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SCHERING-PLOUGH CORPORATION Repo

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					SCHERING-PLOUGH CORPORATION Report for the third quarter and nine months ended September 30 (unaudited): (Amounts in millions, except percentages and per share figures) Third Quarter 2005 2004 % Nine Months 2005 2004 %

Net Sales……………………………….. Cost of Sales…………………………… Selling, General and Administrative…………………. Research and Development a/.…….. Other, Net…………….………………… Special Charges b/…………………….. Equity Income from Cholesterol Joint Venture……........ Income/(Loss) Before Income Taxes... Income Tax Expense/(Benefit) c/…….. Net Income/(Loss)………...………...... Preferred Stock Dividends……………. Net Income/(Loss) Available to Common Shareholders…………….. Diluted Earnings/(Loss) per Common Share…................................................ Average Common Shares Outstanding - Diluted…………......... Actual Number of Common Shares Outstanding at September 30...........

$2,284 775 1,064 566 6 (215) 88 23 $65 22 $43 $0.03

$1,978 711 892 378 34 26 (95) 32 6 $26 12 $14 $0.01

15 9 19 50

$7,184 2,531 3,261 1,391 9 292 (605) 305 162 $143 65 $78 $0.05

$6,088 2,241 2,785 1,201 112 138 (249) (140) (28) $(112) 12 $(124) $(0.08)

18 13 17 16

1,487

1,475

1,483

1,472

1,478

1,472

1,478

1,472

The Company noted that it incurs substantial costs related to the cholesterol joint venture, such as selling, general and administrative costs, that are not reflected in the “Equity income from cholesterol joint venture” and are borne by the overall cost structure of Schering-Plough. a/ Research and development for the three and nine months ended September 30, 2005 includes an R&D payment of $124 million, before a tax benefit of $6 million, to Centocor, Inc. for the Company's exercise of its right to develop and commercialize CNTO 148, a fully human monoclonal antibody being developed as a therapy for the treatment of rheumatoid arthritis and other immune-mediated inflammatory diseases. Research and development for the nine months ended September 30, 2004 includes an $80 million upfront payment in conjunction with the licensing from Toyama Chemical Company Ltd. of garenoxacin, a quinolone antibiotic in development. b/ Special Charges for the first nine months of 2005 includes an addition of $250 million to the Company's litigation reserves relating to the investigation by the U.S. Attorney's Office for the District of Massachusetts into the Company's marketing, sales, pricing and clinical trial practices, as well as previously disclosed investigations and litigation relating to the company’s practices regarding average wholesale price by the Department of Justice and certain states. Special Charges for the three months ended September 30, 2005

primarily related to the consolidation of the Company’s U.S. biotechnology organizations. Special Charges for the three months ended September 30, 2004 consisted primarily of employee termination costs. Special charges for the nine months ended September 30, 2004 included $111 million of employee termination costs and $27 million of asset impairment charges primarily related to the company’s anticipated exit from a small European research-and-development facility. c/ Tax expense for the three and nine months ended September 30, 2005 primarily related to foreign tax expense as the Company did not recognize the benefit of U.S. tax operating losses. The Company’s third quarter tax provision includes a benefit of approximately $42 million related to tax expense recorded in 2004 related to planned earnings repatriations under the American Jobs Creation Act (AJCA). This adjustment of tax expense associated with repatriation under the AJCA is the result of guidance issued by the U.S. Treasury in August 2005. It should be noted that in the fourth quarter ended December 31, 2004, the Company recorded the estimated impact of the intended repatriation of funds under the American Jobs Creation Act.

SCHERING-PLOUGH CORPORATION Report for the period ended September 30 (unaudited): Net Sales by Major Product: (Dollars in Millions) Third Quarter 2005 2004 $1,840 237 185 170 157 152 86 82 76 72 46 44 41 41 34 417 235 129 92 85 21 209 $2,284 $1,556 188 132 153 175 121 94 52 67 81 39 45 42 367 239 150 110 86 3 183 $1,978 14 15 Nine Months 2005 2004 $5,660 691 537 552 507 428 244 237 287 220 135 148 159 114 113 1,288 895 453 340 258 184 629 $7,184 $4,681 535 425 449 530 309 245 239 240 239 109 136 127 1,098 868 456 344 252 160 539 $6,088

% 18 26 40 11 (10) 25 (8) 58 13 (11) 17 (1)

% 21 29 26 23 (4) 38 0 (1) 19 (8) 24 9

GLOBAL PHARMACEUTICALS Remicade PEG-Intron Nasonex Clarinex / Aerius Temodar Integrilin Rebetol Claritin Rx * Intron A Caelyx Subutex Avelox Cipro Elocon Other Pharmaceuticals CONSUMER HEALTH CARE OTC OTC Claritin FOOT CARE SUN CARE ANIMAL HEALTH CONSOLIDATED NET SALES

(19) 14 (2) (14) (16) (2)

(11) 17 3 (1) (1) 3 15 17 18

* Includes international sales of Claritin Rx only. Canadian sales of Claritin are reported in the OTC Claritin line within Consumer Health Care. NOTE: Additional information about U.S. and international sales for specific products is available by calling the company or visiting the investor relations Web site at <http://ir.schering-plough.com>.

SCHERING-PLOUGH CORPORATION Reconciliation of Non-U.S. GAAP Financial Measure Adjusted net sales, defined as net sales plus an assumed 50 percent of global cholesterol joint venture net sales. Three-Months Ended September 30 (unaudited) 2005 2004 (Dollars in millions) Net Sales, as reported 50 percent of cholesterol joint venture net sales a/ Adjusted net sales $2,284 308 $1,978 170

$2,592

$2,148

Nine-Months Ended September 30 (unaudited) 2005 2004 (Dollars in millions) Net Sales, as reported 50 percent of cholesterol joint venture net sales a/ Adjusted net sales $7,184 817 $6,088 386

$8,001

$6,474

a/ Total net sales of the cholesterol joint venture for the three months ended September 30, 2005 and 2004 were $616 million and $340 million, respectively. Total net sales of the cholesterol joint venture for the nine months ended September 30, 2005 and 2004 were $1.6 billion and $772 million, respectively.
NOTE: Adjusted net sales, defined as net sales plus an assumed 50 percent of global cholesterol joint venture net sales, is a non-U.S. GAAP measure used by management in evaluating the performance of the company’s overall business. The company believes that this performance measure contributes to a more complete understanding by investors of the overall results of the company. The company provides this information to supplement the reader’s understanding of the importance to the company of its share of results from the operations of the cholesterol joint venture. Net sales (excluding the cholesterol joint venture net sales) is required to be presented under U.S. GAAP. The cholesterol joint venture’s net sales are included as a component of income from operations in the calculation of the company’s “Equity income from cholesterol joint venture.” Net sales of the cholesterol joint venture do not include net sales of cholesterol products in non-joint venture territories.