Oct. 23--Schering-Plough Corp. missed Wall Street expectations in the third quarter with sales and profit figures lower than in the same quarter last year.

The drugmaker, which soon will become part of much-larger Merck & Co., reported revenues of $4.49 billion, or 29 cents per share, in the third quarter, down 2 percent from $4.57 billion last year.

Analysts expected the company to yield earnings of 40 cents per share on sales of $4.47 billion.

Net income was $477 million, down 17 percent from $576 million in the same quarter last year.

But the bad news couldn't overshadow the company's planned merger with Merck. The majority of analysts who follow the company still suggest holding or buying its stock, according to a survey by Thomson Financial.

"As the proposed merger comes close, Schering-Plough's shares are trading at an implied takeout price rather than the fundamental value, in our view," C. Anthony Butler, an analyst with Barclays Capital, said in a report published Thursday.

Management said the merger, charges related to acquisitions and research investments all attributed to the quarter's lower figures, but said the economy remains a strong force.

"We powered through even in the face of tough global economic and currency headwinds," said Fred Hassan, Schering-Plough chairman and CEO.

The company's Memphis-based Consumer Health Care division saw a 2 percent sales increase, up to $282 million in the quarter over $278 million last year. Sales of over-the-counter Claritin fell 2 percent, while the general over-the-counter category grew sales 8 percent to $173 million for the quarter.

Merck and Schering-Plough officials have been in merger talks since March and expect the deal to close in the fourth quarter. Both companies will operate independently until then.

The Kenilworth, N.J.-based drugmaker has also recently launched two new drugs -- Saphris for schizophrenia and Simponi for arthritis. Pegintron, the company's treatment for melanoma, has just passed an important Food and Drug Administration panel.

-- Toby Sells: 529-2742

Schering-Plough Corp.

Products: Memphis-based division makes sunscreen products, laxative tablets and Dr. Scholl's products, among others.

3Q factors: Management said negative currency exchange rates helped lower profits and sales.

R&D: Spent $913 million in research and development in third-quarter 2009, a 2 percent increase over the year-ago quarter.

Contact: (908) 298-4000

Web site: schering-plough.com

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