- The global cholesterol franchise continued its strong performance, with sales increasing 27% to nearly $1.3 billion, with growth well-balanced between the US and international markets.
- In the US, VYTORIN and ZETIA remained the fastest growing brands with total prescriptions for the franchise increasing 17% versus the prior, growing more than twice as fast as the cholesterol market.
- Among LDL lowering brands, VYTORIN and ZETIA are the only two major products to grow market share.
- Managed care organizations continue to provide competitive second tier access for both VYTORIN and ZETIA, despite the availability of multi-source generics.
- Guidelines released by the European Society of Cardiology again reinforced LDL as the primary target of lipid-lowering therapy.
As clinical practice continues to shift towards more aggressive LDL management, only VYTORIN provides more than a 50% LDL reduction at the usual starting dose.
- Outside of the US, sales from the cholesterol franchise increased 62% to $321 million, driven by strong performances across established markets including France and Italy, as well as in emerging markets such as Greece and Turkey.
- REMICADE continues to be an important growth driver with sales increasing 34% versus the prior year, surpassing the $400 million mark, despite increasing competition.
- REMICADE was recently granted two positive opinions by the EMEA, further strengthening the firm’s position in both psoriatic arthritis and Crohn''s disease.
- The REMICADE label in psoriatic arthritis will broaden to include claims for improving physical functions and reducing the rate of structural damage.
In Allergy, Global NASONEX sales increased 10% with continued strong performance across the international markets, and it remains the fastest growing brand among all nasal steroids capturing nearly 40% of the global category.
- In US, NASONEX new prescription growth continued to outpace the nasal steroid market.
- In Hepatitis, global PEGINTRON sales increased 7%, driven by the strong performance in the emerging markets, though there is a gradual decline across Europe, the US and Japan.
- In September, PEGINTRON combination therapy received a positive opinion in the European Union for a retreatment indication in Hepatitis C, a serious unmet medical need.
Key questions and answers from the third quarter earnings call conducted by Schering-Plough Corp. on October 22, 2007.
Steve Scala (Cowen and Company): What did you see in terms of the RVR data?
Thomas Koestler: We reported in our press release that the early virologic response data was at 12 weeks. We also have rapid virologic response data, and we want to preserve these data so that we can get the right opportunity to present them at a scientific symposium.
Steve Scala (Cowen and Company): Do you believe that generic Simvastatin has penetrated the market sufficiently?
Carrie Cox: This is largest market that we all compete in and we see the overall market continuing to grow. But we also believe that generics will continue to have some increased penetration though the rate of growth has been slowing.
Chris Schott (Banc of America): On the VYTORIN side, what percent of your sales are now coming from switches in this marke?
Carrie Cox: We have roughly 60% of the business coming from the new patient market and about 40% coming from switches and it reflects the continued focus on getting patient''s LDL to goal and that continues to be a lower goal than ever.
John Boris (Bear Stearns): As you are approaching the completion of the Organon BioSciences transaction. What are your priorities for integrating that transaction?
Fred Hassan: We are going to be focusing on the customer experience and on delivering because that is one of the big promises of this merger and we are going to be doing that one right. We are excited about the opportunity to add value here.
John Boris (Bear Stearns): Can you provide color on the trial design for Boceprevir, going forward?
Tom Koestler: We have this naive patient trial which is ongoing. We are looking at 24, 28, and 48, weeks of dosing. We have a fast track status with FDA but right now we are confident about the design of our run-in phase, which is the utilized interferon plus Ribavirin for four weeks, before dosing with a protease inhibitor.
John Boris (Bear Stearns): With the introduction of Apotex''s generic Fluticasone, are you anticipating additional generic entrants that could further the shelf-cost deceleration on the NASONEX program?
Carrie Cox: NASONEX has continued to grow this year, and we also had very competitive second-tier access. This is based on the fact that we have a unique range of indications that other competing products do not have.
Tim Anderson (Sanford Bernstein): Do you have plans to invest more behind VYTORIN in the US?
Carrie Cox: There are still a lot of patients who are not at their cholesterol goal and we are still pleased with our performance in the US. The investment levels appear to be adequate at this point, but we always work to maintain the appropriate share of ways in investments that are needed in the marketplace.
Jami Rubin (Morgan Stanley): What impact do you see Boceprevir having on your PEGINTRON/Ribavirin franchise?
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