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Realizing the Promise

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Realizing the Promise Realizing the Promise Schering-Plough’s combination with Organon BioSciences offers the promise of a stronger, better company, able to do more for the patients and customers we serve. Schering-Plough Company Overview 2008 2 A MESSAGE FROM THE CEO 6 OUR CUSTOMERS, PATIENTS AND STAKEHOLDERS 24 OUR PRODUCTS 28 SENIOR LEADERS 29 CORPORATE INFORMATION ON THE COVER: Betsy Chandler holds her 7-week-old daughter, Katherine, in their Boonton, N.J., home. Betsy and her husband, Terry, tried for years to have a baby, finally achieving success after using the fertility treatment FOLLISTIM AQ Cartridge and with the help of specialists at The Institute for Reproductive Medicine and Science at Saint Barnabas in Livingston, N.J. FOLLISTIM is one of the products Schering-Plough acquired through its combination with Organon BioSciences, completed in November 2007. See story on page 8. Disclosure Notice: The information in this Company Overview may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and are based on current expectations or forecasts of future events. You can identify these forward-looking statements by their use of words such as “anticipate,” “believe,” “could,” “expect,” “potential,” “will” and other similar words. In particular, forward-looking statements include statements relating to the company’s strategies, its progress under the Action Agenda, timing and conditions of regulatory approvals, expected synergies related to the Organon BioSciences acquisition, trends in performance and anticipated exclusivity periods. Actual results may vary materially from the company’s forward-looking statements, and there are no guarantees about the performance of Schering-Plough stock or Schering-Plough’s business. Schering-Plough does not assume the obligation to update any forward-looking statement. A number of risks and uncertainties could cause actual results to differ materially from forward-looking statements, including, among other uncertainties, market viability of the company’s (and the cholesterol joint venture’s) marketed and pipeline products; economic factors, such as interest rate and exchange rate fluctuations; the outcome of contingencies such as litigation and investigations; product availability; patent and other intellectual property protection; and current and future branded, generic or over-the-counter competition. For further details of these and other risks and uncertainties that may impact forward-looking statements, see Schering-Plough’s Securities and Exchange Commission filings, including Part I, Item 1A. “Risk Factors” in Schering-Plough’s 2007 10-K/A, filed March 3, 2008. “The potential of our new combined company is profound.Now we have the opportunity to realize that promise.” Fred Hassan, Chairman and Chief Executive Officer Schering-Plough is an innovation-driven,science-centered global health care company.Our goal is to provide a steady flow of valuable medicines and services while earning the trust of the physicians, patients and other customers we serve.Today, our company is at an exciting point in the transformation that began in 2003 under a five-stage Action Agenda. A pivotal step in that transformation came in November 2007,when we acquired Organon BioSciences, with its Organon human health and Intervet animal health businesses.Through this combination and other achievements, we are gaining greater depth and breadth across our prescription pharmaceutical, consumer and animal health products. As we work to build the foundation for long-term high performance,we remain committed to business integrity, quality and compliance in everything we do. The trademarks indicated by CAPITAL LETTERS in this publication are the property of, licensed to, promoted or distributed by Schering-Plough Corporation, its subsidiaries or related companies. As used in this publication, the terms “Schering-Plough” and “company” refer collectively to Schering-Plough Corporation, the publicly held parent company, and its domestic and international subsidiaries, which are engaged in the discovery, development, manufacturing and marketing of pharmaceutical, consumer and animal health products worldwide. Copyright © 2008, Schering-Plough Corporation. All Rights Reserved. 