Even the bottom line looked good after factoring in charges and gains associated with the acquisition -- adjusted EPS rose 39% to $0.39 per share.
The new revenue stream from Organon wasn't the only boost to the company's top line; sales of some of its existing products are still on fire. Remicade, which it sells outside the U.S. for Johnson & Johnson
For almost this entire year, Schering and Merck have been dealing with the Enhance data, which suggested that Vytorin might be no better than a generic statin at keeping plaque out of arteries. The good news for Schering-Plough is that U.S. patients don't seem to be switching to Pfizer's
Even under the best circumstances, I doubt Vytorin could resume the growth curve it was on before the Enhance data was released. Instead, Schering will have to look for future growth from the pipeline it inherited when it purchased Organon, along with boceprevir, its hepatitis C drug candidate, which is racing Vertex Pharmaceuticals
Like I said, that acquisition came just in the nick of time.
Pfizer and Johnson & Johnson are Income Investor recommendations. Pfizer is also an Inside Value selection. Vertex Pharmaceuticals is a Rule Breakers pick. Try any of our Foolish newsletters services free for 30 days.