Schering AG

Schering AG
Name	Schering AG
Type	Public
Industry	Pharmaceuticals
Founded	1851
Fate	Acquired (2006)
Headquarters	Berlin, Germany
Key people	Ernst Schering, Christiane Rohleder, Klaus-Jürgen Heider
Products	Pharmaceuticals, diagnostics, specialty chemicals
Revenue	€5.4 billion (2005)
Employees	22,000 (2005)

Schering AG was a German multinational pharmaceutical company founded in the 19th century and headquartered in Berlin. Over more than 150 years it developed prescription medicines, diagnostics and specialty chemicals, and became known for hormonal therapies, oncology agents and imaging products. The company was a major participant in European and global pharmaceutical markets prior to its 2006 acquisition.

History

Schering AG traces origins to 1851 when entrepreneur Ernst Schering established a chemical factory in Berlin. In the late 19th and early 20th centuries the firm expanded with links to industrialists and scientific institutions such as the Kaiser Wilhelm Society and collaborated with chemists from universities in Berlin and Leipzig. During the interwar period Schering participated in pharmaceutical research alongside contemporaries like Bayer and Hoechst AG. In the Nazi era the company operated in a complex legal and ethical environment involving interactions with state bodies including the Reich Ministry of Food and Agriculture and industrial conglomerates that later formed part of historical inquiries. After World War II Schering was reconstituted and rebuilt its operations in West Berlin, maintaining international ties with companies such as Ciba-Geigy and expanding into markets across Europe, North America and Asia. From the 1970s through the 1990s Schering developed strategic research units and acquired technology from firms like Schering-Plough (historically linked by name but distinct in corporate identity) while competing with global groups such as GlaxoSmithKline and Novartis. In the early 21st century Schering pursued restructuring and international alliances ahead of its acquisition by Bayer AG in 2006.

Products and Research

Schering AG's product portfolio encompassed pharmaceuticals, diagnostics and specialty chemicals. Its therapeutic areas included endocrinology, oncology, cardiology and neurology, and it marketed hormonal contraceptives and hormone replacement therapies that related to research traditions found at universities like Humboldt University of Berlin and institutes such as the Max Planck Society. Oncology pipelines included cytostatics and targeted agents developed in collaboration with research centers such as Charité – Universitätsmedizin Berlin and partnerships with biotech firms like Genentech and Amgen. Schering's diagnostics division produced imaging agents and contrast media used in radiology and nuclear medicine, connecting with clinical sites like University Hospital Heidelberg and imaging research at Charité. Its research model combined in-house medicinal chemistry, translational research linked to hospitals, and licensing arrangements with biotechnology companies and venture investors from hubs such as Cambridge, Massachusetts and Silicon Valley. Notable product lines were aligned with global therapeutic trends shaped by regulators such as the European Medicines Agency and the U.S. Food and Drug Administration.

Corporate Structure and Management

Schering AG operated as a publicly traded Aktiengesellschaft listed on the Frankfurt Stock Exchange and subject to German corporate law including provisions similar to those examined in cases involving Deutsche Bank and supervisory boards in companies like Siemens. Its governance model included a management board and a supervisory board, and executives negotiated with institutional investors such as Allianz and sovereign investors from countries like Norway and Japan. Key managers over time participated in industry organizations such as the European Federation of Pharmaceutical Industries and Associations and engaged with academic leadership at institutions like Free University of Berlin. The corporate structure included regional subsidiaries in United Kingdom, United States, Japan, and an Asian hub in Singapore; manufacturing facilities followed industrial precedents set by chemical firms in the Ruhr region and pharmaceutical clusters in Basel.

Mergers, Acquisitions, and Controversies

Schering AG pursued acquisitions and collaborations to build pipelines and market access, engaging in transactions comparable to deals by Pfizer and Roche. Its corporate history involved attempted bids and defended negotiations similar to takeover activity seen in the 2000s among AstraZeneca and Sanofi-Aventis. The 2006 acquisition by Bayer AG concluded after competitive interest from other bidders and regulatory review by authorities such as the European Commission. Controversies in Schering's history included scrutiny over wartime activities that prompted historical research akin to studies of IG Farben and legal inquiries into business conduct during difficult historical periods. Later disputes concerned patent litigations and regulatory challenges, echoing litigation involving Merck and Johnson & Johnson over drug approvals and intellectual property in markets like United States and Germany.

Financial Performance

Prior to acquisition, Schering AG reported revenues and profitability metrics monitored by analysts at firms like Deutsche Bank and Goldman Sachs. The company posted annual sales in the multi-billion-euro range and managed cost structures through divestments and R&D prioritization similar to strategies used by Novartis and GlaxoSmithKline. Financial performance reflected product lifecycle dynamics, patent expirations, and reimbursement policies influenced by payers in Germany and national health systems in United Kingdom and France. Stock performance was tracked on indices where major European pharmaceuticals such as AstraZeneca and Sanofi also figured; credit assessments by agencies comparable to Moody's and Standard & Poor's influenced capital markets activity.

Corporate Social Responsibility and Legal Issues

Schering engaged in corporate social responsibility initiatives focusing on access to medicines, research collaborations with universities such as Technical University of Munich and public health programs in collaboration with international organizations like the World Health Organization. The company faced legal challenges including product liability suits and patent disputes akin to high-profile cases involving Merck Sharp & Dohme and Pfizer, and was subject to regulatory enforcement by agencies such as the U.S. Department of Justice and European regulatory bodies. Historical examinations of corporate conduct during the 20th century prompted dialogues with scholars at institutions like the Free University of Berlin and commissions modeled on inquiries into industrial actors such as IG Farben. After the Bayer acquisition, legacy legal and social commitments were integrated into the successor company's compliance and corporate citizenship frameworks.

Category:Pharmaceutical companies of Germany Category:Companies based in Berlin Category:Companies established in 1851