Bayer announces research and development restructuring
10 November 2006 00:00 in Pharmaceutical Company Restructures
Bayer has announced plans to restructure its research and design operations following the acquisition of Schering AG.
The company will concentrate its research operations in three facilities ? Berlin and Wuppertal, Germany, as well as Berkley in California. Specifically, the Berlin site will conduct research into cancer, gynaecology and andrology, as well as diagnostic imaging. Wuppertal will be responsible for cardiology research.
Bayer says it intends the Berlin site to become a "centre of excellence" for oncology research, while Berkley will continue operations as an "important global R&D centre" for protein-based biologics drug discovery and development.
Arthur Higgins, chairman of the boards for both Bayer Healthcare and Bayer Schering, remarked: "The changes in research and development will leverage the combined assets of Schering and Bayer to maximise both the output and effectiveness of our global drug discovery and development programs."
He added that infrastructure costs would be "substantially" reduced through the restructuring, which would include the loss of around 600 jobs in the US and a one-off charge of $350 million (183 million pounds).
However, the annual cost savings from 2008 would amount to $210 million, Bayer states.
The company bought Schering AG earlier this year for 17 billion euros (11.4 billion pounds).
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Story collated for Zenopa by the Adfero News Agency