euro adhoc: Bayer Schering Pharma AG / 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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09.05.2007

Interim Announcement by Bayer Schering Pharma AG, May 9, 2007

Bayer Schering Pharma AG gets off to a dynamic start in 2007

On account of the integration of Bayer Schering Pharma AG into the
Bayer Group and the associated changes in terms of the legal
corporate structure, the absolute values for the Bayer Schering
Pharma AG group and its segments as of fiscal 2007 are no longer
comparable to 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 Interim Report
as of March 31, 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 line,
sales of which increased significantly. This positive performance was
due particularly to the launch of Yasminelle® in Europe and of YAZ®
in the United States and Latin America. In January, the U.S. Food and
Drug Administration (FDA) expanded the registration for YAZ®, which
can now be used in the United States to treat moderately severe acne
in women. Sales of our intra-uterine system Mirena® also advanced in
the first quarter thanks mainly to strong growth in the United
States.

In the Diagnostic Imaging business unit, sales of Magnevist® rose,
while those of Ultravist® fell markedly from the prior-year quarter.
Having voluntarily withdrawn the 370 mgI/ml formulation of Ultravist®
in the summer of 2006, we resumed sales of this product in some
countries in the first quarter of 2007. We expect to resume
distribution of the product soon in the remaining countries as well.

The Specialized Therapeutics business unit succeeded in increasing
sales of our top product Betaferon®/Betaseron® to treat multiple
sclerosis (MS).

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

Integration of the Bayer Schering Pharma AG group into the Bayer
Group proceeding to schedule

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 group 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, will be amalgamated.

As part of the integration process, the realignment of the legal
corporate structure of the Bayer Schering Pharma AG group has begun.
In this context, a total of 52 subsidiaries were sold to Bayer AG or
its subsidiaries at the end of 2006, so they no longer fall within
the scope of consolidation of Bayer Schering Pharma AG. More than 30
other companies were sold to Bayer AG or its subsidiaries at the
beginning of 2007. The proceeds from the sale of companies to Bayer
in the first quarter of 2007 came to EUR 317 million, while the pre-
tax income was EUR 167 million.

To facilitate implementation of the necessary restructuring measures,
Bayer Schering GmbH - as the majority stockholder of Bayer Schering
Pharma AG - is seeking to acquire all the shares of 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 to acquire biologics manufacturing facility in
the United States

To safeguard our Betaseron® business, we signed an agreement with
Novartis in March 2007 to acquire the biologics manufacturing
facility in Emeryville, California, currently used to produce
Betaseron®. The acquisition is subject to the approval of the
antitrust authorities. According to the terms of the agreement, Bayer
will make a one-time payment to Novartis of approximately US$ 110
million for the production facility, including the Biologics License
Application (BLA). Bayer Schering Pharma will continue to pay
Novartis royalties equivalent to those being paid currently on net
sales of Betaseron® manufactured by Bayer at the Emeryville
facilities until the original agreement with Novartis expires in
October 2008. After this date, no more royalties will be due to
Novartis on the sales of Betaseron®. Bayer Schering Pharma will also
acquire the existing inventories. In return, Novartis will receive a
license to establish its own brand based on interferon beta-1b
starting in 2009. Subject to health authority approval, Bayer
Schering Pharma will manufacture the product for Novartis from 2009
forward and receive in return a low double-digit percentage royalty
from Novartis.

Effective 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 is no longer subject to these
additional reporting obligations, but only to the general reporting
requirements of the German Stock Exchange Admission Regulations and
the new provisions of the German Securities Trading Act (WpHG). As of
the beginning of 2007, this Act obligates listed companies to publish
interim announcements by the Board of Management for the first and
third quarters.

Berlin, May 4, 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 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 09.05.2007 12:40:38
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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: Baden-Württembergische Wertpapierbörse / regulated dealing
Niedersächsische Börse zu Hannover / regulated dealing
Frankfurter Wertpapierbörse / official dealing/general
standard
Börse Berlin-Bremen / official dealing
Hamburger Wertpapierbörse / official dealing
Börse Düsseldorf / official dealing
Bayerische Börse / official dealing


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