Schering-Plough responded in familiar fashion, downplaying the significance of ENHANCE and emphasizing the importance of available science supporting the value of low LDL. But that time around, at least, some company executives may have known of the trial's shortcomings.
Bombshell Results
On Jan. 14, Schering-Plough and Merck formally announced the bleak results of ENHANCE. However, a Schering-Plough spokesman told
The New York Times that the company had actually learned about the results two weeks earlier.
If true, Schering-Plough would have discovered the truth the very day that its top executive kicked off Morgan Stanley's CEO Unplugged conference.
For its part, Schering-Plough insists that Hassan remained in the dark until Jan. 10. Still, in an interview with
TheStreet.com on Friday, Irvine said that both Schering-Plough and Merck received ENHANCE's results over a two-week period beginning in early January. Still, he added, the companies have yet to fully digest the results and determine exactly what the outcomes mean.
In an interview with
TheStreet.com, Irvine confirmed that the two companies received ENHANCE's results over a two-week period beginning in early January. But even now, he said, the companies have yet to fully digest the results and determine exactly what the outcomes mean.
"Obviously, we would have preferred a favorable result," Irvine says. "We set a very high hurdle for ourselves, no doubt about it. But we think this study was asking a very important scientific question. And from that perspective, it was a worthwhile study for us to undertake."
Schering-Plough has always known about the high stakes involved. For 12 straight quarters, the company has managed to generate double-digit growth in adjusted sales. Strip out the contribution from its cholesterol franchise, however, and those double-digit gains fade away.
While its sales growth would still look healthy -- hitting 9% in the latest quarter -- it would lack the same punch.
To be fair, some experts feel, Schering-Plough and Merck could still enjoy brisk sales of their popular cholesterol drugs despite the recent trial results. Meanwhile, the companies themselves made clear long ago -- just after ENHANCE drew to a close -- that they will go to great lengths to ensure that ongoing success.
"Vytorin and Zetia are critical to the future of Merck (and) critical to the future of Schering-Plough as well," Merck CEO Richard Clark stressed back in June of 2006. "So we will do everything we must to maximize both of those products."
Melissa Davis
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