Schering-Plough slashes dividend

Schering-Plough slashed its dividend by 68%, eliminated all bonuses and said it expects 1000 people to leave the company under an early-retirement initiative.

    Expiring patents and a dearth new products are hurting Schering-Plough

    The measures come in response to an expected slump in profits after a number of the troubled US drugmaker’s key products lost patent protection and others face intense competition.

     

    The company forecasts profit this year will fall by two-thirds, the Financial Times reported.

     

    “We will be making sacrifices as a result of these actions,” Schering-Plough Chief Executive Fred Hassan told the FT. "We remain confident that by taking these actions, we will set a strong foundation for long-term growth."

     

    Schering-Plough has warned for months that it would not make enough money this year to pay for its operating activities.

     

    Thursday’s announcement marks the first major strategic steps by Hassan to turn the company around.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: How does your country vote at the UN?

    Interactive: How does your country vote at the UN?

    Explore how your country voted on global issues since 1946, as the world gears up for the 74th UN General Assembly.

    'We were forced out by the government soldiers'

    'We were forced out by the government soldiers'

    We dialled more than 35,000 random phone numbers to paint an accurate picture of displacement across South Sudan.

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.