Bayer Outlines New Global R&D Structures

U.S. Pharma Sites and Future Headquarters

13-Nov-2006

Bayer HealthCare announced a structural realignment of its global pharmaceutical research and development organization. The company also outlined its future U.S. pharma site plan, and said that New Jersey will be home to its U.S. headquarters for pharmaceuticals. These moves follow Bayer's acquisition of Schering AG, Germany in June 2006 and are part of the company's plan to integrate its pharmaceutical operations with those of Schering AG and Berlex Inc. (the U.S. subsidiary of Schering AG).

As part of this change, research programs and activities now dispersed in various sites will be consolidated into three major research and development sites (Berlin and Wuppertal, Germany and Berkeley, California). The Berlin research group will take leadership for Diagnostic Imaging, Oncology and Gynecology/Andrology research and Wuppertal will be core for the company's Cardiology research. Both locations have significant capabilities and activities in target discovery, lead generation and optimization, drug metabolism and pharmacokinetics, toxicology and clinical pharmacology.

With the global consolidation of research activities, research operations at U.S. sites in West Haven, CT and Richmond CA (including the biological development group now co-located in Richmond) will close. The company will relocate remaining departments and functions presently based in West Haven into headquarters locations in New Jersey.

Wayne and Montville, New Jersey will be headquarters for the company's U.S. pharmaceutical commercial operations and Global Oncology and Specialized Therapeutics business units, and home to U.S.-based Global Drug Development groups and other business support functions. Employee groups transferring from other U.S. sites will move over the next 12-18 months.

Bayer anticipates that approximately 600 U.S. positions will be eliminated by these changes, primarily in research. Over time we anticipate an additional 200 U.S.-based positions will be eliminated by the overall reorganization. After one-time costs of approximately $350 million, of which approximately $200 million are non-cash related, these measures will enable the company to reduce overall R&D costs by over $210 million per year by the end of 2008.

https://www.chemeurope.com/en/news/59405/bayer-outlines-new-global-r-d-structures.html