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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28.04.2008

Interim Announcement by Bayer Schering Pharma AG April 28, 2008

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 Group companies and their segments 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 March 31, 2008.

Bayer Schering Pharma posts gratifying operating performance

The principle growth driver in our Women's Healthcare business unit was the
Yasmin®/YAZ®/Yasminelle® family of oral contraceptive products.

In the Diagnostic Imaging business unit, sales of Ultravist® grew, although
prior-year sales were depressed by temporary interruption of the distribution
of the Ultravist® 370 mgl/ml formulation.

In the Specialized Therapeutics business unit, sales of Betaferon®/Betaseron®
for the treatment of multiple sclerosis (MS) increased yet again.

Integration of the 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 2006, work started on integrating the Bayer Schering
Pharma AG Group 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 now been amalgamated.

In the course of integrating the Bayer Schering Pharma AG Group companies into
the Bayer Group, one company was deconsolidated in the first quarter of 2008
following amalgamation with a Bayer Group company. In this context, a total of
89 companies were deconsolidated in 2006 and 2007 following their sale or an
exchange of shares.

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.

Legal risks

To find out more about Bayer Schering Pharma AG's overall risk situation,
please refer to pages 48-55 of the Bayer Schering Pharma AG Annual Report 2007,
which can be downloaded free of charge at www.schering.de. Since the Bayer
Schering Pharma AG Annual Report 2007 was published, the following significant
changes have occurred in respect of the legal risks:

Yasmin®: On page 50 of the Bayer Schering Pharma AG Annual Report 2007, we
reported that Bayer Schering Pharma filed a suit against Barr Pharmaceuticals
Inc. and Barr Laboratories Inc. in U.S. federal court, alleging patent
infringement by Barr for the intended generic version of Bayer Schering
Pharma's Yasmin® oral contraceptive product in the United States. In June 2005,
Barr filed its counterclaim seeking to invalidate Bayer Schering Pharma's
patent. In early March 2008, the U.S. federal court invalidated Bayer Schering
Pharma AG's ´531 patent for Yasmin®. Bayer Schering Pharma has appealed this
ruling.

In March 2008, Bayer HealthCare Pharmaceuticals Inc. and Bayer Schering Pharma
AG received two notices of an Abbreviated New Drug Application (ANDA) pursuant
to which Watson Laboratories Inc. and Sandoz Inc. are each seeking approval to
market a generic version of Bayer Schering Pharma's oral contraceptive Yasmin®
in the United States. Bayer Schering Pharma has filed a suit against Watson and
Sandoz in U.S. federal court alleging patent infringement.

YAZ®: On page 50 of the Bayer Schering Pharma AG Annual Report 2007, we
reported that, in January 2007, Barr Laboratories Inc. filed an ANDA
application with the U.S. FDA seeking approval of a generic version of Bayer
Schering Pharma's YAZ® oral contraceptive in the United States. In October
2007, Bayer Schering Pharma was notified that Watson Laboratories Inc. had also
filed an ANDA application for a generic version of YAZ® in the United States.
Both applications claim that the Bayer Schering Pharma patents are invalid
and/or that the respective generic product does not infringe them. Bayer
Schering Pharma has filed a patent infringement suit against Watson claiming,
inter alia, that Bayer Schering Pharma's ´531 patent has been infringed. Bayer
Schering Pharma's ´531 patent is also at issue in the patent infringement suit
against Barr, mentioned previously, involving the oral contraceptive Yasmin®.
Bayer Schering Pharma is currently evaluating the impact of the court's
decision regarding Yasmin® on YAZ®. However, regardless of the outcome of the
court's decision invalidating the company's ´531 patent with regard to Yasmin®,
Bayer Schering Pharma retains marketing exclusivity for YAZ® as an oral
contraceptive in the United States until March 16, 2009. No generic
manufacturer can lawfully market a generic version of YAZ® for an oral
contraceptive indication until after March 16, 2009.

Since mid-March 2007, the shares of Bayer Schering Pharma AG have not been
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 since 2007, the WpHG obligates listed companies to publish interim
announcements by the Board of Management twice a year. The American Depositary
Receipts (ADRs) of Bayer Schering Pharma AG have not been traded on the New
York Stock Exchange since November 2006. 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
U.S. 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. The secondary listing of Bayer Schering Pharma AG on the SWX Swiss
Exchange was revoked as of December 28, 2007. The bearer shares of Bayer
Schering Pharma AG will continue to be listed on the Frankfurt Stock Exchange.

Berlin, April 28, 2008

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 and Bayer Schering
Pharma AG 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.

Statements to the duty publication:
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Duty publication in/over: http://www.schering.de/scripts/en/40_ir/2008/fin_rep/080425_q1.php?n=ird&c1=reports_financial
Duty publication at that: 28.04.2008

end of announcement euro adhoc
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emitter: Bayer Schering Pharma AG
Müllerstrasse 178
D-13353 Berlin
phone: +49 (0)30 468 1111
FAX: +49 (0)30 468 15305
mail: [email protected]
WWW: www.schering.de
sector: Pharmaceuticals
ISIN: DE0007172009
indexes:
stockmarkets: regulated dealing: Börse Berlin, Börse Stuttgart, Börse
Düsseldorf, Börse Hannover, Börse München, regulated
dealing/general standard: Börse Frankfurt
language: English

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