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6.3 Divestitures and discontinued operations

Proceeds from divestitures, including those detailed below, in 2009 totaled €454 million.

The strategic alliance with Genzyme Corporation, United States, announced on March 31, 2009, was implemented at the end of May 2009. In accordance with the agreement terms, we transferred the hematological oncology portfolio – Campath®/MabCampath®, Fludara® and Leukine® – to Genzyme. The divested assets were recognized as assets held for sale starting in the first quarter of 2009. They comprised €92 million in goodwill, €150 million in patents, €25 million in other intangible assets and €30 million in inventories. We are continuing our established co-development partnership with Genzyme for the active substance alemtuzumab for an indication in multiple sclerosis. A related payment of €55 million was received in 2009. The present value of anticipated future revenue-based payments is €363 million.

In May 2009 we acquired the remaining 49% interest in Berlimed, S.A., Spain, from Juste S.A. Quimica Farmacéutica (Juste), and in return sold our 51% share of Justesa Imagen, S.A., Spain, to Juste for €16 million. A payment of €3 million was received in 2009 and a receivable for the remaining amount was therefore recognized in the statement of financial position.

In addition, we sold the Thermoplastics Testing Center, Krefeld, Germany, to Underwriters Laboratories, Inc., United States, for €18 million in May 2009.

The impact of these and additional minor divestments on the assets, liabilities and earnings of the Group as of the respective divestment dates was as follows:

Divested Assets and Liabilities	[Table 4.26]
	2009
	€ million
Property, plant and equipment	(6)
Other financial assets	(3)
Inventories	(9)
Other current assets	(12)
Assets held for sale	(297)
Provisions for pensions and other post-employment benefits	1
Other provisions	5
Other liabilities	14
Divested assets and liabilities	(307)
Non-controlling interest	6
Net assets	(301)
Net cash inflow from divestitures	70
of which cash outflow for divestiture costs	(8)
Future cash payments receivable	376
Net gain from divestitures	145
Deferred net gain	(8)
Net gain from divestitures (before taxes)	137

The pre-tax gain from the divestments is reflected in other operating income.

In 2009 the remaining assets and liabilities pertaining to discontinued operations are not reported separately due to their immateriality.

In 2008 an operating result of €6 million, after-tax income of €4 million, assets of €3 million and liabilities of €13 million were recognized under discontinued operations in connection with the divestment of the diagnostics activities.

Discontinued operations affected the Group statement of cash flows for 2008 as follows:

Discontinued Operations: Impact on Statements of Cash Flows		[Table 4.27]
	Diagnostics	Wolff Walsrode	Total
	2008	2008	2008
	€ million	€ million	€ million
Net cash provided by (used in) investing activities	(52)	8	(44)
Net cash provided by (used in) financing activities	52	(8)	44
Change in cash and cash equivalents	-	-	-