LONDON (AFX) - Standard & Poor's Ratings Services said it revised its outlook on Schering-Plough Corp to stable from negative, adding that it affirmed the ratings, including the A- long-term corporate credit rating and A-2 short-term rating.
'The outlook revision is based on Schering-Plough's improving operational performance, led by its cholesterol lowering franchise, Vytorin/Zetia, and continued maintenance of its conservative financial profile,' said S&P credit analyst Arthur Wong.
'The ratings on the company continue to reflect its diverse product portfolio, featuring major products Vytorin/Zetia, Remicade, PEG-Intron, and Clarinex, as well as its conservative financial profile. These factors are partially offset by the challenges Schering-Plough faces in reinvigorating its near-term product pipeline.'
S&P expects Schering-Plough's core pharmaceutical portfolio to experience solid overall sales growth over the intermediate term, but its near-term product pipeline is still relatively empty.
Schering-Plough recently added several Phase II prospects, including CNTO-148, a follow-on version of Remicade in-licensed from Johnson & Johnson.
However, the company does not have any major patent expirations over the next several years, with cancer product Temodar in 2011 being the earliest.
Schering-Plough maintains a very conservative financial profile, characterized by a net cash position. newsdesk@afxnews.com jsa COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited