euro adhoc: Interim Announcement

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Intermediate report of the management transmitted by euro adhoc. The issuer
is responsible for the content of this announcement.
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07.11.2007

Interim Announcement by Bayer Schering Pharma AG
November 7, 2007

Bayer Schering Pharma AG maintains its growth course

On account of the integration of Bayer Schering Pharma AG into the
Bayer Group and the associated changes in legal-entity structure, the
absolute values for the Bayer Schering Pharma AG companies and their
segments from fiscal 2007 are no longer comparable with the
corresponding prior-year periods. This data therefore will not be
provided. Net sales of key Bayer Schering Pharma products - including
business now treated as that of other Bayer Group companies - are
given in the Bayer Group Financial Report as of September 30, 2007.

Operating business of Bayer Schering Pharma posts gratifying growth

In our Women's Healthcare business unit, the main growth drivers were
the oral contraceptives of the Yasmin®/YAZ®/Yasminelle® product
group, sales of which increased significantly. In July 2007, YAZ®
received the first European approval in the Netherlands. It includes
both, the contraception indication and the treatment of moderately
severe acne in women.

In the Diagnostic Imaging business unit, sales of Ultravist® 370
mgI/ml recovered - particularly in Europe - after resuming marketing
of the product.

In the Specialized Therapeutics business unit, sales of
Betaferon®/Betaseron® to treat multiple sclerosis (MS) continued to
rise.

The successful performance of our main sales drivers had a positive
impact on the earnings of the Bayer Schering Pharma AG Group.

Integration of Bayer Schering Pharma AG Group into the Bayer Group

With the registration of the domination and profit-and-loss transfer
agreement at the end of October last year, work started on
integrating the Bayer Schering Pharma AG companies into the Bayer
Group and merging the pharmaceuticals business of Bayer Schering
Pharma AG and its subsidiaries with that of the Bayer Group. Both of
these businesses are to be managed uniformly in the interest of the
Bayer Group and its subgroup Bayer HealthCare. All key functional
areas, especially research and development, procurement, production,
sales, marketing and administration, have since been amalgamated.

In the context of the integration of the Bayer Schering Pharma AG
companies into the Bayer Group, a total of 37 companies were
deconsolidated in the first three quarters of 2007 following their
sale or an exchange of shares. 52 subsidiaries were sold to Bayer AG
or its subsidiaries in the previous year.

To facilitate implementation of the necessary restructuring measures,
Bayer Schering GmbH - as the majority stockholder of Bayer Schering
Pharma AG - is seeking the transfer of all shares in Bayer Schering
Pharma AG. Under a resolution adopted by the Extraordinary
Stockholders' Meeting of Bayer Schering Pharma AG on January 17,
2007, Bayer Schering GmbH, a wholly owned subsidiary of Bayer AG and
majority stockholder of Bayer Schering Pharma AG, is to acquire the
shares held by the minority stockholders in return for compensation
in cash of EUR 98.98 per share. Dissenting stockholders are seeking
to have the stockholder resolution set aside or to have it declared
null and void.

Bayer Schering Pharma acquires biologics manufacturing facility in
the United States

In September 2007, Bayer Schering Pharma acquired a biologics
manufacturing facility in Emeryville, California, from Novartis.
Bayer will continue the production of Betaseron® at the Emeryville
site, gaining full control of the entire manufacturing and process
technology used in the production of Betaseron® and retaining the
Emeryville work force. The amount paid for the transfer of the
facility - including the Biologics License Application, which permits
the manufacturing of biotechnological products - along with supplies
and certain buildings, was U.S. $183 million (approx. EUR 137
million).

Bayer Schering Pharma will continue to pay Novartis royalties based
on net sales of Betaseron® until October 2008. After this date, no
more royalties will be due to Novartis on sales of Betaseron®.

Bayer Schering Pharma will assist Novartis with the application for
marketing authorization for its own interferon beta-1b product in a
250 mcg dosage. Once regulatory approval has been granted, Bayer
Schering Pharma will manufacture this product for Novartis from 2009
forward and receive in return a double- digit percentage royalty from
Novartis.

