Bayer to shift or eliminate 1,800 US jobs due to Schering-Plough agreement

Manufacturing News, Source : TheManufacturer.com
Published : 13 Sep 2004 18:02

German drugmaker Bayer estimates that about 1,800 of its US-based primary care sales and marketing positions will be affected due to its new alliance agreement with US drugmaker Schering-Plough, either through transfer to Schering-Plough or through job reductions.

According to the terms of the alliance agreement, Bayer's primary care pharmaceutical products will be marketed and distributed by Schering-Plough in the United States.

The companies have also committed to a co-marketing agreement for future promotion of a Schering-Plough cardiovascular product, Zetia, in Japan. Bayer HealthCare will also build up a new US-based global oncology business unit and refocus its US organization on high-profit specialty and biotech products to form Bayer HealthCare's Specialty Pharmaceuticals business.

Schering-Plough will market Bayer's antibiotics Avelox and Cipro, as well as some other smaller established primary care Bayer products, in the United States and Puerto Rico. Schering-Plough will pay a royalty to Bayer based on net sales of these products.

Bayer will incur one-time costs in the range of $61.4 million to $86 million as a result of the deal.

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