Schering-Plough Chairman/CEO Fred Hassan Reviews Progress in Action Ag

PALO ALTO, Calif., April 26 /PRNewswire-FirstCall/ -- Addressing shareholders at today's Annual Meeting of Schering-Plough Corporation , Fred Hassan, chairman and chief executive officer, recounted the challenges on many fronts that faced the company for the past two years and reviewed the progress being achieved in the Action Agenda to build the New Schering-Plough.

"We have confronted some enormous challenges over the past couple of years," said Hassan. "Now we are engaged in a new stage of our work. On the solid foundations that we are setting, we are building a new kind of health care company, one that will be uniquely equipped to deliver high performance in our challenging business environment."

Hassan reminded shareholders that it was just two years ago that the Action Agenda, a six- to eight-year plan to transform the company, was launched at the 2003 Annual Meeting. "Today we are meeting at a decisive time for the New Schering-Plough," he said. Pointing to the solid financial results just reported for the 2005 first quarter, he said, "The transformation of Schering-Plough is on track, and we continue to anticipate our Turnaround beginning later this year."

Commenting on the industry environment, he called it "the most challenging I have seen in more than 30 years in this business." He said the pharmaceutical industry has become a "lightning rod for all the big issues surrounding health care."

Despite the challenges, Hassan expressed optimism for the future. "There are two important reasons why I believe in our future -- the future of this company and the future of our industry," he said. "The first is that we have a moral duty to do our work -- because better health for all people is so important. The second is that we can see enormous potential for innovation -- and growth -- in the coming decades. The areas of unmet medical need are truly huge."

He emphasized that the opportunities are also great. "We are now seeing exciting developments -- from such sciences as high-throughput screening, genomics, combinatorial chemistry and structure-based drug design." He cited Schering-Plough's CCR5 receptor antagonist, a novel compound in development for treating HIV/AIDS; a protease inhibitor for hepatitis C; and a thrombin receptor antagonist, a potential therapy for patients with acute coronary syndrome.

"The new sciences are beginning to deliver results," Hassan continued, "and we believe that in the next 10 to 15 years we may see a second Golden Age of health innovation."

In his remarks, Hassan highlighted the progress achieved in stabilizing the company's base businesses and in moving to realize the potential of its cholesterol franchise, which includes the cholesterol-lowering products VYTORIN(TM) (ezetimibe/simvastatin) and ZETIAO (ezetimibe), both marketed in partnership with Merck & Co., Inc. "We are achieving what we set out to do and are on track with our goals for the cholesterol franchise," he said.

Hassan talked about the vision that was set out for the New Schering-Plough two years ago: "To strive to earn trust, every day." He told the audience, "I think you can see that, by building this new kind of health care company, we will also drive long-term growth. We will be doing the right thing for the long term for you, our owners -- by striving to do the right thing, every day, for the doctors, patients and others who count on us."

In other business at the annual meeting, shareholders elected Hans W. Becherer, retired chairman, chief executive officer and chief operating officer of Deere & Company; Kathryn C. Turner, chairperson, chief executive officer and president of Standard Technology, Inc.; and Robert F.W. van Oordt, chairman of the Supervisory Board of Rodamco Europe N.V., for three-year terms on the Board of Directors.

Shareholders also ratified the designation of Deloitte & Touche LLP to audit Schering-Plough's books and accounts for 2005. Shareholders approved a non-binding shareholder proposal asking that the bylaws be amended to provide for directors to be elected annually. The company said that the matter would be thoroughly considered by the Board given shareholders' interest in the matter. A shareholder proposal pertaining to animal testing was withdrawn based on the company's commitment to engage in an interactive dialogue with People for the Ethical Treatment of Animals (PETA).

An audio webcast of today's meeting is available to all interested parties via the corporate Web site, http://www.schering-plough.com/. Those wishing to listen to the Annual Meeting should go to the Investor Relations section of the Schering-Plough corporate Web site and click on the "Presentations/Webcasts" link. A replay of the webcast will be available via the Web site through May 24.

DISCLOSURE NOTICE: The information in this press release includes certain "forward-looking" statements concerning, among other things, the future prospects of the company, which the reader of this release should understand are subject to substantial risks and uncertainties. The company's actual financial and business performance may differ materially from the forward-looking statement due to a number of uncertainties, including the following: general market and economic factors, competitive product development, product availability, current and future branded and generic competition, market acceptance of new products, federal and state regulations and legislation, the regulatory review process in the United States and foreign countries for new products and indications, existing manufacturing issues and new manufacturing issues that may arise, timing of trade buying, patent positions, and the outcome of litigation and investigations. For further details and a discussion of these and other risks and uncertainties that may impact the company's forward looking statements, see the company's Securities and Exchange Commission filings, including the section titled "DISCLOSURE NOTICE Cautionary Factors That May Affect Future Results (Cautionary Statements Under the Private Securities Litigation Reform Act of 1995)" in the company's first quarter 2005 10-Q.

Schering-Plough is a global science-based health care company with leading prescription, consumer and animal health products. Through internal research and collaborations with partners, Schering-Plough discovers, develops, manufactures and markets advanced drug therapies to meet important medical needs. Schering-Plough's vision is to earn the trust of the physicians, patients and customers served by its more than 30,000 people around the world. The company is based in Kenilworth, N.J., and its Web site is http://www.schering-plough.com/.