Schering looks to Japan for acquisitions
Boosted by a respectable rise in profits and encouraged by its retrenchment policy, the pharmaceuticals group Schering is considering acquisitions.
Boosted by a respectable rise in profits and encouraged by its retrenchment policy, the pharmaceuticals group Schering is considering acquisitions.
The high liquidity has opened up the 'clear option to grow not just from our own strengths but also via purchases', said financial director Joerg Spiekerkoetter upon presentation of the business results for 2004.
The consolidation pressure in the industry is continuing, said Spiekerkoetter. He said that Japan is very interesting, where there are also possibilities for an international 'player'.
Board chairman of Schering AG, Berlin, Hubertus Erlen, had previously outlined this alignment: The growth will be safeguarded by the four new divisions: gynaecology / andrology, special therapeutics, diagnostics and oncology; high investments in research and development will provide long-term security and the savings programme 'Focus' will increase profitability. The cutting of 2000 jobs and the sale of half of the 24 production facilities are going to plan.
With regard to the Japan plans, he said that strengthening Schering's presence there was 'one of our strategic subjects'. While the company has succeeded in achieving a good position in diagnostics, it has so far not succeeded in extending the therapeutics business. For Schering, Japan is the most important market after Europe and the United States.
In 2004, the turnover of the group rose by 1.6% to €4.9bn. During this time, the company grew into one of the leading manufacturers of hormonal contraception drugs. The operating result climbed by 11% to a record level of €61m, and the surplus for the year by 13% to €503m. €240m worth of investments are planned every year up to 2007.