March 11, 2015
Bayer aspires to significantly expand Life Science businesses
HealthCare striving for strong sales and margin growth through 2017 / CropScience aims to grow faster than the market and maintain margin at a high levelLeverkusen/Berlin, March 11, 2015 - The Bayer Group aims to achieve strong
sales and earnings growth for its Life Science businesses in the coming years.
"We are also optimistic for the medium term and have great plans for the Life
Science businesses," said CEO Dr. Marijn Dekkers on Wednesday at the "Meet
Management" investor conference in Berlin. Bayer seeks to considerably increase
sales and margins at HealthCare, in particular, through 2017, driven mainly by
the recently launched products in Pharmaceuticals and by the Consumer Care
business, which was greatly strengthened last year through acquisitions. At
CropScience, Bayer aims to continue achieving above-market growth and to
maintain an industry-leading margin, with the agricultural business benefiting
particularly from new crop protection products. "We will continue to invest
heavily so that we continue to be successful with innovative products," said
"The outlook for our health care business is particularly positive thanks to
the five pharmaceutical products we recently launched," added Dekkers. "They
have played a crucial role in making us one of the fastest-growing large
companies in the pharma-ceutical industry." Combined sales of the anticoagulant
Xarelto™, the eye medicine Eylea™, the cancer drugs Stivarga™ and Xofigo™, and
the pulmonary hypertension drug Adempas™ are projected to increase toward EUR 4
billion in 2015 (2014: EUR 2.9 billion), he said, putting the peak annual sales
potential of these products at a total of at least EUR 7.5 billion.
High expectations for sales and earnings over the medium term
Bayer aspires to grow HealthCare sales by an average of about 6 percent a year
through 2017 to more than EUR 25 billion (2014: EUR 20.0 billion) and to
increase the EBITDA margin before special items to between 29 and 31 percent
(2014: 27.5 percent). These estimates are based on exchange rates as of
December 31, 2014, including a rate of USD 1.21 to the euro. The percentage
changes in sales are based on pro forma figures that present the acquired
businesses as if the acquisitions had been completed on January 1, 2014.
Bayer aims to increase sales at Pharmaceuticals by approximately 7 percent each
year through 2017, to more than EUR 15 billion (2014: EUR 12.1 billion) and to
achieve an EBITDA margin before special items of between 32 and 34 percent
(2014: 30.7 percent) in this division. The margin level will be largely
determined by the success of the commercialized products - and also by the
progress of the projects currently in the research and development pipeline,
explained the CEO. He said that the better the Pharmaceuticals pipeline
develops, the more investment will be required for further clinical trials.
Bayer expects the mid- and late-stage projects in its pipeline to make
significant progress over the next 12 to 18 months. "We want to help improve
treatment options for patients in our research areas of cardiology, hematology,
oncology and gynecology," said Dekkers. He explained that Bayer plans to spend
more than EUR 4.0 billion (2014: EUR 3.6 billion) on research and development
in 2015 alone, with more than half of this amount - some EUR 2.2 billion -
earmarked for the Pharmaceuticals business.
In the Consumer Health segment, sales are projected to rise by an average of
around 4 percent annually through 2017 to more than EUR 10 billion (2014: EUR
7.9 billion) and the EBITDA margin before special items to between 24 and 26
percent (2014: 22.5 percent) - driven by the consumer care business acquired
from Merck & Co., Inc., United States. Dekkers said the integration of this
business is well on track, with Bayer now occupying the global number two
position in non-prescription (over-the-counter) products.
"In the agricultural business, too, we are mainly benefiting from our
innovative products," he continued. In Crop Protection, the new products
launched since 2006 are predicted to achieve sales of about EUR 2.8 billion in
2017 (2014: EUR 1.9 billion). For CropScience as a whole, the aim is to achieve
above-market growth and raise sales to more than EUR 11 billion in 2017 (2014:
EUR 9.5 billion), giving average annual growth of around 5 percent. It is
intended to maintain the EBITDA margin before special items at an
industry-leading level of 23 to 25 percent (2014: 24.9 percent).
"We will now work at full steam on implementing our decision to focus entirely
on the Life Science businesses," Dekkers announced. All of the related projects
are on track. The carve-out, which entails the economic and legal separation of
MaterialScience, is to be completed by August 31, 2015, and the company floated
on the stock market by mid-2016 at the latest. Bayer plans to decide between an
IPO and a spin-off in the second half of 2015.
"We are optimistic for the future," Dekkers concluded. Bayer has excellent
growth perspectives - thanks to its outstanding expertise in R&D and marketing,
its dynamic innovation pipeline, its strong brands and a superior presence in
the Emerging Markets.
Bayer: Science For A Better Life
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. In fiscal 2014,
the Group employed 118,900 people and had sales of EUR 42.2 billion. Capital
expenditures amounted to EUR 2.5 billion, R&D expenses to EUR 3.6 billion. For
more information, go to www.bayer.com.