Takeover costs impact Schering's 1st-half 2006

Schering AG says that its first-half 2006 net sales increased 11% on the comparable period last year, to 2.82 billion euros ($3.54 billion), causing operating profit to rise 20% to 559.0 million euros. However, the German drugmaker's net profit dropped 28% to 127.0 million euros due to costs related to its takeover by Bayer AG (Marketletters passim).

During the period, the firm's strong results were boosted by revenues from its top-selling products. Betaferon (interferon beta-1a), a multiple sclerosis drug, grew 17% to 481.0 million euros while Yasmin (drospirenone and ethinyl estradiol), jumped 33% to 351.0 million euros, to become the most successful oral contraceptive worldwide.

Sales within Schering's growing oncology business area increased 14% in the first six months of 2006. Net sales of Fludara (fludarabine), for B-cell chronic lymphocytic leukemia and Campath (alemtuzumab) used to treat leukemia, developed well with respective increases of above 20%, while net sales of the cancer drug Bonefos (clodronate) rose 20%. Additionally, sales of the intrauterine delivery system, Mirena, grew 26%. During the period, Latin America and Canada formed Schering's best-performing territory with a 24% sales rise, follwed by the Asia/Pacific Region at a 20% increase, while US sales grew 14%.