Schering to promote Jenapharm brand name, integrate research, sell plant

New York, Dec. 12 - Schering AG announced a series of changes intended to concentrate on the "core competence" of its Jenapharm GmbH & Co. KG subsidiary.

Between 65 and 120 jobs will be lost as a result of the change.

Under the plan, Schering's marketing and distribution activities in of gynecology and andrology will continue in an independent subsidiary that will begin business activities under the Jenapharm name by Jan. 1, 2007.

Jenapharm's present research arm will be integrated into Schering's research organization in Berlin. Jenapharm's development activities will be scaled down and changes made to administrative functions.

Schering will look to sell the active-ingredient plant at the Jena factory in a management buyout.

Schering said the changes are part of its Focus initiative, a comprehensive review of its strategic orientation, operational business procedures and organizational structure aimed at achieving a long-term increase in profitability growth.

"We are convinced that we are creating sustainable and competitive structures by concentrating on our Jena subsidiary's core competence," said Ulrich Koestlin, member of the Schering's executive board responsible for marketing and distribution, in a news release. "The synergies we are seeking will enable us to improve efficiency and reduce overcapacity in the Schering group."

Schering is a Berlin, Germany, pharmaceutical company.

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