New Business Model For Schering AG's Jenapharm GmbH & Co. KG Subsidiary
Published: Dec 12, 2005
BERLIN, December 12 /PRNewswire-FirstCall/ -- Schering AG, Germany (FSE: SCH, NYSE: SHR), today announced a new business model for its subsidiary Jenapharm GmbH & Co.KG. Marketing and distribution activities in the fields of gynecology and andrology are to be continued in an independent subsidiary. The plan is for this company to begin its business activities under the name of Jenapharm by January 1, 2007, with the aim of further strengthening both the company's market position and the "Jenapharm" brand name.
In the course of this restructuring measure, Jenapharm's present research arm will be integrated into Schering AG's research organization in Berlin; development activities will be scaled down and administrative functions adapted. A management buy-out will be sought for the active-ingredient plant on the Jena factory site. The present company Jenapharm GmbH & Co.KG is to take over location management in Jena.
The planned implementation of the new business model is likely to involve the loss of between 65 and 120 jobs. Discussions with the employees' representatives on the preparation of a reconciliation-of-interests scheme and a social compensation plan will begin shortly.
The measures are part of Schering's FOCUS Initiative, a comprehensive review of the company's strategic orientation, operational business procedures and organizational structure aimed at achieving a long-term increase in growth profitability.
"We are convinced that we are creating sustainable and competitive structures by concentrating on our Jena subsidiary's core competence," said Dr. Ulrich Kostlin, member of the Executive Board of Schering AG responsible for Marketing and Distribution. "The synergies we are seeking will enable us to improve efficiency and reduce overcapacity in the Schering Group. "
Schering AG is a research-based pharmaceutical company. Its activities are focused on four business areas: Gynecology&Andrology, Oncology, Diagnostic Imaging as well as Specialized Therapeutics for disabling diseases. As a global player with innovative products Schering AG aims for leading positions in specialized markets worldwide. With in-house R&D and supported by an excellent global network of external partners, Schering AG is securing a promising product pipeline. Using new ideas, Schering AG aims to make a recognized contribution to medical progress and strives to improve the quality of life: making medicine work
This press release has been published by Corporate Communication of Schering AG, Berlin, Germany.
Certain statements in this press release that are neither reported financial results nor other historical information are forward-looking statements, including but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Schering AG's plans and objectives to differ materially from those expressed or implied in the forward-looking statements. Certain factors that may cause such differences are discussed in our Form 20-F and Form 6-K reports filed with the U.S. Securities and Exchange Commission. Schering AG undertakes no obligation to update publicly or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
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Source: Schering AG