BEYOND study: Results do not support regulatory filing for Betaferon®
500 mcg

In a large randomized trial (BEYOND: Betaferon® Efficacy Yielding
Outcomes of a New Dose), the efficacy, tolerability and safety of a
500 mcg dose of Betaferon®/Betaseron® (interferon beta-1b) were
investigated against the standard 250 mcg Betaferon®/Betaseron® dose
and Copaxone® (glatiramer acetate) for the treatment of patients with
relapsing-remitting multiple sclerosis. The recently published study
results confirm that Betaferon®/Betaseron® 250 mcg represents the
optimum dose and that it is highly effective and very well tolerated.
They do not show a statistically significant superiority of
Betaferon®/Betaseron® 500 mcg compared to Betaferon®/Betaseron® 250
mcg and Copaxone®. The company will therefore not apply for
regulatory filing of a 500 mcg Betaferon® dose. This did not affect
the balance sheets of Bayer Schering Pharma AG Group. For information
on the financial impact on the Bayer Group, please refer to the
Financial Report of Bayer AG as of September 30, 2007.

Legal Proceedings against Watson Laboratories initiated

In October 2007, Bayer Schering Pharma received notice that Watson
Laboratories Inc. has filed an ANDA IV application with the U.S. FDA
seeking approval of a generic version of Bayer Schering Pharma's YAZ®
oral contraceptive product. The application claims that Bayer
Schering Pharma's patent is invalid and/or that the respective
generic product does not infringe it. Bayer Schering Pharma has filed
a patent infringement suit against Watson claiming, inter alia, that
the '531 patent has been infringed. Bayer Schering Pharma has market
exclusivity rights for its YAZ® oral contraceptive product until
March 2009.

Since mid-March 2007, the shares of Bayer Schering Pharma AG are no
longer admitted to the Prime Standard Segment of the Frankfurt Stock
Exchange where there are additional reporting obligations. Since
then, Bayer Schering Pharma AG has not been subject to these
additional reporting obligations, but only to the general reporting
requirements of the German Stock Exchange Admission Regulations and
the provisions of the German Securities Trading Act (WpHG). Effective
the beginning of 2007, this Act obligates listed companies to publish
interim announcements by the Board of Management twice a year. Since
November 2006, the American Depositary Receipts (ADRs) of Bayer
Schering Pharma AG are no longer traded on the New York Stock
Exchange. In addition, the registration of Bayer Schering Pharma AG
shares with the U.S. Securities and Exchange Commission ended as of
September 2, 2007. Bayer Schering Pharma AG is therefore no longer
subject to the obligations in connection with the registration as
demanded by stock corporation laws including the Sarbanes-Oxley Act
of 2002. In particular, Bayer Schering Pharma AG will no longer
publish Annual Reports on Form 20-F. As far as obligations arise
indirectly through the affiliation of Bayer Schering Pharma AG to the
Bayer Group and the registration of Bayer AG with the SEC, Bayer
Schering Pharma AG will continue to comply with these obligations.
The Board of Management of Bayer Schering Pharma AG has resolved to
have the secondary listing of Bayer Schering Pharma AG on the SWX
Swiss Exchange (SWX) revoked due to low trading volumes. The
delisting application has been granted by the SWX Swiss Exchange.
Delisting will take place as of December 28, 2007. The last trading
day in the primary segment of the SWX Swiss Exchange will be December
27, 2007. The bearer shares of Bayer Schering Pharma AG will remain
listed on the Frankfurt Stock Exchange.

Berlin, November 7, 2007

Bayer Schering Pharma Aktiengesellschaft
The Board of Management

Forward-Looking Statements This Interim Announcement contains
forward-looking statements based on current assumptions and forecasts
made by Bayer Group management. Various known and unknown risks,
uncertainties and other factors could lead to material differences
between the actual future results, financial situation, development
or performance of the company and the estimates given here. These
factors include those discussed in our public reports filed with the
Frankfurt Stock Exchange and with the U.S. Securities and Exchange
Commission (including our Form 20-F). The company assumes no
liability whatsoever to update these forward-looking statements or to
conform them to future events or developments.

end of announcement euro adhoc 07.11.2007 09:17:11
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ots Originaltext: Bayer Schering Pharma AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Branche: Pharmaceuticals
ISIN: DE0007172009
WKN: 717200
Börsen: Börse Stuttgart / regulated dealing
Börse Hannover / regulated dealing
Börse Frankfurt / official dealing/general standard
Börse Berlin / official dealing
Börse Hamburg / official dealing
Börse Düsseldorf / official dealing
Börse München / official dealing


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