Schering-Plough Corporation

Schering-Plough Corporation (NYSE: SGP) is a global innovation-driven, science-based health care company with leading prescription pharmaceutical, animal health and consumer health care products.  Through internal research and collaborations with partners, Schering-Plough discovers, develops, manufactures and markets advanced drug therapies to meet important medical needs. 

Schering-Plough’s vision is to earn the trust of physicians, patients and other customers.  Schering-Plough had approximately 51,000 colleagues around the world, as of Dec. 31, 2008.  Our products reach patients and caregivers in more than 140 countries.  The company reported US GAAP net sales of $18.5 billion for 2008.  Including an adjustment of an assumed 50 percent of the company’s cholesterol joint venture, *adjusted net sales in 2008 would have been $20.8 billion. 

^{*Please refer to reconciliation tables under “Financial Highlights” in the Investor Relations section.}

Schering-Plough is continuing a fundamental transformation under a six- to eight-year Action Agenda that began in 2003 upon the arrival of Chairman and CEO Fred Hassan.  Schering-Plough colleagues are building a new kind of health care company - a company that seeks to operate with excellence and to be in tune with the needs and the expectations of doctors, patients and other stakeholders.  By doing this well, the company intends to build the foundation for long-term, sustainable growth and to provide a steady flow of innovative, science-based medicines and services.  Integral to Schering-Plough’s efforts is a commitment to business integrity, quality and compliance. 

Several important achievements have been made over the past five full years (2004-2008) since the current management team joined Schering-Plough:

• More than doubling adjusted net sales, from $8.9 billion in 2004 to $20.8 billion in 2008;

• Expanding and diversifying sales drivers, from only one product with sales above $1 billion in 2004 to five products with sales above $1 billion in 2008 (REMICADE, NASONEX and TEMODAR – as well as VYTORIN and ZETIA in the cholesterol joint venture);

• Increasing reconciled earnings per share, from roughly breakeven in 2004 to $1.75 in 2008;

• Strengthening the financial position, going from a negative free cash flow in 2004 to generating positive free cash flows in 2006, 2007 and 2008;

• Building an impressive late-stage R&D product pipeline, going from only three new entities in Phase III in 2004 to having eight at year-end 2008, with four more in pre-registration, for a total of 12 in late-stage development.

Throughout its history, Schering-Plough has focused on discovering and developing innovative new therapies in the prescription pharmaceutical, animal health and consumer health care customer segments. In human prescription pharmaceuticals, our core therapeutic areas include cardiovascular care, respiratory care, immunology and infectious diseases, oncology, women’s health, and central nervous system therapies. In animal health, our combination with Intervet brings together complementary lines of pharmaceuticals and biologics, including an industry-leading vaccine business.  The company is science-centered and continues to make significant investments in research and development (R&D).  R&D investments for 2008 were $3.5 billion.

Select compounds in the research and development pipeline include:

• Acadesine to prevent ischemia reperfusion injury after coronary artery bypass surgery

• An allergy immunotherapy tablet for grass pollen allergies

• A combination of ASMANEX and Novartis’ FORADIL for the treatment of asthma and chronic obstructive pulmonary disease

• Boceprevir, a protease inhibitor for hepatitis C

• Esmirtazapine for insomnia and hot flashes

• NOMAC/E2, a natural estrogen oral contraceptive

• A thrombin receptor antagonist for acute coronary syndrome and secondary prevention

• Vicriviroc, a CCR5 receptor antagonist for HIV infection

Compounds in pre-registration include:

• Asenapine for schizophrenia and bipolar mania disorders (U.S. †)

• Sugammadex, a neuromuscular blocker reversal agent (U.S.† † and Japan)

• Corifollitropin alfa for fertility (EU)

• Golimumab, filed for the treatment of several inflammatory diseases (EU)

• ASMANEX for asthma (Japan)

• REMERON, an antidepressant (Japan)

^{† FDA issued ‘complete response’ letter (1/09)
††FDA issued ‘non-approvable’ letter (7/08); EU issued final approval (7/08)}

Major Human Prescription Products: (Products in alphabetical order; not all products listed)

