Schering-Plough Insiders Sell Near Record High: Insider Focus
Bloomberg News
February 21, 1999, 12:21 p.m. ET
Schering-Plough Insiders Sell Near Record High: Insider Focus
Madison, New Jersey, Feb. 21 (Bloomberg) -- Schering-Plough
Corp.'s former and current chairmen and other officers sold more
than $50 million in stock in January and December as shares of
the maker of the world's best-selling allergy medicine, Claritin,
neared record highs.
The leading seller was Schering-Plough's former chairman,
Robert Luciano, who stepped down last year. He sold more than $33
million in stock in December. Richard Kogan, his successor, sold
about $11 million in stock in the two months, according to
Washington Services, which tracks stock transactions by
executives, officers, directors and other insiders.
The stock sales aren't necessarily signs of problems ahead,
investors and analysts said. Schering-Plough's earnings rose 22
percent last year to $1.76 billion on sales of Claritin, which
the company has heavily advertised to consumers. Analysts expect
the company's per-share profit to rise 17 percent this year.
''I'm not concerned'' about the sales, said Michael Yellen,
portfolio manager of the AIM Global Health Care, which holds
about 415,000 Schering-Plough shares. ''The top executives have
been there a long time and have a lot of options. They've done a
great job.''
Drugmakers on the Rise
Sales of Claritin, which was introduced in 1993, rose 31
percent to $2.3 billion last year. That contributed to the 37
percent rise in Schering-Plough's shares in the past year, as did
prospects for rising sales of its hepatitis-and-cancer drug,
Intron A. Last year, the U.S. Food and Drug Administration
approved a treatment that combines Intron A with an ICN
Pharmaceuticals Inc. drug for use in more hepatitis C patients.
Schering-Plough's shares touched a record high of 57 7/8 on
Jan. 4 and closed Friday at 53.
Schering-Plough isn't the only drugmaker whose shares have
gained in the past year. Pfizer Inc., the maker of the anti-
impotence pill Viagra, has risen 49 percent to 128 5/16 in the
past year, while Warner-Lambert Co.'s rose 30 percent to 63 7/8
in the same period.
The Standard & Poor's 500 Index rose 21 percent in the same
period.
While the Schering-Plough sellers declined to comment on
their sales, the company in a statement said the sales ''were
made for personal reasons and were entirely unrelated to
anticipated corporate performance.''
Tied to Options
Schering-Plough also said all of the sales were tied to the
exercise of options, which give the holder to buy a certain
number of shares at a specified price within set period. The
company declined to provide information on the option exercise
prices.
Luciano, 65, sold 631,889 shares for $53.50 to 55.63 each in
December for at least $33.8 million, according to Washington
Service. He was the company's chief executive from 1984 until
1995 and chairman from 1984 until his retirement last November.
Kogan, Schering-Plough's chairman and chief executive, sold
202,938 shares for $55 to $56.94 each in December and January for
at least $11.2 million.
Other sellers include:
Raul Cesan, president and chief operating officer, 15,000
shares for $55.88 each on Dec. 10 for $838,200.
Geraldine Foster, senior vice president of investor
relations, 8,372 shares for $54.50 each on Jan. 8 for $456,274.
Thomas Kelly, controller, sold 12,780 shares for $56.50 to
$56.69 each on Dec. 10 for at least $722,070.
Kevin Moore, treasurer, sold 8,320 shares for $53.38 each on
Dec. 17 for $444,122.
Jack Wyszomierski, chief financial officer, sold 15,469
shares for $54.75 each on Dec. 23 for $846,928.
Hugh D'Andrade, vice chairman and chief administrative
officer, sold 30,395 shares for $56.75 to $57.50 each on Dec. 11
for at least $1.72 million.
Daniel Nichols, senior vice president for taxes, sold 31,920
shares for $57.53 each on Jan. 4 for at least $1.84 million.
--Kerry Dooley in the Princeton newsroom (609) 279-4016/jmg
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