Printer Friendly

SUCCESS OF CORPORATE STRATEGIES CITED AT SCHERING-PLOUGH'S ANNUAL MEETING

 SUCCESS OF CORPORATE STRATEGIES CITED
 AT SCHERING-PLOUGH'S ANNUAL MEETING
 KENILWORTH, N.J., April 28 /PRN-- "Schering-Plough has made great strides in advancing up the ladder of corporate performance. We have shaped it into an ever more profitable, focused, dynamic organization and, at the same time, have increased its value to shareholders significantly," Robert P. Luciano, chairman and chief executive officer, told shareholders at the annual meeting here today.
 In his address, Luciano reflected on the company's achievements in the 10 years since he became chief executive officer and on the strategies Schering-Plough (NYSE: SGP) has successfully followed. He also reviewed highlights of the company's 1991 performance.
 "Schering-Plough is today a financially solid company and 1991 was another successful year for us," he said, citing such significant developments as:
 -- Schering-Plough HealthCare Products launching 'Gyne-Lotrimin' vaginal antifungal as an over-the-counter (OTC) product, the first-ever- in-its-category;
 -- U.S. approval of 'Intron A' alpha interferon as a treatment for chronic hepatitis non-A, non-B/C -- and in several countries for both chronic hepatitis B and C;
 -- Maintaining the No. 1 market position of its 'Proventil' Inhaler for asthma, as the U.S. Food and Drug Administration begins to develop guidelines for potential generic competitors;
 -- Filing of U.S. applications for 'Imdur', an oral, once-daily nitrate product, and for 'Cedax', a third-generation cephalosporin antibiotic; and,
 -- On the financial front, execution of an innovative stock- repurchase deal, known as LYNX, with Merrill Lynch.
 "As a result of these and other successes," said Luciano, "the company recorded some impressive annual results." These have carried over to the 1992 first quarter, he added, where the company posted 8 percent higher sales and a 21.5 percent increase in earnings per share.
 In examining the progress achieved over the past 10 years, Luciano said one way to consider the company's achievements is to look at where it ranks among America's 500 largest industrial enterprises. In the April 20 "Fortune" 500 issue, Schering-Plough is listed as:
 -- The 29th most profitable company in industrial America;
 -- The 33rd most valuable company in terms of market value of shareholder investment;
 -- The 126th largest company by sales;
 -- Seventh in return on stockholders' equity;
 -- Ninth in terms of return on sales; and,
 -- 14th in return on assets.
 "The effect of these achievements is best summed up by the fact that, during the 10-year period beginning on Jan. 1, 1982, Schering- Plough stock produced an annual compound rate of return to its shareholders of 29.2 percent," he said.
 While these figures point up the company's progress to date, he said, they do not answer the question: How did we get there?
 "Research, of course, has been the cornerstone of our strategy for growth," he answered. "Since 1982, we have invested more than $2.5 billion in research and development, with annual increases in spending averaging 15 percent."
 Luciano said the results of these investments can be seen in the products introduced domestically and/or in international markets over the past 10 years. These include the antihypertensive 'Normodyne'; the dermatological steroids 'Elocon' and 'Diprolene'; the nasal steroid 'Vancenase' AQ for allergic rhinitis; the once-a-day, non-sedating antihistamine 'Claritin'; 'Eulexin', a treatment for advanced prostate cancer; the aminoglycoside antibiotic 'Isepacin'; and 'Intron A', an antiviral and anticancer drug.
 Exemplifying the company's commitment to research is the Drug Discovery Facility nearing completion in Kenilworth, he added. "The one-million-square-foot building, to be completed later this year, will bring together most of our New Jersey-based scientists and provide them with the state-of-the-art research tools they need in their search for innovative new compounds."
 Complementing research as one of the company's strategic tools for growth has been the use of acquisitions, mergers and various business alliances. A key example was the 1982 acquisition of the DNAX Research Institute, a Palo Alto, Calif.-based biotechnology company.
 "With this acquisition," said Luciano, "Schering-Plough took a giant step into the vanguard of biotechnology research, becoming one of the first traditional pharmaceutical companies to see the promise of genetic engineering as a source for new therapeutic compounds."
 Other acquisitions included Key Pharmaceuticals in 1986, which provided Schering-Plough with a successful line of respiratory and cardiovascular products, such as the asthma treatment 'Theo-Dur' and 'Nitro-Dur', a transdermal nitroglycerin patch for angina.
 During the 1980s, management also was divesting operations that did not fit its vision of Schering-Plough. That process began with the sale of DAP home products in 1983 and the Plough Broadcasting radio stations in 1984. It continued with the 1987 divestiture of 'Dr. Scholl's' International and the 1989 sale of the Rimmel and Chicogo cosmetics companies. Finally, in 1990, the Maybelline cosmetics business was sold, completing the repositioning of Schering-Plough as an exclusively health care company.
 Schering-Plough also has successfully sought complementary business partnerships. The list of joint ventures and co-development and licensing agreements began in 1979 with an equity position in Biogen (later sold) as well as licenses for several products, including 'Intron A' alpha interferon. One of the company's most successful new products, 'Intron A' recorded 1991 sales of $251 million.
 Other strategic alliances include agreements with Sandoz Pharmaceuticals to develop and market 'Leucomax' (GM-CSF, or granulocyte macrophage colony stimulating factor); with Genetics Institute for two biotechnology compounds -- interleukin-11 and M-CSF; with Shionogi for the oral antibiotic 'Cedax'; with Cephalon for Alzheimer's disease treatments; and with Agouron Pharmaceuticals for technology to develop cancer drugs.
 "Our most recent collaborative agreement," he added, "announced earlier this month, is to jointly develop felbamate, a new anti- epileptic drug, with Carter-Wallace. We see this as a very significant product for us overseas."
 Another key strategy has been the pursuit of international growth, he said. The company has continued to strengthen its international operations in selected markets to become a truly global enterprise, doing business today in more than 125 countries and with subsidiaries in 40.
 "Schering-Plough International -- with a portfolio of new and successful products such as 'Claritin', 'Intron A' and 'Eulexin', and a strategic focus on high-potential markets -- has become one of the fastest-growing pharmaceutical companies overseas and will continue to play an important role in our company's future as a worldwide competitor," added Luciano.
 "In consumer health care products," he continued, "the big story began in 1989 when we reorganized the business to include our Schering and Plough brands of OTC pharmaceutical products, creating a new unit -- Schering-Plough HealthCare Products -- to manage these businesses. By combining our consumer marketing know-how with our heritage in ethical pharmaceuticals, we created a business unit that gives us a key strategic advantage in this highly competitive marketplace."
 With its strong franchises -- the 'Coppertone' sun care, 'Dr. Scholl's' foot care and the OTC product lines -- Schering-Plough HealthCare Products enables the company to respond quickly to opportunities arising from major changes in the U.S. health care environment, such as the aging of the population, a growing preference for self-medication, and concerns about rising health care costs.
 "These trends are tailor-made for OTC pharmaceuticals," he added, "and no company has a better record than Schering-Plough in switching products from prescription to OTC status and then successfully capitalizing on the enlarged market presented to us."
 In other business at the annual meeting, shareholders followed management's recommendation in voting down a shareholder proposal relating to the company's operations in South Africa. In other actions, shareholders elected Hugh A. D'Andrade, Richard J. Kogan, Richard de J. Osborne, William A. Schreyer and R. J. Ventres for three-year terms on the board of directors and Robert van Oordt for a one-year term; ratified the designation of Deloitte & Touche as auditors for 1992; and approved adoption of the 1992 stock incentive plan.
 Earlier in the day, Schering-Plough's board of directors voted to increase the dividend from 33 cents to 39 cents per share -- an 18 percent increase -- payable on May 26 to shareholders of record as of May 8. This represents the ninth dividend increase declared by Schering-Plough since 1986. As of March 31, 1992, there were approximately 201,380,000 shares outstanding.
 Schering-Plough is a research-based company engaged in the research, development, manufacturing and marketing of pharmaceutical and health care products worldwide.
 -0- 4/28/92
 /CONTACT: Steve Galpin Jr. of Schering-Plough, 201-822-7415/
 (SGP) CO: Schering-Plough ST: New Jersey IN: MTC SU:


