Schering-Plough reports ‘strong performance’ for 2006

Schering-Plough has reported its financial results for the 2006 fiscal year, claiming a robust performance through ongoing change at the company. The firm reported GAAP net sales of $10.6 billion (5.4 billion pounds) for the year, an increase of 11 per cent on 2005.

Gross margins at the firm rose to 65.1 per cent in 2006, up from 64.8 per cent in the previous years, while selling and other administrative and general expenses rose eight per cent to $4.7 billion.

Fred Hassan, chairman and chief executive officer of Schering-Plough, said: “We registered strong performance for both the recent quarter and for 2006.

“After three full years of progress under the action agenda, Schering-Plough is doing what we set out to do – deliver a solid record of performance while continuing an extraordinary transformation.”

He added that the company had been successful in all key avenues, with growth in its top line and enhanced earnings while maintaining financial discipline, with the company becoming more robust and resilient.

The company predicts that it will progress further in 2007, with an improved pipeline and continued advances.

Joe Tooley, an analyst at AG Edwards & Sons stated that restructuring and downsizing of the company conducted by Mr Hassan was vital to the company’s success.