Schering-Plough Misses the Mark

Schering-Plough(SGP Quote) slid 12% after reporting an earnings miss Monday.

The drugmaker said it earned $713 million, or 45 cents a share on a GAAP basis, compared with $287 million, or 19 cents a share, in the third quarter of 2007. (The GAAP number includes a gain for acquisition-related items, including a gain on a currency option and a charge of $20 million for an upfront licensing payment.)

Excluding acquisition-related items and an upfront R&D payment, the company said it earned 28 cents a share for the quarter. Analysts surveyed by Thomson Financial were expecting 30 cents a share on revenue of $2.87 million.

Global net sales increased 9% on a GAAP basis and 12% on an adjusted basis to $2.8 billion and $3.5 billion, respectively.

Worldwide cholesterol joint-venture net sales totaled $1.3 billion, a 26% increase from $1 billion in the year-ago quarter. Schering-Plough recorded $506 million in equity income from its cholesterol joint venture with Merck(MRK Quote) in the 2007 third quarter vs. $390 million in the third quarter of 2006.

Global sales of Remicade, a treatment for inflammatory diseases, increased 34% to $426 million in the third quarter of 2007.

Sales of inhaled allergy treatment Nasonex increased 10% to $242 million due to increased sales in international markets. Sales of antihistamine Clarinex were flat, and sales of Claritin increased 12% to $83 million.