Christopher Schott (Banc of American Securities): Can you comment on the expected gross margin and R&D trends for 2008, as Organon gets integrated? What is the R&D update for the rest of the year and comment on the timing of a move to Phase III for the program?

Robert J Bertolini: As can be seen in this quarter, prior mix is driving most of the gross margin changes. The firm did about $67.9 million for the full year, up from $66.5 million last year. Much of that was due to cost saving actions taken to date. We are still looking at OBS, but those will take longer as we go through the integration process. It took us three to five years to rationalize manufacturing and going forward, I would follow mix as the prime driver of future gross margin.

Fred Hassan: New products down the road like SUGAMMADEX will also enhance our gross profit margin. Profit margin upgrades will largely be a function of both existing and new products.

James Kelly (Goldman Sachs): Are there any other important seasonal effects besides rationalization and synergies from OBS transaction?

Fred Hassan: We still have seasonality in our business primarily because we have several respiratory products. AVELOX is now part of our mix and together with regular business from cholesterol, these will be major factors. On AVELOX, when we inherited the product from Bayer in 2004 it was around nine tier and we now have passed 20. This shows the value that can be added by this team. Additionally, new products will come in from Organon and these will be joining our portfolio. They tend to be non-seasonal and going forward, we will be reducing the seasonality factor.

Carrie S Cox: The season today has been substantially behind last year. It’s been a mild winter around the country and in many parts of the worked and so we expect a weaker respiratory season. Whilst in the US, AVELOX has reached new market share highs without a dynamic respiratory season, the sales are not as strong as expected.

Catherine Arnold (Credit Suisse): You gave us detail on the split between Organon and Schering for some costs without COGS detail. Can you comment on that and also on the currency effect on Organon versus sharing cost basis?

Robert J Bertolini: It’s $206 million for the six-week period in the COGS line. For the fourth quarter gross margin, the impact of OBS on the overall gross margin was not very significant, probably 0.1%. To give more sense of the COS side, Organon business was primarily outside the US and considering that some of the debt was Euro denominated, it therefore means there is some balancing aspects.

Catherine Arnold (Credit Suisse): Can you update us on your expectations for ASENAPINE and SUGAMMADEX?

Thomas P Koestler: ASENAPINE is under standard review in the US and we remain encouraged about the product, which is in a very challenging division of Psychiatry at FDA. We are yet to receive anything tangible yet from the reviewing division but we remain steadfast in pursuing it.

In terms of SUGAMMADEX, we are pleased to have gotten priority review and there is an advisory meeting scheduled for March 11, 2008, which are very optimistic about.

Carrie S Cox: SUGAMMADEX is a true innovation in a category that hasn’t seen anything substantially like it in many years. We are delighted to have a chance to begin looking at it, a treatment paradigm shift in an undeserved market of the opportunity to use the hospital channel that we built over the last few years. We also think that this could be a very great launch for us when we get the chance to bring it to the market. ASENAPINE could potentially compete in two different aspects of the markets, being schizophrenia and bipolar disorder. Bipolar has been a fast growing market over the last few years and yet where there still is huge unmet need and a great deal of treatment options required. The schizophrenia market has remained a chronically undeserved market to fight the introduction of more options over the last decade. There are still not enough good options for patients who need them and like bipolar, it is a market characterized by single therapy or multiple therapies. There continues to be a lot of switching, side effect management and thus an opportunity for physicians and patients to look for better fit for individualized medicine. All this creates huge interest and opportunity for ASENAPINE down the road.

David Risinger (Merrill Lynch): What was the foreign currency positive benefit to EPS in the quarter?

Robert J Bertolini: It was a top line positive 7% and estimated to be at 3 cents per share in the bottom line region.

David Risinger (Merrill Lynch): Is the existing agreement on REMICADE and GOLIMUMAB between J&J and Schering-Plough still in place?

Fred Hassan: The agreement remains in place.

Concerning the new ASENAPINE, what are your thoughts on the sales effort?

Carrie S Fox: We are still discussing how the ASENAPINE sales effort aspect should evolve and Organon has already spent some time working on that and we are continuing to discuss some of the options brought forward in their planning scenarios.

Fred Hassan: Based on past experiences, many of these CNS drugs are launched in a sequential manner and we will draw from past experience as we look at ASENAPINE. Another positive aspect is that almost all of the products have very long patent lives and we can plan for the long-term as opposed to our competition where patent expirations are common.

John Boris (Bear Stearns): Can you comment on the US business, considering that quarterly business was down ex-Organon?