2001-07 79
Externalization analysis, 2007-13 81
CHAPTER 6 COMPANY FINANCIALS 85
Key findings 85
Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 86
Financial statements, 2001-07 88
Profit and loss account, 2001-07 88
Balance sheet, 2001-07 90
Operating costs and profit analysis 92
Operating costs and profit analysis, 2001-07 93
Operating cost ratio and profit margin analysis, 2001-07 95
Operating cost ratio and profit margin analysis, 2007-13 96
Operating costs and profit analysis, 2007-13 99
Return on capital employed analysis 102
Capital employed analysis, 2001-07 103
Return on capital employed (RoCE) analysis, 2001-07 106
Market capitalization analysis 109
Market capitalization analysis 2001-07 109
Total shareholder returns analysis 2001-07 110
CHAPTER 7 KEY PRODUCTS AND COMPETITORS 112
Key findings 112
Overview 114
Urology & gender-specific health 115
NuvaRing 115
Sales forecasts 117
Respiratory 120
Nasonex 120
Sales forecast 122
Infectious diseases 124
Intron franchise 124
Sales forecasts 127
Immunology & inflammation 130
Remicade/golimumab 130
Sales forecasts 132
Central nervous system 135
Asenapine 135
Sales forecasts 137
Bridion 141
Sales forecasts 142
Cardiovascular 144
Zetia/Vytorin 144
Sales forecast 145
Oncology 149
Temodar 149
Sales forecasts 151
CHAPTER 8 APPENDIX 153
R&D pipeline 153
References 155
Abbreviations 156
List of Tables
Table 1: Schering-Plough - PharmaVitae forecasts at a glance 7
Table 2: OBS acquisition builds the base 13
Table 3: Key product developments, Q1 2008 27
Table 4: Schering-Plough product deals and alliances, Q1 2008 28
Table 5: Schering-Plough technology deals and alliances, Q1 2008 28
Table 6: Schering-Plough M&A activity, Q1 2008 29
Table 7: Schering-Plough company announcements, 2008 29
Table 8: Schering-Plough future product milestones 2008-09 30
Table 9: Schering-Plough product portfolio overview, global sales ($m), 2001-07 42
Table 10: Schering-Plough product portfolio overview, global sales ($m), 2007-13 44
Table 11: Schering-Plough therapy portfolio overview, sales ($m), 2001-07 50
Table 12: Schering-Plough therapy portfolio overview, sales ($m), 2007-13 52
Table 13: Schering-Plough portfolio overview by geographic region, sales ($m), 2001-07 60
Table 14: Schering-Plough portfolio overview by geographic region, sales ($m), 2007-13 62
Table 15: Schering-Plough launch portfolio overview ($m), 2007-13 67
Table 16: Schering-Plough core portfolio overview ($m), 2007-13 68
Table 17: Schering-Plough expiry portfolio overview ($m), 2007-13 69
Table 18: Schering-Plough portfolio overview by molecule type ($m), 2001-07 73
Table 19: Schering-Plough product portfolio overview by molecule type ($m), 2007-13 74
Table 20: Schering-Plough product portfolio overview by source ($m), 2001-07 79
Table 21: Schering-Plough product portfolio overview by source ($m), 2007-13 81
Table 22: Total Schering-Plough sales by business unit ($m), 2001-07 86
Table 23: Schering-Plough profit and loss account ($m), 2001-07 88
Table 24: Schering-Plough balance sheet ($m), 2001-07 90
Table 25: Schering-Plough operating revenue/cost analysis ($m), 2001-07 93
Table 26: Schering-Plough operating cost ratio analysis (% of total revenues), 2001-07 95
Table 27: Schering-Plough operating cost ratio analysis (% of total revenues), 2007-13 96
Table 28: Schering-Plough operating revenue/cost analysis ($m), 2007-13 99
Table 29: Schering-Plough capital employed ($m), 2001-07 103
Table 30: Schering-Plough EBIT return on capital employed ($m), 2001-07 106
Table 31: Schering-Plough EBIT pre-tax return/Capital employed driver analysis ($m), 2001-07 107
Table 32: SGP market capitalization vs. S&P 500 ($ billion), 2001-07 109
Table 33: Schering-Plough total shareholder returns (annual %), 2001-07 110