KD-SH -- NY041 -- 3926 04/28/92 15:00 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 28, 1992
Words:1374
Previous Article:CRESTMONT FINANCIAL ANNOUNCES YEAR-END EARNINGS
Next Article:CHURCH & DWIGHT CO. TESTIFIES AT N.J. SENATE HEARING ON LEAD POISONING


Related Articles
SUCCESS OF CORPORATE STRATEGIES CITED AT SCHERING-PLOUGH'S ANNUAL MEETING
SCHERING-PLOUGH ANNUAL MEETING HIGHLIGHTS WORLDWIDE PERFORMANCE, COMMITMENT TO PHARMACEUTICAL RESEARCH
SCHERING-PLOUGH ANNUAL MEETING HIGHLIGHTS WORLDWIDE PERFORMANCE, FOCUS ON PHARMACEUTICAL RESEARCH
Schering-Plough Ranked Among World's 100 Best-Managed Companies.
Schering-Plough Schedules Webcast for Annual Meeting of Shareholders.
Schering-Plough Schedules Webcast for Annual Meeting of Shareholders.
Schering-Plough Board of Directors Announces New Election, Governance Measures.
Schering-Plough Schedules Webcast for Annual Meeting of Shareholders.
Schering-Plough Schedules Webcast for Annual Meeting of Shareholders.
Schering-Plough Schedules Webcast For Annual Meeting of Shareholders.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters