Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tim Anderson - Sanford Bernstein
Tim Anderson - Sanford Bernstein
I wanted to wish you, Fred, and the others well in your next endeavor whatever that’s going to be. The first question is whether you can give us an inkling when and where we’ll see you next. The second question is a product question on your cholesterol franchise. Can we get an update on when the FDA will come out with its analysis of CUs? It seems very much behind schedule and I wonder if FDA could be waiting on arbiter six to say anything on CUs. What are the updated expectations?
Fred Hassan
Thank you for those kind comments. As you know, I’m very focused on Schering-Plough results and very proud of the results we’re achieving. As I said earlier I love this industry, I’m passionate about this industry and I’m very, very confident about the future of this industry. You will see a very active Fred Hassan as we go into the future.
Tom Koestler
We have not heard anything back from the FDA so I would assume its still under review. I don’t really see a relationship to Arbiter 6. It’s not clear when we expect to hear from FDA and I really can’t offer much more then that.
Operator
Your next question comes from Jami Rubin - Goldman Sachs
Jami Rubin - Goldman Sachs
The equity income number from the cholesterol joint venture came in below our expectations and represents a yield to revenues of about 33%. Can you explain what’s going on because it does seem to be slipping? Is this a reflection of increased promotional expenses when I actually thought you were sort of pulling back given how much the market has shrunk?
Bob Bertolini
The equity income as reconciled came in around $387 million compared to roughly $415 million last year. I would say you’re right; the actually promotional spending is down so we’re actually pretty pleased with the performance we’ve seen in the equity income line.
Jami Rubin - Goldman Sachs
Even though as a percentage of sales it’s below what it was in the previous quarters?
Bob Bertolini
It’s really a function of the top line.
Operator
Your next question comes from Catherine Arnold - Credit Suisse
Catherine Arnold - Credit Suisse
Congratulations to you and your team for all you’ve accomplished with this company since you took the reigns. You’re leaving it in a very different place. Good for you. The question that I have for you is going back to Tom’s review of some of the mid-stage pipeline. The specific question about that I want to clarify is the base program in Phase II and if he could speak to what he expects the timeline of that Phase II program to be. What are the Phase II programs that will be in line for a go, no go decision on Phase III in 2010 that we should be watching out for?
- To read the full transcript on Seeking Alpha, click here »