Table 34: Key products overview, sales ($m) 114
Table 35: NuvaRing: overview 115
Table 36: NuvaRing: sales forecast ($m), 2007-13 117
Table 37: Oral contraceptive market, sales ($m), 2001-13 118
Table 38: Nasonex: overview 121
Table 39: Nasonex: sales forecast ($m), 2007-13 122
Table 40: Top four nasal corticosteroids, sales ($m), 2001-07 123
Table 41: Peg-Intron: overview 124
Table 42: Intron A: overview 125
Table 43: Rebetol: overview 126
Table 44: Peg-Intron & Intron A: sales forecast ($m), 2007-13 127
Table 45: Rebetol: sales forecast ($m), 2007-13 127
Table 46: Remicade: overview 130
Table 47: Golimumab: overview 131
Table 48: Remicade: sales forecast ($m), 2007-13 132
Table 49: Golimumab: sales forecast ($m), 2006-12 132
Table 50: Anti-TNF market overview 133
Table 51: Asenapine: overview 135
Table 52: Asenapine: sales forecast ($m), 2007-13 137
Table 53: Bridion: overview 141
Table 54: Bridion: sales forecast ($m), 2007-13 142
Table 55: Phase III efficacy results of Bridion vs Neostigmine 143
Table 56: Zetia/Vytorin: overview 144
Table 57: Zetia/Vytorin: sales forecast ($m), 2007-13 145
Table 58: Major dyslipidemia therapeutics, sales ($m), 2001-07 146
Table 59: Temodar: overview 149
Table 60: Temodar: sales forecast ($m), 2007-13 151
Table 61: Schering-Plough's R&D pipeline (Phase I-registration) 153
Table 62: Schering-Plough's indication broadening pipeline (Phase I-registration) 155
List of Figures
Figure 1: Schering-Plough prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 5
Figure 2: Schering-Plough financial performance ($m), 2001-13 6
Figure 3: Five events dominate SGP's five-phase action agenda timeline 8
Figure 4: Claritin triggered profit decay ($m), 2001-04 9
Figure 5: SGP's portfolio expansion, sales ($m), 2001-07 10
Figure 6: Schering-Plough SWOT analysis 16
Figure 7: Schering-Plough prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 39
Figure 8: Schering-Plough key sales growth driver & resistors ($m), 2001-07 43
Figure 9: Schering-Plough key sales growth drivers & resistors ($m), 2007-13 46
Figure 10: Schering-Plough prescription pharmaceutical sales by therapy area ($m), 2001-13 49
Figure 11: Schering-Plough prescription pharma sales by therapy area, (% of total), 2001-13 57
Figure 12: Schering-Plough prescription pharmaceutical sales by geographic region ($m), 2001-13 59
Figure 13: Schering-Plough drivers and resistors by geographic region, sales ($m), 2001-07 60
Figure 14: Schering-Plough drivers and resistors by geographic region, sales ($m), 2007-13 62
Figure 15: Schering-Plough prescription pharmaceutical sales by geographic region (% of total), 2001-13 64
Figure 16: Schering-Plough launch/core/expiry configuration ($m), 2007-13 71
Figure 17: Schering-Plough prescription pharmaceutical sales by molecule type ($m), 2001-13 72
Figure 18: Schering-Plough growth drivers & resistors by molecule type ($m), 2007-13 76
Figure 19: Schering-Plough prescription pharmaceutical sales by source ($m), 2001-13 78
Figure 20: Schering-Plough growth drivers & resistors by source ($m), 2001-07 79
Figure 21: Schering-Plough growth drivers & resistors by source ($m), 2007-13 83
Figure 22: Schering-Plough operating revenue/cost analysis ($m), 2001-13 92
Figure 23: Schering-Plough operating cost ratio analysis (% of total revenues), 2001-13 98
Figure 24: Schering-Plough return on capital employed, EBIT margin and capital turnover, 2001-07 102
Figure 25: Return on capital employed formula 108
Figure 26: SGP market cap vs. S&P 500 ($ billion), 2001-07 110
Figure 27: SGP total shareholder returns vs. S&P 500, 2001-07 ($m) 111
Figure 28: Schering-Plough's Hep C franchise, sales ($m), 2001-13 129
Figure 29: Dyslipidemia treatment sales ($m), 2001-07 147