Schering-Plough Profit Falls, but Tops Estimates

Schering-Plough (SGP) reported a 23% drop in its third-quarter profit Tuesday, but the drugmaker's results still surpassed expectations on the top and bottom lines.

Third-quarter sales benefited from the inclusion of products from Organon BioSciences, which Schering-Plough acquired in 2007, in addition to the favorable impact of foreign exchange. However, concerns that surfaced earlier this year contributed to a 15% year-over-year decline in sales from a cholesterol-drugs joint venture with Merck (MRK). The venture manages Vytorin and Zetia.

Overall, Schering-Plough earned $551 million, or 34 cents a share, in the quarter, down from a year-ago profit of $713 million, or 45 cents a share. On an adjusted basis, the company earned 39 cents a share on revenue that increased 63% to $4.58 billion. ...