Schering-Plough

Schering-Plough. It was a major American pharmaceutical company formed by the 1971 merger of Schering Corporation and Plough, Inc.. For decades, it was a significant player in the global pharmaceutical industry, known for its portfolio in allergy, cardiovascular disease, and oncology therapeutics. The company operated worldwide before its acquisition by Merck & Co. in a 2009 merger valued at approximately $41 billion.

History

The company's roots trace back to two distinct firms. The original Schering Corporation was established in the United States in the 1920s as a subsidiary of the German chemical giant Schering AG. Plough, Inc., founded by Abe Plough in Memphis, Tennessee, began as a maker of patent medicines like St. Joseph Aspirin. The 1971 merger created a diversified healthcare entity. Under the leadership of CEOs like Richard Jay Kogan and later Fred Hassan, the company expanded through significant acquisitions, including the animal health company Mallinckrodt and the purchase of Organon BioSciences from Akzo Nobel in 2007, which added a large fertility and women's health business.

Products and research

Schering-Plough developed and marketed a range of successful prescription and consumer products. Its blockbuster antihistamine Claritin (loratadine) became a household name, especially after its transition to over-the-counter status. Other major pharmaceutical products included the corticosteroid nasal spray Nasonex, the cholesterol-lowering combination drug Vytorin (developed in partnership with Merck & Co.), and the hepatitis C treatment Pegintron (peginterferon alfa-2b). Its research pipeline and divisions like Schering-Plough Research Institute worked in areas including infectious diseases, central nervous system disorders, and biologics.

Corporate affairs

The company was headquartered in Madison, New Jersey before moving to Kenilworth, New Jersey. It maintained a vast global operational footprint with facilities in over 120 countries, including major research centers and manufacturing plants. Key subsidiaries included the consumer health division, the animal health unit Intervet, and the Organon franchise. For many years, it was a component of the Dow Jones Industrial Average and was listed on the New York Stock Exchange under the ticker symbol SGP. The company's corporate culture and turnaround efforts under Fred Hassan were frequently analyzed in business publications like Harvard Business Review.

Legal and regulatory issues

Schering-Plough faced several significant legal and regulatory challenges. In 2002, it paid a $500 million penalty to the United States Department of Justice and the Food and Drug Administration to settle allegations of manufacturing quality problems. The company also settled a class-action lawsuit related to the marketing of its asthma medication Clarinex. Furthermore, the cholesterol drug Vytorin was the subject of congressional investigations by the United States House Committee on Energy and Commerce and scrutiny from the American College of Cardiology following the controversial ENHANCE trial, which raised questions about its efficacy.

Legacy and impact

The acquisition by Merck & Co. in November 2009 created one of the world's largest pharmaceutical companies, significantly reshaping the competitive landscape of the industry. The integration brought notable products like Bridion and NuvaRing into the Merck & Co. portfolio. Former Schering-Plough research facilities, such as its site in South San Francisco, continue to operate as part of Merck & Co.'s global network. The company's history remains a notable case study in pharmaceutical mergers, the lifecycle of blockbuster drugs, and corporate governance within the highly regulated healthcare sector. Category:Pharmaceutical companies of the United States Category:Companies based in New Jersey Category:Companies listed on the New York Stock Exchange Category:Defunct pharmaceutical companies