Mannheim and the DePuy group of companies, has announced a global divisionalisation of its $3.2 billion worldwide health care businesses.

The most significant change is the movement of the management of one of its three divisions, Boehringer Mannheim-Therapeutics, from Germany to the United States.

The US is now the headquarters for two of the company's three divisions.

Corange's new CEO, Dr. Max Link, said: "By emphasising the United States, which is the largest pharmaceutical market in the world, Corange hopes to improve its position in the therapeutics market.

"Access to key technologies such as stem cell technology and gene therapy will be considerably easier.'' Corange expects to cut 1,800 of its 9,660 jobs in Germany and will make reductions in Luxembourg, Italy, and the US.

"By far the largest factor influencing our changes was the reform of the public health sector which took effect in Germany earlier this year,'' said Dr. Link.

"Despite pending changes in the health care system in the US, the process of reform is being carried out in a more constructive way there.'' This year alone, Corange said it had lost almost 20 percent of its pharmaceutical sales in Germany.

Corange's chairman, Mr. Curt Engelhorn, said: "It is difficult to understand that health reform laws were introduced in a nation which prided itself on being the `pharmacy of the world'; thereby endangering the future.'' He added: "The lowering of prices by five percent was simply decreed, disregarding all principles of a free market economy.

"Added to this is the introduction of fixed reimbursement rates which have nothing to do with a market economy nor the principles of medicine.

"With this measure even patent protection is undermined. This is surely short-term opportunism -- even if it has to be admitted that it works very effectively for the Ministry of Health.

"Under these circumstances, it is obvious that drastic measures have to be taken in order to limit the damage on the one hand and to take advantages of these opportunities quickly and effectively, on the other.

"We're not only concerned with 20,000 jobs worldwide but especially with the long-term future of these jobs.'' He added: "For more than a decade the group has set itself the goal of doing business on a worldwide scale.

"In view of the large investments in research and development as well as its infrastructure, no other approach would be justified.

"It is clearly necessary, therefore, to adapt the form in which the group has managed to achieve this goal.'' The group of which Corange is a part has had a holding company in Bermuda since August, 1969.

Corange has a staff of five in Hamilton who provide administrative, accounting and treasury services to the group.

It also has a Bermuda-based captive insurance company, Bellago, which is managed by Alexander Insurance Managers.

Corange's diagnostics, biochemicals and orthopaedic brands hold leading positions in their respective markets worldwide. DePuy is the world's top supplier of hip and knee replacements.