Difficult Times As Schering AG Marks 125 Years

Schering AG experienced a number of difficulties in 1995 that it says has reminded it of the risks that can be avoided in the development and marketing of pharmaceutical products.

As the firm celebrates 125 years of existence, the continued weakness of important European currencies and the downward trend against the Deutschemark or the US dollar and the yen had an adverse effect on Schering's sales and earnings last year. Sales declined 1% in Deutschemark terms, while advancing 8% in local currencies to 4.65 billion marks ($3.1 billion).

Movements in the rate of exchange of the US dollar meant that turnover at Schering's US unit, Berlex, only rose 1% to 746 million marks, while expressed in local currency terms sales advanced 15%, according to the firm's 1995 annual report. Three products drove this growth, Beta-seron (interferon beta-1b), Betapace (sotalol), and Fludara (fludarabine).