Hoechst Roussel JVs Move Up A Gear

In order to avoid duplication and to improve its business, Hoechst announced last year that it was to implement a strategic project of forming joint ventures between the pharmaceutical operations of Hoechst and its affiliate Roussel within Europe. Italy and the UK are the first two countries where the JVs have been implemented, and from the beginning of next year pharmaceutical operations will be under one management in Belgium, Greece, the Netherlands, Portugal and Spain, according to Jean-Pierre Godard, head of Hoechst AG's pharmaceutical division. He said that the integration of these companies will result in a saving of around 20% of running costs.

Mr Godard explained at a meeting of journalists in Frankfurt, Germany, (see also page 3), that joint administration and service centers will be established which will enable the group to make use of synergies and reduce the cost of doing business. However, he said that in the market, Hoechst and Roussel will keep their separate identities. "This move will optimize the joint product portfolio and improve our market position in Europe," he said.

In Latin America, the same process is expected to start in 1995, with the aim of having Hoechst Roussel joint ventures running by January 1996. This should result in a decrease in running costs of the Latin American pharmaceutical businesses of between 30% and 35%, according to Mr Godard.