1 Realizing the Promise A MESSAGE FROM THE CEO New Thinking. New Capabilities. New Urgency. At Schering-Plough, that’s our mind-set. We see our work as a journey of continuous transformation. When health care is changing as fast as it is today around the world, this mind-set – along with a strong sense of humility – gives us a special edge. It helps us get in tune, and stay in tune, with the people who count on us. Our acquisition of Organon BioSciences of the Netherlands in November of last year began perhaps the most important and exciting chapter in our company’s 80-year history. Through our combination, we have become a world-class company in women’s health and fertility treatment, expanding on our existing core human pharmaceutical strengths in cardiovascular care, immunology, respiratory care and oncology. We also have become stronger in central nervous system therapies, including two novel, late-stage compounds: sugammadex, which could be the most important innovation in anesthesia in over 30 years, and asenapine, for schizophrenia and bipolar disorder. Both of these compounds have the potential to address major, urgent unmet medical needs. They come out of our newly acquired laboratories in Newhouse, Scotland. Those and other projects give us one of the strongest late-stage human pharmaceuticals pipelines among our peer group companies. Also, thanks to our combination, we have an even more powerful R&D engine. We now invest about $3 billion a year in R&D. We are especially proud of our talented science and technology teams. These are the people who create the health breakthroughs of today, and tomorrow. What’s also exciting is the leading animal health unit that has been forged through our combination. We create important pharmaceutical treatments for livestock and companion animals. We are also a world leader in animal vaccines and biologic treatments. By improving the food supply and improving the lives of pets, our animal health unit is ultimately doing good things for tens of millions of people worldwide. Our animal health R&D could also transform health care for humans. We are investing in an ambitious project to translate vaccine technologies created for animal health into new and better vaccines for human diseases. Fred Hassan, Chairman and Chief Executive Officer 3 We are entering the most important and exciting chapter in our company’s history. With a mind-set of continuous transformation,we are reinventing ourselves – to make the most of our enormous opportunities, and to master some big challenges. This is a challenging time for everyone involved We believe we are making steady progress in in health care – not least for health care profes- creating that kind of culture. We encourage sionals and their patients. We are determined our people to collaborate across units and to play our part in rising to the challenges. This geographies. We value passionate drivers who includes championing policies and health delivery turn dreams into reality. As CEO, I work hard systems that do the right things for the patients to stay close to the people at the front lines – for the long term. and their managers. Our goal is to operate like a small company, inside a big company. For a company such as ours, one of the biggest challenges is to drive a continuing flow of new When I speak with our people around the world, treatments for enormously difficult diseases, they tell me that they see our work as a noble such as Alzheimer’s and cancer, at a time when cause. They see themselves forging a special kind short-term political pressures are discouraging of company, one that can make a profound investors from making the risky, billion-dollar difference to the health of this generation, of investments in innovation that are needed. our children, and of our children’s children. To keep our company relevant and successful Our people make me proud, and also confident. in this challenging environment, we are seizing Together, I believe we can realize the great the opportunity of our combination to rethink promise of our combined company to do good our company across the board. From improving things for all those who count on us – for the the efficiency of our manufacturing processes, long term. to streamlining the complex, expensive and Sincerely, risky process of turning a molecule into a new medicine and getting it to patients, we are taking a fresh look at everything we do. We have the courage to change and to reinvent. This can best happen in a high-performance company culture, one where people feel en- Fred Hassan gaged, committed and part of a winning team. Chairman and Chief Executive Officer CEO Fred Hassan (left) talks with colleagues from Schering-Plough’s global animal health business at the 2008 North American Veterinary Conference in Orlando, Fla. Nelson Diaz, D.V.M., is a technical services manager in Summit, N.J., and Ann Margaret Cleary is a Detroit-based senior territory representative for the Companion Animal business unit. 5 Feridun Mert Bakirci of Istanbul, Turkey, takes INEGY, available in the U.S. as VYTORIN, to help control his high cholesterol. INEGY, a cholesterol-lowering Foods high in saturated fat are one Ezetimibe works in the digestive medicine known as VYTORIN in source of cholesterol. But cholesterol tract to help block the absorption the U.S., contains ZETIA (ezetimibe) is also produced naturally by the of LDL (“bad”) cholesterol. and Merck & Co., Inc.’s statin liver, with heredity playing a role in Zocor (simvastatin). how much is produced. Controlling Cholesterol Heart disease is a major health problem in most developed countries.An important risk factor involves high levels of LDL cholesterol in the blood.
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