Schering-Plough Says 1st-Quarter Profit to Fall

Schering-Plough Corp. said first-quarter earnings will drop as much as 15% from a year ago as it works to correct manufacturing deficiencies cited by regulators at plants in New Jersey and Puerto Rico. The Food and Drug Administration is delaying approval of the company’s follow-up to its blockbuster Claritin allergy drug until the quality-control issues are corrected, the company said. The FDA said last month that it had delayed approval of the drug, known as Clarinex, or desloratadine, but gave no details. Schering-Plough, based in Kenilworth, N.J., said it has stopped some production lines to install new equipment. It said the problems will “negatively affect earnings for the full year 2001.” The announcement came after the close of trading on U.S. markets. Earlier, Schering-Plough shares closed at $48.32, off 70 cents, on the NYSE.