MOSCOW (MRC) -- Bayer has announced plans to increase sales and earnings in all of its businesses in the medium term, said Chemweek.
The announcement was made at today’s Meet Management investor conference, held in Cologne, Germany. Werner Baumann, chairman, said that the company anticipates especially significant sales and margin growth in pharmaceuticals. "This growth is expected to be driven particularly by the positive development of our recently launched products, for which we now see combined peak sales potential of more than EUR10 billion [USD11.2 billion]."
At the Bayer CropScience subgroup, Bayer expects a substantial increase in margin after closing the agreed $66-billion acquisition of Monsanto. Closing is expected at the end of 2017. Speculation is growing that Bayer will drop the Monsanto name following the acquisition but Bayer says that the decision has not yet been made. "We have not commented on this question; the brand strategy has not been defined yet," Bayer says.
The pharma targets include average annual sales growth of approximately 6% by the end of 2018 adjusted for currency and portfolio effects. Pharma sales totaled EUR15.3 billion in 2015. Bayer aims to increase the pharma EBITDA margin before special items to 32-34% in 2018.
Baumann says Bayer has raised the estimate of the combined peak annual sales potential of five recently launched pharmaceuticals from at least EUR7.5 billion, to more than EUR10 billion. Bayer now expects peak sales potential of more than EUR5 billion, up from approximately EUR3.5 billion, for the anticoagulant Xarelto; and more than EUR2.5 billion for the eye medicine Eylea, up from at least EUR1.5 billion. The company anticipates peak sales potential of more than EUR1 billion for the cancer drug Xofigo and more than EUR500 million for the pulmonary hypertension treatment Adempas. The peak sales potential of the cancer drug Stivarga is unchanged—at least EUR1 billion.
As MRC informed earlier, Monsanto has accepted an increased takeover bid of USD128/share from Bayer, paving the way for Bayer to acquire Monsanto in an all-cash transaction valued at USD66 billion.
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen.