Schering AG And Gehe To Jointly Run Jenapharm

The two German firms Schering AG and Gehe have reached an agreement to comanage the Jenapharm group based on a split of 74.9% to Schering and 25.1% to Gehe, subject to approval by both firms' supervisory boards.

Jenapharm, which focuses on hormonal products, has a workforce of 987 and achieved sales in 1995 of 218 million Deutschemarks ($140.7 million). The company's business is focused on the German market, but Jenapharm also has activities in eastern Europe, commented Schering, which said that the deal will enable it to expand its activities in the field of female health care.

Analysts at Goldman Sachs say that the deal confirms Schering's commitment to strengthening its key therapeutic franchise via external growth. Also, it is another example of Gehe's astute management, they say, underlining its focus on distribution, wholesaling, and home health care.