Schering AG sells 50% of metaGen for 42 million euros

Following the announcement of its full-year 2000 results (see page 5),Schering AG has finally spun off its biotechnology subsidiary metaGen (Marketletters passim). The German firm has sold 50% of metaGen, which was set up in 1996, to UK venture capitalists Apax Partners Funds for 42 million euros ($37.8 million), making it the largest spin-off of a biotechnology company from a German pharmaceutical firm to date. Schering will keep control of a 43.5% stake in the unit and metaGen's management will hold the remainder of the shares. The latter group has an option to buy a further 5% of shares from Apax Partners, and it was noted that the new entity will change its name to metaGen Pharmaceuticals.