• ASMANEX TWISTHALER  Orally inhaled corticosteroid for asthma

• AVELOX¹ antibiotic

• CAELYX² for ovarian cancer, Kaposi’s sarcoma and metastatic breast cancer

• CERAZETTE  Oral contraceptive

• CLARINEX  Family of nonsedating antihistamines (some in combination with a decongestant) for allergies

• DESOGEN /MARVELON / MERCILON  Low-dose combined oral contraceptive

• FOLLISTIM / PUREGON  Fertility treatment

• IMPLANON  Subdermal contraceptive implant

• INTEGRILIN  for acute coronary syndrome and percutaneous coronary intervention

• INTRON A / INTRONA  Alpha interferon for chronic hepatitis B and C and certain cancers

• LIVIAL²  Menopausal therapy

• NASONEX  Nasally-inhaled corticosteroid for prevention and treatment of nasal allergy symptoms 

• NUVARING  Vaginal contraceptive ring

• PEGINTRON Pegylated interferon for chronic hepatitis C

• REMERON  Antidepressant

• REMICADE³  Monoclonal antibody for rheumatoid arthritis, psoriatic arthritis, Crohn’s disease, ankylosing spondylitis, ulcerative colitis and psoriasis

• TEMODAR /TEMODAL  Oral, cytotoxic alkylating agent for certain types of brain tumors

• VYTORIN⁴  Cholesterol-lowering medicine containing ZETIA and Merck & Co., Inc.’s statin Zocor

• ZEMURON / ESMERON  Muscle relaxant

• ZETIA^4,5  Novel cholesterol-absorption inhibitor

^{1 - Sold by Schering-Plough in the U.S. only
2 - Sold by Schering-Plough outside the U.S. only
3 - Sold by Schering-Plough in all countries outside the U.S. except Japan and parts of the Far East
4 - Managed through a joint venture with Merck & Co., Inc.
5 - Also sold in Japan through a separate co-marketing agreement with Bayer}

Major Animal Health Products: (Products in alphabetical order; not all products listed)

• AQUAFLOR  Antibiotic for farm-raised fish

• AQUAVAC and NORVAX  Vaccines against bacterial and viral disease in fish

• BANAMINE  Bovine and swine anti-inflammatory

• COMPACT PD  Vaccine for salmon

• CONTINUUM and NOBIVAC Vaccine lines for dogs and cats

• ESTRUMATE  Treatment for fertility disorders in cattle

• EXSPOT and SCALIBOR1   Protection against bites from fleas, ticks, mosquitoes and sand flies

• HOMEAGAIN  Proactive U.S. pet recovery network

• INNOVAX and NOBILIS  Vaccine lines for-- poultry

• M+PAC  Vaccine for swine pneumonia

• NUFLOR  Broad-spectrum antibiotic to combat respiratory infections in cattle, swine and fish

• OTOMAX / MOMETAMAX / POSATEX  Ear ointments for acute and chronic otitis

• SAFE-GUARD / PANACUR Broad-spectrum anthelmintic (de-wormer) for use in many animal species

• PARACOX and COCCIVAC  Coccidiosis vaccines for poultry

• PG 600  Treatment to stimulate fertility in swine

• PORCILIS  Vaccine line for infectious diseases in swine

• REGUMATE / MATRIX  Fertility management for swine and horses

• RESFLOR  Combination broad-spectrum antibiotic and non-steroidal anti-inflammatory drug for bovine respiratory disease

• SLICE  Parasiticide for sea lice in salmon

• TRI-MERIT  U.S. Data management tool for cattle

• VETSULIN / CANINSULIN Diabetes mellitus treatment for dogs and cats

• VISTA and BOVILIS  Vaccine lines for respiratory and reproductive infectious diseases in cattle

• ZILMAX and REVALOR  Treatment to improve production efficiencies in beef cattle

^{1 - Sold by Schering-Plough outside the U.S. only}

Major Consumer Health Care Products:  (Products in alphabetical order; not all products listed)

• CLARITIN  Family of nonsedating antihistamines (some in combination with a decongestant) for allergies (sold as a prescription product in some countries outside the U.S.)

• MIRALAX  Treatment for occasional constipation

• AFRIN  Nasal Sprays for relief of nasal congestion

• CORICIDIN HBP  Decongestant-free cold/flu medicine for people with high blood pressure

• COPPERTONE  Sun care products

• DR. SCHOLL’S  Foot care products

• LOTRIMIN  Topical antifungal products