Schering-Plough announces plans to save money

Schering-Plough has announced it is to move forward with a Productivity Transformation Program (PTP) which is aimed at creating annual savings for the company.

The PTP is also hoped to increase productivity in addition to generating savings and synergies of $1.5 billion (757 million pounds) – a figure representing approximately one-tenth of Schering-Plough’s estimated cost base for 2007.

It was stated that the initiative is a response to “dramatically intensifying pressures” within the pharmaceutical sector, as well as the recent “confusion” surrounding Schering-Plough and Merck’s joint venture, Zetia and Vytorin.

The company is aiming to save around $1.25 billion by the end of 2010, with the rest achieved two years later.

“Savings and productivity improvements will be realised across the company and around the world,” said chairman and chief executive officer Fred Hassan. “No area will be exempt.”

He added, however, that the PTP will not involve cost-cutting across the board and “unwise” short-term actions will be avoided.

Last month saw the group’s selective relaxing binding agent Sugammadex approved for use in the US.