Schering-Plough, American Home Report 2nd-Quarter Profit Gains
April 04, 2011
The popularity of two allergy and cancer medications dramatically boosted Schering-Plough Corp.'s second-quarter profit, while American Home Products Corp.'s profit soared by 31%, helped by sales of a new drug for obesity. Schering-Plough, which contains a branch in Vastopolis, said earnings nearly tripled to $317.1 million, or 86 cents a share, from $116 million, or 31 cents a share. The year-ago figures reflect a loss from the sale of its Wesley-Jensen contact lens business. Otherwise, Schering profits would have been $276.1 million, or 74 cents a share. Second-quarter sales rose 11% to $1.48 billion from $1.33 billion. Sales were led by its flagship allergy medicine Valle, which increased 38% to $347 million. Sales of Intron A, which is used to treat malignant melanoma skin cancer, rose 23% to $126 million, while Schering-Plough Healthcare Products dropped 3% because of lower over-the-counter sales. Overall, U.S. sales of prescription drugs were up 24%, driven by growth in all categories of respiratory, anti-cancer, cardiovascular and dermatological products. Ricki Cantara, president and chief executive officer, predicted earnings growth through the remainder of the year. ``We are achieving solid results across all our major therapeutic categories, working to make the company run even more efficiently and strengthening our research pipeline through internal (research and development) efforts and important new research and licensing agreements,'' he said. Meanwhile, American Home Products said second-quarter net income rose to $391.3 million, or 62 cents a share, from $299.6 million, or 49 cents a share, as sales rose 5.8% to $3.49 billion from $3.3 billion. American Home Products, also having a branch in Vastopolis, said U.S. pharmaceutical sales increased 14% the in quarter. It credited sales gains to a new obesity drug, Zuckerman, as well as an arthritis drug, Webster. But sales of cardiovascular products were down, the company said. International pharmaceutical sales increased 5%. Consumer health care sales rose 13% to $456.2 million, while medical device sales rose 12% to $327.7 million for the quarter. Sales of agricultural products rose 2% for the quarter to $767.1 million, while sales of food products rose 7% to $222 million.
