Expectations of Schering-Plough
Sales of the cholesterol-lowering drugs, VYTORIN and ZETIA, which it markets with Merck
Drugs that Schering markets outside the U.S. for other companies contributed greatly to the increase in sales as well. Inflammatory disorders treatment REMICADE, which it markets for Johnson & Johnson
In the end, though, it was the bottom line that had investors most worried. Excluding a net benefit from a currency option it bought as a hedge for its acquisition of Organon BioSciences, the company earned $0.28 per share, missing analysts' expectations of $0.30 per share.
Schering was trading at lofty premiums before the haircut investors gave it yesterday, but its newly acquired P/E of around 26 is still considerably higher than its big pharma brethren such as Pfizer
After the acquisition of Organon BioSciences in the fourth quarter, Schering will have 12 compounds in phase 3 trials. Add to that an impressive earlier stage pipeline including its hepatitis C virus drug candidate boceprevir, and Schering's future looks a lot brighter than most of the other pharmaceutical companies'.
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